Legislature(2001 - 2002)

04/24/2002 08:42 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                          April 24, 2002                                                                                      
                              8:42 PM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-02 # 76, Side A                                                                                                             
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Dave Donley convened the meeting at approximately 8:42 PM.                                                             
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Dave Donley, Co-Chair                                                                                                   
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Jerry Ward, Vice Chair                                                                                                  
Senator Loren Leman                                                                                                             
Senator Lyda Green                                                                                                              
Senator Gary Wilken                                                                                                             
Senator Alan Austerman                                                                                                          
Senator Lyman Hoffman                                                                                                           
Senator Donald Olson                                                                                                            
                                                                                                                                
Also Attending:  DAVID TEAL, Director, Division of Legislative                                                                
Finance;                                                                                                                        
                                                                                                                                
Attending via Teleconference:  From Off-Net Site: LUCINDA KNOPP                                                               
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
HB 402-ALASKA TEMPORARY ASSISTANCE PROGRAM                                                                                      
                                                                                                                                
The Committee heard public testimony and the bill moved from                                                                    
Committee.                                                                                                                      
                                                                                                                                
HB 403-APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                     
SB 288-APPROP:MENTAL HEALTH BUDGET                                                                                              
HB 404-APPROP: MENTAL HEALTH BUDGET                                                                                             
SB 289-APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                     
                                                                                                                                
The Committee considered and adopted two amendments. The bill was                                                               
held in Committee.                                                                                                              
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 402(HES)                                                                               
     "An Act  relating to diversion  payments, wage subsidies,  cash                                                            
     assistance,  and self- sufficiency services provided  under the                                                            
     Alaska  temporary  assistance  program;  relating  to the  food                                                            
     stamp  program; relating  to child support  cases that  include                                                            
     persons  who   receive  cash  assistance  or  self-sufficiency                                                             
     services  under the  Alaska temporary  assistance program;  and                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
LUCINDA  KNOPP testified  via teleconference  from  an off-net  site                                                            
that this legislation  would enable  her to work, earn a  salary and                                                            
continue to receive benefits.  She informed that she and her husband                                                            
are disabled and require these benefits.                                                                                        
                                                                                                                                
Co-Chair Kelly offered  a motion "move House Bill 402 from Committee                                                            
with individual recommendations  and accompanying zero fiscal note."                                                            
                                                                                                                                
There was no objection  and SCS CS HB 402 (HES) MOVED from Committee                                                            
with a  zero fiscal  note #1 dated  2/14/02 from  the Department  of                                                            
Health and Social Services.                                                                                                     
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 403(FIN) am(brf sup maj fld)(efd fld)                                                                
     "An  Act  making appropriations   for the  operating  and  loan                                                            
     program  expenses of  state government,  for certain  programs,                                                            
     and to capitalize funds."                                                                                                  
                                                                                                                                
     SENATE BILL NO. 289                                                                                                        
     "An  Act  making appropriations   for the  operating  and  loan                                                            
     program  expenses of  state government,  for certain  programs,                                                            
     and to capitalize  funds; making appropriations  under art. IX,                                                            
     sec.  17(c), Constitution  of  the State  of  Alaska, from  the                                                            
     constitutional   budget reserve  fund;  and  providing  for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
     CS FOR HOUSE BILL NO. 404(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."                                                                             
                                                                                                                                
     SENATE BILL NO. 288                                                                                                        
     "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."                                                                             
                                                                                                                                
                                                                                                                                
MULTI #1: This amendment to SCS CS HB 403, 22-LS1295\R, replaces                                                                
the language in Section 10 on page 53, following line 6 to read as                                                              
follows.                                                                                                                        
                                                                                                                                
          Sec. 10. LEGISLATIVE INTENT AND FINDINGS. (a) 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, 2003.                                                                   
          (b) The money appropriated by this Act may be expended                                                                
     only in accordance  with the purpose of the appropriation under                                                            
     which  the expenditure  is  authorized. Money  appropriated  by                                                            
     this Act  may not be expended  for or transferred to  a purpose                                                            
     other  than the  purpose for  which the  appropriation is  made                                                            
     unless  the transfer is authorized  by the legislature  by law.                                                            
     See,  Alaska  Legislative  Council  v.  Knowles,  21  P.3d  367                                                            
     (Alaska 2001). All  appropriations made by this Act are subject                                                            
     to AS  37.07.080(e).  A payment or authorization  of a  payment                                                            
     not authorized  by this Act may be a violation  of AS 37.10.030                                                            
     and  may result in action  under AS 37.10.030  to make  good to                                                            
     the  state the  amount of  an illegal,  improper, or  incorrect                                                            
     payment  that does not represent  a legal obligation  under the                                                            
     appropriation involved.                                                                                                    
                                                                                                                                
This amendment also deletes the language in Section 15 on page 54                                                               
lines 14 through 31 and page 55 lines 1 through 8 and inserts new                                                               
language to read as follows.                                                                                                    
                                                                                                                                
     Sec. 15.  ALASKA HOUSING FINANCE CORPORATION.  (a) The board of                                                            
     directors   of   the   Alaska   Housing   Finance  Corporation                                                             
     anticipates  that  the net  income  from the  second  preceding                                                            
     fiscal year will be  available in each of the fiscal years 2004                                                            
     through 2008.  During fiscal year 2003, the board  of directors                                                            
     anticipates  that  $103,000,000  will  be  made  available  for                                                            
     payment  of debt service, appropriation  for capital  projects,                                                            
     and   transfer  to   the  Alaska  debt   retirement  fund   (AS                                                            
     37.15.011).  Of that amount, approximately $84,299,967  will be                                                            
      retained by the corporation for the following purposes:                                                                   
                (1) $1,000,000 for debt service on University of                                                                
     Alaska,  Anchorage,  dormitory construction,  authorized  under                                                            
     ch. 26, SLA 1996;                                                                                                          
                (2) $37,986,612 for debt service on the bonds                                                                   
     authorized under sec. 2(c), ch. 129, SLA 1998;                                                                             
                (3) $12,013,355 for debt service on the bonds                                                                   
     authorized under sec. 10, ch. 130, SLA 2000;                                                                               
                (4) $33,300,000 for capital projects.                                                                           
          (b) After deductions for the items set out in (a) of this                                                             
     section  are made, any  remaining balance  of the $103,000,000                                                             
     anticipated  by the board  of directors  of the Alaska  Housing                                                            
     Finance Corporation  to be available in the fiscal year 2003 is                                                            
     appropriated   to   the  Alaska   debt  retirement   fund   (AS                                                            
     37.15.011).                                                                                                                
                                                                                                                                
This amendment  also increases the  amount appropriated to  Learning                                                            
Opportunity Grants from  $12,372,000 to $16,510,000 in Section 24 on                                                            
page 58, line 4.                                                                                                                
                                                                                                                                
