HOUSE FINANCE COMMITTEE March 25, 1995 1:30 P.M. TAPE HFC 95-62, Side 2, #000 - end. TAPE HFC 95-63, Side 1, #000 - end. TAPE HFC 95-63, Side 2, #000 - end. TAPE HFC 95-64, Side 1, #000 - end. TAPE HFC 95-64, Side 2, #000 - end. TAPE HFC 95-65, Side 1, #000 - end. TAPE HFC 95-65, Side 2, #000 - end. CALL TO ORDER Co-Chair Mark Hanley called the House Finance Committee meeting to order at 9:05 a.m. PRESENT Co-Chair Hanley Representative Martin Co-Chair Foster Representative Mulder Representative Brown Representative Navarre Representative Grussendorf Representative Parnell Representative Kelly Representative Therriault Representative Kohring ALSO PRESENT Senator Georgianna Lincoln; Representative Kim Elton; Representative Karen Robinson; Representative Cynthia Toohey; Joann McDowell, President, Prince William Sound Community College, Valdez; Bob Benda, Prince William Sound Community College, Valdez; john Harris, Mayor, City of Valdez; Douglas Keil, Anchorage; Michael Brogan, Anchorage; Stephen Conn, Alaska Public Interest Group, Anchorage; George Hanson, Anchorage Symphony, Anchorage; Daisy Stevens, Tanana Chiefs Conference, Fairbanks; Charles Parker, Tanana Chiefs Conference, Fairbanks; Reva Shircel, Director, Education Department, Tanana Chiefs Conference, Fairbanks; Ward Serrill, Ketchikan; Karen Petersen, Petersburg; Bobett Bush, Aniak; Chris Richard, Kenicott; Alice Johnstone, Sitka; Dorik Mechau, Sitka; Charles Cole, Former Attorney General, Juneau; Amy Skilbred, Juneau; David Audet, Juneau; Nancy DeCherney, Juneau Jazz and Classics and Juneau Symphony, Juneau; Donna Tollman, Glennallen; Al Beasley, Nome Arts Council, Nome; Rose Atuk-Fosdick, Nome; Brant Moody, Police Chief, Dillingham; Ginger Baim, Dillingham; Will Peterson, Homer; Cal Schmidt, Homer; Michael White, Homer; Mike Grenier, Homer; Earl Mickelson, American Legion, Kodiak; Barry Gold, Executive Director, Kodiak Council on 1 Alcoholism; Ginny Shank, Vice President, Kodiak Arts Council Board of Directors, Kodiak; Susan Kemp, Chair, Economic Adjustment Committee, Delta Junction; Jackie Lizardi, Delta/Greely Educational Support Group Association, Delta Junction; Mark Fellman, Delta Junction; Marilyn George, Petersburg; Nancy Harris, Petersburg; Penny Ripple, Petersburg; Sharon Trish, Bethel; Margaret Cooke, Bethel; James Elson, Kenai; John Dahlgren, Kenai; Bill Parker, Kenai; Jack Hetherton, Veterans of Foreign Wars, Kenai; Fern Neimeryer, Mayor, City of Wrangell; Zo Herriges-Sherman, Wrangell; Stephen Helgeson, Wrangell; Gordon Castanca, Angoon; Ann Archie, Thorne Bay; Jimmy Erick, Venetie; Lynn Jensen, Gustavus; Kim Swift, Mat-Su; Elnor Baxter, Mat-Su; Lucy Hope, Mat-Su; Bill Munroe, Mat-Su; Suzy Erlich, Kotzebue; Reggie Joule, Kotzebue; Linda Joule, Kotzebue; Susan Burke, Anchorage; Barbara Whitehurst, University of Alaska, Anchorage; Peter Lipson, Anchorage; Mark Whitehurst, Anchorage; Bob Christal, Anchorage; Gary Moore, Tanana Chiefs Conference, Fairbanks; Eileen Newman, Tanana Chiefs Conference, Fairbanks; Laurel McLaughlin, Fairbanks; Ted Fathauer, Anchorage; Hanna Wolf, Juneau; Tim Wilson, Executive Director, State Council on the Arts, Anchorage (testified in Juneau); Annie Stokes, Member, Alaska State Council on the Arts, Juneau; Brent Dillingham, Juneau; Larry King, Cordova; Patty Gilber, Prince Williams Sound Community College, Cordova; Scott Janke, City Manager, Cordova; Ginger Ahmaogak, Barrow; Bob Johnson, Kodiak; Rita Stevens, Kodiak Arts Council, Kodiak; Barbara Bigelow, Ketchikan; Anthony Rowan, Ketchikan; Maria Dudzak, Ketchikan; Brian Johnson, Valdez; Doug Roetman, Valdez; Shana Simmons, Valdez; Kris Norris, Petersburg; Susan Erickson, Petersburg; Chris Weiss, Petersburg; Carl Berger, Bethel; Ken Eggleston, Bethel; Amanda Conard, Bethel; John Straley, Sitka; Bob Chevalier, Sitka; Vincent O'Connor, Mat-Su; Henery Cole, Executive Director, Interior ARDOR, Fairbanks; don Shircel, Tanana Chiefs Conference, Fairbanks; Sarah Kuencli, Tanana Chiefs Conference, Fairbanks; Billie Sundgren, Tanana Chiefs Conference, Fairbanks; Jean Flanagan-Carlo, Fairbanks; Leonard Kamerling, Fairbanks; Neville Jacobs, Fairbanks; Carol Meares, Fairbanks; Betsy Turner-Bogren, Fairbanks Council Parents Teacher Association (PTA), Fairbanks; Mary Lou Canney, Fairbanks; Rachael Adams, Homer; Steve McCasland, Homer; Angela Ramirez, Homer; Robert Anderson, Kodiak; Jim Blackburn, Kodiak; Brad Stevens, Kodiak; Georgene Sink, Kodiak; James Mykland, Cordova; Heather McCarthy, Cordova; Patti Higgins, Anchorage School Board, Anchorage; Mary Stadum, Executive Director, Southwest Alaska Municipal Conference, Anchorage; Rod McCoy, NEA-Alaska, Anchorage; Carol Bryner, Alaska Dance Theater; Collette Owens, Clitheroe, Anchorage; Joe Tolotta, Clitheroe, Anchorage; Rich Gilmore, President, Better Business Bureau, Anchorage; Charles McKee, Anchorage; Jackie Flums, Alaska 2 Nursing Association; Warren Collier, Anchorage; Tony Rauh, Anchorage; Jocelyn Young, Anchorage; Ed Gilley, Superintendent, Adiak Region School District; Joe Hobert, Juneau; Rich Kronberg, Juneau; John Cyr, Wasilla High School; Rob Pfisteror, President, Anchorage Education Association, Juneau; Eric Kueffner, President, Juneau Arts and Humanities Council, Juneau; Chad Denton, Juneau; Margaux Deroux, Juneau; Richard Kerr, Juneau; Patrick Henry, Juneau; Robert Sewell, Juneau; Shawnna Youngblot, Juneau; Scott Fiscus, Juneau; Claudia Douglas, President, NEA-Alaska, Juneau, Deborah Garrish, Juneau; Ken Waldman, Juneau; Liz Johnson, Juneau; Liz Saya, Juneau; James Fisher, Juneau; Kate Young, Juneau; Alex Wortheimer, President, Auke Bay PTA, Juneau; Barbara Wilmat, Juneau; Ron Dunlap, President, Trout Unlimited, Juneau; Lila Ayers, Mat-Su; Sybil Davis, Juneau; Pam Neal, President, Alaska State Chamber of Commerce; Charles Rohbracher, Juneau; Darlene Thorton, President, Harborview PTA, Juneau. 