HOUSE BILL 100 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." HOUSE BILL 101 "An Act making appropriations for operating expenses for certain programs for which the costs are derived from mandated formulas or criteria, and for expenses for certain leases and contracts for state services and operations; and providing for an effective date." DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) Co-Chair Foster MOVED to amend Amendment #1 by deleting $500 thousand dollars and inserting $450 thousand dollars. There being NO OBJECTION, it was amended. Co-Chair Foster MOVED to adopt Amendment #1. There being NO OBJECTION, it was adopted. Representative Grussendorf MOVED to adopt Amendment #2. REPRESENTATIVE CAREN ROBINSON spoke in support of Amendment Alaska and the entire State. She stated that the primary function of the lab was to certify all other labs in the State, as well as performing all the State's forensic work. MICHELE BROWN, DEPUTY COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, spoke in support of Amendment #2 explaining that lab did much of the State's chemistry work. She echoed that the strength of the lab is forensic inorganic spill source matching. Representative Therriault OBJECTED to adopting Amendment #2. He thought that it was not important that this capability remain in State. He added that an audit of the lab has indicated that it is very expensive to maintain and recommended that a contractual arrangement be made with a lab in Washington. Ms. Brown advised that the proposed reduction would not close the lab, although would severely limit it's functions. A roll call vote was taken on the MOTION to adopt Amendment 2 IN FAVOR: Brown, Grussendorf, Foster OPPOSED: Therriault, Kelly, Kohring, Martin, Mulder, Parnell, Hanley Representative Navarre was not present for the vote. The MOTION FAILED (3-7). Representative Brown MOVED to adopt Amendment #3. Representative Therriault OBJECTED. Representative Brown explained that amendment would restore $34 thousand dollars to the DEC Commissioner's Office which would then be RSA'd over to the Department of Law to pay for a paralegal position for environmental crimes. Ms. Brown added that the position could nearly pay for itself within a year with fines recovered. Representative Therriault pointed out that the position had been vacant for a while and he felt that the current funding was adequate. A roll call vote was taken on the MOTION to adopt Amendment IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley, Foster. The MOTION FAILED (3-8). DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA) Co-Chair Foster MOVED to amend Amendment #1 by not deleting the Agency BRU component of Environmental Conservation, Administration, Office of the Commissioner, reduction of personal services by $50 thousand dollars and thus changing the addition for Child Assistance, Head Start Grants to $300 thousand dollars to grants. Co-Chair Hanley asked the total amount being cut from the Head Start budget. Representative Brown stated that a total of $5.543 million dollars would be cut through the House proposed budget. She requested that the additional $50 thousand dollars be found from another source in order that a reduction from that component be avoided. Discussion followed among Committee members regarding the reduction. Representative Brown noted for the record her objection to reducing the level of effort within that Division. There being NO OBJECTION, it was amended. Co-Chair Foster MOVED to adopt amended Amendment #1. There 3 being NO OBJECTION, it was adopted. Representative Brown MOVED to amend Amendment #2 by deleting $350 thousand dollars and inserting $50 thousand dollars which would provide the balance of the funding needed for Head Start grants. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Navarre, Brown, Foster OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley The MOTION FAILED (4-7). Representative Brown MOVED to adopt Amendment #3 which would result in a 5% instead of 10% reduction in revenue sharing and municipal assistance. Representative Mulder OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Foster OPPOSED: Kohring, Martin, Mulder, Navarre, Parnell, Therriault, Kelly, Hanley The MOTION FAILED (3-8). DEPARTMENT OF CORRECTIONS Representative Grussendorf MOVED to adopt Amendment #1. Representative Mulder OBJECTED. Representative Grussendorf commented that the amendment would provide funding for State contracts to local municipalities in order to provide relieve resulting from State obligations. He emphasized that the amendment would restore funding to contractual arrangements with communities. Representative Mulder interjected that there had been a $4.64 million dollar increase as proposed by the Subcommittee, which would amount to a twenty percent increase (20%) partially to be used for contracts and equipment upgrades. A roll call vote was taken on the MOTION to adopt Amendment IN FAVOR: Navarre, Brown, Grussendorf OPPOSED: Kelly, Kohring, Martin, Mulder, Therriault, Parnell, Hanley, Foster The MOTION FAILED (3-8). 