Legislature(2003 - 2004)

04/20/2004 09:14 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                          April 20, 2004                                                                                      
                              9:14 AM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-04 # 86,  Side A                                                                                                            
SFC 04 # 87,  Side A                                                                                                            
SFC 04 # 87,  Side B                                                                                                            
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Lyda  Green convened the meeting at approximately  9:14 AM.                                                            
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Con Bunde, Vice Chair                                                                                                   
Senator Fred Dyson                                                                                                              
Senator Ben Stevens                                                                                                             
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
Also  Attending:     REPRESENTATIVE  RALPH  SAMUELS;   EDDIE  JEANS,                                                          
Manager,  School   Finance  and  Facilities  Section,   Division  of                                                            
Education  Support  Services,  Department  of  Education  and  Early                                                            
Development;  KURT FREDRIKSSON, Deputy  Commissioner, Department  of                                                            
Environmental  Conservation;  JANET  CLARKE, Director,  Division  of                                                            
Administrative  Services, Department of Health and  Social Services;                                                            
NICO  BUS, Administrative   Services Manager,  Division  of  Support                                                            
Services, Department  of Natural Resources;  DEB DAVIDSON,  Staff to                                                            
Co-Chair  Green;  JOAN  BROWN,  Chief  Budget  Analysis,  Office  of                                                            
Management and Budget                                                                                                           
                                                                                                                                
Attending via Teleconference:  From Anchorage: LARRY WIGET                                                                    
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 303-BIG GAME SERVICES & COMM. SERVICES BD                                                                                    
                                                                                                                                
The Committee  heard from the sponsor. An amendment  was adopted and                                                            
the bill was reported from Committee.                                                                                           
                                                                                                                                
HB 375-APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                     
HB 377-APPROP:MENTAL HEALTH BUDGET                                                                                              
                                                                                                                                
The Committee considered  amendments to the Senate Finance Committee                                                            
Substitute   working  documents.   The  bills  were  reported   from                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken chaired this portion of the meeting.                                                                            
                                                                                                                                
     CS FOR SENATE BILL NO. 303(RES)                                                                                            
     "An Act relating to  the Big Game Commercial Services Board and                                                            
     to   the  regulation   of  big   game  hunting   services   and                                                            
     transportation services;  and providing for an effective date."                                                            
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken  stated this  bill,  sponsored by  the Legislative                                                             
Budget and Audit Committee,  "sets up a board system for the guiding                                                            
industry,  much as  the same  has been  set up  in the  past. As  it                                                            
stands  now, the  seven  member  board consists  of  two  registered                                                            
guides,  one licensed  transporter,  one Board of  Game member,  two                                                            
members as private landholders and one public member."                                                                          
                                                                                                                                
Co-Chair Wilken  reminded that at the previous hearing  on this bill                                                            
he  directed members  to  alert him  of any  issues  that should  be                                                            
addressed. He informed that none were reported.                                                                                 
                                                                                                                                
Amendment  #2:  This amendment  increases  the  number  of  licensed                                                            
transporters from one member  to two who would serve on the Big Game                                                            
Commercial  Services Board  as established  by Section 08.54.591  in                                                            
Section  3 of  the  bill on  page 2,  line  6. This  amendment  also                                                            
decreases  the number of  members who represent  private  landowners                                                            
affected  by guided hunting  activities  or transportation  services                                                            
and who do not  hold a transporter license, from two  to one member,                                                            
on line 9.                                                                                                                      
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Senator Hoffman  objected  and spoke to his  objection, stated  that                                                            
subsistence users should  be represented on the board. He noted that                                                            
Native corporations  hold  the majority of  privately owned  land in                                                            
Alaska, and  therefore the number  of landholder members  should not                                                            
be reduced. He supported the current proposal.                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator  Bunde (changed vote from nay to  yea), Senator B.                                                            
Stevens, Co-Chair Green and Co-Chair Wilken                                                                                     
                                                                                                                                
OPPOSED: Senator Dyson, Senator Hoffman and Senator Olson                                                                       
                                                                                                                                
The motion PASSED (4-3)                                                                                                         
                                                                                                                                
The amendment was ADOPTED.                                                                                                      
                                                                                                                                
REPRESENTATIVE  RALPH SAMUELS sponsor  of the bill, stated  that the                                                            
issue  of contracts  could  be addressed  later in  the legislative                                                             
process. He explained that  current language provides that the board                                                            
may  require  that guide  outfitters  and  transporters  enter  into                                                            
written   contracts  with   clients,  and   he  proposed  that   the                                                            
legislation  stipulate that the board  be compelled to require  such                                                            
contracts.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken  recalled  discussions   of  the  previous  hearing                                                            
pertaining  to information dated April  5, 2004 [copy not  provided]                                                            
regarding "past  experiences." He informed that the  sponsor's staff                                                            
has addressed  each item outlined in the memorandum  and would share                                                            
their  findings with  the House  of Representatives.  He  summarized                                                            
that most issues are addressed in this legislation.                                                                             
                                                                                                                                
Representative Samuels affirmed.                                                                                                
                                                                                                                                
Co-Chair Green ascertained  that the board process could require one                                                            
to two years  to resolve the issue  of contracts. She asked  whether                                                            
another method could be  implemented until the board is operational.                                                            
She did  not want to delay  this legislation  but wanted the  matter                                                            
addressed.  She   stressed  the  importance  of  providing   written                                                            
documentation of contracts for guides and clients.                                                                              
                                                                                                                                
Representative   Samuels  responded   that  changes  could   not  be                                                            
implemented  for the upcoming hunting  and guiding season  but could                                                            
be for the following season.                                                                                                    
                                                                                                                                
Senator Dyson  stated for record a  potential conflict of  interest,                                                            
as he operates a charter fishing boat in Prince William Sound.                                                                  
                                                                                                                                
Co-Chair Wilken so noted the declaration.                                                                                       
                                                                                                                                
Senator Hoffman  asked what  section of the  bill provides  that the                                                            
Board members  would be appointed  by the governor and confirmed  by                                                            
the legislature.                                                                                                                
                                                                                                                                
Representative  Samuels indicated  such a  provision would  be added                                                            
later.                                                                                                                          
                                                                                                                                
Co-Chair  Green offered a  motion to report  SB 303 as amended  from                                                            
Committee with  individual recommendations and accompanying  and new                                                            
fiscal notes.                                                                                                                   
                                                                                                                                
There was  no objection  and CS  SB 303 (FIN)  MOVED from  Committee                                                            
with fiscal  note #1 for  $30,000 from the  Department of  Community                                                            
and Economic  Development, zero fiscal  note #2 from the  Department                                                            
of Fish and Game, and a  new zero fiscal note dated 3/11/04 from the                                                            
Department of Public Safety.                                                                                                    
                                                                                                                                
Co-Chair Green chaired the remainder of meeting                                                                                 
                                                                                                                                
AT EASE 9:24 AM / 9:25 AM                                                                                                       
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 375(FIN) am                                                                                          
     "An  Act  making appropriations   for the  operating  and  loan                                                            
     program  expenses of  state government,  for certain  programs,                                                            
     and to capitalize  funds; and providing for an effective date."                                                            
                                                                                                                                
     CS FOR HOUSE BILL NO. 377(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."                                                                             
                                                                                                                                
The  Committee considered  amendments  to  SCS CS  HB 375(FIN),  23-                                                            
GH2040\C, adopted as a working document at the previous hearing.                                                                
                                                                                                                                
Department of Administration                                                                                                  
                                                                                                                                
ADMIN #1: This  amendment adds $87,500 Statutory Designated  Program                                                            
Receipts (SDPR)  to the Centralized  Administrative Services  Budget                                                            
Request  Unit  (BRU),   Finance  component  on  page   2,  line  18.                                                            
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The Department of  Administration is requesting an FY 05 budget                                                            
     amendment increment  of $87,500 of Statutory Designated Program                                                            
     Receipts for the Division of Finance.                                                                                      
                                                                                                                                
     The  Division of Finance  administers  a statewide credit  card                                                            
     program  for  purchasing  travel,  contractual   services,  and                                                            
     commodities. Based  on average annual net spent per account and                                                            
     payment  history, the State receives  a rebate from  our credit                                                            
     card provider,  First National Bank of Alaska.  The Division of                                                            
     Finance has  budgeted statutory designated program  receipts of                                                            
     $112,500  each year to  use this rebate.  In FY 04, the  rebate                                                            
     was $158,712,  and it is expected that the same  amount will be                                                            
     forthcoming  in FY 05.  The Division of  Finance would  like to                                                            
     use the  excess receipts of approximately  $87,500 in  FY 05 to                                                            
     fund  additional startup  costs of a  Central Travel Office  to                                                            
     serve all State agencies.                                                                                                  
                                                                                                                                
Co-Chair Green moved for adoption.                                                                                              
                                                                                                                                
Co-Chair Wilken objected for an explanation.                                                                                    
                                                                                                                                
Co-Chair Green outlined this request.                                                                                           
                                                                                                                                
Co-Chair Wilken removed  his objection and the amendment was ADOPTED                                                            
without objection.                                                                                                              
                                                                                                                                
Department of Community and Economic Development                                                                              
                                                                                                                                
DCED #1: This amendment  adds $30,000 general funds to the Community                                                            
Assistance   &  Economic   Development   BRU,   Community   Advocacy                                                            
component,  on page 5, line  11 for the  Local Boundary Commission.                                                             
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     This  funding is  intended for  the citizens  and community  of                                                            
     Eagle  River, the  second largest  community  in the State,  to                                                            
     conduct  community  meetings and  circulate  petitions for  the                                                            
     purpose   of  considering   options  for   seceding  from   the                                                            
     Municipality   of  Anchorage  and  forming  a  separate   local                                                            
     government.                                                                                                                
                                                                                                                                
Senator Dyson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Senator  Dyson explained  this funding  would be  appropriated  as a                                                            
grant  to a  contractor  or  organization  within the  "community  I                                                            
represent"  to assist  in preparing  a petition  to form a  separate                                                            
local government.                                                                                                               
                                                                                                                                
Co-Chair  Green   characterized  this  item  as  a  capital   budget                                                            
appropriation. She asked the history of funding these efforts.                                                                  
                                                                                                                                
Senator  Dyson reminded  that  several  years ago,  legislation  was                                                            
passed  to allow  the Local  Boundary  Commission  to supervise  and                                                            
enable  petitions  for local  communities  to pursue  seceding  from                                                            
boroughs  and to  provide grants  up to  $30,000  for a feasibility                                                             
study.   He noted that  the legislature has  yet to appropriate  any                                                            
funds for  these activities.  He recalled  that  the sponsor  of the                                                            
legislation  recognized  the  difficulty  of interested  parties  to                                                            
garner  funds  to undertake  the  elaborate  analysis  necessary  to                                                            
determine whether  seceding is viable. Senator Dyson  expressed this                                                            
process would further the  Alaska Constitutional direction for self-                                                            
determination.                                                                                                                  
                                                                                                                                
Senator Dyson  suggested this amendment  should be adopted  and that                                                            
funding be  transferred to the capital  budget later in the  process                                                            
if possible. He stated  that adoption of the amendment would provide                                                            
certainty that funding would be appropriated.                                                                                   
                                                                                                                                
Senator Olson asked the  total cost of a succession movement and the                                                            
total funds  that would be  requested from  the State in the  future                                                            
for this effort.                                                                                                                
                                                                                                                                
Senator Dyson  assured this project  has no provision, nor  is there                                                            
intention to request  funds for the creation of a  separate borough.                                                            
He opined that  the communities of Eagle River and  Chugiak becoming                                                            
an independent borough would be positive for all parties.                                                                       
                                                                                                                                
Co-Chair  Wilken  accepted  responsibility  for this  amendment.  He                                                            
explained that  if this amendment were not adopted,  he would ensure                                                            
the funds are  included in the FY  05 capital budget appropriation,                                                             
although he  noted the current version  of the capital budget  under                                                            
consideration is approximately $8.3 million more than intended.                                                                 
                                                                                                                                
Co-Chair Green  remarked that the capital budget is  not intended to                                                            
be  an "insurance  policy"  for  funding  certain  operating  budget                                                            
components.                                                                                                                     
                                                                                                                                
Senator Hoffman  announced he would vote in favor  of this amendment                                                            
because  he believed  that government  should  be "as  close to  the                                                            
people as they want" it to be.                                                                                                  
                                                                                                                                
Senator Olson  asked why if this matter  pertains to local  options,                                                            
funding  is not  garnered  from  local governments  or  other  local                                                            
sources.                                                                                                                        
                                                                                                                                
Senator Dyson  replied that organizers have considered  holding bake                                                            
sales and other  fund raising activities  and that he expected  that                                                            
community members  would contribute;  however, the time constraints                                                             
and expertise  required is "almost overwhelming."  He commented that                                                            
the legislative "predecessors",  in recognizing the difficulties for                                                            
communities   to  undertake   the   process  of   organizing   local                                                            
governments.                                                                                                                    
                                                                                                                                
Co-Chair  Green pointed out  that the Alaska  Constitution  expounds                                                            
maximum local  government with a minimum  of governmental  units and                                                            
commented  that this proposal  is contradictory  to the mantra.  She                                                            
did  not  oppose  the  formation  of  a  separate  borough  for  the                                                            
community of Eagle River.                                                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN  FAVOR:  Senator  Dyson,  Senator  Hoffman,  Senator  Olson,  and                                                            
Senator Bunde                                                                                                                   
                                                                                                                                