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 100 was HELD in Committee for further discussion. HOUSE BILL NO. 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." JOANN MCDOWELL, PRESIDENT, PRINCE WILLIAM SOUND COMMUNITY COLLEGE testified via the teleconference network from Valdez. She spoke in support of funding for the Prince William Sound Community College (PWSCC). She noted that PWSCC has become the most cost effective unit in the University of Alaska system. She pointed out that PWSCC has gone from one of the highest cost per FTE institutions in the state of Alaska to the lowest, due to cost cutting reductions in staff and increases in enrollment. She questioned why funding was deleted for the College. BOB BENDA, PRINCE WILLIAM SOUND COMMUNITY COLLEGE testified 3 via the teleconference network from Valdez. He spoke in support of funding for the Prince William Sound Community College. JOHN HARRIS, MAYOR, CITY OF VALDEZ testified via the teleconference network. He spoke against reductions to the Prince William Sound Community College. He suggested that the proposed reductions will result in the closure of the college. DOUGLAS KEIL, ANCHORAGE testified via the teleconference network. He spoke in favor of funding for the Challenge Alaska Program. MICHAEL BROGAN, ANCHORAGE testified via the teleconference network. He testified in favor of funding for the Challenge Alaska Program. He suggested that savings could be realized through restructure of state retirement benefits. STEPHEN CONN, ALASKA PUBLIC INTEREST GROUP, ANCHORAGE testified via the teleconference network. He spoke in opposition to reductions made in the Civil Division, Department of Law. GEORGE HANSON, ANCHORAGE SYMPHONY testified via the teleconference network from Anchorage. He spoke in opposition to reductions in the Alaska State Council on the Arts' budget. He noted that the proposed reduction is 83 percent of the Council's budget. He emphasized that the Anchorage Symphony generates approximately $12 dollars for every $1 dollar received in state funds. DAISY STEVENS, TANANA CHIEFS CONFERENCE, FAIRBANKS testified via the teleconference network. She expressed concern in the proposed reductions to the Village Public Safety Officers Program. She emphasized that the majority of communities served by the Program are off the road system and far away from the headquarters of the Alaska State Troopers. SENATOR GEORGIANA LINCOLN testified via the teleconference network from Fairbanks. She expressed concern that rural programs are being disproportionately affected. She maintained that the proposed budget eliminates the possibility for employment in rural and bush Alaska. She asserted that rural residents will be driven further into welfare status by proposed reductions. She noted the proposed closure of the Mt. Edgecumbe School and rural parks. She observed that the Child Protection Office of Public Advocacy is being reduced. She stressed that the reduction will eliminate funding for 300 high risk families. 4 CHARLES PARKER, TANANA CHIEFS CONFERENCE, FAIRBANKS testified via the teleconference network. He observed that the funding level for the Alaska Rural Development Assistant Grant Program (ARDOR) has been reduced by $500.0 thousand dollars. He maintained that the ARDORs are an integral factor in strengthening rural economies. He also spoke against collection of airport tie down and departure fees by the Department of Transportation and Public Facilities. He suggested that services to rural villages will have to be reduced. REVA SHIRCEL, DIRECTOR, EDUCATION DEPARTMENT, TANANA CHIEFS CONFERENCE, FAIRBANKS testified via the teleconference network. She expressed concern with the proposed reduction to the Close-Up Program in the Department of Education's budget. She maintained that current funding levels for grades K - 12 do not provide opportunities for children. She also expressed concern with the intent to close the Mt. Edgecumbe Boarding School. She spoke in support of increased school funding. WARD SERRILL, KETCHIKAN testified via the teleconference network. He spoke in opposition to reductions in the Alaska State Council on the Arts' budget. He noted that the investment made to the Council is multiplied into the economy. He observed that state funding is used to capture federal matching money and private donations. KAREN PETERSEN, PETERSBURG testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She observed that Alaska's public broadcasting stations tie the state together. She maintained that Alaska's public broadcasting system is unique. She noted that call-in