This amendment  also inserts  a subsection  to Section 24.  LEARNING                                                            
OPPORTUNITY  GRANTS.,  on page  58,  following line  15  to read  as                                                            
follows.                                                                                                                        
                                                                                                                                
          (b) The unexpended and unobligated general fund balance                                                               
     of that  portion of the appropriation  made by sec.  1, ch. 60,                                                            
     SLA  2001, page  11,  line 30,  that is  allocated  on line  31                                                            
     (Foundation  Program - $665,017,700)  is reappropriated  to the                                                            
     Department  of Education and  Early Development for  the fiscal                                                            
     year ending June 30,  2003, for payment as learning opportunity                                                            
     grants to  the school districts based on the  school district's                                                            
     average  daily membership  to  pay for  instructional  programs                                                            
     intended  to improve student performance. Learning  opportunity                                                            
     grants  will provide  the opportunity  to  move schools  toward                                                            
     standards-based   education,  including  vocational   education                                                            
     programs.  The increased funding in available  to pay for costs                                                            
     associated  with improving  student performance  by  developing                                                            
     standards-based    programs,   including   implementation    of                                                            
     standards,  aligning student assessment to standards,  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 inserts  a  new bill  Section  41  on page  64                                                            
following line  18 to provide that Section 24 (b)  takes effect June                                                            
30, 2002.                                                                                                                       
                                                                                                                                
This amendment  also reduces the general  fund appropriation  to the                                                            
Alaska  debt retirement  fund  (AS 37.15.011)  from  $27,710,800  to                                                            
$14,663,600, in Section 34 (c) on page 62 line 2.                                                                               
                                                                                                                                
This  amendment  also deletes  Section  34(k) on  page  63, lines  2                                                            
through 10 and inserts four subsections to read as follows.                                                                     
                                                                                                                                
          (k) The sum of $2,061,400 is appropriated from the                                                                    
     tobacco use education  and cessation fund (AS 37.05.580) to the                                                            
     Alaska debt retirement fund (AS 37.15.011).                                                                                
          (l) The sum of $100,000 is appropriated from the                                                                      
     investment  loss trust fund (AS  37014.300) to the Alaska  debt                                                            
     retirement fund (AS 37.15.011).                                                                                            
          (m) The sum of $783,100 from the fiscal year 2003                                                                     
     dividend   that  is  declared  by  the  Alaska  Commission   on                                                            
     Postsecondary  Education  is  appropriated from  the  education                                                            
     loan  fund (AS 14.42.210)  to the Alaska  debt retirement  fund                                                            
     (AS 37.15.011).                                                                                                            
          (n) The balance, including unobligated and unencumbered                                                               
     earnings,  of the international  trade  and business  endowment                                                            
     (AS 37.17.400)  on July 1, 2002  is appropriated to  the Alaska                                                            
     debt retirement fund (AS 37.15.011).                                                                                       
                                                                                                                                
This amendment  also increases  the appropriation  of fee  supported                                                            
services  funds to  the State Health  Services  Budget Request  Unit                                                            
(BRU),  Community Health/Emergency   Medical Services  component  on                                                            
page 21,  lines 14  and 15, to  increase the  total allocation  from                                                            
$17,833,000 to $17,933,000.                                                                                                     
                                                                                                                                
This  amendment  also  inserts  a  new  bill  section  on  page  57,                                                            
following line 26 to read as follows.                                                                                           
                                                                                                                                
          Sec. 23. DEPARTMENT OF HEALTH AND SOCIAL SERVICES. The                                                                
     amount  appropriated  to the  Department of  Health and  Social                                                            
     Services for community  health/emergency medical services under                                                            
     the appropriation  for state health services  in sec. 1 of this                                                            
     Act  includes  the unexpended  and  unobligated  receipts  from                                                            
     business license endorsement  fees collected under AS 43.70.075                                                            
     by the Department  of Community and Economic Development during                                                            
     the fiscal years ending June 30, 2002, and June 30, 2003.                                                                  
                                                                                                                                
This  amendment  also inserts  a  new bill  Section  42  on page  64                                                            
following line  18 to provide that  the new Section 23 takes  effect                                                            
June 30, 2002.                                                                                                                  
                                                                                                                                
This amendment  also inserts  intent language  to the Department  of                                                            
Labor and  Workforce Development,  Labor Standards  and Safety  BRU,                                                            
Alaska Safety Advisory  Council component on page 24 lines 12 and 13                                                            
to read as follows.                                                                                                             
                                                                                                                                
     The  amount appropriated  by  this appropriation  includes  the                                                            
     unexpended  and unobligated  balance on  June 30, 2002,  of the                                                            
     Department  of Labor and Workforce  Development, Alaska  Safety                                                            
     Advisory Council receipts under AS 18.60.840.                                                                              
                                                                                                                                
Accompanying explanatory language to this portion of the amendment                                                              
reads as follows.                                                                                                               
                                                                                                                                
     This amendment is  identical to language the House accepted and                                                            
     provides  the Alaska  Safety  Advisory Council  the ability  to                                                            
     expend  receipts  received  for the  Governor's  annual  safety                                                            
     conference.                                                                                                                
                                                                                                                                
This amendment also inserts intent language to the Department of                                                                
Natural Resources, Forestry Management and Development BRU and                                                                  
component on page 28 lines 9 through 12 to read as follows.                                                                     
                                                                                                                                
     The  amount appropriated  by  this appropriation  includes  the                                                            
     unexpended  and unobligated  balance on  June 30, 2002,  of the                                                            
     timber receipts accounts (AS 38.05.110).                                                                                   
                                                                                                                                
Accompanying explanatory language to this portion of the amendment                                                              
reads as follows.                                                                                                               
                                                                                                                                
     This amendment is  identical to language the House accepted and                                                            
     provides  the  Forestry Management  and  Development  increased                                                            
     timber receipt authority.                                                                                                  
                                                                                                                                
This amendment also adds and deletes funds in the amounts specified                                                             
to agencies as follows.                                                                                                         
                                                                                                                                
     Department of Administration                                                                                               
                                                                                                                                
          Motor Vehicles BRU and component                                                                                      
          Page 5, lines 17 and 18                                                                                               
                $100,600 general funds                                                                                          
                 281,700 General Fund Program Receipts                                                                          
                                                                                                                                
     Department of Community and Economic Development                                                                           
                                                                                                                                
          Community Assistance & Economic Development BRU                                                                       
           Community and Business Development component                                                                         
          Page 6, lines 13 and 14                                                                                               
                ($160,000) general funds                                                                                        
                                                                                                                                
          Community Assistance & Economic Development BRU                                                                       
          International Trade and Market Development component                                                                  
          Page 6, lines 15 and 16                                                                                               
                $100,000 general funds                                                                                          
                Insert intent language to read, "This appropriation                                                             
          includes $100,000 for a grant to a named recipient, the                                                               
          World Trade Center, for a project development grant."                                                                 
                                                                                                                                