OPPOSED: Senator B. Stevens, Co-Chair Wilken and Co-Chair Green                                                                 
                                                                                                                                
The motion PASSED (4-3)                                                                                                         
                                                                                                                                
The amendment was ADOPTED.                                                                                                      
                                                                                                                                
Department of Education and Early Development                                                                                 
                                                                                                                                
DEED #1: This  amendment deletes the  language of subsection  (b) of                                                            
Section 31. STATE DEBT  AND OTHER OBLIGATIONS., on page 56, lines 13                                                            
- 17 and inserts new language to read as follows.                                                                               
                                                                                                                                
          (b) The sum of $81,870,084 is appropriated to the                                                                     
     Department  of Education  and Early Development  for state  aid                                                            
     for costs  of school construction  under AS 14.11.100  from the                                                            
     following sources:                                                                                                         
          Alaska debt retirement fund (AS 37.15.011)      $51,670,084                                                           
          School fund (AS 43.50.140)                       30,200,000                                                           
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The Department  of Education  and Early Development  received a                                                            
     request  from the Anchorage School  District to increase  their                                                            
     original  FY  05  request  for  school  debt  reimbursement  by                                                            
     $2,837,400.                                                                                                                
                                                                                                                                
Senator  B.  Stevens  informed  that  Governor   Murkowski  and  the                                                            
Anchorage  School District  requested  this amendment  because  of a                                                            
miscalculation  in the original application  for debt reimbursement                                                             
submitted  in October  2003. He noted  that it  was determined  that                                                            
action  to address  this matter  would  be delayed  until after  the                                                            
Municipality  of Anchorage local election,  in which items  would be                                                            
identified  for reimbursement.  His  research has  shown that  since                                                            
1992,  the State has  fully funded  all requests  for reimbursement                                                             
from every  school district, and that  this amendment qualifies  for                                                            
reimbursement.                                                                                                                  
                                                                                                                                
Senator Hoffman understood  this amendment is offered at the request                                                            
of   the  community   and   he   requested   documentation   showing                                                            
justification for the increased funds.                                                                                          
                                                                                                                                
Senator  B. Stevens  affirmed  that  the Anchorage  School  District                                                            
requested   this  funding   increase  and   he  offered   supporting                                                            
documentation.                                                                                                                  
                                                                                                                                
Co-Chair  Green  asked whether  this  amendment  is offered  at  the                                                            
request of the Anchorage local government.                                                                                      
                                                                                                                                
Senator  B. Stevens  again affirmed  and  referenced correspondence                                                             
from the Anchorage School  District detailing the items omitted from                                                            
the original  request for  reimbursement.  He further explained  the                                                            
decision  to wait until after  the local  election to determine  the                                                            
actual amount of funds needed.                                                                                                  
                                                                                                                                
Senator  Hoffman  asked if  the Murkowski  Administration  has  also                                                            
requested this funding increase.                                                                                                
                                                                                                                                
Senator B. Stevens answered yes.                                                                                                
                                                                                                                                
Co-Chair Green  recalled she began  hearing about this matter  early                                                            
in the  legislative  session and  initially intended  funding  to be                                                            
included in the  FY 04 supplemental appropriation.  According to the                                                            
timeline,  she understood the  funds would  not be allocated  to the                                                            
school district until they were expended.                                                                                       
                                                                                                                                
EDDIE  JEANS,  Manager,  School  Finance  and  Facilities   Section,                                                            
Division of Education Support  Services, Department of Education and                                                            
Early Development,  affirmed the discussions. He outlined  the issue                                                            
in  which the  Anchorage  School  District  submitted  a request  in                                                            
October 2003 for  approximately $33 million and it  was subsequently                                                            
discovered  in January 2004 that the  projected amount needed  would                                                            
be  insufficient  and  that  an additional  $3.5  million  would  be                                                            
necessary.  At that  time  he recommended  to the  Anchorage  School                                                            
District  that a request  for this increase  be delayed until  after                                                            
the  municipal election  scheduled  for April  2004.  He stated  the                                                            
Department  then received  a letter  dated April  13, 2004 from  the                                                            
finance  officer  of the  Anchorage  School  District  revising  the                                                            
original  requested  increase   to  $2.8  million.  He  totaled  the                                                            
reimbursement   request  from  the  Anchorage  School   District  at                                                            
$36,104,200.  He  also  noted  that  the  bonds  must  be  sold  and                                                            
repayment  begun  before  the  State  would   reimburse  the  school                                                            
district.                                                                                                                       
                                                                                                                                
Co-Chair   Green  asked   if  this   increased   funding  were   not                                                            
appropriated at  this time, whether it could be included  in a FY 05                                                            
supplemental appropriation.                                                                                                     
                                                                                                                                
Mr. Jeans replied this  would be possible. He stated that without an                                                            
adjustment,  every  school  district  except  the  Anchorage  School                                                            
District  would be reimbursed  100 percent  by the State, while  the                                                            
Anchorage School District would only receive 33 percent.                                                                        
                                                                                                                                
Senator  B.  Stevens  moved  for  adoption   of  the  amendment  and                                                            
emphasized this would maintain  the legislature's commitment to fund                                                            
the debt reimbursement at 100 percent as done since 1992.                                                                       
                                                                                                                                
LARRY WIGET testified via  teleconference from Anchorage that he was                                                            
available to answer any questions related to this amendment.                                                                    
                                                                                                                                
Without objection DEED #1 was ADOPTED.                                                                                          
                                                                                                                                
DEED  #2:  This  amendment  pertains  to  the existing  $42,563,300                                                             
allocation  to the  Quality  Schools Component  in  the Teacher  and                                                            
Learning  Support BRU  on page 10,  line 9. The  amendment reads  as                                                            
follows.                                                                                                                        
                                                                                                                                
     The  amount allocated  for  Quality Schools  includes  $119,500                                                            
     (general  funds) for  creation of a  new Education (Specialist                                                             
     II)  position for  monitoring  and oversight  of statewide  and                                                            
     district  correspondence  programs.  It  is the  intent of  the                                                            
     legislature  that the department  expend these funds,  combined                                                            
     with the  appropriations to fund and support  the current range                                                            
     21  EED education  specialist  II  who  is the  charter  school                                                            
     program manager, to  employ an additional one or more people to                                                            
     create  an  office  uniquely  focused on  maximization  of  all                                                            
     Alaska   alternative  public   school  initiatives,   including                                                            
     charter  schools.  "Maximization"  means: Finding  ways to  use                                                            
     alternative schools  to accomplish the requirements of No Child                                                            
     Left Behind  Act (NCLB); Increasing public choices  for quality                                                            
     education;  Monitoring  and overseeing  alternative schools  in                                                            
     the context  of these goals; and, Providing information  to the                                                            
     legislature    regarding   alternative   school   legislation,                                                             
     challenges,    evaluation,    and    opportunities.    Existing                                                            
     alternative   schools   include;  charter   schools,   boarding                                                            
     schools,   correspondence   schools,   and   district-operated                                                             
     alternative schools.                                                                                                       
                                                                                                                                
Senator Dyson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Wilken objected for an explanation.                                                                                    
                                                                                                                                
Senator Dyson  noted Co-Chair Wilken has proposed  to add a position                                                            
to the Department  with specific responsibilities,  namely oversight                                                            
of the  "thriving" correspondence  schools.  Senator Dyson  expanded                                                            
the initial proposal to  assign additional responsibility to the new                                                            
position to  assist in encouragement,  facilitation and development                                                             
of other alternative  education within the public  school system. He                                                            
explained  this is partly  intended to fulfill  the requirements  of                                                            
the federal No Child Left Behind Act.                                                                                           
                                                                                                                                
Senator Dyson  offered a friendly amendment to the  amendment to add                                                            
additional intent language to read as follows.                                                                                  
                                                                                                                                
     Further, the duties shall be as follows:                                                                                   
     1. Monitor and evaluate the expenditures of state funds in                                                                 
     accordance with state statutes and regulations;                                                                            
     2. Monitor and evaluate curriculum as it pertains to state                                                                 
     education and graduation requirements; and                                                                                 
     3. Monitor  and evaluate benchmark and other  standardized test                                                            
     results  to insure that a quality  education is being  provided                                                            
     and achieved  by the Alaska's  alternative educational  system.                                                            
                                                                                                                                
Senator Dyson noted this  amendment is conceptual and gave direction                                                            
to the bill drafters to make language changes if necessary.                                                                     
                                                                                                                                
As a friendly  amendment, no Committee  action was required  and the                                                            
amendment was AMENDED.                                                                                                          
                                                                                                                                
Co-Chair Wilken  informed that almost  11,000 children are  enrolled                                                            
as correspondence students,  an increase from approximately 2,000 in                                                            
1996. He  noted that  the rate of  increase appears  to be  leveling                                                            
off. As a result  of the popularity  of correspondence programs,  he                                                            
relayed  that  questions  have  arisen  regarding   the appropriate                                                             
methods  of educating  children.  Therefore,  he stated  the  budget                                                            
subcommittee  identified  a  need  for  the  proposed  position.  He                                                            
appreciated Senator Dyson's  efforts in specifying a job description                                                            
for the position.  Co-Chair Wilken  understood this amendment  would                                                            
defines two positions  within the Department. He encouraged  support                                                            
of this amendment.                                                                                                              
                                                                                                                                
Co-Chair Green specified  that the funds are already included in the                                                            
budget and that this amendment does not increase funding.                                                                       
                                                                                                                                
Senator Hoffman  questioned the reference to $119,500  general funds                                                            
stated in the description language of the amendment.                                                                            
                                                                                                                                
Senator Dyson  understood these funds  were added to the  budget for                                                            
this purpose at the recommendation of the budget subcommittee.                                                                  
                                                                                                                                
Co-Chair Wilken affirmed.                                                                                                       
                                                                                                                                
There was no objection and the amended amendment was ADOPTED.                                                                   
                                                                                                                                
Department of Environmental Conservation                                                                                      
                                                                                                                                
DEC #1: This amendment  adds $50,000 general funds to the Water BRU,                                                            
Water  Quality   component  on  page   11,  line  32.  Accompanying                                                             
explanatory language reads as follows.                                                                                          
                                                                                                                                
     This   amendment  fully   funds  the   "Raindrops  to   Oceans"                                                            
     initiative  -  a  thorough  redesign  of  DEC's  water  quality                                                            
     management  and permitting programs  to improve efficiency  and                                                            
     effectiveness to mitigate  pollution potential as water travels                                                            
     from the  raindrop to the ocean. The State's  best economic and                                                            
     water  quality interests  are  attained through  replacing  the                                                            
     current  federal  agency jurisdiction  with  state control  for                                                            
     wetlands  management, underground injection of  wastewaters and                                                            
     discharges to surface waters.                                                                                              
                                                                                                                                
     Full funding provides  the water quality program with resources                                                            
     necessary   to  seek  primacy   and  evaluate  performance   of                                                            
     stormwater  pollution  control  to  a level  adequate  for  the                                                            
     "Raindrops  to Oceans" redesign. It will be used  to reform and                                                            
     rationalize  the permit  process  for waste  disposal at  large                                                            
     mines  and other facilities with  waste discharges;  accelerate                                                            
     the  updating of  Alaska's water  quality  standards which  are                                                            
     fundamental cornerstones  for permit decision making; develop a                                                            
     plan  and  draft  rules  to  acquire  state  jurisdiction   for                                                            
     permitting  wastewater   disposal  into underground   injection                                                            
     control  (UIC)  wells;  and  make  necessary  improvements  and                                                            
     regulation changes for the stormwater program.                                                                             
                                                                                                                                
     Without  restoration of this  funding, the Department  will not                                                            
     be able to  undertake the underground injection  portion of the                                                            
     initiative in FY 05.                                                                                                       
                                                                                                                                
Co-Chair Green moved for adoption.                                                                                              
                                                                                                                                
Senator Dyson  objected for discussion purposes. He  understood that                                                            
the budget subcommittee  recommended restoring $100,000 deleted from                                                            
the  FY 05  operating  budget legislation  passed  by  the House  of                                                            
Representatives. He relayed  that when asked by the subcommittee the                                                            
consequences of  not appropriating the additional  $50,000 requested                                                            
by Governor  Murkowski, the  Department testified  that the  federal                                                            
government would continue to operate the program.                                                                               
                                                                                                                                
KURT FREDRIKSSON,  Deputy Commissioner, Department  of Environmental                                                            
Conservation,  testified  this  amendment  would fully  restore  the                                                            
amount requested in the  Governor's proposed FY 05 operating budget.                                                            
He stressed  the importance of the  Raindrops to Oceans program  and                                                            
the need  to regain control  of State water  quality protection  and                                                            
permitting   activities.  He  noted   that  currently  the   federal                                                            
Environmental  Protection Agency (EPA) has significant  input in the                                                            
manner  in which the  State oversees  water  quality protection.  He                                                            
explained   that  the  EPA  approves   the  State's  water   quality                                                            
standards,   regulates  storm  water,   wetlands  development,   and                                                            
underground injection wells.                                                                                                    
                                                                                                                                