programs allow citizens to participate in their government. BOBETT BUSH, ANIAK testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. He asserted that reductions would result in a shutdown of Bethel's radio and television stations. He pointed out that these stations provide important health and safety information to local residents. He added that university courses are also provided by the stations. He emphasized that residents pay for the transmitter in Aniak. CHRIS RICHARD, KENICOTT testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. ALICE JOHNSTONE, SITKA testified via the teleconference 5 network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She maintained that public radio provides essential information and services to Sitka and the surrounding areas. She observed that no commercial stations reach the fishing fleet in the waters near Sitka. She emphasized that staff has been reduced due to previous cuts. She pointed out that listener participation and financial donations to KCAW in Sitka is among the highest in the nation. DORIK MECHAU, SITKA testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. He also spoke in opposition to reductions in the Alaska State Council on the Arts' budget and to the budget of the Department of Fish and Game. CHARLES COLE, FORMER ATTORNEY GENERAL, JUNEAU testified in support of increased funding levels for the Civil Division in the Department of Law. He asserted that the depth of reduction are too great. He maintained that regulation review will be delayed. He observed that the Civil Division of the Department of Law brings in state revenue. He expressed concern with proposed reductions to programs within the Human Services Section, Department of Law. He noted the importance of these programs to children in need of care and juveniles. (Tape Change, HFC 95-63, Side 1) AMY SKILBRED, JUNEAU spoke against proposed reductions to the Alaska Public Broadcasting Commission. She stressed that public broadcasting provides news and information. She also testified in support of funding for the Habitat Division in the Department of Fish and Game. She emphasized the need to protect the state's resources. Ms. Skilbred also expressed concern with the level of funding for the Office of Public Advocacy (OPA) and the Public Defenders Agency (PDA). She stressed that OPA and PDA provide services for those that cannot afford legal representation. She observed that without legal representation for defendants cases cannot come to trial. DAVID AUDET, JUNEAU spoke against proposed reductions to the Alaska Public Broadcasting Commission. He maintained that Alaska's news programs sends Alaska's messages to the nation. NANCY DECHERNEY, JUNEAU JAZZ AND CLASSICS AND JUNEAU SYMPHONY, JUNEAU spoke in opposition to reductions in the Alaska State Council on the Arts' budget. She emphasized that funding for the Council is multiplied in the community 6 by art organizations. She stressed that art funding provides jobs and increases tourism. She asserted that art helps at risk children in the schools. DONNA TOLLMAN, GLENNALLEN testified via the teleconference network. She expressed concern in the proposed reductions to the ARDOR Program. She also spoke in opposition to cuts to state parks, welfare and job training programs. AL BEASLEY, NOME ARTS COUNCIL, NOME testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. He pointed out that the Council received a 21 percent reduction in FY 95 while the overall budget was reduced by 4.5 percent. He observed that the Nome Arts Council is not eligible to receive funding directly from the National Endowment of the Arts. He maintained that small communities and arts education in the schools will be hurt by the reduction. ROSE ATUK-FOSDICK, NOME testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She also expressed concern with proposed reductions to RATNet. BRANT MOODY, POLICE CHIEF, DILLINGHAM testified via the teleconference network. He urged full funding of the Contract Jail Programs, Department of Corrections. GINGER BAIM, DILLINGHAM testified via the teleconference network. She expressed concern in the proposed reductions to programs in the Department of Public Safety. She observed that real savings are not achieved if federal funding is lost. WILL PETERSON, HOMER testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. He also expressed concern with funding levels for education. CAL SCHMIDT, HOMER testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. MICHAEL WHITE, HOMER testified via the teleconference network. He suggested that legislators' salaries be reduced. He spoke in favor of funding for education. MIKE GRENIER, HOMER testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. He noted the that the Petersburg radio station provides important weather 7 information to fishers in surrounding waters. EARL MICELSON, AMERICAN LEGION, KODIAK testified via the teleconference network. He testified in support of funding for the Department of Military and Veterans Affairs. BARRY GOLD, EXECUTIVE DIRECTOR, KODIAK COUNCIL ON ALCOHOLISM, KODIAK testified via the teleconference network. He expressed concern with proposed reductions to alcohol and drug abuse programs. He noted that funding for