4 UNIVERSITY OF ALASKA Co-Chair Hanley MOVED to amend Amendment #1 deleting $20.5 thousand dollars and inserting $20.8 thousand dollars. He noted that incorrect numbers add been originally typed in. There being NO OBJECTION, it was amended. Co-Chair Hanley MOVED to adopt Amendment #1. Representative Navarre OBJECTED for purposes of discussion. Co-Chair Hanley explained that the amendment would add $1 million to the University, leaving a $3 million dollar unallocated reduction. WENDY REDMAN, VICE PRESIDENT, UNIVERSITY RELATIONS, UNIVERSITY OF ALASKA, discussed the effect on the University. She explained that the funds needed to address fixed University costs next year would be $7 million dollars. An additional $3 million dollar reduction would be experienced in loss of part time faculty and student employment. Representative Brown commented on the loss of part time faculty to the Anchorage campus, noting that campus is overly reliant on part time faculty. (Tape Change, HFC 95-73, Side 1). Ms. Redman pointed out that Alaska is above the national average tuition rate for Western states. Until now, the University budget has kept up with the student growth through tuition. The Anchorage campus has considered additional higher fees for special programs. Representative Brown asked how many part time faculty would be lost on the Anchorage campus. Ms. Redman responded that the greatest impact would be to that faculty hired when over registration occurs in the fall. She emphasized that there will be no flexible money available to the University. Representative Parnell questioned where the University will turn over the long range as the budget continues to be cut. Ms. Redman stated that the program assessment process established criteria for a three year assessment and has initiated the process of determining which programs would be phased out. Administrative structures are being combined and there is an agreement that faculty vacancies will not be filled nor new standards established. Ms. Redman added that quick reductions have a undermining effect on the University process. Representative Navarre recommended that teachers spend more time in the classrooms. Ms. Redman concurred noting that 5 from the results of the assessment, all faculty will be moving to nine month contracts. The University President has mandated that beginning September, 1995, there will be a 20% increase in faculty productivity. Any faculty member who receives general fund money must teach. Representative Navarre compared the amount of time that the K-12 teachers spend in the classroom. Ms. Redman countered Representative Navarre's argument noting that the situation was quite different. Representative Mulder asked the University's intention in closing facilities around the State. Ms. Redman replied that the University does not have plans to close any of the extended sites. She noted that most of the extended sites are not expensive to run in comparison to the student tuition generated at those spots, emphasizing that the rural campuses provide educational delivery to rural Alaska. Representative Mulder countered that the cost of delivery is expensive, suggesting that sites be consolidated. Ms. Redman stressed that the curriculum is limited at the extended sites. No opportunities are being expanded, although core requirements are being offered in order that students who want to get into a university will qualify. There being NO OBJECTION to Amendment #1, it was adopted. Co-Chair Hanley MOVED to adopt the Intent Language. The language would establish the it be the intent of the Legislature that the Board of Regents close the WAMI program to all new entrants, which will result in a $160.3 thousand dollar savings. Ms. Redman noted that new students had already been admitted in January for Fall, 1995. The University is thus committed for the next cycle. Representative Mulder asked the number of students who return to the state having completed the program. He noted that the debt load of the average student having completed the program with WAMI assistance is $50 - $70 thousand dollars. Co-Chair Hanley asked the number of students in Alaska that go to medical school. Ms. Redman advised there are 40 students total in the program, although did not know the total number of Alaskan students in medical school. She added that other states are currently eliminating opportunities for out-of-state students and that these programs buy opportunities for Alaskan students. The University of Alaska can not offer these programs and opportunities in Alaska. Representative Kohring asked how many