     Department of Corrections                                                                                                  
                                                                                                                                
          Administration and Operations BRU                                                                                     
          Agency-Wide Unallocated Reductions new component                                                                      
          Page 9                                                                                                                
                $1,000,000 general funds                                                                                        
                                                                                                                                
     Department of Education and Early Development                                                                              
                                                                                                                                
          K-12 Support BRU                                                                                                      
          Foundation Program component                                                                                          
          Page 11, line 15                                                                                                      
                $4,138,000 general funds                                                                                        
                Note: This transaction brings LOGs [Learning                                                                    
          Opportunity  Grants]  to a total  of $16.51 million.  This                                                            
          amount  plus a  reappropriation of  FY 02 lapsing  balance                                                            
          brings  LOGs to a total  of $23.32 million, which  offsets                                                            
          inflation of 2.9 percent.                                                                                             
                                                                                                                                
          Teaching and Learning Support BRU                                                                                     
          Quality Schools component                                                                                             
          Page 11, line 26                                                                                                      
                $130,000 general funds                                                                                          
                                                                                                                                
          Kotzebue Technical Center Operations Grant BRU and                                                                    
          component                                                                                                             
          Page 12, lines 29 through 32                                                                                          
                $470,000 general funds                                                                                          
                (470,000) ACPE [Alaska Commission on Postsecondary                                                              
                Education] Dividend                                                                                             
                                                                                                                                
           Alaska Postsecondary Education Commission BRU                                                                        
          WWAMI Medical Education component                                                                                     
          Page 13, line 27                                                                                                      
                $63,100 general funds                                                                                           
                (63,100) ACPE Dividend                                                                                          
                                                                                                                                
     Department of Environmental Conservation                                                                                   
                                                                                                                                
          Environmental Health BRU                                                                                              
          Food Safety & Sanitation component                                                                                    
                ($  654,000) Federal Receipts                                                                                   
                    613,200 general funds                                                                                       
                ( 1,576,100) GF Program Receipts                                                                                
                  1,576,100 Receipt Supported Services                                                                          
                                                                                                                                
          Environmental Health BRU                                                                                              
          Solid Waste Management component                                                                                      
          Page 11, line 10                                                                                                      
                $230,400 general funds                                                                                          
                (230,400) GF Program Receipts                                                                                   
                                                                                                                                
          Air and Water Quality BRU                                                                                             
          Air Quality component                                                                                                 
          Page 14, line 14                                                                                                      
                ($175,000) Federal Receipts                                                                                     
                   25,000 GF Program Receipts                                                                                   
                  150,000 general funds                                                                                         
                                                                                                                                
          Non-Point Source Pollution Control BRU and component                                                                  
          Page 14, lines 21 and 22                                                                                              
                $715,400 Federal Receipts                                                                                       
                                                                                                                                
     Department of Fish and Game                                                                                                
                                                                                                                                
          Commissioner's Office BRU                                                                                             
          Agency-wide Unallocated Reduction new component                                                                       
          Page 15, following line 13                                                                                            
                ($1,485,700) general funds                                                                                      
                                                                                                                                
          Commercial Fisheries BRU                                                                                              
          Westward Region Fisheries Management component                                                                        
          Page 15, lines 24 and 25                                                                                              
                $741,000 general funds                                                                                          
                                                                                                                                
          Commercial Fisheries BRU                                                                                              
          Headquarters Fisheries Management component                                                                           
          Page 15, lines 26 and 27                                                                                              
                $744,700 general funds                                                                                          
                                                                                                                                
     Department of Health and Social Services                                                                                   
                                                                                                                                
          Public Assistance BRU                                                                                                 
          Adult Public Assistance component                                                                                     
          Page 18, line 18                                                                                                      
                ($1,250,000) general funds                                                                                      
                                                                                                                                
          Medical Assistance BRU                                                                                                
          Medicaid Services component                                                                                           
          Page 18, line 28                                                                                                      
                ($3,230,000) general funds                                                                                      
                 (1,000,000) Tobacco Education                                                                                  
                                                                                                                                
          Purchased Services BRU                                                                                                
          Foster Care Special Need component                                                                                    
          Page 19, line 31                                                                                                      
                ($250,000) general funds                                                                                        
                                                                                                                                
          Purchased Services BRU                                                                                                
           Subsidized Adoptions & Guardianship component                                                                        
          Page 20, lines 3 and 4                                                                                                
                ($1,500,000) general funds                                                                                      
                                                                                                                                
          State Health Services BRU                                                                                             
          Tobacco Prevention and Control component                                                                              
          Page 21, lines 23 and 24                                                                                              
                $1,000,000 Tobacco Education                                                                                    
                                                                                                                                
          Alcohol and Drug Abuse Services BRU                                                                                   
          Alcohol and Drug Abuse Treatment Grants component                                                                     
          Page 21, lines 31 and 32                                                                                              
                $1,000,000 general funds                                                                                        
                                                                                                                                
     Department of Labor and Workforce Development                                                                              
                                                                                                                                
          Labor Standards and Safety BRU                                                                                        
          Wage and Hour Administration component                                                                                
          Page 24, line 8                                                                                                       
                ($102,000) general funds                                                                                        
                                                                                                                                
          Labor Standards and Safety BRU                                                                                        
          Mechanical Inspection component                                                                                       
          Page 24, line 9                                                                                                       
                ($110,000) general funds                                                                                        
                                                                                                                                
     Department of Military and Veterans Affairs                                                                                
                                                                                                                                
           Local Emergency Planning Committee Grants BRU                                                                        
           Local Emergency Planning Committee component                                                                         
          Page 26, lines 30 and 31                                                                                              
                $50,000 general funds                                                                                           
                (50,000) ILTF [Investment Loss Trust Fund]                                                                      
                                                                                                                                
          Alaska National Guard Benefits BRU                                                                                    
          Educational Benefits component                                                                                        
          Page 27, line 13                                                                                                      
                $250,000 general funds                                                                                          
                (250,000) ACPE Dividends                                                                                        
                                                                                                                                
     Department of Natural Resources                                                                                            
                                                                                                                                
          Oil and Gas Development BRU and component                                                                             
          Page 28, line 14                                                                                                      
                $400,000 general funds                                                                                          
                (400,000) I/A [Inter-Agency] Receipts                                                                           
                                                                                                                                
          Parks and Recreation Management BRU                                                                                   
          Parks Management component                                                                                            
          Page 28, line 31                                                                                                      
                ($1,445,000) GF Program Receipts                                                                                
                  2,225,800 Receipts Supported Services                                                                         
                                                                                                                                