alcohol abuse programs has been steadily reduced since 1986. He emphasized that the Alaskan problem with substance abuse has risen. GINNY SHANK, VICE PRESIDENT, KODIAK ARTS COUNCIL BOARD OF DIRECTORS, KODIAK testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. She emphasized that the Council's budget is reduced below the level necessary to capture federal funds. SUSAN KEMP, CHAIR, ECONOMIC ADJUSTMENT COMMITTEE, DELTA JUNCTION testified via the teleconference network. She expressed concern that rural programs will be hardest hit by proposed reductions. She observed that the effect of reductions in state programs will be compounded in Delta Junction by the loss of Fort Greely. She also expressed concern in the proposed reductions to the Division of Tourism, Highway Marketing Program. JACKIE LIZARDI, DELTA/GREEDY EDUCATIONAL SUPPORT GROUP ASSOCIATION, DELTA JUNCTION testified via the teleconference network. She spoke in support of full funding for education. She asserted that our children are our future. MARK FELLMAN, DELTA JUNCTION testified via the teleconference network. He expressed concern with proposed reductions to welfare programs. He expressed support for economic diversification and development grants. MARILYN GEORGE, PETERSBURG testified via the teleconference network. She expressed concern with proposed reductions to the Department of Corrections. She spoke in support of funding for the Senior Nutrition Program and senior housing. NANCY HARRIS, PETERSBURG testified via the teleconference network. She spoke in support of full funding for education. She noted that the instructional unit has only been increased once, by $1.0 thousand dollars, in the past seven years. (Tape Change, HFC 95-63, Side 2) 8 PENNY RIPPLE, PETERSBURG testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. SHARON TRISH, BETHEL testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She expressed concern that rural areas will receive the greatest impact from proposed reductions. She spoke in support of the Head Start Program. MARGARET COOKE, BETHEL testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. She noted the impact that arts and culture have on children. JAMES ELSON, KENAI testified via the teleconference network. He spoke in support of increased funding for ARDORs. He noted that $225.0 thousand dollars are being transferred from the ARDOR Program to the Alaska Tourism Marketing Council and the Northern Forum. JOHN DAHLGREN, KENAI testified via the teleconference network. He expressed concern with proposed funding levels for education. He stressed that increased education funding is necessary to encourage new growth. BILL PARKER, KENAI testified via the teleconference network. He expressed concern in the proposed reductions to public safety programs. He noted that reductions are being made to the Department of Corrections and the Department of Public Safety. He suggested that legislators' per diem compensation is too high. JACK HETHERTON, VETERANS OF FOREIGN WARS, KENAI testified via the teleconference network. He spoke in support of programs for veterans. FERN NEIMERYER, MAYOR, CITY OF WRANGELL testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She emphasized that public broadcasting is the "life line" of rural communities. ZO HERRIGES-SHERMAN, WRANGELL testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. STEPHEN HELGESON, WRANGELL testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. He emphasized that the 9 Wrangell public station is the only source of daily news and weather for local residents. He maintained that the affect of reductions will be devastating. GORDON CASTANCA, ANGOON testified via the teleconference network. He spoke in support of full funding for education. ANN ARCHIE, THORNE BAY testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She noted that the public radio stations allow citizens to participate in Governor call-in programs. JIMMY ERICK, VENETIE testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. LYNN JENSEN, GUSTAVUS testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She suggested that public television and RATNet be combined. She stressed that Alaskan news programing connects the state. KIM SWIFT, MAT-SU testified via the teleconference network. He spoke in support of reductions proposed by the Committee. ELNOR BAXTER, MAT-SU testified via the teleconference network. He spoke in support of funding for senior service and assisted living programs. LUCY HOPE, MAT-SU testified via the teleconference network. She noted that she was speaking on behalf of eleven other persons at the Legislative Information Office. She requested that the Committee provide adequate education funding. She stressed the need to increase education funding to keep up with inflation. BILL MUNROE, MAT-SU testified via the teleconference network. He spoke in support of additional funding for education. He maintained that funding levels which do not compensate for inflation will be disastrous to children. SUZY ERLICH, KOTZEBUE testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She noted that the Kotzebue public radio station serves villages that have no commercial stations. She stressed that important life and safety information is broadcasted on KOTZ radio. She also spoke in support of funding for RATNet. 