Senator Bunde  referenced media reports of the potential  closure of                                                            
the Pogo Mine over concerns  voiced by an environmental organization                                                            
located in Fairbanks  about potential runoff. He asked  if a portion                                                            
of these funds would be utilized to address this matter.                                                                        
                                                                                                                                
Mr.  Fredriksson   replied  that  these  funds  would   provide  the                                                            
Department  the resources necessary  to become more "aggressive"  on                                                            
water quality programs.  He explained the issue at the Pogo Mine and                                                            
the appeal process of regulations.                                                                                              
                                                                                                                                
[Note: Tape malfunction,  remainder of Side A and  all of Side B not                                                            
utilized - no portion of the meeting is unrecorded.]                                                                            
                                                                                                                                
                                                                                                                                
SFC 04 # 87, Side A 09:49 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Mr.  Fredriksson  continued  that  if  oversight  of  water  quality                                                            
activities at the Pogo  Mine were under State control, the automatic                                                            
"stay" on operations  at the mine would not be possible.  Rather, he                                                            
stated the  Department would review  the appeal, resolve  the appeal                                                            
and "move forward".                                                                                                             
                                                                                                                                
Senator Bunde  understood  therefore that if  this funding  were not                                                            
provided,  the federal  government  would continue  operations,  but                                                            
with consequences to the State.                                                                                                 
                                                                                                                                
Mr.  Fredriksson  replied  that  the  federal government   currently                                                            
controls   operations   and  explained   that   the  Department   is                                                            
undertaking  efforts to establish  water quality standards  with the                                                            
intent to assume responsibility from the federal government.                                                                    
                                                                                                                                
Senator Dyson  apologized that sufficient discussions  on the matter                                                            
were not held during the  budget subcommittee hearings. He asked the                                                            
anticipated  date the  State would  assume the  functions  currently                                                            
performed by the federal government.                                                                                            
                                                                                                                                
Mr. Fredriksson reminded  of a report submitted by the Department to                                                            
the legislature on the  National Pollution Discharge and Elimination                                                            
System (NPDES) and of concerns  expressed by different stakeholders.                                                            
He expected the Department  would begin assuming responsibilities in                                                            
the  coming year  and  he emphasized  the  importance  of  obtaining                                                            
legislative   approval.   Shortly   thereafter,   he  expected   the                                                            
Department would submit an application for primacy.                                                                             
                                                                                                                                
Senator Dyson  calculated the total  allocation for this  program in                                                            
the current fiscal year, including this amendment at $300,000.                                                                  
                                                                                                                                
Mr. Fredriksson  affirmed the allocation  would be $150,000  general                                                            
funds and $150,000 general fund program receipts.                                                                               
                                                                                                                                
Senator  Dyson  clarified  the  Department   would  not  assume  any                                                            
authority in  FY 05, rather would  request legislation to  allow the                                                            
Department  to assume control,  which would  occur approximately  14                                                            
months from now.                                                                                                                
                                                                                                                                
Mr. Fredriksson affirmed.                                                                                                       
                                                                                                                                
Senator  Dyson  removed  his  objection   to  the  adoption  of  the                                                            
amendment.                                                                                                                      
                                                                                                                                
Co-Chair Green asked the definition of the NPDS acronym.                                                                        
                                                                                                                                
Mr.  Fredriksson   answered  the   acronym  is  National   Pollution                                                            
Discharge  Elimination  System and  defined  it as  a federal  water                                                            
discharge permit program.                                                                                                       
                                                                                                                                
Co-Chair  Wilken requested  an outline of  the Pogo Mine  situation,                                                            
including options  available to the State and information  necessary                                                            
to determine  whether the State should  intervene in the  matter. He                                                            
did  not want  the mine  to close  for a  year, based  on a  "sucker                                                            
punch".                                                                                                                         
                                                                                                                                
Co-Chair  Green  indicated  that  all  the  Committee  Members  were                                                            
interested in this issue.                                                                                                       
                                                                                                                                
Senator  Olson noted  media reports  critical of  the management  of                                                            
certain  programs and  asked  whether any  of these  funds would  be                                                            
allocated to those programs.                                                                                                    
                                                                                                                                
Mr. Fredriksson answered no.                                                                                                    
                                                                                                                                
Senator  Olson  understood  that the  federal  EPA is  the  ultimate                                                            
authority over  water quality programs was therefore  unsure how the                                                            
additional funds would allow for increased State input.                                                                         
                                                                                                                                
Mr. Fredriksson  responded that oversight from the  EPA would not be                                                            
entirely eliminated,  but asserted that a "strong  State presence is                                                            
the  best  defense  against  the  EPA."  With  these  resources,  he                                                            
surmised  the  Department  could   assert  a  "must  stronger  State                                                            
position  with respect to  water quality  protection and the  permit                                                            
programs" established in State and federal law.                                                                                 
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
DEC  #2: This  amendment  adds  $18,800 general  funds  as  follows:                                                            
$1,200  to  the  Administration  BRU,  Office  of  the Commissioner                                                             
component  on page 11,  line 9;  $1,100 to  the Administration  BRU,                                                            
Information  and Administrative Services  component on lines  10 and                                                            
11;  $400 to  the Environmental  Health  BRU,  Environmental  Health                                                            
Director component  on lines 14 and 15; $5,100 to  the Environmental                                                            
Health BRU, Laboratory  Services component on line 17; $1,700 to the                                                            
Environmental Health BRU,  Air Director component on line 20; $4,300                                                            
to the Environmental  Health BRU, Air Quality component  on line 21;                                                            
and $5,000  to the  Water BRU,  Facility Construction  component  on                                                            
line 33. Accompanying explanatory language reads as follows.                                                                    
                                                                                                                                
     During  development of  the Governor's  FY 05 Operating  Budget                                                            
     DEC  examined its priority  programs,  realigned resources  and                                                            
     offered  reductions   where feasible.   The  Governor's  budget                                                            
     included  $67,400 in general fund, travel reductions  in six of                                                            
     DEC's  components; capturing  savings possible through  the use                                                            
     of new technology.                                                                                                         
                                                                                                                                
     Additional  general fund travel  reductions are being  proposed                                                            
     for seven components,  four of which had previous reductions in                                                            
     the  Governor's  budget.   DEC's  general  funds  support  core                                                            
     programs  where travel is often directly related  to fieldwork.                                                            
     This amendment restores funding for those core activities.                                                                 
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green overviewed this amendment.                                                                                       
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
Department of Fish and Game                                                                                                   
                                                                                                                                
F&G #1: This amendment  makes fund source changes from general funds                                                            
to  Commercial Fish  Loan  funds in  the  following  amounts to  the                                                            
following BRUs and components.                                                                                                  
                                                                                                                                
     $167,900                                                                                                                   
     BRU: Commercial Fisheries                                                                                                  
     Component: Southeast Region Fisheries Management                                                                           
                                                                                                                                
     $206,100                                                                                                                   
     BRU: Commercial Fisheries                                                                                                  
     Component: Central Region Fisheries Management                                                                             
                                                                                                                                
     $140,000                                                                                                                   
     BRU: Commercial Fisheries                                                                                                  
     Component: AYK Region Fisheries Management                                                                                 
                                                                                                                                
     $223,800                                                                                                                   
     BRU: Commercial Fisheries                                                                                                  
     Component: Westward Region Fisheries Management                                                                            
                                                                                                                                
     $81,100                                                                                                                    
     BRU: Commercial Fisheries                                                                                                  
     Component: Headquarters Fisheries Management                                                                               
                                                                                                                                
     $96,500                                                                                                                    
     BRU: Commercial Fisheries                                                                                                  
     Component: Fisheries Development                                                                                           
                                                                                                                                
     $5,900                                                                                                                     
     BRU: Sport Fisheries                                                                                                       
     Component: Sport Fisheries Habitat                                                                                         
                                                                                                                                
     $18,000                                                                                                                    
     BRU: Administration and Support                                                                                            
     Component: Commissioner's Office                                                                                           
                                                                                                                                
     $45,500                                                                                                                    
     BRU: Administration and Support                                                                                            
     Component: Administrative Services                                                                                         
                                                                                                                                
     $21,000                                                                                                                    
     BRU: Administration and Support                                                                                            
     Component: Boards of Fisheries and Game                                                                                    
                                                                                                                                
     $10,700                                                                                                                    
     BRU: Administration and Support                                                                                            
     Component: Advisory Committees                                                                                             
                                                                                                                                
     $9,300                                                                                                                     
     BRU: Administration and Support                                                                                            
     Component: State Subsistence                                                                                               
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green explained that the Committee has been advised that                                                               
this funding source change would have no adverse impact.                                                                        
                                                                                                                                
Senator Hoffman  noted the increase  totals $1 million and  asked if                                                            
adequate funding is available in the Commercial Fish Loan fund.                                                                 
                                                                                                                                
Co-Chair Green  relayed she has been  advised that adequate  funding                                                            
is available  and  this appropriation  would  cause  no hardship  or                                                            
difficulty for the program to meet its objectives.                                                                              
                                                                                                                                
Senator  Hoffman  asked if  the  chair of  the  budget subcommittee                                                             
supports this amendment.                                                                                                        
                                                                                                                                
Senator B. Stevens expressed support for the amendment.                                                                         
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
Office of the Governor                                                                                                        
                                                                                                                                
GOV #1: This amendment  increases the federal receipt  appropriation                                                            
from $5,450,000  to  $7,446,803, to  the Office  of the Governor  in                                                            
Section 24  for the Help America Vote  Act on page 54, lines  12 and                                                            
13. Accompanying explanatory language reads as follows.                                                                         
                                                                                                                                
     The  Division  of  Elections  recently   received  updated  GSA                                                            
     estimates  for the payments  associated  with the Help  America                                                            
     Vote  Act  (HAVA).  The  revised  estimate   from  the  federal                                                            
     government is an increase of $19,996,803.                                                                                  
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green  pointed out this amendment would allow  the Division                                                            
to receive federal funds.                                                                                                       
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
GOV #2:  This amendment  increases the allocation  to the  Executive                                                            
Operations  BRU,  Executive  Office  component  from  $8,228,700  to                                                            
$8,324,700  on page 14,  line 6. Accompanying  explanatory  language                                                            
reads as follows.                                                                                                               
                                                                                                                                
     The  purpose of this  amendment is to  add $96,000 in  business                                                            
     license  receipts  for a  grant to  World Trade  Center  Alaska                                                            
     (WTCAK).  The Governor's budget  subcommittee had already  been                                                            
     closed out by the time this project was brought forward.                                                                   
                                                                                                                                
     The  purpose  of  the  grant  is to  enable  WTCAK  to  provide                                                            
     information  and services  to Alaska  businesses interested  in                                                            
     exporting   their  products   to  international   markets.   In                                                            
     addition,  WTCAK  will identify  export opportunities  in  non-                                                            
     traditional markets  (such as Singapore, India, and Mexico) and                                                            
     will focus  on expanding trade  and investment with  Taiwan and                                                            
     Canada.                                                                                                                    
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair  Green   explained  that  funding  for  this   program  has                                                            
appropriated in  previous years through the Department  of Community                                                            
and  Economic  Development;  however  oversight  of  the  WTCAK  was                                                            
transferred to the Office of the Governor.                                                                                      
                                                                                                                                
Senator  Hoffman asked  the  success rate  of this  organization  in                                                            
exporting items to international markets.                                                                                       
                                                                                                                                
AT EASE 9:58 AM / 9:58 AM                                                                                                       
                                                                                                                                
Co-Chair  Green  was unable  to  answer,  but  shared that  she  had                                                            
listened  to  discussions   on  the  matter  by  the  House  Finance                                                            
Committee and understood the agency was meeting its obligations.                                                                
                                                                                                                                
Senator Olson asked the  products promoted to international markets.                                                            
                                                                                                                                
Co-Chair  Green again was  unable to answer,  and noted that  no one                                                            
was present to address the issue.                                                                                               
                                                                                                                                
Senator B. Stevens  listed fish, coal, gas and timber,  i.e. natural                                                            
resources.                                                                                                                      
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
Department of Health and Social Services                                                                                      
                                                                                                                                
H&SS #1: This  amendment increases the allocation  to the Health and                                                            
Social  Services  BRU,  Services   to the  Seriously   Mentally  Ill                                                            
component  from $1,894,400  to $2,224,400,  and to the Services  for                                                            
Severely  Emotionally  Disturbed Youth  component  from $906,200  to                                                            
$1,126,200  on page  15, lines  28  - 31.  Accompanying explanatory                                                             
language reads as follows.                                                                                                      
                                                                                                                                
     This amendment restores  half of the reductions proposed by the                                                            
     Governor  to consolidate "catchment  areas". The concept  is to                                                            
     eliminate  duplicate administration  in  areas where there  are                                                            
     multiple  providers. There is concern, however,  this reduction                                                            
     is  too much,  too  soon, and  poses  a high  risk  to some  of                                                            
     Alaska's most fragile citizens, the seriously mentally ill.                                                                
                                                                                                                                