          RS2477 Navigability Assertions & Litigation Support BRU                                                               
          and component                                                                                                         
          Page 29, lines 13 through 15                                                                                          
                $150,000 general funds                                                                                          
                 (75,000) CIP [Capital Improvement Project]                                                                     
                Receipts                                                                                                        
                                                                                                                                
     Department of Public Safety                                                                                                
                                                                                                                                
          Alaska State Troopers BRU                                                                                             
          Search and Rescue component                                                                                           
          Page 30, line 26                                                                                                      
                $50,000 general funds                                                                                           
                (50,000) ILTF                                                                                                   
                                                                                                                                
          Alaska State Trooper Detachments BRU and component                                                                    
          Page 30, lines 31 and 32                                                                                              
                $2,200,000 general funds                                                                                        
                                                                                                                                
          Statewide Support BRU                                                                                                 
          Alaska Criminal Records and Identification component                                                                  
          Page 31, lines 31 and 32                                                                                              
               $200,000 Receipts Supported Services                                                                             
                                                                                                                                
     Department of Revenue                                                                                                      
                                                                                                                                
          "Replace all non-general fund year three salary                                                                       
          reductions removed by the subcommittee."                                                                              
                                                                                                                                
     Department of Transportation and Public Facilities                                                                         
                                                                                                                                
          Statewide Facility Maintenance and Operations BRU                                                                     
          Central Region Leasing and Property Management component                                                              
          Page 35, lines 24 and 25                                                                                              
                $46,200 GF Program Receipts                                                                                     
                                                                                                                                
          Statewide Facility Maintenance and Operations BRU                                                                     
          Northern Region Leasing and Property Management component                                                             
          Page  35, lines 26 and 27                                                                                             
                $16,100 GF Program Receipts                                                                                     
                                                                                                                                
          Traffic Signal Management BRU and component                                                                           
          Page 35, line 29                                                                                                      
                $362,700 general funds                                                                                          
                                                                                                                                
          Highways and Aviation BRU                                                                                             
          Central Region Highways and Aviation component                                                                        
          Page  36, lines 13 and 14                                                                                             
                $359,200 general funds                                                                                          
                 130,000 GF Program Receipts                                                                                    
                                                                                                                                
          Highways and Aviation BRU                                                                                             
          Northern Region Highways and Aviation component                                                                       
          Page  36, lines 18 and 19                                                                                             
                $729,500 general funds                                                                                          
                                                                                                                                
          Highways and Aviation BRU                                                                                             
          Southeast Region Highways and Aviation component                                                                      
          Page  36, lines 20 and 21                                                                                             
                $41,100 general funds                                                                                           
                                                                                                                                
     University of Alaska                                                                                                       
                                                                                                                                
          University  of Alaska BRU                                                                                             
          Budget Reductions/Additions-Systemwide component                                                                      
          Page  37, lines 32 and 33                                                                                             
                $8,000,000 general funds                                                                                        
                                                                                                                                
     Alaska Court System                                                                                                        
                                                                                                                                
          Alaska Court System BRU                                                                                               
          Appellate Courts component                                                                                            
          Page 38, line 29                                                                                                      
                $96,700 general funds                                                                                           
                                                                                                                                
          Alaska Court System BRU                                                                                               
          Trial Courts component                                                                                                
          Page 38, line 30                                                                                                      
                $747,600 general funds                                                                                          
                  25,000 MHTAAR [Mental Health Trust Authority                                                                  
                Authorized Receipts]                                                                                            
                                                                                                                                
          Alaska Court System BRU                                                                                               
          Agency-wide Unallocated Reduction component                                                                           
          Page  38, lines 32 and 33                                                                                             
                $1,655,700 general funds                                                                                        
                                                                                                                                
This amendment also makes necessary conforming changes to                                                                       
incorporate the provisions of this amendment into the bill.                                                                     
                                                                                                                                
This  amendment also  states  that HB  262-STATE  PROGRAM  RECEIPTS/                                                            
BLDG.SAFETY  ACCT would be  amended to reflect  fund source  changes                                                            
from  general  fund  program  receipts,   funding  source  1005,  to                                                            
receipts supported  services, funding source 1156,  to the following                                                            
components  of the Department of Health  and Social Services  in the                                                            
amounts indicated.                                                                                                              
                                                                                                                                
          Medical Assistance BRU                                                                                                
          Medicaid Services component                                                                                           
                Add: $364,000 Receipt Supported Services                                                                        
               Delete: $364,000 GF Program Receipts                                                                             
                                                                                                                                
          Public Assistance Administration BRU and component                                                                    
                Add: $42,000 Receipt Supported Services                                                                         
                Delete: $42,000 GF Program Receipts                                                                             
                                                                                                                                
          Purchased Services BRU                                                                                                
          Foster Care Base Rate component                                                                                       
                Add: $991,500 Receipt Supported Services                                                                        
               Delete: $991,500 GF Program Receipts                                                                             
                                                                                                                                
          State Health Services BRU                                                                                             
          Nursing component                                                                                                     
                Add: $112,100 Receipt Supported Services                                                                        
               Delete: $112,100 GF Program Receipts                                                                             
                                                                                                                                
          State Health Services BRU                                                                                             
          Maternal Child and Family Health component                                                                            
                Add: $340,500 Receipt Supported Services                                                                        
               Delete: $237,700 GF Program Receipts                                                                             
                                                                                                                                
          State Health Services BRU                                                                                             
          Community Health and Emergency Medical Services component                                                             
                Add: $151,000 Receipt Supported Services                                                                        
                Delete: $51,000 GF Program Receipts                                                                             
                                                                                                                                
          State Health Services BRU                                                                                             
          Public Health Laboratories component                                                                                  
                Add: $72,700 Receipt Supported Services                                                                         
                Delete: $72,700 GF Program Receipts                                                                             
                                                                                                                                
          Alcohol and Drug Abuse Services BRU                                                                                   
          Alcohol Safety Action Program component                                                                               
                Add: $650,800 Receipt Supported Services                                                                        
                Delete: $150,800 GF  Program Receipts                                                                           
                                                                                                                                
          Institutions and Administration BRU                                                                                   
          Mental     Health    and    Developmental    Disabilities                                                             
          Administration component                                                                                              
                Add: $10,100 Receipt Supported Services                                                                         
                Delete: $10,100 GF Program Receipts                                                                             
                                                                                                                                
This  amendment also  states  that HB  262-STATE  PROGRAM  RECEIPTS/                                                            
BLDG.SAFETY  ACCT would be  amended to reflect  fund source  changes                                                            
from  general  fund  program  receipts,   funding  source  1005,  to                                                            
receipts supported  services, funding source 1156,  to the following                                                            
components   of  the  Department   of  Transportation   and   Public                                                            
Facilities in the amounts indicated.                                                                                            
                                                                                                                                
          Administrative Services BRU                                                                                           
          Regional Administrative Services component                                                                            
                Add: $155,000 Receipt Supported Services                                                                        
                Delete: $150,000 GF  Program Receipts                                                                           
                                                                                                                                