10 LINDA JOULE, KOTZEBUE testified via the teleconference network. She spoke in support of funding for ARDORs. She emphasized that ARDORs support grass roots programs designed to generate economic plans that have been developed by communities. REGGIE JOULE, KOTZEBUE testified via the teleconference network. He expressed concern with proposed reductions to the Kotzebue Technical Center. He stressed the importance of vocational training for rural areas. He also spoke in support of funding for postsecondary education. (Tape Change, HFC 95-64, Side 1) SUSAN BURKE, ANCHORAGE testified via the teleconference network. She expressed concern that seven optional medicaid services are not proposed for funding. BARBARA WHITEHURST, UNIVERSITY OF ALASKA, ANCHORAGE testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. She emphasized the impact of arts programs on children with disabilities. PETER LIPSON, ANCHORAGE testified via the teleconference network. He spoke in opposition to reductions in the Alaska State Council on the Arts' budget. MARK WHITEHURST, ANCHORAGE testified via the teleconference network. He spoke in support of Challenge Alaska. He suggested that reductions need to be made slowly to allow groups to wean themselves from state funding. BOB CHRISTAL, ANCHORAGE testified via the teleconference network. He expressed support for full funding of education. He maintained that the state has a constitutional responsibility to fund education. GARY MOORE, TANANA CHIEFS CONFERENCE, FAIRBANKS testified via the teleconference network. He expressed concern with proposed reductions to programs that impact rural Alaska. He stressed that he supports reductions, but asked that the urban/rural balance be maintained. EILEEN NEWMAN, TANANA CHIEFS CONFERENCE, FAIRBANKS testified via the teleconference network. She spoke in support of funding for RATNet. LAUREL MCLAUGHLIN, FAIRBANKS testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. She also spoke against proposed reductions to the Alaska 11 Public Broadcasting Commission. TED FATHAUER, ANCHORAGE testified via the teleconference network. He spoke in opposition to reductions in the Alaska State Council on the Arts' budget. He also spoke against proposed reductions to the Alaska Public Broadcasting Commission. He stated that he would support the reinstitution of an income tax. HANNA WOLF, JUNEAU provided members with written comments in support of public broadcasting (copy on file). TIM WILSON, EXECUTIVE DIRECTOR, ALASKA STATE COUNCIL ON THE ARTS, ANCHORAGE spoke in opposition to reductions in the Alaska State Council on the Arts' budget. He observed that the arts bring people together as a state. He noted that the National Endowment of the Arts (NEA) is the single largest arts donor in Alaska. He stressed that 70 percent of NEA funding for Alaska comes through the Alaska State Council on the Arts. He maintained that federal NEA funding will be lost if the proposed reduction remains. He emphasized that Congress is moving the decision process from the federal level to the state level. He asserted that Alaska could receive more federal funding under a reorganization of the NEA. ANNIE STOKES, MEMBER, ALASKA STATE COUNCIL ON THE ARTS, JUNEAU spoke in opposition to reductions in the Alaska State Council on the Arts' budget. She observed that every dollar spent by the Council generates $8 to $9 dollars. She noted that the Council's budget has funded projects by 11,000 artists. She emphasized that 31,500 students have benefited from art programs in schools. She suggested that the Council's budget be reduced to $675.0 thousand dollars in order to capture federal funds. BRENT DILLINGHAM, JUNEAU spoke in opposition to reductions in the Alaska State Council on the Arts' budget. He stressed that a 83 percent reduction will be a heavy blow to the arts community. He emphasized that art helps us to maintain a sense of history. LARRY KING, CORDOVA testified via the teleconference network. He expressed concern with proposed reductions to alcoholic treatment programs. PATTY GILBER, PRINCE WILLIAMS SOUND COMMUNITY COLLEGE, CORDOVA testified via the teleconference network. She spoke in support of funding for community colleges. She stressed that the Prince William Sound Community College has increased its efficiency. She noted the support given the College by the cities of Valdez and Cordova. 