     The  amendment adds  $330,000 in  GF/MH to  the allocation  for                                                            
     "Services  to  the Seriously  Mentally  Ill,"  and $220,000  in                                                            
     GF/MH to the allocation  for "Services for Severely Emotionally                                                            
     Disturbed Youth."                                                                                                          
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair  Green relayed  this  matter was  discussed  in the  budget                                                            
subcommittee  meetings. She stated  this amendment would  restore 50                                                            
percent of  the reductions  made to this  program. She stressed  the                                                            
importance that funds are  utilized to serve clients, rather than to                                                            
create new agencies or administrative personnel.                                                                                
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
H&SS #2:  This amendment  adds $660,000  general fund/mental  health                                                            
funds (GF/MH)  to the Health  and Social  Services BRU, Services  to                                                            
the Seriously  Mentally Ill  component, and  adds $440,000  GF/MH to                                                            
the Services for the Severely  Emotionally Disturbed Youth component                                                            
on page 15, lines 28 - 31.                                                                                                      
                                                                                                                                
Senator  Olson commented  and  withdrew  the amendment,  noting  the                                                            
commitment and special  talent required to work with the individuals                                                            
served by these programs.                                                                                                       
                                                                                                                                
Co-Chair  Green added that  some issues appear  "huge", but  that in                                                            
relation   to  the  entire   mental  health   budget,  the   funding                                                            
appropriated  by  H&SS  #1  is a  small  amount.  She  stressed  the                                                            
importance  of understanding the significant  budget for  behavioral                                                            
services and the  importance that the funds be utilized  to meet the                                                            
needs of the  individuals the programs  serve. She wanted  to ensure                                                            
that the  funds are  expended "wisely"  and for  the benefit  of the                                                            
clients.                                                                                                                        
                                                                                                                                
Senator  Olson  agreed and  furthered  that  a small  investment  in                                                            
prevention is worthwhile  in avoiding the significantly higher costs                                                            
of undiagnosed illnesses.                                                                                                       
                                                                                                                                
The amendment was NOT OFFERED.                                                                                                  
                                                                                                                                
H&SS #3: This  amendment increases the allocation  to the Health and                                                            
Social  Services   BRU,  Nursing   component  from  $17,937,800   to                                                            
$18,842,800 on  page 17, line 27. Accompanying explanatory  language                                                            
reads as follows.                                                                                                               
                                                                                                                                
     This amendment is intended to mirror the transaction the House                                                             
     made to restore funding to public health nursing:                                                                          
                                                                                                                                
          Add $535,000 of general funds                                                                                         
          Add $370,000 of interagency receipts                                                                                  
                                                                                                                                
          (Instruction to Legislative Finance Division: use the                                                                 
          same line item distribution contained in the House                                                                    
          version CS HB 375 (FIN) am.)                                                                                          
                                                                                                                                
     Although   the  Department's   plan   to  transition   clinical                                                            
     preventive services  to other health care providers is supposed                                                            
     to focus  on urban areas, the  positions targeted for  deletion                                                            
     are in key areas that serve outlying rural communities, such                                                               
     as Bethel, Fairbanks, and Ketchikan.                                                                                       
                                                                                                                                
     This funding will  allow the Department to take a more moderate                                                            
     approach   to  revising   public  health   nursing  and   allow                                                            
     evaluation  of the effectiveness  of  the transitions  that are                                                            
     made.                                                                                                                      
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green  informed that it was discovered that  the reductions                                                            
were disproportionate  to the communities  of Fairbanks,  Juneau and                                                            
Ketchikan, although not to Anchorage.                                                                                           
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
H&SS #4: This  amendment adds $905,000  general funds to  the Health                                                            
and Social Services BRU, Nursing component on page 17, line 27.                                                                 
                                                                                                                                
Senator Olson  commented to the importance  of public health  nurses                                                            
as  the  "front line"  of  Alaska's  health  care  delivery  system,                                                            
particularly  in  reducing the  impact  of the  recent tuberculosis                                                             
outbreak.                                                                                                                       
                                                                                                                                
This amendment was NOT OFFERED based on action taken on H&SS #3.                                                                
                                                                                                                                
H&SS #5: This  amendment adds $492,600  general funds to  the Health                                                            
and Human  Services  BRU, Human  Services Community  Matching  Grant                                                            
component  on page  19, lines 18  and 19.  Accompanying explanatory                                                             
language reads as follows.                                                                                                      
                                                                                                                                
     This amendment will maintain last year's funding level and the                                                             
     inclusion of the Matanuska-Susitna Borough.                                                                                
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Senator Hoffman requested an explanation of the amendment.                                                                      
                                                                                                                                
Co-Chair   Green  informed   that  the   "very  aggressive"   budget                                                            
subcommittee  had recommended reduced  funding for this program  and                                                            
that this amendment would  restore some funds. She predicted ongoing                                                            
funding  for  this   program  as  the  population   in  the  Borough                                                            
increases.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken reported  that the grant  awarded to the  Fairbanks                                                            
North Star  Borough is utilized most  effectively compared  to other                                                            
participating  communities.   He recommended   that  the  Matanuska-                                                            
Susitna Borough  model its program  after the Fairbanks program.  He                                                            
referenced  an outline of  the competitive  process utilized  by the                                                            
Fairbanks North Star Borough [copy not provided].                                                                               
                                                                                                                                
Senator Hoffman noted this amendment is identical to H&SS #6.                                                                   
                                                                                                                                
Senator  B. Stevens  asked  if this  amendment increases  the  funds                                                            
appropriated to this component.                                                                                                 
                                                                                                                                
Co-Chair  Green  replied  that  the  governor's   request  has  been                                                            
traditionally  $1 million, with the funding divided  equally between                                                            
two participants:  Fairbanks  and Anchorage.  The request for  FY 05                                                            
was  also  $1  million,  she  stated,   but  pointed  out  that  the                                                            
Matanuska-Susitna Borough  would begin participating in the program.                                                            
She  explained  that  Governor  Murkowski   had  intended  that  the                                                            
appropriation be divided  among the three participants, but that she                                                            
recalculated  the allocations,  and determined  that the  subsequent                                                            
reductions  to the  Fairbanks and  Anchorage programs  could not  be                                                            
absorbed.                                                                                                                       
                                                                                                                                
Senator  B. Stevens  asked the  total increase  from the  Governor's                                                            
requested amount.                                                                                                               
                                                                                                                                
Co-Chair Wilken answered, $159,300.                                                                                             
                                                                                                                                
Co-Chair Wilken listed  $749,727 would be allocated to the Anchorage                                                            
program  with  the  adoption  of this  amendment,  $224,954  to  the                                                            
Fairbanks program and $184,600  to the Matanuska-Susitna program. He                                                            
stated he would provide  detailed information to Senator B. Stevens.                                                            
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
H&SS #6: This  amendment adds $492,600  general funds to  the Health                                                            
and Human  Services  BRU, Human  Services Community  Matching  Grant                                                            
component on page 19, lines 18 and 19.                                                                                          
                                                                                                                                
This amendment was NOT OFFERED based on action taken on H&SS #5.                                                                
                                                                                                                                
H&SS #7: This  amendment adds a new "Youth Courts"  component to the                                                            
Health  and Human Services  BRU on  page 14, line  24 and  allocates                                                            
$508,300 general funds.                                                                                                         
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Senator Hoffman  recalled public testimony given on  the proposed FY                                                            
05 operating  budget and the frequency  of comments made  in support                                                            
of the  youth court  program. He  spoke of low  recidivism of  those                                                            
appearing before  youth courts and  cautioned of the situation  with                                                            
these  youths if the  courts were  discontinued.  He calculated  the                                                            
cost for participants in  the youth court at $574 per individual and                                                            
compared  this to the cost  of housing juveniles  at the  McLaughlin                                                            
Youth Center.  He reported  that Alaska is  "leading the nation"  in                                                            
its  comprehensive  youth  court  system.  He  remarked  this  is  a                                                            
successful program  that saves money over the long  term and results                                                            
in the  youths becoming  more productive  members  of the state.  He                                                            
noted  that Alaska  currently  operates  15 youth  courts  statewide                                                            
served by  over 1,000 volunteers.  He reiterated  that this  program                                                            
not only saves  money in the future, but also allows  youth a second                                                            
chance to become productive citizens in Alaska.                                                                                 
                                                                                                                                
Co-Chair Green understood  this amendment would more than double the                                                            
current appropriation for the youth court program.                                                                              
                                                                                                                                
Senator Hoffman  corrected this amendment  would provide  the amount                                                            
requested for FY 05 by  Governor Murkowski, which is the same amount                                                            
appropriated in FY 04.                                                                                                          
                                                                                                                                
JANET  CLARKE,  Director,   Division  of  Administrative   Services,                                                            
Department of Health and  Social Services, clarified $508,300 is the                                                            
amount  approved  by the  House  of  Representatives;  however  this                                                            
amount is derived  of $28,800 federal  funding and $279,500  general                                                            
funding  transferred to  this component  and $200,000  added by  the                                                            
House of Representatives.                                                                                                       
                                                                                                                                
Co-Chair Green  understood the amount  allocated to this  program in                                                            
the current Senate Finance  committee substitute working document is                                                            
$308,240.  She calculated  this amount is  higher than appropriated                                                             
the previous fiscal year.                                                                                                       
                                                                                                                                
Ms. Clarke  noted the Governor's proposed  budget did not  include a                                                            
separate component  for the youth  court program and that  the funds                                                            
were contained in other components.                                                                                             
                                                                                                                                
Co-Chair Green asked if  this amendment would therefore increase the                                                            
current $308,240  appropriation to the amount approved  by the House                                                            
of Representatives.                                                                                                             
                                                                                                                                
Ms. Clarke  replied that  the increase is  unclear given the  manner                                                            
the amendment is written.                                                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Dyson, Senator Hoffman and Senator Olson                                                                      
                                                                                                                                
OPPOSED: Senator Bunde,  Senator B. Stevens, Co-Chair Wilken and Co-                                                            
Chair Green                                                                                                                     
                                                                                                                                
The motion FAILED (3-4)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
H&SS #8: This  amendment adds $866,400  Tobacco Education/Cessation                                                             
funds to the Health  and Human Services BRU, Tobacco  Prevention and                                                            
Control  component  on  page  18,  lines   9 and  10.  Accompanying                                                             
explanatory  languages  reads:  "Returns   to Governor's   requested                                                            
amount using Tobacco Education and Cessation funds."                                                                            
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Senator Olson stated this  amendment would increase funding for this                                                            
program  to the amount  appropriated  for the  current fiscal  year,                                                            
although  would  remain less  than  the amount  recommended  by  the                                                            
federal Centers for Disease  Control (CDC). He remarked that funding                                                            
allocated  to this  program  has been  utilized "quite  wisely".  He                                                            
cited information  circulated  by the American  Cancer Society  that                                                            
the  recommended amount  necessary  to fund  this  program is  $16.5                                                            
million,  compared to the  $4.9 million currently  spent. He  opined                                                            
this is  a disservice to  those affected by  the program, given  the                                                            
decreased tobacco use of participants.                                                                                          
                                                                                                                                
Co-Chair  Green  understood   these  funds  are  not  available  for                                                            
appropriation.                                                                                                                  
                                                                                                                                
Senator  Olson  agreed,  but noted  that  legislation  sponsored  by                                                            
Governor  Murkowski would  increase  taxes on  tobacco products  and                                                            
subsequently  increase revenues from  this tax to $35 million,  some                                                            
of which could be utilized  to fund this program.  He suggested that                                                            
if that  legislation  does not  pass, alternative  funding could  be                                                            
secured.                                                                                                                        
                                                                                                                                
Senator Bunde  asked if  this funding source  includes revenues  for                                                            
the master settlement act between states and tobacco companies.                                                                 
                                                                                                                                
Senator  Olson  responded   that  funds  from  the  settlement   are                                                            
deposited into the general fund and distributed.                                                                                
                                                                                                                                
Senator  Bunde understood  the agreement  that 20  percent of  funds                                                            
received  from  the   settlement  would  be  utilized   for  tobacco                                                            
cessation and  prevention programs  and asked how this amendment  is                                                            
related.                                                                                                                        
                                                                                                                                
Co-Chair Green  replied that 20 percent of the settlement  funds are                                                            
"spread  throughout the  budget" and  that this  amendment would  be                                                            
additional  funding. She  offered to provide  detailed information.                                                             
She characterized this amendment as an "empty appropriation."                                                                   
                                                                                                                                
Senator Olson answered  Senator Bunde's question that this amendment                                                            
would  provide that  an amount  equal to  20 percent  of  settlement                                                            
revenue  would  be  expended  for  tobacco  prevention  and  control                                                            
programs. If this  amendment were not adopted, he  remarked that the                                                            
programs would receive  less than 20 percent of settlement funds. He                                                            
cited information  from the  Alaska Chapter  of the American  Cancer                                                            
Society.                                                                                                                        
                                                                                                                                
Co-Chair Green listed the  appropriations of these funds. She opined                                                            
that  the (CDC)  would continue  to  contend that  additional  funds                                                            
should be expended  for prevention and cessation programs,  and that                                                            
some local  organizations disagreed  with the CDC on this  matter as                                                            
the FY  04 budget  was being considered.   She  stressed that  these                                                            
funds are also necessary  to offset Medicaid expenses resulting from                                                            
tobacco use.  However,  because of significant support for cessation                                                            
and prevention  efforts, the legislature  has attempted to  maintain                                                            
guidelines in allocating the settlement funds.                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator Dyson,  Senator B. Stevens, Senator Bunde, Co-Chair                                                            
Wilken and Co-Chair Green                                                                                                       
                                                                                                                                
The motion FAILED (2-5)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Department of Labor and Workforce Development                                                                                 
                                                                                                                                