students who complete 6 the program come back to Alaska. Ms. Redman stated that half of the students return to the State, although since Alaska does not have a residency program in State, these students are at a disadvantage. Many doctors continue their practice where they do their residency. Representative Mulder OBJECTED to the Intent Language. A roll call vote was taken on the MOTION to adopt the Intent Language. IN FAVOR: Kohring, Navarre, Parnell, Therriault, Grussendorf, Hanley OPPOSED: Mulder, Brown, Foster Representatives Martin and Kelly were not present for the vote. The MOTION PASSED (6-3). LEGISLATURE Representative Navarre MOVED to adopt Amendment #1 which would reduce legislative salaries and allowances. Representative Mulder OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf OPPOSED: Martin, Mulder, Parnell, Therriault, Kelly, Kohring, Hanley Co-Chair Foster was not present for the vote. The MOTION FAILED (3-7). Representative Navarre MOVED to adopt Amendment #2. Representative Mulder OBJECTED. Representative Brown noted that the amendment would restore the Legal Services grant to the Governor's amended request. The addition would allow the Kotzebue and Nome offices to remain open. A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf OPPOSED: Mulder, Parnell, Therriault, Kelly, Kohring, Martin, Hanley Co-Chair Foster was not present for the vote. The MOTION FAILED (3-7). Representative Navarre MOVED to adopt Amendment #3. 7 Representative Mulder OBJECTED. Representative Navarre explained that Amendment #3 would restore funding to the FY96 Governor's amended level. He added that $500 thousand dollars would replace lost federal funds and assist in welfare reform efforts by increasing the opportunity for Alaska Families with Dependent Children (AFDC) clients to receive the training and skills needed to get jobs. (Tape Change, HFC 95-73, Side 2). A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf OPPOSED: Parnell, Therriault, Kelly, Kohring, Martin, Mulder, Hanley, Foster The MOTION FAILED (3-8). Representative Navarre MOVED to adopt Amendment #4. Representative Therriault OBJECTED. Representative Brown explained that $445 thousand dollars would allow the Arts Council the means to collect the federal dollars. Representative Kohring voiced his concern with the philosophy and the types of arts funded by the National Endowment for the Arts (NEA). A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Parnell, Therriault, Kelly, Kohring, Martin, Mulder, Foster, Hanley The MOTION FAILED (3-8). Representative Kelly advised that the Arts Council informed him that with the current level of funding, that organization could potentially be zeroed out. He recommended taking the allocated money from the Arts Council and placing it into the Head Start allocation. Representative Kelly offered that language as an conceptual amendment. The House Finance Committee convened for one hour. DEPARTMENT OF EDUCATION (DOE) Representative Kelly MOVED to adopt Amendment #8 which would move $50 thousand dollars from the Alaska State Council on the Arts to the Head Start grants. Representative Brown OBJECTED. She stressed the importance of an art's effort being maintained in Alaska. Representative Martin noted 8 that the arts should be funded through private dollars. Representative Brown MOVED to divide the question. Representative Mulder OBJECTED. A roll call vote was taken on the MOTION to divide the question. IN FAVOR: Therriault, Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Hanley, Foster The MOTION FAILED (4-7). Representative Kohring noted that he does support the arts although thought that the private sector should provide the funding. He noted that the issue was one of establishing priority State economics. Representative Brown MOVED to strike the funding source for the arts and insert the Alaska Tourism Marketing Council (ATMC). Representative Mulder OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley, Foster The MOTION FAILED (3-8). Representative Navarre MOVED to strike the funding source for the arts changing it to the legislative operating budget, salaries and allowances. Representative Mulder OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Navarre, Therriault, Brown OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Foster, Hanley The MOTION FAILED (4-7). A roll call vote was taken on the MOTION to adopt Amendment IN FAVOR: Kelly, Kohring, Martin, Mulder, Hanley, Foster OPPOSED: Navarre, Parnell, Therriault, Brown, Grussendorf 9 The MOTION PASSED (6-5). DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA) Representative Brown MOVED to adopt Amendment #3. Co-Chair Hanley OBJECTED. Representative Brown noted that the amendment would result in a 5% rather than a 10% reduction in revenue sharing and municipal assistance. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Foster OPPOSED: Kohring, Martin, Mulder, Navarre, Parnell, Therriault, Kelly, Hanley The MOTION FAILED (3-8). DEPARTMENT OF HEALTH AND SOCIAL SERVICES (DHSS) Representative Brown noted that the Intent Language specifically addressed the Fairbanks Native Association specifying that the grant money not be spent on lobbying activities. Representative Parnell MOVED an amendment to the amendment, deleting "Fairbanks Native Association" and inserting "all departments". He stated that would clarify that no lobbying activity for any group could occur with State funds. Representative Brown disagreed. She stated that her intent was to address a specific problem. Following Committee discussion, Representative Brown MOVED to amend the proposal by adding the language proposed by Representative Parnell as an addition to the amendment rather than a deletion. A roll call vote was taken on the MOTION to amend the amendment. IN FAVOR: Martin, Navarre, Brown, Grussendorf OPPOSED: Mulder, Parnell, Therriault, Kelly, Kohring, Hanley, Foster The MOTION FAILED (4-7). Discussion followed between Committee members regarding the effect on other organizations and public dollars. Co-Chair Hanley noted that statute already prohibits the use of grant monies to be used for lobbying activities. Representative Brown MOVED to WITHDRAW the amendment. There being NO OBJECTION, it was withdrawn. 10 (Tape Change, HFC 95-74, Side 1). DEPARTMENT OF NATURAL RESOURCES (DNR) Representative Therriault MOVED to adopt Amendment #12 which would provide contract funds for specific contractual projects. Co-Chair Hanley understood that unless the allocation is granted, the State will not continue to receive revenue generated from specified projects. Representative Brown supported the amendment indicating that such language would provide a typical scope of what the Department does. There being NO OBJECTION, Amendment #12 was adopted. Representative Brown MOVED to adopt Intent Language specifying Legislature's intent that no new agricultural land disposal be initiated in FY 96. Representative Brown pointed out that the current default rate on agricultural land disposal averages 65.4%. She stressed that this was not a viable program. Representative Navarre voiced his frustration with the disposal plan. He commented that establishing a home site or homestead program would make better sense and would have less default possibilities. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Navarre, Hanley OPPOSED: Parnell, Therriault, Grussendorf, Kelly, Kohring, Martin, Mulder, Foster The MOTION FAILED (3-8). DEPARTMENT OF REVENUE (DOR) Co-Chair Hanley MOVED to adopt Amendment #7. He advised that the amendment would restore the Office of Public Advocacy and the Public Defender Agency to the FY95 funding level. There being NO OBJECTION, it was adopted. ALASKA COURT SYSTEM Representative Navarre MOVED to adopt Amendment #1. He explained that the amendment would consist of two portions. The first section would add funds for the trial costs of the Arctic North Slope (ANS) Royalty Case. The second portion of the amendment would add additional funding for anger management. ARTHUR SNOWDEN II, ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEM, testified in support of Amendment #1. He admitted 11 that he did not know how long the ANS trial would continue. He remarked that the second portion of the amendment would address anger management, noting that both portions are court mandated. Mr. Snowden asked if the Court System could return to the Legislature and request supplemental funding if the case went over the anticipated time frame. Representative Parnell MOVED to divide the question and requested that the Court System be responsible for the $52 thousand dollars request for the ANS case; he agreed that they should return for supplemental funding next year. Representative Mulder OBJECTED to dividing the question. Following discussion among Committee members, Representative Navarre MOVED TO WITHDRAW Amendment #1. There being NO OBJECTION, it was withdrawn. HB 100 and HB 101 were HELD in Committee for further consideration. # ADJOURNMENT The meeting adjourned at 12:05 P.M. HOUSE FINANCE COMMITTEE MARCH 30, 1995 8:50 A.M. TAPE HFC 95 - 72, Side 2, #000 - end. TAPE HFC 95 - 73, Side 1, #000 - end. TAPE HFC 95 - 73, Side 2, #000 - end. TAPE HFC 95 - 74, Side 1, #000 - #544. CALL TO ORDER Co-Chair Mark Hanley called the House Finance Committee meeting to order at 8:50 A.M. PRESENT Co-Chair Hanley Representative Kohring Co-Chair Foster Representative Martin Representative Mulder Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Kelly ALSO PRESENT Mike Greany, Director, Legislative Finance Division; Representative Caren Robinson; Larry Jones, Director, Division of Administrative Services, Department of 12 