12 SCOTT JANKE, CITY MANAGER, CORDOVA testified via the teleconference network. He expressed concern in the proposed reductions to the Prince William Sound Community College, drug and alcohol abuse programs, ARDORS and Contract Jails Program. GINGER AHMAOGAK, BARROW testified via the teleconference network. She testified in support of funding for alcohol and drug abuse programs. BOB JOHNSON, KODIAK testified via the teleconference network. He spoke in opposition to reductions in the Alaska State Council on the Arts' budget. He emphasized that a 83 percent reduction will not allow the Council to capture federal matching funds. RITA STEVENS, KODIAK ARTS COUNCIL, KODIAK testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. BARBARA BIGELOW, KETCHIKAN testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She also spoke in opposition to reductions in the Alaska State Council on the Arts' budget and the University of Alaska. ANTHONY ROWAN, KETCHIKAN testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. MARIA DUDZAK, KETCHIKAN testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. He compared reductions for art funding to cutting an artery without a hospital in sight. BRIAN JOHNSON, VALDEZ testified via the teleconference network. He spoke in support of funding for community colleges. DOUG ROETMAN, VALDEZ testified via the teleconference network. He spoke in support of funding for ARDORs. (Tape Change, HFC 95-64, Side 2) SHANA SIMMONS, VALDEZ testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She stressed that the Valdez public radio station is the only broadcast station for a third of their listeners. She emphasized that 13 the broadcast area of KCHU is the size of the state of Ohio. KRIS NORRIS, PETERSBURG testified via the teleconference network. He expressed concern with proposed reductions to the Habitat Division of the Department of Fish and Game. He noted that the Department's general fund budget has been reduced by 23 percent in the past four years. SUSAN ERICKSON, PETERSBURG testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. CHRIS WEISS, PETERSBURG testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. CARL BERGER, BETHEL testified via the teleconference network. He expressed concern with proposed reductions to the ARDOR program. He also spoke against proposed reductions to the Alaska Public Broadcasting Commission. KEN EGGLESTON, BETHEL testified via the teleconference network. He spoke in support of funding for the Civil Air Patrol. AMANDA CONARD, BETHEL testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She asserted that the Bethel public radio station, KYUK will be off the air July 1, if the depth of reductions are maintained. JOHN STRALEY, SITKA testified via the teleconference network. He spoke in opposition to reductions in the Alaska State Council on the Arts' budget. BOB CHEVALIER, SITKA testified via the teleconference network. He spoke in opposition to reductions to the Mt. Edgecumbe Boarding School. He also spoke against proposed reductions to the Alaska Public Broadcasting Commission. He indicated that he would be willing to pay an income tax. VINCENT O'CONNOR, MAT-SU testified via the teleconference network. He expressed concern with proposed reductions to the Department of Corrections. He spoke in support of day reporting centers and community work service. ROBERT HANSON, MAT-SU testified via the teleconference network. He spoke against reductions in public assistance. HENRY COLE, EXECUTIVE DIRECTOR, INTERIOR ARDOR, FAIRBANKS testified via the teleconference network. He spoke in 14 support of the ARDOR Program. He emphasized that the $225.0 thousand dollar cut represents a 25 percent reduction to the program. He noted that local groups raise $5.0 million dollars to fund regional ARDORs. DON SHIRCEL, TANANA CHIEFS CONFERENCE, FAIRBANKS testified via the teleconference network. He expressed concern with proposed reductions to AFDC, Day Care Assistance and the Mt. Edgecumbe Boarding School. He spoke in support of education funding. SARAH KUENCLI, TANANA CHIEFS CONFERENCE, FAIRBANKS testified via the teleconference network. She spoke in opposition to reductions in any programs that affect children. BILLIE SUNDGREN, TANANA CHIEFS CONFERENCE, FAIRBANKS testified via the teleconference network. She expressed support for fully funding medicaid optional services. JEAN FLANAGAN-CARLO, FAIRBANKS testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. LEONARD KAMERLING, FAIRBANKS testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. NEVILLE JACOBS, FAIRBANKS testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. CAROL MEARES, FAIRBANKS testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. She asserted that art activities help to maintain a healthy community. She spoke in support of funding for education. She suggested that new income sources should be considered. BETSY TURNER-BOGREN, FAIRBANKS COUNCIL PARENT TEACHER ASSOCIATION (PTA), FAIRBANKS testified via the teleconference network. She noted that adequate and equitable funding for education is the Alaska State PTA's legislative priority. She stressed that education funding has been eroded through inflation. She stated that education and social services should be held as a state priority. MARY LOU CANNEY, FAIRBANKS testified via the teleconference network. She spoke in support of the Head Start Program. RACHAEL ADAMS, KBBI, HOMER testified via the teleconference network. She spoke against proposed reductions to the 15 Alaska Public Broadcasting Commission. STEVE MCCASLAND, KBBI, HOMER testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. ANGELA RAMIREZ, HOMER testified via the teleconference network. She spoke in opposition to reductions in job training programs. She expressed concern with reductions to the justice system. She also spoke against proposed reductions to the Alaska Public Broadcasting Commission and in the Alaska State Council on the Arts' budget. ROBERT ANDERSON, KODIAK testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. JIM BLACKBURN, KODIAK testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. BRAD STEVENS, KODIAK testified via the teleconference network. He spoke against proposed reductions to the Alaska Public Broadcasting Commission. (Tape Change, HFC 95-65, Side 1) GEORGENE SINK, KODIAK testified via the teleconference network. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. JAMES MYKLAND, CORDOVA testified via the teleconference network. He expressed concern with proposed reductions to the Department of Fish and Game. HEATHER MCCARTHY, CORDOVA testified via the teleconference network. She expressed support for ARDORs, Prince William Sound Community College, alcohol and substance abuse programs, and the Department of Fish and Game. She maintained that fisheries are an important part of Alaska's economy. PATTI HIGGINS, ANCHORAGE SCHOOL BOARD, ANCHORAGE testified via the teleconference network. She stated that no further cuts should be made to education programs or public safety. She observed that Anchorage expects 400 new students in FY 96. She stressed that state, federal and municipal reductions will result in a $10 million dollar reduction to the Anchorage School District in one year. MARY STADUM, EXECUTIVE DIRECTOR, SOUTHWEST ALASKA MUNICIPAL 16 CONFERENCE, ANCHORAGE testified via the teleconference network. She spoke in opposition to reductions in the ARDOR Program. She stressed that the ARDOR Program has made a significant contribution to economic development in Alaska. She also spoke against proposed reductions to the Alaska Public Broadcasting Commission. ROD MCCOY, NEA-ALASKA, ANCHORAGE testified via the teleconference network. He expressed support for Governor Knowles' education budget. He emphasized the need to reduce class size. CAROL BRYNER, ALASKA DANCE THEATER, ANCHORAGE testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. COLLETTE OWENS, CLITHEROE, ANCHORAGE testified via the teleconference network. She expressed concern with proposed reductions to alcohol and drug abuse programs. JOE TOLOTTA, CLITHEROE, ANCHORAGE testified via the teleconference network. He expressed support for prisoner rehabilitation and drug and alcohol abuse programs. RICK GILMORE, PRESIDENT, BETTER BUSINESS BUREAU, ANCHORAGE testified via the teleconference network. He spoke in support of the Fair Businesses Practice Section, Department of Law. He pointed out that nationwide consumer fraud is a $100 to $150 billion dollar industry. CHARLES MCKEE, ANCHORAGE testified via the teleconference network. He expressed his objection to the amount of testimony given in regards to reductions to the Public Broadcasting Commission. JACKIE FLUMS, ALASKA NURSING ASSOCIATION spoke against reductions to medicaid. She noted that the state receives a 50 percent federal match for medicaid payments. WARREN COLLIER, ANCHORAGE testified via the teleconference network. He testified in support of funding for the Department of Military and Veterans Affairs. TONY RAUH, ANCHORAGE testified via the teleconference network. He testified in support of funding for programs that support persons with disabilities. JOCELYN YOUNG, ANCHORAGE testified via the teleconference network. She spoke in opposition to reductions in the Alaska State Council on the Arts' budget. ED GILLEY, SUPERINTENDENT, ADIAK REGION SCHOOL DISTRICT 17 spoke in support of full funding for education. He noted that schools in Adiak have been closed. He stressed that every reduction to the instructional unit will result in less teachers in the classroom. He stressed the need for a long range education plan. JOE HOBERT, JUNEAU spoke against proposed reductions to the Alaska Public Broadcasting Commission. He stated that any cuts to public broadcasting will be detrimental. He stressed that public broadcasting sets a standard of excellence for the rest of the industry. He emphasized that Alaska has an insufficient economic base in the private sector to support modern, up to date commercial news and public affairs broadcasts. He maintained that, in Alaska, only government has the resources to provide the common carrier utility by which news and public information flows. He noted that video compression could be added to the existing RATNet system at a cost of $3 million dollars. Video compression would increase RATNet's on air channel capacity by a factor of 8. He suggested that RATNet could be converted to AlaskaNet, a utility to accommodate all broadcasts. RICH KRONBERG, JUNEAU spoke in support of full funding for education. He maintained that the quality of education should not be dependent on the quantity or the price of oil that flows through the pipeline. JOHN CYR, TEACHER, WASILLA HIGH SCHOOL expressed support for full funding of education. He noted that the text books that his students use were printed 18 years ago. He emphasized that he does not have enough books to go around. His students also share desks. He has over 160 students on his class rolls. If everyone shows up for his first hour class then one student must sit on the floor. He noted that the quality of education has been reduced. He maintained that the reductions in education funding will exacerbate growing class size and the lack of materials. ROB PFISTEROR, PRESIDENT, ANCHORAGE EDUCATION ASSOCIATION, JUNEAU spoke against cuts in education. He observed that education funding which does not provide for increased enrollment will result in major cuts to schools throughout the state, force school districts to lay off employees, increase class size, cut needed materials and reduce instructional support. He noted that Anchorage has 130 fewer teaching positions to teach more students than the previous year. He stressed that another 167 individuals have received lay off slips for the coming year. He observed that the state of Alaska is the fiftieth state in taxation. He asserted that the state is facing a priority crisis not an economic crisis. 