DLWD #1:  This amendment  adds $50,000 Workers  Safety funds  to the                                                            
Workers'  Compensation   and  Safety   BRU,  Workers'  Compensation                                                             
component  on page  20, line  9. Accompanying  explanatory  language                                                            
reads as follows.                                                                                                               
                                                                                                                                
     This amendment will  restore one full time position and funding                                                            
     that  should not  have been  deleted  in the  Governor's FY  05                                                            
     request  since  the deletion  was  subject  to the  passage  of                                                            
     legislation, SB 311/HB 450.                                                                                                
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green outlined this amendment.                                                                                         
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
DLWD  #2:  This  amendment  adds  $300,000   general  funds  to  the                                                            
Workforce  Development  BRU, Kotzebue  Technical  Center  Operations                                                            
Grant  component   on  page  20,  lines  31  and  32.  Accompanying                                                             
explanatory language reads as follows.                                                                                          
                                                                                                                                
     Description: Restores funding to the FY 03 level. Supports                                                                 
     newly established nursing program.                                                                                         
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Senator  Olson  spoke to  the  success  of the  nursing  program  to                                                            
address  the statewide shorting  of qualified  nurses. He  furthered                                                            
that  the Center  is  beginning  to  train workers  to  construct  a                                                            
natural gas pipeline  in the event such a project  is undertaken. He                                                            
stated  this amendment  would  provide the  same  amount of  funding                                                            
provided two years  prior when the nursing program  was implemented.                                                            
                                                                                                                                
Co-Chair Green asked Senator Bunde's response.                                                                                  
                                                                                                                                
Senator Bunde  stated this  issue did not  arise in meetings  of the                                                            
budget subcommittee.                                                                                                            
                                                                                                                                
Co-Chair Green noted the  comparison to FY 03 funding rather than FY                                                            
04 funding.                                                                                                                     
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED: Senator B. Stevens,  Senator Bunde, Senator Dyson, Co-Chair                                                            
Wilken and Co-Chair Green                                                                                                       
                                                                                                                                
The motion FAILED (2-5)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Department of Natural Resources                                                                                               
                                                                                                                                
DNR #1: This  amendment adds $1,500,000  Agriculture Revolving  Loan                                                            
Fund (ARLF) to  the Resource Development BRU, Agriculture  Revolving                                                            
Loan Program Administration  component, on page 24, lines 27 and 28.                                                            
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The  Department of Corrections  has operated  the Mt.  McKinley                                                            
     Meat  Plant  for  the  Agriculture   Revolving  Loan  Fund  and                                                            
     accounted  for the buying  and selling  of the animals  through                                                            
     its Alaska Correctional  Industries operation. In December 2003                                                            
     the  ARLF took back  the operation  of the  meat plan with  the                                                            
     understanding  that the Department  of Corrections continue  to                                                            
     account  for the  buying and  selling of the  animals. For  the                                                            
     balance  of FY 04  the Department of  Corrections will  perform                                                            
     this duty under an RSA agreement with DNR.                                                                                 
                                                                                                                                
     In order  to gain  more control of  the overall administrative                                                             
     process  this amendment  proposes  that the  ARLF be given  the                                                            
     authority  to  receive  and  expend  all of  the  revenues  and                                                            
     expenditures  of  the  Mt.  McKinley  Meat  Plant  through  the                                                            
     Agriculture Revolving Loan Fund.                                                                                           
                                                                                                                                
     The projection is that this expenditure will be matched by and                                                             
     equal or greater amount of revenue into the ARLF.                                                                          
                                                                                                                                
     The long term plan is for the MMMP to be turned over to a Coop                                                             
     by 2006.                                                                                                                   
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green  called upon the Department  of Natural Resources  to                                                            
speak to this amendment.                                                                                                        
                                                                                                                                
NICO  BUS, Administrative   Services Manager,  Division  of  Support                                                            
Services,  Department  of Natural  Resources testified  these  funds                                                            
would  be utilized  to complete  the transfer  of  the meat  packing                                                            
plant. He stated  that the Department  of Natural Resources  did not                                                            
have  authority  to  buy  and sell  animals  so  the  Department  of                                                            
Corrections undertook  the accounting of those activities;  however,                                                            
this amendment  would allow the Department  of Natural Resources  to                                                            
assume  those duties.  He relayed  that  the intent  is to  transfer                                                            
operation of the facility to a cooperative organization.                                                                        
                                                                                                                                
Co-Chair Green asked if  these funds had already been expended or if                                                            
the  amount reflects  the  anticipated  revenue the  facility  would                                                            
generate.                                                                                                                       
                                                                                                                                
Mr.  Bus replied  that  the  funds  would allow  the  Department  to                                                            
purchase animals and generate revenue from the meat, once sold.                                                                 
                                                                                                                                
Senator  Hoffman  asked why  this appropriation  was  not  requested                                                            
during the budget subcommittee process.                                                                                         
                                                                                                                                
Mr. Bus responded  that the Department of Natural  Resources and the                                                            
Department  of Corrections  intended to enter  into a memorandum  of                                                            
agreement,  but instead determined  that the  Department of  Natural                                                            
Resources should  undertake the accounting  activities. He  informed                                                            
that Governor Murkowski  transferred three accounting positions from                                                            
the  Department   of  Corrections  to  the  Department   of  Natural                                                            
Resources to perform these duties.                                                                                              
                                                                                                                                
Senator  Hoffman  asked  if  the  transfer  of  the  facility  to  a                                                            
cooperative   organization   would  involve   a  sale  or   a  trade                                                            
arrangement.                                                                                                                    
                                                                                                                                
Mr.  Bus was  unsure.  He expressed  that  the  intent  is that  the                                                            
cooperative  would   operate  the  facility.  He  stated   that  the                                                            
Department  is  encouraging  the  industry  to  form  a cooperative                                                             
organization   and  plans   to  transfer   the   assets  that   that                                                            
organization.   He  remarked   that   the  operation   is  old   and                                                            
inefficient.                                                                                                                    
                                                                                                                                
Senator  Dyson   shared  that  ten  years  prior  he   performed  an                                                            
engineering   study  on   the  facility.   He   recalled  that   the                                                            
slaughterhouse   was  utilized  to  train  inmates   housed  by  the                                                            
Department  of Corrections, a program  that was very successful  and                                                            
that he hoped would continue.                                                                                                   
                                                                                                                                
Mr. Bus stated  that the Department  of Natural Resources  continues                                                            
to utilize  inmates and pays the Department  of Corrections  for the                                                            
labor performed.                                                                                                                
                                                                                                                                
Senator Dyson hoped inmates were receiving vocational training.                                                                 
                                                                                                                                
Co-Chair Green  noted that the Department of Corrections  budget has                                                            
been reduced to reflect this allocation.                                                                                        
                                                                                                                                
Senator Olson  questioned the ability of the facility  to generate a                                                            
positive   cash  flow   given  the   difficulties   the  plant   was                                                            
experiencing  that necessitated  the State  to assume ownership.  He                                                            
pointed  out that the  equipment is  older than at  the time  of the                                                            
takeover.  He asked  if the facility  could  operate without  future                                                            
supplements.                                                                                                                    
                                                                                                                                
Mr.  Bus replied  that Senator  Torgerson  has been  addressing  the                                                            
issue and has  achieved some success  in efforts to reduce  expenses                                                            
and increase revenues.                                                                                                          
                                                                                                                                
Co-Chair  Green  noted she  has  been observing  the  situation  and                                                            
reported that  Senator Torgerson has  made major changes  in design,                                                            
reduced  the number  of  employees,  altered  fees and  reduced  the                                                            
amounts  paid  for  certain  products.  She  surmised  that  Senator                                                            
Torgerson is "doing everything possible" to reduce expenses.                                                                    
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
DNR #2: This amendment  adds $6,200 Receipt Supported Services funds                                                            
to  the   Resource  Development   BRU,   Recorder's  Office/Uniform                                                             
Commercial Code component  on page 24, lines 22 and 23. Accompanying                                                            
explanatory language reads as follows.                                                                                          
                                                                                                                                
     This amendment will provide office space for the Seward                                                                    
     Recording Office.                                                                                                          
                                                                                                                                
     Annual Amount Requested: $6,200 in Receipt Supported Services                                                              
     Currently in the Budget: $1 part-time position for $27,000                                                                 
     Total Amount of Receipts Collected in FY 03: $33,298                                                                       
                                                                                                                                
     Background Information:  In the past, all recording was done by                                                            
     the Alaska Court System.  However, over the last several years,                                                            
     the  court  system  has  urged  the State  to  take  over  that                                                            
     function.  To  move  in  that  direction,  the  State  approved                                                            
     funding in FY 04 for  a part-time position, but did not include                                                            
     funding  for office space. Unfortunately,  utilizing  the space                                                            
     in the courthouse was not an option.                                                                                       
                                                                                                                                
     Due to  the fact that no money  was included in the  budget for                                                            
     office  space,  there  was  talk of  moving  this  function  to                                                            
     Anchorage. This move  was adamantly opposed by the community of                                                            
     Seward  and in  an effort to  keep it  there, local  businesses                                                            
     throughout  the community banded together to  share the cost of                                                            
     paying for  the office space for this fiscal  year. The current                                                            
     lease agreement will expire on June 30, 2004.                                                                              
                                                                                                                                
     Seward  has had a recording  office for  the past 90 years  and                                                            
     would  like  to  continue   to  provide  that  service  to  its                                                            
     residents.  The  cost  of  office  space would  come  from  the                                                            
     receipts that the Seward Recording Office collects.                                                                        
                                                                                                                                
     $6,200 was  added in House Finance and is in  the House version                                                            
     of the budget.                                                                                                             
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
                                                                                                                                
SFC 04 # 87, Side B 10:37 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Co-Chair Green  indicated she offered this amendment  at the request                                                            
of the Department.                                                                                                              
                                                                                                                                
Mr. Bus testified that  the transfer of recording functions from the                                                            
Alaska Court  System to the Department  has been discussed  for some                                                            
time. He reiterated the information in the explanatory language.                                                                
                                                                                                                                
Co-Chair Green  asked if clients must present original  paperwork at                                                            
the  Recording  Office or  whether  information  could  be sent  via                                                            
facsimile to the Anchorage office location.                                                                                     
                                                                                                                                
Mr. Bus replied  that facsimile information  could not be  accepted.                                                            
He also stressed  that the Seward  Office has been in existence  for                                                            
over 90 years.                                                                                                                  
                                                                                                                                
Co-Chair  Green  asked whether  the  City  of Seward  would  provide                                                            
funding for office  space should this amendment fail.  She clarified                                                            
that the State would not likely require this.                                                                                   
                                                                                                                                
Mr.  Bus responded  that  the  City of  Seward  would  be unable  to                                                            
provide funding,  reminding that private  citizens provided  funding                                                            
for FY 04.  He emphasized that this  cost would be funded  from fees                                                            
colleted by the agency.                                                                                                         
                                                                                                                                
Senator Hoffman asked if  revenues from fees collected at the Seward                                                            
Recording Office exceed $6,000.                                                                                                 
                                                                                                                                
Mr. Bus replied that the  amount of fees collected has exceeded this                                                            
amount in the  past and noted that the fees have been  increased, so                                                            
additional revenue would be generated.                                                                                          
                                                                                                                                
With no objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
Department of Public Safety                                                                                                   
                                                                                                                                
DPS #1:  This amendment  adds $696,600  to the  Council on  Domestic                                                            
Violence and  Sexual Assault BRU and  component on page 26,  line 33                                                            
and page 27, lines 7 and  8. Accompanying explanatory language reads                                                            
as follows.                                                                                                                     
                                                                                                                                
     Due  to reductions  in PFD/Felon  funds, TANF  funds, and  VOCA                                                            
     funds, the  grants to shelters and rape crisis  centers remains                                                            
     $696,600  less  than in  FY 04, after  a transfer  of  $200,000                                                            
     within  this budget  from administration  to  the grants  line.                                                            
     (These  funds are anticipated  to be made up in administration                                                             
     through  a  Denali Commission  administrative  fee  on  capital                                                            
     funds (see letter attached [copy not provided])).                                                                          
                                                                                                                                
     This  amendment  adds the  remaining  $696,600  needed to  hold                                                            
     shelters  and rape  crisis  centers harmless  in  FY 05 to  the                                                            
     Council  on Domestic  Violence and Sexual  Assault budget  from                                                            
     general funds.                                                                                                             
                                                                                                                                
Senator Hoffman moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green and Senator B. Stevens objected.                                                                                 
                                                                                                                                
Senator  Hoffman reminded  the Committee of  extensive testimony  in                                                            
support  of this  increment.  He stressed  that alcohol  abuse  is a                                                            
major  problem  in the  State  and the  impact  is has  on  domestic                                                            
violence  and sexual  assaults, and  he requested  that the  funding                                                            
remain the same as in the previous year.                                                                                        
                                                                                                                                
Co-Chair Green  asked the budget subcommittee chair  to speak to the                                                            
amendment.                                                                                                                      
                                                                                                                                