Environmental Conservation; Michele Brown, Deputy Commissioner, Department of Environmental Conservation; Wendy Redman, Vice President, University Relations, University of Alaska; Arthur Snowden II, Administrative Director, Alaska Court System. SUMMARY HB 100 An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date. HB 101 An Act making appropriations for operating expenses for certain programs for which the costs are derived from mandated formulas or criteria, and for expenses for certain leases and contracts for state services and operations; and providing for an effective date. HB 100 and HB 101 were HELD in Committee for further consideration. HOUSE BILL 100 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." HOUSE BILL 101 "An Act making appropriations for operating expenses for certain programs for which the costs are derived from mandated formulas or criteria, and for expenses for certain leases and contracts for state services and operations; and providing for an effective date." DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) Co-Chair Foster MOVED to amend Amendment #1 by deleting $500 thousand dollars and inserting $450 thousand dollars. There being NO OBJECTION, it was amended. Co-Chair Foster MOVED to adopt Amendment #1. There being NO OBJECTION, it was adopted. Representative Grussendorf MOVED to adopt Amendment #2. 13 REPRESENTATIVE CAREN ROBINSON spoke in support of Amendment Alaska and the entire State. She stated that the primary function of the lab was to certify all other labs in the State, as well as performing all the State's forensic work. MICHELE BROWN, DEPUTY COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, spoke in support of Amendment #2 explaining that lab did much of the State's chemistry work. She echoed that the strength of the lab is forensic inorganic spill source matching. Representative Therriault OBJECTED to adopting Amendment #2. He thought that it was not important that this capability remain in State. He added that an audit of the lab has indicated that it is very expensive to maintain and recommended that a contractual arrangement be made with a lab in Washington. Ms. Brown advised that the proposed reduction would not close the lab, although would severely limit it's functions. A roll call vote was taken on the MOTION to adopt Amendment IN FAVOR: Brown, Grussendorf, Foster OPPOSED: Therriault, Kelly, Kohring, Martin, Mulder, Parnell, Hanley Representative Navarre was not present for the vote. The MOTION FAILED (3-7). Representative Brown MOVED to adopt Amendment #3. Representative Therriault OBJECTED. Representative Brown explained that amendment would restore $34 thousand dollars to the DEC Commissioner's Office which would then be RSA'd over to the Department of Law to pay for a paralegal position for environmental crimes. Ms. Brown added that the position could nearly pay for itself within a year with fines recovered. Representative Therriault pointed out that the position had been vacant for a while and he felt that the current funding was adequate. A roll call vote was taken on the MOTION to adopt Amendment IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley, Foster. The MOTION FAILED (3-8). 14 DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA) Co-Chair Foster MOVED to amend Amendment #1 by not deleting the Agency BRU component of Environmental Conservation, Administration, Office of the Commissioner, reduction of personal services by $50 thousand dollars and thus changing the addition for Child Assistance, Head Start Grants to $300 thousand dollars to grants. Co-Chair Hanley asked the total amount being cut from the Head Start budget. Representative Brown stated that a total of $5.543 million dollars would be cut through the House proposed budget. She requested that the additional $50 thousand dollars be found from another source in order that a reduction from that component be avoided. Discussion followed among Committee members regarding the reduction. Representative Brown noted for the record her objection to reducing the level of effort within that Division. There being NO OBJECTION, it was amended. Co-Chair Foster MOVED to adopt amended Amendment #1. There being NO OBJECTION, it was adopted. Representative Brown MOVED to amend Amendment #2 by deleting $350 thousand dollars and inserting $50 thousand dollars which would provide the balance of the funding needed for Head Start grants. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Navarre, Brown, Foster OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley The MOTION FAILED (4-7). Representative Brown MOVED to adopt Amendment #3 which would result in a 5% instead of 10% reduction in revenue sharing and municipal assistance. Representative Mulder OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Foster OPPOSED: Kohring, Martin, Mulder, Navarre, Parnell, Therriault, Kelly, Hanley The MOTION FAILED (3-8). DEPARTMENT OF CORRECTIONS 15 Representative Grussendorf MOVED to adopt Amendment #1. Representative Mulder OBJECTED. Representative Grussendorf commented that the amendment would provide funding for State contracts to local municipalities in order to provide relieve resulting from State obligations. He emphasized that the amendment would restore funding to contractual arrangements with communities. Representative Mulder interjected that there had been a $4.64 million dollar increase as proposed by the Subcommittee, which would amount to a twenty percent increase (20%) partially to be used for contracts and equipment upgrades. A roll call vote was taken on the MOTION to adopt Amendment IN FAVOR: Navarre, Brown, Grussendorf OPPOSED: Kelly, Kohring, Martin, Mulder, Therriault, Parnell, Hanley, Foster The MOTION FAILED (3-8). UNIVERSITY OF ALASKA Co-Chair Hanley MOVED to amend Amendment #1 deleting $20.5 thousand dollars and inserting $20.8 thousand dollars. He noted that incorrect numbers add been originally typed in. There being NO OBJECTION, it was amended. Co-Chair Hanley MOVED to adopt Amendment #1. Representative Navarre OBJECTED for purposes of discussion. Co-Chair Hanley explained that the amendment would add $1 million to the University, leaving a $3 million dollar unallocated reduction. WENDY REDMAN, VICE PRESIDENT, UNIVERSITY RELATIONS, UNIVERSITY OF ALASKA, discussed the effect on the University. She explained that the funds needed to address fixed University costs next year would be $7 million dollars. An additional $3 million dollar reduction would be experienced in loss of part time faculty and student employment. Representative Brown commented on the loss of part time faculty to the Anchorage campus, noting that campus is overly reliant on part time faculty. (Tape Change, HFC 95-73, Side 1). Ms. Redman pointed out that Alaska is above the national average tuition rate for Western states. Until now, the 16 University budget has kept up with the student growth through tuition. The Anchorage campus has considered additional higher fees for special programs. Representative Brown asked how many part time faculty would be lost on the Anchorage campus. Ms. Redman responded that the greatest impact would be to that faculty hired when over registration occurs in the fall. She emphasized that there will be no flexible money available to the University. Representative Parnell questioned where the University will turn over the long range as the budget continues to be cut. Ms. Redman stated that the program assessment process established criteria for a three year assessment and has initiated the process of determining which programs would be phased out. Administrative structures are being combined and there is an agreement that faculty vacancies will not be filled nor new standards established. Ms. Redman added that quick reductions have a undermining effect on the University process. Representative Navarre recommended that teachers spend more time in the classrooms. Ms. Redman concurred noting that from the results of the assessment, all faculty will be moving to nine month contracts. The University President has mandated that beginning September, 1995, there will be a 20% increase in faculty productivity. Any faculty member who receives general fund money must teach. Representative Navarre compared the amount of time that the K-12 teachers spend in the classroom. Ms. Redman countered Representative Navarre's argument noting that the situation was quite different. Representative Mulder asked the University's intention in closing facilities around the State. Ms. Redman replied that the University does not have plans to close any of the extended sites. She noted that most of the extended sites are not expensive to run in comparison to the student tuition generated at those spots, emphasizing that the rural campuses provide educational delivery to rural Alaska. Representative Mulder countered that the cost of delivery is expensive, suggesting that sites be consolidated. Ms. Redman stressed that the curriculum is limited at the extended sites. No opportunities are being expanded, although core requirements are being offered in order that students who want to get into a university will qualify. There being NO OBJECTION to Amendment #1, it was adopted. Co-Chair Hanley MOVED to adopt the Intent Language. The language would establish the it be the intent of the Legislature that the Board of Regents close the WAMI program 17 to all new entrants, which will result in a $160.3 thousand dollar savings. Ms. Redman noted that new students had already been admitted in January for Fall, 1995. The University is thus committed for the next cycle. Representative Mulder asked the number of students who return to the state