18 ERIC KUEFFNER, PRESIDENT, JUNEAU ARTS AND HUMANITIES COUNCIL, JUNEAU spoke in opposition to reductions in the Alaska State Council on the Arts' budget. He emphasized that every dollars spent on the Alaska State Council on the Arts is multiplied by $9 dollars. CHAD DENTON, STUDENT, JUNEAU DOUGLAS HIGH SCHOOL, JUNEAU spoke in opposition to reductions in the Alaska State Council on the Arts' budget. MARGAUX DEROUX, JUNEAU spoke in opposition to reductions in the Alaska State Council on the Arts' budget. RICHARD KERR, TEACHER, JUNEAU spoke in support of full funding for education. He stated that he is currently teaching ten classes daily in addition to maintaining other school responsibilities. He asked how he can continue to improve the level of services that he already provides. PATRICK HENRY, JUNEAU spoke in support of the Close-Up Program. He noted that school districts pay for half of the Program. He emphasized the importance of the Program. He stressed that 35 school districts participated in the Program in the past year. ROBERT SEWELL, JUNEAU spoke against reductions in education, child care, and DFYS. He emphasized the need to focus on prevention. SHAWNNA YOUNGBLOT, STUDENT, JUNEAU spoke in support of the Close-Up Program. SCOTT FISCUS, JUNEAU expressed support for funding of the Close-Up Program. CLAUDIA DOUGLAS, PRESIDENT, NEA-ALASKA, JUNEAU expressed concern with proposed reductions to K - 12 funding, the Mt. Edgecumbe Boarding School, the Close-up Program, the Kotzebue Technical Center and the Alaska State Council on the Arts. She emphasized that the state of Alaska has a constitutional responsibility to fund education. DEBORAH GARRISH, JUNEAU spoke in support of full funding for education. She stressed that classrooms are overcrowded. She asserted that the quality of education has been reduced. She also expressed concern with reductions to child abuse programs. She spoke against proposed reductions to the Alaska Public Broadcasting Commission. She suggested that school and income taxes be reinstated. 19 KEN WALDMAN, JUNEAU spoke in opposition to reductions in the Alaska State Council on the Arts' budget. LIZ JOHNSON, JUNEAU requested that careful consideration be given to cuts to education. She asked that long term impacts be considered. She noted that classes are large and course offerings are fewer at the Juneau/Douglas High School. LIZ SAYA, JUNEAU spoke in opposition to reductions in the Alaska State Council on the Arts' budget. She maintained that arts are a critical indicator of the health of the state. She spoke in support of new revenue sources. JAMES FISHER, JUNEAU asserted that the Legislature needs to provide responsibility for education and health and safety programs. He suggested that state income and alcohol and tobacco taxes be reinstated. He noted the need for a steady source of maintenance funds for the state's transportation system. KATE YOUNG, JUNEAU spoke in support of full funding for education. She asserted that the operating budget can not be balanced at the expense of our children. ALEX WORTHEIMER, PRESIDENT, AUKE BAY PTA, JUNEAU urged full funding of education. He stressed that education funding has eroded due to inflation. He also spoke in opposition to reductions to the Division of Habitat in the Department of Fish and Game. BARBARA WILMAT, JUNEAU spoke against proposed reductions to the Alaska Public Broadcasting Commission. RON DUNLAP, PRESIDENT, TROUT UNLIMITED, JUNEAU spoke against the 30 percent reduction to the Division of Habitat, Department of Fish and Game. LILA AYERS, TEACHER, MAT-SU spoke in support of full funding for education. SYBIL DAVIS, JUNEAU spoke in opposition to reductions in the Alaska State Council on the Arts' budget. She stressed that arts provide a safety net for children. PAM NEAL, PRESIDENT, ALASKA STATE CHAMBER OF COMMERCE urged a five percent annual reduction of state spending, until a sustainable level is reached. She commended the Committee's effort at bring state spending into balance. CHARLES ROHBRACHER, JUNEAU spoke in opposition to reductions in the Alaska State Council on the Arts' budget. He 20 maintained that art and language are mankind's most distinctive and characteristic behavior as human beings. He noted the impact that the reduction to the Alaska State Council on the Arts will have on the next generation of Alaskan artists. DARLENE THORTON, PRESIDENT, HARBORVIEW PTA, JUNEAU spoke in support of full funding for education. ADJOURNMENT The meeting adjourned at 2:00 p.m. 21