Senator   B.  Stevens   informed   that  the   budget  subcommittee                                                             
recommended  an  increase  of $200,000  general  funds  to offset  a                                                            
$900,000  reduction  in PFD/Felon  funds.   He also  noted that  the                                                            
subcommittee recommended  the transfer of $200,000  from a contracts                                                            
component   to  grants,  and  that   the  subcommittee  recommended                                                             
allocating $400,000 general  funds to offset that reduction. He told                                                            
of an  investigation  of the program  to identify  efficiencies,  in                                                            
which it was discovered  that several redundant charges were imposed                                                            
before the funds  reached the shelters. He recommended  that further                                                            
review should be undertaken  during the legislative interim. He then                                                            
told of $400,000 federal  grants the Counsel held in reserve for the                                                            
next fiscal  year because  future  grants would  not be received  in                                                            
time.  He  pointed  out that  $503,000  is  allocated  for  personal                                                            
services. He remarked  that the program administrators  had intended                                                            
to  take  reductions  to  the  grants  to  shelters  and  none  from                                                            
administration.   He  therefore  objected  to the  adoption of  this                                                            
amendment and expressed  intention to identify further efficiencies.                                                            
                                                                                                                                
Co-Chair  Green   announced  that  the  budget  subcommittee   would                                                            
continue  to function  during  the legislation  interim  to  address                                                            
concerns about  the administration  of the programs. She  emphasized                                                            
the intent  is that  the largest  percentage of  funds possible  are                                                            
allocated to the shelters.                                                                                                      
                                                                                                                                
Senator B.  Stevens agreed  and noted that  the budget subcommittee                                                             
recommended intent language indicating such.                                                                                    
                                                                                                                                
Senator Hoffman  remarked that Senator B. Stevens  made a compelling                                                            
argument   regarding   the  portion   of   the  funding   spend   on                                                            
administration of the program.                                                                                                  
                                                                                                                                
Senator  Hoffman  moved  to  amend   the  amendment  to  reduce  the                                                            
appropriation increase to $300,000 from $696,600.                                                                               
                                                                                                                                
There was no objection and the amendment was AMENDED.                                                                           
                                                                                                                                
Senator  Olson  asked  the  percentage  of  funds  received  by  the                                                            
shelters.                                                                                                                       
                                                                                                                                
Senator B. Stevens replied  that 19.5 percent of funding is utilized                                                            
for administration  and  professional  services  contracts and  80.5                                                            
percent of funding is allocated to shelters.                                                                                    
                                                                                                                                
Senator Olson  asked the evaluation of the missions  and measures of                                                            
this program.                                                                                                                   
                                                                                                                                
Senator  B. Stevens  indicating  he was  researching  the matter  of                                                            
whether  the Counsel  has  a  missions and  measures  procedure.  He                                                            
emphasized  this  is one  objective  of  the  budget subcommittee's                                                             
review. He pointed  out the funding limit established  by the Senate                                                            
Majority for the  Department and his efforts to meet  this limit. He                                                            
stated that  the budget subcommittee  had been under the  assumption                                                            
that $900,000  temporary assistance for needy families  (TANF) funds                                                            
was available for this  program, and was only recently informed that                                                            
these funds  were allocated  to other programs.  He stated  that the                                                            
transfers  reflected in  the committee  substitute  are a result  of                                                            
efforts to offset the reduced  funding, noting that this is the best                                                            
option  given the  time constraints.  He  reiterated  that he  would                                                            
address  the issue further  during  the interim  and added that  the                                                            
amount  of  funding generated  from  the  Permanent  Fund  dividends                                                            
withheld from incarcerated felons could increase.                                                                               
                                                                                                                                
Co-Chair  Green   added  that  during  discussions   on  the  FY  04                                                            
supplemental  appropriation   legislation  it  was  learned  that  a                                                            
significant  portion of funding is  allocated to the grant  program,                                                            
which  provides a  "cushion".  She stated  that  additional  funding                                                            
sources provide adequate funds to offset reductions.                                                                            
                                                                                                                                
Senator  Hoffman  countered that  the  supplemental  funds would  be                                                            
appropriated for  FY 04. He referenced a letter from  the Department                                                            
of Public Safety  to Co-Chair Green  [copy not provided]  indicating                                                            
that  funds are  available  within  the Department's   budget to  be                                                            
allocated  to the Council.  He then indicated  that a second  letter                                                            
attested  that the $900,000  was obligated  elsewhere and  therefore                                                            
not available.  He calculated that the FY 05 budget  reduction would                                                            
increase the program's  deficit to $1 million. He understood Senator                                                            
B. Stevens'  argument, but  asserted that this  amount was  too high                                                            
for the program  to absorb given the domestic violence  situation in                                                            
Alaska. He  surmised that  the Council would  "receive the  message"                                                            
that the administrative costs must be reduced.                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator Dyson,  Senator B. Stevens, Co-Chair Wilken and Co-                                                            
Chair Green                                                                                                                     
                                                                                                                                
ABSENT: Senator Bunde                                                                                                           
                                                                                                                                
The motion FAILED (2-4-1)                                                                                                       
                                                                                                                                
The amended amendment FAILED to be adopted.                                                                                     
                                                                                                                                
Statewide                                                                                                                     
                                                                                                                                
Statewide  #1: This  amendment adds  $4,299,300  of various  funding                                                            
sources to all departments.  Accompanying explanatory language reads                                                            
as follows.                                                                                                                     
                                                                                                                                
     This amendment provides FY 05 Health Insurance Salary                                                                      
     Adjustments  for all Non-Covered  Employees as well  as funding                                                            
     to  implement   terms  of  bargaining   agreements   for  those                                                            
     employees  covered under  the recently  approved Labor,  Trades                                                            
     and  Crafts  Unit  and  the  Correctional  Officers  and  State                                                            
     Troopers  Units  of  the  Public  Safety Employee  Association                                                             
     beginning July 1, 2004.                                                                                                    
                                                                                                                                
     The  attached Statewide  Totals Report  and the Agency  Summary                                                            
     Report  provides all  department  fund source  number and  name                                                            
     detail [copies on file].                                                                                                   
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair  Green stated  the  Office of  the Governor  prepared  this                                                            
amendment.  She  noted  the  funding  need  reflects  a  $2  monthly                                                            
increase to  the negotiated $40 per  employee monthly contribution.                                                             
                                                                                                                                
AT EASE 10:55 AM / 10:56 AM                                                                                                     
                                                                                                                                
The motion  to adopt the amendment  was WITHDRAWN and the  amendment                                                            
was HELD.                                                                                                                       
                                                                                                                                
Statewide  #2: This  amendment  replaces  the funding  sources  with                                                            
general funds in the amounts  listed to the following components and                                                            
departments.                                                                                                                    
                                                                                                                                
     Department of Corrections                                                                                                  
     BRU: Administration and Operations                                                                                         
     Component: Out-of-State Contractual                                                                                        
     Page 8, line 16                                                                                                            
     $200,000 AHFC Dividend                                                                                                     
     $1,074,400 ASLC Dividend                                                                                                   
                                                                                                                                
     Department of Natural Resources                                                                                            
     BRU: Fire Suppression                                                                                                      
     Component: Fire Suppression Preparedness                                                                                   
     Page 25, lines 12 and 13                                                                                                   
     $6,684,400 AIDEA Dividend                                                                                                  
                                                                                                                                
     Department of Natural Resources                                                                                            
     BRU: Fire Suppression                                                                                                      
     Component: Fire Suppression Activity                                                                                       
     Page 25, line 14                                                                                                           
     $4,315,600 AIDEA Dividend                                                                                                  
     $1,673,500 ASLC Dividend                                                                                                   
                                                                                                                                
This amendment  also changes the language  of subparagraphs  (6) and                                                            
(7)  of  subsection  (b), of  Section  10.  Alaska  Housing  Finance                                                            
Corporation.,  on page 48, lines 19 and 20. Subsection  (b) provides                                                            
that  the Corporation   for specific  expenditures  shall  retain  a                                                            
portion  of  the  funds  deemed  available  by  the  AHFC  board  of                                                            
directors. The amended language reads as follows.                                                                               
                                                                                                                                
                (6) $2,050,000 to capitalize the SeniorCare Fund;                                                               
     and                                                                                                                        
                (7) $17,163,400 for capital projects                                                                            
                                                                                                                                
This amendment also changes  the language of subsection (m) and adds                                                            
a new subsection  (n) to  Section 20. Fund  Transfers., on  page 53,                                                            
lines 14 and 15. The amended language reads as follows.                                                                         
                                                                                                                                
          (m) The sum of $22,689,500 is appropriated to the senior                                                              
     care  fund  (sec.  2,  ch. 3,  SLA  2004)  from  the  following                                                            
     sources:                                                                                                                   
          General Fund                                    $9,729,000                                                            
          Alaska Housing Finance Corporation Dividend  2,050,000                                                                
          Alaska Industrial Development and Export                                                                              
                Authority dividend                         8,162,600                                                            
          Alaska Student Loan Corporation dividend         2,747,900                                                            
          (n) The sum of $2,837,400 is appropriated from the Alaska                                                             
     Industrial  Development  and Export Authority  dividend  to the                                                            
     Alaska debt retirement fund (AS 37.15.011).                                                                                
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     This amendment  is intended to replace all corporate  dividends                                                            
     used in agency operating  appropriations with general funds and                                                            
     to  use the  dividend  funds  instead  to capitalize  the  debt                                                            
     retirement fund and the senior care fund.                                                                                  
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair  Green stated  this amendment  consists  of funding  source                                                            
changes.                                                                                                                        
                                                                                                                                
DEB  DAVIDSON,  Staff  to  Co-Chair  Green,  stated  this  amendment                                                            
changes funding  sources, explaining  that the budget subcommittees                                                             
had recommended State corporation  dividends for several operational                                                            
expenses.  She pointed  out this  amendment  would have  a net  zero                                                            
affect and would  utilize the dividends as one-time  funding sources                                                            
for debt retirement and the SeniorCare program.                                                                                 
                                                                                                                                
Senator Hoffman asked the total amount of general funds.                                                                        
                                                                                                                                
Ms. Davidson replied that  this amendment involves approximately $12                                                            
to $13  million, but stressed  that it would  not increase  funding.                                                            
She noted that the SeniorCare program had initially been funded                                                                 
with general funds and that this amendment switches the                                                                         
appropriations.                                                                                                                 
                                                                                                                                
Intent                                                                                                                        
                                                                                                                                
Intent #1: This amendment inserts a new bill section on page 47,                                                                
line 1 to read as follows.                                                                                                      
                                                                                                                                
          Section 4. AS 37.07.050 prescribes a statewide system of                                                              
     results-based  government designed  to increase efficiency  and                                                            
     effectiveness of state  programs and services. It is the intent                                                            
     of  the legislature  that  the administration  and legislature                                                             
     review  missions  and measures  currently  enacted and  propose                                                            
     changes  necessary  to  bring  them  into  alignment  with  the                                                            
     administration's  reorganization of departments  to promote the                                                            
     ultimate  goals of supporting  effective activities  and change                                                            
     and eliminating ineffective  programs and activiti4es. Proposed                                                            
     changes to  missions and measures should be prepared  for draft                                                            
     legislation  to  be introduced  at the  beginning  of the  next                                                            
     legislative session.                                                                                                       
                                                                                                                                
Accompanying explanatory language reads as follows.                                                                             
                                                                                                                                
     The  current administration  is placing  great energy  into the                                                            
     concept   of  Missions  and  Measures.  This  intent   language                                                            
     demonstrates  the  legislature's  support  of the  concept  and                                                            
     willingness   to work  with  the  administration   to  continue                                                            
     developing  a  successful   means  to  effectively  manage  the                                                            
     State's  resources and provide  services in the most  efficient                                                            
     manner.                                                                                                                    
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Senator Dyson objected.                                                                                                         
                                                                                                                                
Senator Dyson moved to amend the amendment by inserting the                                                                     
following portion of the language of Intent #2.                                                                                 
                                                                                                                                
     ADD the following  to each commissioner's office appropriation:                                                            
                                                                                                                                
     Legislative Intent Regarding Missions & Measures                                                                           
                                                                                                                                
     AS  37.07.050 prescribes  a statewide  system of results-based                                                             
     government  designed to increase  efficiency and effectiveness                                                             
     of  state programs and  services. The  statute further  directs                                                            
     periodic  reporting  which  describes  actions  taken  and  the                                                            
     results  of such  actions. The  Legislature  requests that  all                                                            
     executive branch agencies  and instrumentalities report agency-                                                            
     wide  performance  data  quarterly,  including,  as a  minimum,                                                            
     written analysis of:                                                                                                       
     The results and any trends indicated by the reported data;                                                                 
     If improvement, what caused improvement; and                                                                               
     Which   actions  resulted  in   no  change  or  a  decline   in                                                            
     performance.                                                                                                               
     When   operational   experience  indicates   that  legislative                                                             
     assistance  is  needed,  the  Legislature   requests  that  the                                                            
     departments  indicate  in their quarterly  reports the  desired                                                            
     legislative action(s).                                                                                                     
                                                                                                                                
     In  instances of  no change  or deteriorated  performance,  the                                                            
     respective agency  will provide a brief explanation of what the                                                            
     agency  will do differently in  subsequent quarters  to advance                                                            
     stated  performance  targets. For  measures  lacking data,  the                                                            
     reporting  agency shall provide  a brief statement of  the most                                                            
     significant  impediments  to reaching  the performance  target,                                                            
     precisely  what  the  agency   will  change  to  overcome  such                                                            
     impediments,  and  the  date  performance  data will  be  first                                                            
     reported.                                                                                                                  
                                                                                                                                