          Statewide Aviation BRU and component                                                                                  
                Add: $226,300 Receipt Supported Services                                                                        
                Delete: $226,300 GF  Program Receipts                                                                           
                                                                                                                                
          Design and Engineering Services BRU                                                                                   
          Central Design and Engineering Services component                                                                     
                Add: $234,500 Receipt Supported Services                                                                        
                Delete: $234,500 GF  Program Receipts                                                                           
                                                                                                                                
          Design and Engineering Services BRU                                                                                   
          Northern Design and Engineering Services component                                                                    
                Add: $121,200 Receipt Supported Services                                                                        
                Delete: $121,200 GF  Program Receipts                                                                           
                                                                                                                                
          Design and Engineering Services BRU                                                                                   
          Southeast Design and Engineering Services component                                                                   
                Add: $81,400 Receipt Supported Services                                                                         
                Delete: $81,400 GF Program Receipts                                                                             
                                                                                                                                
          Statewide Facility Maintenance and Operations BRU                                                                     
          Central Region Leasing and Property Management component                                                              
                Add: $579,600 Receipt Supported Services                                                                        
                Delete: $579,600 GF  Program Receipts                                                                           
                                                                                                                                
          Statewide Facility Maintenance and Operations BRU                                                                     
          Northern Region Leasing and Property Management component                                                             
                Add: $571,500 Receipt Supported Services                                                                        
                Delete: $571,500 GF  Program Receipts                                                                           
                                                                                                                                
          Highways and Aviation BRU                                                                                             
          Central Region Highways and Aviation component                                                                        
                Add: $705,300 Receipt Supported Services                                                                        
               Delete: $705,300 GF Program Receipts                                                                             
                                                                                                                                
          Highways and Aviation BRU                                                                                             
          Northern Region Highways and Aviation component                                                                       
                Add: $760,100 Receipt Supported Services                                                                        
               Delete: $760,100 GF Program Receipts                                                                             
                                                                                                                                
          Highways and Aviation BRU                                                                                             
          Southeast Region Highways and Aviation component                                                                      
                Add: $377,400 Receipt Supported Services                                                                        
               Delete: $377,400 GF Program Receipts                                                                             
                                                                                                                                
     Description:  These  changes allow  the Department  to  collect                                                            
     receipts  and reimburse  the State's  expenditure to offer  the                                                            
     specific  program and/or service. Specifically,  these receipts                                                            
     are  from  airport   property  leasing,  utility  right-of-way                                                             
     permits and the Highway Damages Program.                                                                                   
                                                                                                                                
Co-Chair Kelly moved for adoption of the amendment.                                                                             
                                                                                                                                
DNR #1: This amendment inserts a new bill section to read as                                                                    
follows.                                                                                                                        
                                                                                                                                
          Sec. _. MCKINLEY MEAT PACKING PLANT. The sum of $300,000                                                              
     is  appropriated from  the agriculture  revolving loan  fund to                                                            
     the Department  of Natural Resources, Division  of Agriculture,                                                            
     for the fiscal year  June 30, 2003, for part time operating and                                                            
     preparation for transfer  to the private sector of the McKinley                                                            
     meat packing  plant. The Department  of Natural Resources  will                                                            
     provide  a report to  the legislature  by February 1,  2003, on                                                            
     actions taken  toward implementation of a plan  to transfer the                                                            
     meat packing plant to the private sector.                                                                                  
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The McKinley  Meat Packing Plant  is owned by the ARLF  and has                                                            
     been operated by the  Department of Corrections for a number of                                                            
     years  at a cost of  $300,000 per year.  This appropriation  is                                                            
     intended to keep the  plant open for one year and help move the                                                            
     meat plant to the private sector.                                                                                          
                                                                                                                                
Co-Chair Donley instructed that this amendment is to be included in                                                             
MULTI #1, thus amending MULTI #1.                                                                                               
                                                                                                                                
Co-Chair Donley  announced another  amendment to MULTI #1  to change                                                            
the  $1,000,000 general  fund  appropriation  to the  Department  of                                                            
Corrections,   Administration   and  Operations   BRU,  Agency-Wide                                                             
Unallocated Reduction component.  The amended amendment appropriates                                                            
$750,000 to the  Division of Institutions component  and $250,000 to                                                            
the Office of the Commissioner component.                                                                                       
                                                                                                                                
Co-Chair  Donley began to  detail the entire  amendment, noting  the                                                            
first change inserts intent language into the bill.                                                                             
                                                                                                                                
DAVID TEAL, Director,  Division of Legislative Finance  spoke to the                                                            
changes to Section  15. Alaska Housing Finance Corporation.  (AHFC),                                                            
which changes  the method that AHFC  dividends are allocated  to the                                                            
general  fund.  He  explained   the  original  language  of  HB  403                                                            
stipulates  that the entire  $103 million  amount available  for the                                                            
dividend   is  allocated   to  the   State  with   the  Legislature                                                             
reappropriating  a portion  of the  funding to  the Corporation  for                                                            
AHFC capital  projects. He stated  this amendment provides  that the                                                            
appropriation  process   for  the  AHFC  dividend  is  the  same  as                                                            
traditionally  employed, in which  approximately $84 million  of the                                                            
FY 03  dividend  amount would  be retained  by the  Corporation.  He                                                            
noted  this  change  is to  alleviate  concerns  that  the  original                                                            
language would adversely affect the Corporation's bond rating.                                                                  
                                                                                                                                
Senator Hoffman  referenced the $33.3  million specified  for use by                                                            
the Corporation  for capital projects. He had understood  the actual                                                            
amount needed  for capital projects  was approximately $18  million.                                                            
He  wanted  to know  the  purpose  of  the  additional  $15  million                                                            
expenditures.                                                                                                                   
                                                                                                                                
Mr. Teal  responded  that the AHFC  requested over  $40 million  for                                                            
capital projects.  He informed that  the State earned approximately                                                             
$8 million  from  the sale  of the tobacco  settlement  fund to  the                                                            
Northern Tobacco Securitization  Corporation, which would be used to                                                            
fund  capital  projects.  He  noted  he  was  unsure  which  capital                                                            
projects would  be undertaken with  the funds provided to  the AHFC,                                                            
although  the  Governor's   proposed  budget  contained   zero  AHFC                                                            
dividend  funds for use  in the FY  03 operating  budget.  With  the                                                            
changes  in  this  amendment,  he stated,  $18.7  million  would  be                                                            
appropriated  from the AHFC  dividend to  the debt retirement  fund,                                                            
which allows  the same amount of general  funds to be available  for                                                            
other purposes.  He furthered that many of the remaining  changes in                                                            
this amendment relate to the expenditure of these general funds.                                                                
                                                                                                                                