having completed the program. He noted that the debt load of the average student having completed the program with WAMI assistance is $50 - $70 thousand dollars. Co-Chair Hanley asked the number of students in Alaska that go to medical school. Ms. Redman advised there are 40 students total in the program, although did not know the total number of Alaskan students in medical school. She added that other states are currently eliminating opportunities for out-of-state students and that these programs buy opportunities for Alaskan students. The University of Alaska can not offer these programs and opportunities in Alaska. Representative Kohring asked how many students who complete the program come back to Alaska. Ms. Redman stated that half of the students return to the State, although since Alaska does not have a residency program in State, these students are at a disadvantage. Many doctors continue their practice where they do their residency. Representative Mulder OBJECTED to the Intent Language. A roll call vote was taken on the MOTION to adopt the Intent Language. IN FAVOR: Kohring, Navarre, Parnell, Therriault, Grussendorf, Hanley OPPOSED: Mulder, Brown, Foster Representatives Martin and Kelly were not present for the vote. The MOTION PASSED (6-3). LEGISLATURE Representative Navarre MOVED to adopt Amendment #1 which would reduce legislative salaries and allowances. Representative Mulder OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf OPPOSED: Martin, Mulder, Parnell, Therriault, Kelly, Kohring, Hanley 18 Co-Chair Foster was not present for the vote. The MOTION FAILED (3-7). Representative Navarre MOVED to adopt Amendment #2. Representative Mulder OBJECTED. Representative Brown noted that the amendment would restore the Legal Services grant to the Governor's amended request. The addition would allow the Kotzebue and Nome offices to remain open. A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf OPPOSED: Mulder, Parnell, Therriault, Kelly, Kohring, Martin, Hanley Co-Chair Foster was not present for the vote. The MOTION FAILED (3-7). Representative Navarre MOVED to adopt Amendment #3. Representative Mulder OBJECTED. Representative Navarre explained that Amendment #3 would restore funding to the FY96 Governor's amended level. He added that $500 thousand dollars would replace lost federal funds and assist in welfare reform efforts by increasing the opportunity for Alaska Families with Dependent Children (AFDC) clients to receive the training and skills needed to get jobs. (Tape Change, HFC 95-73, Side 2). A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf OPPOSED: Parnell, Therriault, Kelly, Kohring, Martin, Mulder, Hanley, Foster The MOTION FAILED (3-8). Representative Navarre MOVED to adopt Amendment #4. Representative Therriault OBJECTED. Representative Brown explained that $445 thousand dollars would allow the Arts Council the means to collect the federal dollars. Representative Kohring voiced his concern with the philosophy and the types of arts funded by the National Endowment for the Arts (NEA). A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre 19 OPPOSED: Parnell, Therriault, Kelly, Kohring, Martin, Mulder, Foster, Hanley The MOTION FAILED (3-8). Representative Kelly advised that the Arts Council informed him that with the current level of funding, that organization could potentially be zeroed out. He recommended taking the allocated money from the Arts Council and placing it into the Head Start allocation. Representative Kelly offered that language as an conceptual amendment. The House Finance Committee convened for one hour. DEPARTMENT OF EDUCATION (DOE) Representative Kelly MOVED to adopt Amendment #8 which would move $50 thousand dollars from the Alaska State Council on the Arts to the Head Start grants. Representative Brown OBJECTED. She stressed the importance of an art's effort being maintained in Alaska. Representative Martin noted that the arts should be funded through private dollars. Representative Brown MOVED to divide the question. Representative Mulder OBJECTED. A roll call vote was taken on the MOTION to divide the question. IN FAVOR: Therriault, Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Hanley, Foster The MOTION FAILED (4-7). Representative Kohring noted that he does support the arts although thought that the private sector should provide the funding. He noted that the issue was one of establishing priority State economics. Representative Brown MOVED to strike the funding source for the arts and insert the Alaska Tourism Marketing Council (ATMC). Representative Mulder OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley, Foster The MOTION FAILED (3-8). 