     The Legislature  also requests quarterly online  updates to all                                                            
     levels  of performance measures  contained within the  Missions                                                            
     and Measures framework.                                                                                                    
                                                                                                                                
     Each  department  shall  identify   when  the  desired  results                                                            
     involve  more than  one agency.  Each quarter  the agency  will                                                            
     report  on  the  progress  of  each  agency's  contribution  to                                                            
     achieving the desired results.                                                                                             
                                                                                                                                
     Finally,  each  agency  shall present  semi-annual  reports  of                                                            
     activities, data,  and results to the Legislature in a forum to                                                            
     be determined by the  Legislature. The first semi-annual report                                                            
     will  address the information  required  on a quarterly  basis,                                                            
     but  will  comprise   the  information  of  the   previous  two                                                            
     quarters,  and will  be presented  at a time  specified  by the                                                            
     Legislature,  generally  in late summer  or early fall  of each                                                            
     year.  The  second semi-annual  report  will  be comprehensive                                                             
     reports of  the previous year and will be presented  in January                                                            
     of each year after the Legislature has convened.                                                                           
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
Senator Dyson outlined the explanatory statements and relayed that                                                              
the Office of Management and Budget approves of this amendment to                                                               
the amendment.                                                                                                                  
                                                                                                                                
Co-Chair Green maintained her objection.                                                                                        
                                                                                                                                
Co-Chair  Wilken   asked  whether   this  amendment  would   require                                                            
additional  reports  of the  departments.  If so,  he was  concerned                                                            
about potential  fiscal impacts and  suggested the matter  should be                                                            
addressed as legislation with fiscal notes.                                                                                     
                                                                                                                                
Senator Dyson  understood that the  departments were in the  process                                                            
of undertaking these efforts.                                                                                                   
                                                                                                                                
JOAN BROWN, Chief Budget  Analysis, Office of Management and Budget,                                                            
testified  that the departments  were implementing  procedures  with                                                            
the intent of  issuing these reports, but had not  begun the process                                                            
to date.                                                                                                                        
                                                                                                                                
Senator  Dyson  expressed  his  intention   that  reports  would  be                                                            
published as they  became available and would be accessible  for the                                                            
legislature and the public.                                                                                                     
                                                                                                                                
Co-Chair  Wilken appreciated  Senator  Dyson's  efforts although  he                                                            
preferred that  the reporting requirements be addressed  through the                                                            
legislative   process  to   allow  for  committee   review   of  the                                                            
implications and fiscal impacts.                                                                                                
                                                                                                                                
Senator Dyson  remarked that the process  of implementing  reporting                                                            
procedures  had been  "muddled"  with the  change  to the  Murkowski                                                            
Administration.   He   understood   that   legislation   was   under                                                            
consideration  in  the House  of  Representatives,  but  he did  not                                                            
expect it would be completed this legislative session.                                                                          
                                                                                                                                
Co-Chair  Green asked  if the origin  of the language  in the  first                                                            
paragraph  of  the amendment  to  the amendment  pertaining  to  the                                                            
quarterly  reporting  requirement  is  a  direct  quotation  of  the                                                            
statute.                                                                                                                        
                                                                                                                                
Senator  Dyson   answered  it  is  not,  but  rather   reflects  the                                                            
Administration's  efforts and  goals for the  Missions and  Measures                                                            
program.                                                                                                                        
                                                                                                                                
AT EASE 11:06 AM / 11:07 AM                                                                                                     
                                                                                                                                
Co-Chair Green  surmised that increasing the reporting  requirements                                                            
from   semi-annually   to  quarterly   would   require  substantive                                                             
legislation  and  could not  be  accomplished  within appropriation                                                             
legislation.                                                                                                                    
                                                                                                                                
Senator Dyson withdrew his amendment to the amendment.                                                                          
                                                                                                                                
Senator Dyson offered a  motion to amend the amendment to insert the                                                            
aforementioned  language of  Intent #2 with  the exception  that the                                                            
reports  would be issued  semi-annually rather  than quarterly.  The                                                            
second amendment to the amendment reads as follows.                                                                             
                                                                                                                                
     ADD the following  to each commissioner's office appropriation:                                                            
                                                                                                                                
     Legislative Intent Regarding Missions & Measures                                                                           
                                                                                                                                
     AS  37.07.050 prescribes  a statewide  system of results-based                                                             
     government  designed to increase  efficiency and effectiveness                                                             
     of  state programs and  services. The  statute further  directs                                                            
     periodic  reporting  which  describes  actions  taken  and  the                                                            
     results  of such  actions. The  Legislature  requests that  all                                                            
     executive branch agencies  and instrumentalities report agency-                                                            
     wide  performance  data  quarterly,  including,  as a  minimum,                                                            
     written analysis of:                                                                                                       
     The results and any trends indicated by the reported data;                                                                 
     If improvement, what caused improvement; and                                                                               
     Which   actions  resulted  in   no  change  or  a  decline   in                                                            
     performance.                                                                                                               
     When   operational   experience  indicates   that  legislative                                                             
     assistance  is  needed,  the  Legislature   requests  that  the                                                            
     departments  indicate  in their quarterly  reports the  desired                                                            
     legislative action(s).                                                                                                     
                                                                                                                                
     In  instances of  no change  or deteriorated  performance,  the                                                            
     respective agency  will provide a brief explanation of what the                                                            
     agency  will do differently in  subsequent quarters  to advance                                                            
     stated  performance  targets. For  measures  lacking data,  the                                                            
     reporting  agency shall provide  a brief statement of  the most                                                            
     significant  impediments  to reaching  the performance  target,                                                            
     precisely  what  the  agency   will  change  to  overcome  such                                                            
     impediments,  and  the  date  performance  data will  be  first                                                            
     reported.                                                                                                                  
                                                                                                                                
     The  Legislature also  requests semi-annual  online updates  to                                                            
     all  levels  of  performance  measures   contained  within  the                                                            
     Missions and Measures framework.                                                                                           
                                                                                                                                
     Each  department  shall  identify   when  the  desired  results                                                            
     involve  more than one agency.  Semi-annually, the agency  will                                                            
     report  on  the  progress  of  each  agency's  contribution  to                                                            
     achieving the desired results.                                                                                             
                                                                                                                                
     Finally,  each  agency  shall present  semi-annual  reports  of                                                            
     activities, data,  and results to the Legislature in a forum to                                                            
     be determined by the  Legislature. The first semi-annual report                                                            
     will  address the information  required  on a quarterly  basis,                                                            
     but  will  comprise   the  information  of  the   previous  two                                                            
     quarters,  and will  be presented  at a time  specified  by the                                                            
     Legislature,  generally  in late summer  or early fall  of each                                                            
     year.  The  second semi-annual  report  will  be comprehensive                                                             
     reports of  the previous year and will be presented  in January                                                            
     of each year after the Legislature has convened.                                                                           
                                                                                                                                
Co-Chair  Green announced  she  would have  to review  whether  this                                                            
appropriation legislation  could be amended in this manner; however,                                                            
she did not want  to delay action on the appropriation  legislation.                                                            
                                                                                                                                
Senator  B.  Stevens  agreed  that  this  amendment  is  likely  not                                                            
allowable in this bill;  he also agreed with Senator Dyson's intent.                                                            
He asked if the  matter of whether this language would  be allowable                                                            
in this appropriation legislation could be determined.                                                                          
                                                                                                                                
Co-Chair  Green replied  it could, but  would incur  a delay  in the                                                            
process  of  passing  this  legislation.   She  commented  that  the                                                            
missions   and  measures   currently   in  place   pertain  to   the                                                            
departmental   organizations    of   the   previous   gubernatorial                                                             
administration.   She  stated  that  the  Murkowski  Administration                                                             
requested  an extension  of  the semi-annual  reports  to allow  the                                                            
missions   and   measures    to  be   adjusted    to   reflect   the                                                            
reorganizations.                                                                                                                
                                                                                                                                
Senator  Dyson  offered to  withdraw  the  amendment and  submit  an                                                            
amendment to reflect the  semi-annual reporting requirement and also                                                            
replace the statutory language with intent language.                                                                            
                                                                                                                                
Co-Chair  Green suggested  that  the bill  could be  amended at  the                                                            
hearing  before the  full Senate  to incorporate  acceptable  intent                                                            
language.                                                                                                                       
                                                                                                                                
AT EASE 11:12 AM / 11:14 AM                                                                                                     
                                                                                                                                
Co-Chair Green  proposed the amendment be amended  conceptually with                                                            
direction to  the bill drafters to  insert intent language  into the                                                            
bill to provide  "guidance". She specified that the  intent language                                                            
should not  be repetitive  or provide stipulations  "going  over the                                                            
edge".                                                                                                                          
                                                                                                                                
Without  objection  the  amendment  was  conceptually   AMENDED  and                                                            
ADOPTED.                                                                                                                        
                                                                                                                                
Intent #2: This amendment reads as follows.                                                                                     
                                                                                                                                
     ADD the following  to each commissioner's office appropriation:                                                            
                                                                                                                                
     Legislative Intent Regarding Missions & Measures                                                                           
                                                                                                                                
     AS  37.07.050 prescribes  a statewide  system of results-based                                                             
     government  designed to increase  efficiency and effectiveness                                                             
     of  state programs and  services. The  statute further  directs                                                            
     periodic  reporting  which  describes  actions  taken  and  the                                                            
     results  of such  actions. The  Legislature  requests that  all                                                            
     executive branch agencies  and instrumentalities report agency-                                                            
     wide  performance  data  quarterly,  including,  as a  minimum,                                                            
     written analysis of:                                                                                                       
     The results and any trends indicated by the reported data;                                                                 
     If improvement, what caused improvement; and                                                                               
     Which   actions  resulted  in   no  change  or  a  decline   in                                                            
     performance.                                                                                                               
     When   operational   experience  indicates   that  legislative                                                             
     assistance  is  needed,  the  Legislature   requests  that  the                                                            
     departments  indicate  in their quarterly  reports the  desired                                                            
     legislative action(s).                                                                                                     
                                                                                                                                
     In  instances of  no change  or deteriorated  performance,  the                                                            
     respective agency  will provide a brief explanation of what the                                                            
     agency  will do differently in  subsequent quarters  to advance                                                            
     stated  performance  targets. For  measures  lacking data,  the                                                            
     reporting  agency shall provide  a brief statement of  the most                                                            
     significant  impediments  to reaching  the performance  target,                                                            
     precisely  what  the  agency   will  change  to  overcome  such                                                            
     impediments,  and  the  date  performance  data will  be  first                                                            
     reported.                                                                                                                  
                                                                                                                                
     The Legislature  also requests quarterly online  updates to all                                                            
     levels  of performance measures  contained within the  Missions                                                            
     and Measures framework.                                                                                                    
                                                                                                                                
     Each  department  shall  identify   when  the  desired  results                                                            
     involve  more than  one agency.  Each quarter  the agency  will                                                            
     report  on  the  progress  of  each  agency's  contribution  to                                                            
     achieving the desired results.                                                                                             
                                                                                                                                
     Finally,  each  agency  shall present  semi-annual  reports  of                                                            
     activities, data,  and results to the Legislature in a forum to                                                            
     be determined by the  Legislature. The first semi-annual report                                                            
     will  address the information  required  on a quarterly  basis,                                                            
     but  will  comprise   the  information  of  the   previous  two                                                            
     quarters,  and will  be presented  at a time  specified  by the                                                            
     Legislature,  generally  in late summer  or early fall  of each                                                            
     year.  The  second semi-annual  report  will  be comprehensive                                                             
     reports of  the previous year and will be presented  in January                                                            
     of each year after the Legislature has convened.                                                                           
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Administration                                                                                               
                                                                                                                                
     The  Department  of Administration  shall  develop strategies,                                                             
     targets,  and  actions  plans  to minimize  turnover  of  state                                                            
     employees.                                                                                                                 
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Administration                                                                                               
                                                                                                                                
     The  Department  of Administration  shall  develop strategies,                                                             
     targets,  and  action  plans  to  fill  vacancies  with  highly                                                            
     qualified personnel.                                                                                                       
                                                                                                                                
     ADD the following to:                                                                                                      
     Department  of  Administration,   Division  of  Retirement  and                                                            
     Benefits                                                                                                                   
     Department  of Revenue, Alaska  State Pension Investment  Board                                                            
                                                                                                                                
     The Department of  Administration and the Department of Revenue                                                            
     shall  jointly develop  End Results,  strategies, targets,  and                                                            
     action plans to achieve the following:                                                                                     
     1. Long term  financial viability without supplements  from the                                                            
     general fund;                                                                                                              
     2. The fund is fully funded at least 60% of the time;                                                                      
     3. Long term gains are optimized with low risk; and                                                                        
     4. Average  annual returns in excess of national  standards for                                                            
     similar pension programs.                                                                                                  
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Corrections                                                                                                  
                                                                                                                                
     The  Department of  Corrections shall  develop the strategies,                                                             
     targets,  and action  plans necessary  to provide inmates  with                                                            
     the  opportunity  to address  their  deficiencies  related  to:                                                            
     education;  health; alcohol and substance abuse;  emotional and                                                            
     psychological abuse issues; and vocational skills.                                                                         
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Corrections                                                                                                  
                                                                                                                                