Co-Chair  Donley  noted the  increase  to the  learning opportunity                                                             
grants  utilizing  lapsed  funding from  the  FY 02  K-12  Education                                                            
funding, as proposed in this amendment.                                                                                         
                                                                                                                                
Mr. Teal calculated  the total FY 03 funding for education  is $23.3                                                            
million,  including  this  increase  for  the learning  opportunity                                                             
grants.                                                                                                                         
                                                                                                                                
Mr. Teal next  detailed the portion of the amendment  reflecting the                                                            
reduced  amount of  general funds  appropriated to  the Alaska  debt                                                            
retirement fund due to  the increased appropriation of AHFC dividend                                                            
funds,   as  explained   above.  He   noted   this  amendment   also                                                            
appropriates  to  the debt  retirement  fund:  $2,061,400  from  the                                                            
tobacco  use  education  and  cessation   fund,  $100,000  from  the                                                            
investment loss trust fund,  and $783,100 from the Alaska Commission                                                            
on Postsecondary  Education  (ACPE) dividend  fund. He stated  these                                                            
amounts were  appropriated to the  funds in FY 02 and not  spent. He                                                            
commented   that  these   reappropriations   would  streamline   the                                                            
operating  budget  in  part  to ease  the  workload  of  the  budget                                                            
subcommittee for the following year.                                                                                            
                                                                                                                                
Co-Chair Donley added that  this is consistent with the FY 02 budget                                                            
process of reappropriating  lapse funds from various funding sources                                                            
to the  debt retirement  fund,  which allowed  general  funds to  be                                                            
utilized for other purposes.                                                                                                    
                                                                                                                                
Senator Hoffman  asked if  funds would be  appropriated for  tobacco                                                            
education and cessation programs.                                                                                               
                                                                                                                                
Co-Chair Donley affirmed.                                                                                                       
                                                                                                                                
Mr. Teal furthered  that the unobligated  and unencumbered  earnings                                                            
of the international  trade and business  endowment fund  would also                                                            
be reappropriated to the Alaska debt retirement fund.                                                                           
                                                                                                                                
Senator Hoffman asked the balance of this fund.                                                                                 
                                                                                                                                
Co-Chair Donley answered approximately $5 million.                                                                              
                                                                                                                                
Mr. Teal next  addressed the increase of $100,000  receipt supported                                                            
services funds  to the Department  of Health and Social Services  as                                                            
reflected  in the insertion  of Section  23. He  noted the  language                                                            
allows the  excess funds earned in  FY 02 from tobacco endorsements                                                             
on businesses  licenses to be spent in FY 03. He explained  that the                                                            
predicted earnings  of FY 02 were  approximately $100,000,  of which                                                            
$87,000 has  been earned to date,  although authorization  to expend                                                            
these  earnings  was  not  granted   to either   the  Department  of                                                            
Community and  Economic Development or the Department  of Health and                                                            
Social Services.   He stated that  rather than lapsing these  funds,                                                            
this amendment  authorizes expenditure  by the Department  of Health                                                            
and Social Services.                                                                                                            
                                                                                                                                
Mr. Teal  spoke to  intent language  this amendment  inserts  in the                                                            
Department of  Labor and Workforce Development, Labor  Standards and                                                            
Safety BRU,  Alaska Safety  Advisory Council  component authorizing                                                             
the  funds  appropriated  for  the  2002  Governor's  annual  safety                                                            
conference to be spent for the same purpose in FY 03.                                                                           
                                                                                                                                
Mr. Teal noted  similar intent language  inserted in the  Department                                                            
of Natural  Resources, Forestry Management  and Development  BRU and                                                            
component   to  allow  the   expenditure   of  the  unexpended   and                                                            
unobligated balance of FY 02 timber receipts accounts.                                                                          
                                                                                                                                
Senator Hoffman asked the  estimated amount of funds of the previous                                                            
two items.                                                                                                                      
                                                                                                                                
Mr. Teal  replied that  the Alaska Safety  Advisory Council  usually                                                            
spends  approximately $108,000  annually  and that  it is  uncertain                                                            
whether this amount would  be expended during FY 02. He did not know                                                            
the  amount  of timber  receipt  funds.  He  qualified  this  intent                                                            
language does not increase  the authorized expenditures as specified                                                            
in Section 1 of the committee substitute.                                                                                       
                                                                                                                                
Co-Chair Donley then listed  the increases and reductions in Section                                                            
1 to each department as contained in the amendment.                                                                             
                                                                                                                                
Mr. Teal pointed  out the $4,138,000  general fund appropriation  to                                                            
the  Department  of  Education  and  Early  Development,  K-12  BRU,                                                            
Foundation  Program component, is  not a duplicate transaction,  but                                                            
rather the same  transaction, which appears in this  section as well                                                            
as the Language section.                                                                                                        
                                                                                                                                
Senator Wilken  spoke to the $130,000  general fund increase  to the                                                            
Department  of  Education   and  Early  Development,   Teaching  and                                                            
Learning  Support  BRU,  Quality  Schools  component.  He  explained                                                            
relates to  a special education assessment  contained in  SB 133 and                                                            
"corrects  a close-out  issue" of  the conference  committee of  the                                                            
previous year.                                                                                                                  
                                                                                                                                
Senator Leman  addressed the  funding changes  to the Department  of                                                            
Environmental  Conservation, noting  discussions on the matter  were                                                            
held during the budget  subcommittee process. He stated the increase                                                            
to the Environmental Health  BRU, Food Safety & Sanitation component                                                            
would  fully  fund  the  Food  Safety  and  Sanitation  program.  He                                                            
explained  this  increase  involved  replacing  GF/Program  Receipts                                                            
funding in other components  in the Division of Environmental Health                                                            
to Receipt Supported Services funding.                                                                                          
                                                                                                                                
Senator  Leman explained  the funding changes  to the Environmental                                                             
Health BRU, Solid  Waste Management component as "putting  back some                                                            
monies that we were short."                                                                                                     
                                                                                                                                
Senator Leman  stated that the funding  change to the Air  and Water                                                            
Quality BRU,  Air Quality component  is a correction. He  added that                                                            
the Water Quality  component funding  changes utilize general  funds                                                            
made available through other actions in the amendment.                                                                          
                                                                                                                                
Senator Leman  spoke to the Non-Point  Source Pollution Control  BRU                                                            
and component,  saying the funds involved are "Section  319 monies";                                                            
of  which  $250,000  is  allocated   to the  Division   of  Forestry                                                            
Management,  Forest Practices  Act,  and $500,000  allocated to  the                                                            
Soil and  Water Conservation  Districts.  He furthered  that of  the                                                            
$500,000  allocation, $475,000  would be awarded  as various  grants                                                            
for Section 319 projects.                                                                                                       
                                                                                                                                