20 Representative Navarre MOVED to strike the funding source for the arts changing it to the legislative operating budget, salaries and allowances. Representative Mulder OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Navarre, Therriault, Brown OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Foster, Hanley The MOTION FAILED (4-7). A roll call vote was taken on the MOTION to adopt Amendment IN FAVOR: Kelly, Kohring, Martin, Mulder, Hanley, Foster OPPOSED: Navarre, Parnell, Therriault, Brown, Grussendorf The MOTION PASSED (6-5). DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA) Representative Brown MOVED to adopt Amendment #3. Co-Chair Hanley OBJECTED. Representative Brown noted that the amendment would result in a 5% rather than a 10% reduction in revenue sharing and municipal assistance. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Foster OPPOSED: Kohring, Martin, Mulder, Navarre, Parnell, Therriault, Kelly, Hanley The MOTION FAILED (3-8). DEPARTMENT OF HEALTH AND SOCIAL SERVICES (DHSS) Representative Brown noted that the Intent Language specifically addressed the Fairbanks Native Association specifying that the grant money not be spent on lobbying activities. Representative Parnell MOVED an amendment to the amendment, deleting "Fairbanks Native Association" and inserting "all departments". He stated that would clarify that no lobbying activity for any group could occur with State funds. Representative Brown disagreed. She stated that her intent was to address a specific problem. 21 Following Committee discussion, Representative Brown MOVED to amend the proposal by adding the language proposed by Representative Parnell as an addition to the amendment rather than a deletion. A roll call vote was taken on the MOTION to amend the amendment. IN FAVOR: Martin, Navarre, Brown, Grussendorf OPPOSED: Mulder, Parnell, Therriault, Kelly, Kohring, Hanley, Foster The MOTION FAILED (4-7). Discussion followed between Committee members regarding the effect on other organizations and public dollars. Co-Chair Hanley noted that statute already prohibits the use of grant monies to be used for lobbying activities. Representative Brown MOVED to WITHDRAW the amendment. There being NO OBJECTION, it was withdrawn. (Tape Change, HFC 95-74, Side 1). DEPARTMENT OF NATURAL RESOURCES (DNR) Representative Therriault MOVED to adopt Amendment #12 which would provide contract funds for specific contractual projects. Co-Chair Hanley understood that unless the allocation is granted, the State will not continue to receive revenue generated from specified projects. Representative Brown supported the amendment indicating that such language would provide a typical scope of what the Department does. There being NO OBJECTION, Amendment #12 was adopted. Representative Brown MOVED to adopt Intent Language specifying Legislature's intent that no new agricultural land disposal be initiated in FY 96. Representative Brown pointed out that the current default rate on agricultural land disposal averages 65.4%. She stressed that this was not a viable program. Representative Navarre voiced his frustration with the disposal plan. He commented that establishing a home site or homestead program would make better sense and would have less default possibilities. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Navarre, Hanley OPPOSED: Parnell, Therriault, Grussendorf, Kelly, 22 Kohring, Martin, Mulder, Foster The MOTION FAILED (3-8). DEPARTMENT OF REVENUE (DOR) Co-Chair Hanley MOVED to adopt Amendment #7. He advised that the amendment would restore the Office of Public Advocacy and the Public Defender Agency to the FY95 funding level. There being NO OBJECTION, it was adopted. ALASKA COURT SYSTEM Representative Navarre MOVED to adopt Amendment #1. He explained that the amendment would consist of two portions. The first section would add funds for the trial costs of the Arctic North Slope (ANS) Royalty Case. The second portion of the amendment would add additional funding for anger management. ARTHUR SNOWDEN II, ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEM, testified in support of Amendment #1. He admitted that he did not know how long the ANS trial would continue. He remarked that the second portion of the amendment would address anger management, noting that both portions are court mandated. Mr. Snowden asked if the Court System could return to the Legislature and request supplemental funding if the case went over the anticipated time frame. Representative Parnell MOVED to divide the question and requested that the Court System be responsible for the $52 thousand dollars request for the ANS case; he agreed that they should return for supplemental funding next year. Representative Mulder OBJECTED to dividing the question. Following discussion among Committee members, Representative Navarre MOVED TO WITHDRAW Amendment #1. There being NO OBJECTION, it was withdrawn. HB 100 and HB 101 were HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 12:05 P.M. 23