     The  Department of  Corrections shall  develop the strategies,                                                             
     targets,  and action plans necessary  to utilize community  and                                                            
     faith  based organizations  to the maximum  extent possible  to                                                            
     meet inmate needs.                                                                                                         
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Education and Early Development                                                                              
                                                                                                                                
     The  Department  of  Education   and Early  Development   shall                                                            
     develop  the strategies, targets,  measures, and corresponding                                                             
     action plans to demonstrate  that all schools are in compliance                                                            
     with  AS 14.133.120,  School Disciplinary  and Safety  Program.                                                            
     The  resultant Behavior  and Safety Standards  shall be  posted                                                            
     prominently  in school buildings, on the school's  website, and                                                            
     shall  be made  readily  available  to parents,  students,  and                                                            
     citizens within adjacent  communities with the objective of in-                                                            
     depth  agreement and  understanding of  the school's  standards                                                            
     for behavior and safety.                                                                                                   
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Education and Early Development                                                                              
                                                                                                                                
     The  Department  of  Education   and Early  Development   shall                                                            
     develop measures and  corresponding action plans to demonstrate                                                            
     that all  school-based programs and all in-class  presentations                                                            
     regarding  human sexuality meet guidelines for  federal funding                                                            
     of  abstinence education  regardless  of whether  such  program                                                            
     materials  and/or   presentation  are  funded  by  the  Federal                                                            
     Abstinence Fund.                                                                                                           
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Education and Early Development                                                                              
                                                                                                                                
     The  Department  of  Education   and Early  Development   shall                                                            
     develop measures and  corresponding action plans to demonstrate                                                            
     that all teachers,  school staff, and school-based clinic staff                                                            
     report  potential child molestation  or rape when the  child is                                                            
     15 years  old or younger, and  is suspected of being,  or known                                                            
     to be,  involved in  sexual activity with  a partner who  is at                                                            
     least   three  years  older.   Further  the  Department   shall                                                            
     demonstrate  that  all such reports  are  forwarded [to]  Child                                                            
     Protective Services and/or proper law enforcement agencies.                                                                
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Education and Early Development                                                                              
                                                                                                                                
     The  Department  of  Education   and Early  Development   shall                                                            
     develop  the strategies, targets,  measures, and corresponding                                                             
     action  plans  necessary to  ensure  that school  students  and                                                            
     staff  are safe from:  assault; bullying;  and sexual,  racial,                                                            
     ethnic, tribal and religious harassment.                                                                                   
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Education and Early Development                                                                              
                                                                                                                                
     The  Department  of  Education   and Early  Development   shall                                                            
     develop  the strategies, targets,  measures, and corresponding                                                             
     action  plans necessary  to encourage,  empower, and  supervise                                                            
     alternative education  opportunities in the state to meet [the]                                                            
     school choice requirements of "No Child Left Behind."                                                                      
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Education and Early Development                                                                              
                                                                                                                                
     The  Department  of  Education   and Early  Development   shall                                                            
     develop  the strategies, targets,  measures, and corresponding                                                             
     action  plans necessary to ensure  that all public alternative                                                             
     education  options  within  the  state are  on  the  department                                                            
     websites, and are maintained current.                                                                                      
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Health and Social Services                                                                                   
     Office of the Commissioner                                                                                                 
                                                                                                                                
     The  Commissioner  of  the  Department  of  Health  and  Social                                                            
     Services  shall   develop  statewide,  inter-departmental   End                                                            
     Results,  targets, measures, and corresponding  action plans to                                                            
     demonstrate  meaningful progress  toward eliminating  statutory                                                            
     rape  of  children   through  aggressive  reporting   by  state                                                            
     personnel   and  contractor   personnel   of  potential   child                                                            
     molestation or rape  when the child is 15 years old or younger,                                                            
     and is suspected  of being, or known to be, involved  in sexual                                                            
     activity with a partner who is at least three years older.                                                                 
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Health and Social Services                                                                                   
     Office of the Commissioner                                                                                                 
                                                                                                                                
     The  Commissioner  of  the  Department  of  Health  and  Social                                                            
     Services  shall  develop  and  facilitate  the  use  of  health                                                            
     savings  accounts,  and  empower private  Alaskan  citizens  to                                                            
     obtain  medical and health services  at the same payment  rates                                                            
     as enjoyed by state employees.                                                                                             
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Health and Social Services                                                                                   
     Division of Public Assistance                                                                                              
                                                                                                                                
     The   Division   of  Public   Assistance   shall  develop   the                                                            
     strategies,  targets, measures, and corresponding  action plans                                                            
     necessary  to find and prosecute all persons  committing fraud.                                                            
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Military and Veterans Affairs                                                                                
                                                                                                                                
     The Department  of Military and Veterans Affairs  shall develop                                                            
     new targets related to:                                                                                                    
     1. Percent of authorized positions filled;                                                                                 
     2. Percent  of personnel that are qualified and  trained to C-3                                                            
     standards; and                                                                                                             
     3. Percent  of equipment meeting  specified military  standards                                                            
     for readiness.                                                                                                             
                                                                                                                                
     ADD the following to:                                                                                                      
     Department of Revenue                                                                                                      
     Child Support Enforcement Division                                                                                         
                                                                                                                                
     The  Child Support Enforcement  Division  of the Department  of                                                            
     Revenue  shall  develop  the strategies,  targets,  and  action                                                            
     plans  necessary to process changes  to "Court Support  Orders"                                                            
     within 120  days for individuals residing [in]  Alaska, and 180                                                            
     days for out of state court support orders.                                                                                
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
Statewide (continued)                                                                                                         
                                                                                                                                
Statewide #1: This amendment adds $4,299,300 of various funding                                                                 
sources to all departments. Accompanying explanatory language reads                                                             
as follows.                                                                                                                     
                                                                                                                                
     This   amendment  provides  FY   05  Health  Insurance   Salary                                                            
     Adjustments  for all Non-Covered  Employees as well  as funding                                                            
     to  implement   terms  of  bargaining   agreements   for  those                                                            
     employees  covered under  the recently  approved Labor,  Trades                                                            
     and  Crafts  Unit  and  the  Correctional  Officers  and  State                                                            
     Troopers  Units  of  the  Public  Safety Employee  Association                                                             
     beginning July 1, 2004.                                                                                                    
                                                                                                                                
     The  attached Statewide  Totals Report  and the Agency  Summary                                                            
     Report  provides all  department  fund source  number and  name                                                            
     detail [copies on file].                                                                                                   
                                                                                                                                
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green moved to amend the amendment to add the following                                                                
language.                                                                                                                       
                                                                                                                                
     Add a new section to read:                                                                                                 
          Sec. SALARY AND BENEFIT ADJUSTMENTS. (a) The operating                                                                
     budget appropriations  made in sec. 1 of this Act and in sec. 1                                                            
     of  the Act making  appropriations for  the state's  integrated                                                            
     comprehensive  mental  health program,  include $4,299,300  for                                                            
     benefit  adjustments   for  public  officials,   officers,  and                                                            
     employees   of  the  executive  branch,  Alaska   Court  System                                                            
     employees,  employees of the  legislature and legislators,  and                                                            
     to  implement the  monetary terms  for the  fiscal year  ending                                                            
     June   30,  2005,  of  the  following   collective   bargaining                                                            
     agreements:                                                                                                                
                (1) Public Employees Local 71, for the Labor, Trades                                                            
     and Crafts Unit;                                                                                                           
                (2) Public Safety Employees Association, for the                                                                
     Correctional Officers Unit; and                                                                                            
                (3)   Public    Safety    Employees    Association,                                                             
     representing   state  troopers   and  other  commissioned   law                                                            
     enforcement.                                                                                                               
          (b) If a collective bargaining agreement listed in (a) of                                                             
     this  section  is  not  ratified   by  the  membership  of  the                                                            
     respective  collective bargaining  unit, the appropriates  made                                                            
     by this Act  that are applicable to that collective  bargaining                                                            
     unit's agreement are  reduced proportionately by the amount for                                                            
     that  collective bargaining  agreement,  and the corresponding                                                             
     funding source amounts are reduced accordingly.                                                                            
                                                                                                                                
Senator Dyson  questioned the use of mental health  funding for this                                                            
purpose.                                                                                                                        
                                                                                                                                
Co-Chair  Green replied  that  some of  the affected  positions  are                                                            
funded  with Mental  Health  Trust Authority  (MHTA)  funds and  the                                                            
increased costs  for those positions would also be  funded utilizing                                                            
MHTA funds.                                                                                                                     
                                                                                                                                
Senator Dyson  clarified the  funds would  be utilized for  salaries                                                            
and adjustments.                                                                                                                
                                                                                                                                
Co-Chair Green affirmed.                                                                                                        
                                                                                                                                
Senator  Dyson commented  that  the language  of  the amendment  was                                                            
"misleading". He asked about funding for "permissive" abortions.                                                                
                                                                                                                                
Co-Chair   Green  recalled   earlier   discussions   where  it   was                                                            
established that  the legislature does not have the  ability to make                                                            
determinations  over  insurance  coverage  of  abortions  under  the                                                            
bargaining unit contracts with the insurance carrier.                                                                           
                                                                                                                                
AT EASE 11:19 AM / 11:22 AM                                                                                                     
                                                                                                                                
Co-Chair Green  clarified that some  portions of this amendment  are                                                            
to both HB 375 and HB 377.                                                                                                      
                                                                                                                                
Co-Chair Green  noted that Senator  Dyson objected to the  motion to                                                            
amend the amendment.                                                                                                            
                                                                                                                                
Senator Hoffman  asked if the amount listed in subsection  (b) would                                                            
reduce the appropriation specified in subsection (a).                                                                           
                                                                                                                                
Co-Chair Green did not  know the amount ratified. However, she noted                                                            
that  if  any of  the  collective  bargaining  agreements  were  not                                                            
ratified by the  membership of those units, the appropriation  would                                                            
be reduced accordingly.                                                                                                         
                                                                                                                                
Senator Olson  remarked that  this amount  should be identified,  as                                                            
this amendment  to the amendment gives  an ultimatum to the  members                                                            
of these collective bargaining units.                                                                                           
                                                                                                                                
Ms. Brown replied  that to date, the Labors, Trades  and Crafts unit                                                            
had ratified its  contract with the State and that  the two units of                                                            
the Public Safety Employees  Association had not. She stated that if                                                            
the Public  Safety Employee Association  units failed to  ratify the                                                            
agreements, this  amendment would reduce the appropriation  for cost                                                            
increases associated to those agreements.                                                                                       
                                                                                                                                
Senator Bunde  characterized this amendment as a boilerplate,  which                                                            
would  provide   the  appropriation   if   needed,  but  would   not                                                            
appropriation funds if not needed.                                                                                              
                                                                                                                                
Senator Hoffman asked if  the bargaining units have any objection to                                                            
level of funding proposed in this amendment.                                                                                    
                                                                                                                                
Ms.  Brown surmised  there  was no  objection  and that  the  matter                                                            
relates to the timing of the union ratification process.                                                                        
                                                                                                                                
Senator Hoffman  asked whether the  bargaining units are  requesting                                                            
more funds than reflected in this amendment.                                                                                    
                                                                                                                                
Ms. Brown answered, no.                                                                                                         
                                                                                                                                
Senator Dyson  indicated he  objected to  this amendment because  he                                                            
was "disappointed"  that  the legislature  was not  included in  the                                                            
negotiation  process.  He  did  not oppose  the  contracts,  or  the                                                            
efforts   of   the  bargaining   units   and   the   Department   of                                                            
Administration.                                                                                                                 
                                                                                                                                
A roll call was taken on the motion to amend the amendment.                                                                     
                                                                                                                                
IN FAVOR: Senator  B. Stevens, Senator  Bunde, Co-Chair Wilken,  and                                                            
Co-Chair Green                                                                                                                  
                                                                                                                                
OPPOSED: Senator Dyson, Senator Olson, and Senator Hoffman                                                                      
                                                                                                                                
The motion PASSED (4-3)                                                                                                         
                                                                                                                                
The amendment was AMENDED.                                                                                                      
                                                                                                                                
The amended amendment was ADOPTED without objection.                                                                            
                                                                                                                                
This concluded the amendments.                                                                                                  
                                                                                                                                
Senator Hoffman expressed  concern that only one BRU was established                                                            
for several  programs  within the  Department of  Health and  Social                                                            
Services,  although it  would allow  flexibility.  He remarked  that                                                            
this  committee substitute  closely  reflects  Governor Murkowski's                                                             
budget proposals and therefore  the Governor could "take credit" and                                                            
also "take the blame where that may be".                                                                                        
                                                                                                                                
Co-Chair  Green  thanked the  budget  subcommittees  and  department                                                            
staff for their efforts.                                                                                                        
                                                                                                                                
Co-Chair  Wilken  offered a  motion to  report  SCS CS  HB 375,  23-                                                            
GH2040\C,    as   amended    from    Committee    with    individual                                                            
recommendations.                                                                                                                
                                                                                                                                
There  was  no  objection  and  SCS  CS  HB  375  (FIN)  MOVED  from                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken  offered a  motion to  report  SCS CS  HB 377,  23-                                                            
GH2042\S, as amended from  Committee with individual recommendation.                                                            
                                                                                                                                
Without objection, SCS CS HB 377 (FIN) MOVED from Committee.                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Lyda Green adjourned the meeting at 11:30 AM                                                                           

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