Senator Hoffman  was under the impression the State  is eligible for                                                            
$1 million federal funds if matched with $750,000 general funds.                                                                
                                                                                                                                
Senator Leman  replied that "quite a bit of that still  stays in the                                                            
Department."                                                                                                                    
                                                                                                                                
Senator  Hoffman  asked  about  the  discrepancy  between  the  $1.7                                                            
million  federal receipts  available and the  $750,000 indicated  in                                                            
this amendment.                                                                                                                 
                                                                                                                                
Senator  Leman responded  that  $750,000 refers  only  to the  funds                                                            
impacted by this amendment.                                                                                                     
                                                                                                                                
Co-Chair Donley  continued by addressing the funding  changes of the                                                            
amendment  to the Department  of Fish  and Game.  He explained  that                                                            
funding  is allocated  to  the Commercial  Fisheries  BRU,  Westward                                                            
Region Fisheries  Management  component and  Headquarters  Fisheries                                                            
Management component,  although the same amount is  deleted from the                                                            
Commissioner's   Office  BRU,  Agency-wide   Unallocated   Reduction                                                            
component, resulting in  a net zero impact. He commented this change                                                            
provides the Department flexibility.                                                                                            
                                                                                                                                
Co-Chair Donley stated  that funding reductions to the Department of                                                            
Health  and  Social  Services  reflects   the  adjustment  of  needs                                                            
estimates for the following year to "lower case scenarios".                                                                     
                                                                                                                                
Senator Green explained  that the budget of the previous year funded                                                            
these programs based on  low case scenarios, although this year, the                                                            
budget subcommittee  proposed funding  the programs using  high case                                                            
scenarios.  She stated  this also  applied to  the federal  Medicaid                                                            
program, as it  was assumed that the percentage of  matching federal                                                            
funding would not change.  Because the amount of federal funding the                                                            
State would receive is  unknown, she said this amendment proposes to                                                            
employ   "middle  ground"   scenarios  to   allow  distribution   of                                                            
approximately $4 million to other programs.                                                                                     
                                                                                                                                
Senator  Hoffman  comments   that  this  portion  of  the  amendment                                                            
"retreats ground" gained  by the efforts of the budget subcommittee.                                                            
He referenced  his earlier  question regarding  funding for  tobacco                                                            
prevention  and cessation  programs, and also  noted this  amendment                                                            
allocates $1  million, of the $4 million  requested for alcohol  and                                                            
drug abuse services.                                                                                                            
                                                                                                                                
Co-Chair Donley  agreed the amount of funding for  these programs is                                                            
below the amounts  passed by the House of Representatives.  However,                                                            
he pointed out an additional  $1 million is appropriated for tobacco                                                            
education and  an additional $1 million is appropriated  for alcohol                                                            
and drug abuse treatment services.                                                                                              
                                                                                                                                
Co-Chair   Donley    furthered   that   although    the   House   of                                                            
Representatives  version  of the budget  includes  more funding  for                                                            
some  programs, it  also  contains a  larger  unallocated  reduction                                                            
amount, which  could significantly influence the actual  funding for                                                            
each program.                                                                                                                   
                                                                                                                                
Senator Hoffman  cautioned,  "This sets the  State up for a  massive                                                            
supplemental next year" if not addressed at this time.                                                                          
                                                                                                                                
Senator Green  remarked, "We have funded this budget  so there is no                                                            
possibility  of a  supplemental" and  stressed  that the  Governor's                                                            
proposed  budget did  not account  for the potential  $10.8  million                                                            
federal   Medicaid  funding   shortfall,   although  the   committee                                                            
substitute does. Since  the shortfall is not certain, she opined the                                                            
committee  substitute  is  actually   "over  funding"  the  Medicaid                                                            
program.                                                                                                                        
                                                                                                                                
Senator Hoffman  conceded this is  one theory, however he  stressed,                                                            
it anticipates  low usage  of services and  if the need is  actually                                                            
higher, supplemental funds would be necessary.                                                                                  
                                                                                                                                
Senator  Green  countered that  the  committee  substitute  provides                                                            
adequate  funds in  anticipation of  significantly  higher usage  of                                                            
Medicaid programs.                                                                                                              
                                                                                                                                
Senator   Hoffman  stated   this   accounts  for   growth  that   is                                                            
uncontrolled by the Legislature.                                                                                                
                                                                                                                                
Co-Chair  Donley  next  noted  the funding  source  changes  to  the                                                            
Department of  Military and Veterans Affairs reflects  a replacement                                                            
of one-time fund sources with general funds.                                                                                    
                                                                                                                                
Mr. Teal addressed  the funding source changes to  the Department of                                                            
Natural Resources, relaying  that the Department does not anticipate                                                            
that  the funds  previously  listed could  be transferred  from  the                                                            
Division of  Governmental Coordination  and therefore general  funds                                                            
would be used.                                                                                                                  
                                                                                                                                
Co-Chair Donley pointed  to the "large increase" of $2.2 million for                                                            
the Department  of Public Safety,  Alaska State Trooper Detachments                                                             
BRU and component.                                                                                                              
                                                                                                                                
Senator Hoffman  asked if this retains the same number  of positions                                                            
funded the previous year.                                                                                                       
                                                                                                                                
Co-Chair Donley  was unsure, noting  the Department would  determine                                                            
how to utilize  the funds. However,  he stressed this appropriation                                                             
reflects  an increase of  approximately $1.7  million more  than the                                                            
expenditures  of the  previous year,  which is adequate  to pay  the                                                            
salary  increases. He  surmised this  appropriation  is adequate  to                                                            
maintain all  existing State Trooper,  Fish and Wildlife  Protection                                                            
Officer and Village Protection Safety Officer positions.                                                                        
                                                                                                                                
Mr. Teal spoke  to the changes to  the Department of Revenue  noting                                                            
that  the  budget  subcommittee,  in  its  recommendation,  had  not                                                            
included  funding  for salary  increases  for all  employees  except                                                            
those  of the  Permanent  Fund  Dividend  Division. He  stated  this                                                            
portion  of the  amendment  provides general  funds  for the  salary                                                            
increases,  thus allowing  the other  fund sources  that would  have                                                            
been  used  for the  salary  increases,  to be  expended  for  other                                                            
purposes.                                                                                                                       
                                                                                                                                
Co-Chair Donley  commented this is "just maximizing  the use of non-                                                            
general fund monies … in the salaries component."                                                                               
                                                                                                                                
Co-Chair Donley  then noted this amendment increases  funding to the                                                            
Department of Transportation  and Public Facilities by approximately                                                            
$1.6 million.                                                                                                                   
                                                                                                                                
Co-Chair  Donley  next pointed  out  that the  committee  substitute                                                            
includes the same amount  of funding for the University of Alaska as                                                            
appropriated  the  year  prior.  He noted  this  amendment  adds  $8                                                            
million general funds to that amount.                                                                                           
                                                                                                                                
Senator  Hoffman  remarked   that  the increased   funding  for  the                                                            
Department  of Transportation  and Public  Facilities "made  quite a                                                            
bit of headway in the Department,"  but he asserted that "attention"                                                            
must be given  to the Alaska Marine Highway System  (MHS).  He asked                                                            
the intention of the Committee on this matter.                                                                                  
                                                                                                                                
Co-Chair Donley  replied that the  amount of funding for  the MHS is                                                            
the  same  as  provided  in  the  budget  passed  by  the  House  of                                                            
Representatives.                                                                                                                
                                                                                                                                
Senator  Hoffman  countered  that  the  current  proposal   contains                                                            
approximately  $1  million  more in  reductions  over  the House  of                                                            
Representatives version,  which he calculated as a "hole" of over $5                                                            
million in the amount needed to fully fund the program.                                                                         
                                                                                                                                
Co-Chair Donley  then stated this  amendment provides an  additional                                                            
$2.5 million for the Alaska  Court System, which is an increase over                                                            
the appropriation  of the previous year and should  provide adequate                                                            
funding  for the  salary increases  and  prevent any  delays in  the                                                            
trial system.                                                                                                                   
                                                                                                                                
Senator  Hoffman  appreciated the  co-chair's  efforts  to fund  the                                                            
programs indicated in this  amendment. He expressed, "it goes a long                                                            
way;"  however he  noted that  other  needs remain  unaddressed.  He                                                            
listed  $4 million for  the Department  of Corrections  to ensure  a                                                            
safe and  protected correctional  system, and  funds to operate  the                                                            
PCE program.                                                                                                                    
                                                                                                                                
Senator Wilken  recognized  the efforts to  increase funding  to the                                                            
University of Alaska, commenting  the university is "well on its way                                                            
to maintaining  [the] momentum that President Hamilton  has started;                                                            
the majority  of that momentum  has been funded  at this table."  He                                                            
informed he would continue  to work to provide additional funding to                                                            
"satisfy  their   needs".  He  expressed  concern   about  the  K-12                                                            
Education  component,  although  he noted  the additional  funds  is                                                            
beneficial.  He announced  he  would offer  amendments  at the  next                                                            
hearing on  this bill and would continue  efforts with the  co-chair                                                            
to identify additional funds.                                                                                                   
                                                                                                                                
Senator Hoffman stated  that the Constitutional Budget Reserve (CBR)                                                            
fund contains  adequate funds to address Senator Wilken's  concerns.                                                            
                                                                                                                                
Co-Chair  Donley  summarized  this amendment  maintains  the  Senate                                                            
Majority "target"  to remain below FY 02 general fund  expenditures,                                                            
although it increases  funding for public safety from  the past year                                                            
and fully funds  the impacts of salary increases.  He continued that                                                            
the committee  substitute  and this amendment  increases funding  to                                                            
the  Alaska   Court  System   pointing  out   this  branch   depends                                                            
significantly  on  general  funds  for personnel  costs,  making  it                                                            
difficult to absorb  salary increases. He reiterated  the additional                                                            
funding  for K-12  education is  sufficient to  meet the  foundation                                                            
funding formula.  He qualified  that PCE continues  to be funded  in                                                            
the fiscal note of SB 185.                                                                                                      
                                                                                                                                
Senator  Hoffman remarked  that funding  to alcohol  and drug  abuse                                                            
treatment  grants is  of major concern  to the  State. He  expressed                                                            
interest in  reaching a resolution  to the $3 million difference  in                                                            
funding for this program.                                                                                                       
                                                                                                                                
Senator  Austerman  appreciated  the  efforts  to "live  within  the                                                            
means". However,  he had concerns  about the Department of  Fish and                                                            
Game budget  and he reminded  the co-chairs  of their assurances  to                                                            
adequately fund this Department.                                                                                                
                                                                                                                                
Co-Chair Donley  thanked Co-Chair Kelly for his efforts  and Senator                                                            
Green for addressing  the challenge of the Department  of Health and                                                            
Social  Services  subcommittee,   which  he  asserted  is  the  most                                                            
difficult.  Co-Chair Donley  thanked  Senator Leman  for working  to                                                            
find  ways to  shift general  funds  and locate  additional  receipt                                                            
supported  services,   Senator  Wilken  for  his  efforts   to  fund                                                            
education.   Co-Chair  Donley  also  thanked Senator  Austerman  and                                                            
thanked  and Senator  Ward,  noting  the Department  of Corrections                                                             
involves a difficult budget  and this version provides significantly                                                            
more  funds than  included  in the  budget passed  by  the House  of                                                            
Representatives.                                                                                                                
                                                                                                                                
Senator   Ward  commented   that  if  Alaska's   government   was  a                                                            
dictatorship, he would  simply shift funds to programs he determined                                                            
were  of higher  priority.  However, he  thanked  the Committee  for                                                            
spending  less general funds  than the previous  year. He  expressed                                                            
that  although  the  State would  be,  "reaching  into  the  savings                                                            
account" to  obtain all necessary  funds, the fund is not  depleted.                                                            
                                                                                                                                
Co-Chair Donley furthered  this proposed budget is "the product of a                                                            
team effort" of the Senate Finance Committee.                                                                                   
                                                                                                                                
Co-Chair Donley informed  of his intent to adopt MULTI #1 as amended                                                            
at  this meeting,  and  allow  minority members  an  opportunity  to                                                            
consider  its  impacts  and  offer  additional   amendments  at  the                                                            
following meeting.                                                                                                              
                                                                                                                                
Co-Chair  Donley   next  thanked   the  members  of  the   House  of                                                            
Representatives for exercising fiscal discipline.                                                                               
                                                                                                                                
Senator Hoffman shared  Senator Ward's concerns about the fiscal gap                                                            
but asserted  the State's primary  concern is public safety,  health                                                            
and education,  and warned  of the consequences  if these needs  are                                                            
not addressed.  He spoke  of an incident in  St. George involving  a                                                            
report of  sexual abuse of  a child and the  delay in responding  to                                                            
the situation. He warned  that not funding these programs is "sorely                                                            
neglecting responsibility".                                                                                                     
                                                                                                                                
There was no objection to the adoption of MULTI #1 as AMENDED, and                                                              
the amended amendment was ADOPTED.                                                                                              
                                                                                                                                
Senator  Leman  offered a  motion  that "the  intent  and  directive                                                            
language that  appears in the House  version of the budget  that may                                                            
have  inadvertently  been  left  out of  this  working  document  be                                                            
incorporated by reference in the new committee substitute."                                                                     
                                                                                                                                
There was no objection and it was so ordered.                                                                                   
                                                                                                                                
Co-Chair Donley ordered the bill HELD in Committee.                                                                             
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Dave Donley adjourned the meeting at 09:29 PM                                                                          

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