Legislature(2005 - 2006)

2006-01-13 Senate Journal

Full Journal pdf

2006-01-13                     Senate Journal                      Page 1885
                                                                                                    
                                SENATE JOURNAL                                                   
                                                                                                    
                           ALASKA STATE LEGISLATURE                                              
                                                                                                    
                          TWENTY-FOURTH LEGISLATURE                                              
                                                                                                    
                                SECOND SESSION                                                   
                                                                                                    
Juneau, Alaska                      Friday                 January 13, 2006                       
                                                                                                    
                                  Fifth Day                                                      
                                                                                                    
                                                                                                    
Pursuant to adjournment the Senate was called to order by President                                 
Stevens at 10:05 a.m.                                                                               
                                                                                                    
The roll showed fifteen members present. Senators Huggins, Wagoner,                                 
Wilken were excused from a call of the Senate. Senators Stedman,                                    
Therriault were absent.                                                                             
                                                                                                    
The prayer was offered by the Chaplain, The Reverend George Silides                                 
of the Holy Trinity Episcopal Church. Senator Hoffman moved and                                     
asked unanimous consent that the prayer be spread. Without objection,                               
it was so ordered.                                                                                  
                                                                                                    
          With the deepest respect for the religious beliefs of each                               
     person here, I invite you into a time of prayerful reflection.                                 
                                                                                                    
          Our nation and our state has set aside a day of                                           
          remembering the life and work of Martin Luther King, Jr.                                  
          This day may we remember our privileges and                                               
          responsibilities as public servants; elected to organize our                              
          astounding generosity, but also to temper our baser                                       
          interests. We remember there can be a tyranny of the                                      
          majority as well as by a few. What decisions made here                                    
          affect so many; and many more deeply than they affect                                     
          us here. May the poor rejoice to be remembered here.                                      
          May the mentally ill, the homeless, the homemaker, the                                    
          kings of commerce and industry; the shopkeeper and the                                    
          unemployed; the immigrant and those who make their                                        
          living upon the sea; the young and old alike: May all                                     
          rejoice that their needs find voice within this house.                                    

2006-01-13                     Senate Journal                      Page 1886
          Because these things are beyond the strength of mortal                                    
          men and women; I ask, O Lord, upon Your servants here                                     
          a special portion of thy grace and strength; that this day,                               
          begun with such beauty by thy hand, may be beautiful                                      
          also in thought and word and deed.                         Amen.                          
                                                                                                    
Senator Ellis led the Senate in the Pledge of Allegiance.                                           
                                                                                                    
                                                                                                    
                                Certification                                                    
                                                                                                    
Senator Gary Stevens moved and asked unanimous consent that the                                     
journal for the fourth legislative day and House and Senate Joint                                   
Journal Supplement No. 10 be approved as certified by the Secretary.                                
Without objection, it was so ordered.                                                               
                                                                                                    
                                                                                                    
                            Introduction of Guests                                               
                                                                                                    
Senator Dyson introduced the following members from the Canadian                                    
Consulate and the Pacific NorthWest Economic Region (PNWR):                                         
                                                                                                    
Rob Renner, Immediate Past President, PNWR                                                          
Representative Glenn Anderson, President, PNWR                                                      
Marvin Schneider, Director of International and Intergovernmental                                   
Relations, Alberta, Canada                                                                          
Sukumar Periwal, Director of International and Intergovernmental                                    
Relations, British Columbia, Canada                                                                 
Rudy Bruggerman, Canadian Consulate                                                                 
Matt Morrison, Executive Director, PNWR                                                             
                                                                                                    
                           Messages from the House                                               
                                                                                                    
                               Concur Messages                                                   
                                                                                                    
SB 87                                                                                             
Message dated January 11 was read, stating the House passed and                                     
returned for consideration SENATE BILL NO. 87 "An Act relating to                                   
motor vehicle safety belt violations" with the following amendment:                                 
                                                                                                    

2006-01-13                     Senate Journal                      Page 1887
          HOUSE CS FOR SENATE BILL NO. 87(JUD)                                                      
                                                                                                    
President Stevens stated the message would be held on the Secretary's                               
desk.                                                                                               
                                                                                                    
                                                                                                    
                                Communications                                                   
                                                                                                    
The following reports are on file in the Office of the Secretary of the                             
Senate:                                                                                             
                                                                                                    
Annual Review of Assets dated January 9, 2006                                                       
from Ron Miller, Executive Director, Alaska Industrial Development                                  
and Export Authority                                                                                
in accordance with AS 44.88.205                                                                     
                                                                                                    
Certification of Capital Reserve Funds' Requirement dated                                           
December 5, 2005, from Mike Barry, Chairman,                                                        
Alaska Industrial Development and Export Authority                                                  
in accordance with AS 44.83.110(f)                                                                  
                                                                                                    
Certification of Capital Reserve Fund Requirement dated                                             
December 5, 2005, from Mike Barry, Chairman                                                         
Alaska Industrial Development and Export Authority                                                  
in accordance with AS 44.88.105(d)                                                                  
                                                                                                    
The following Budget and Audit Reports were received from Pat                                       
Davidson, Legislative Auditor, in accordance with AS 24.20.311 and                                  
are on file in the Office of the Secretary of the Senate:                                           
                                                                                                    
Department of Transportation and Public Facilities, Alaska Marine                                   
Highway System Vessel Maintenance and Repair Procurement, March                                     
31, 2005                                                                                            
                                                                                                    
State of Alaska, Single Audit for the Fiscal Year ended June 30, 2004,                              
dated May 5, 2005                                                                                   
                                                                                                    
Unabridged 2005 Annual Report from the Legislative Budget & Audit                                   
Committee, dated January 9, 2006                                                                    
                                                                                                    
Condensed 2005 Annual Report from the Legislative Budget & Audit                                    
Committee, dated January 9, 2006                                                                    

2006-01-13                     Senate Journal                      Page 1888
                          Standing Committee Reports                                             
                                                                                                    
HB 149                                                                                            
The Finance Committee considered CS FOR HOUSE BILL NO.                                              
149(FIN) am "An Act relating to controlled substances; relating to the                              
crimes of manslaughter, endangering the welfare of a child, and                                     
misconduct involving a controlled substance; relating to the                                        
manufacture of methamphetamine and to the sale, possession, and                                     
delivery of certain substances and precursors used in the manufacture                               
of methamphetamine; relating to listing certain anabolic steroids as                                
controlled substances; and providing for an effective date" and                                     
recommended it be replaced with                                                                     
                                                                                                    
          SENATE CS FOR CS FOR HOUSE BILL NO.                                                       
          149(FIN) "An Act relating to controlled substances;                                       
          relating to the crimes of manslaughter, endangering                                       
          the welfare of a child, and misconduct involving a                                        
          controlled substance; relating to the manufacture of                                      
          methamphetamine and to the sale, possession, and                                          
          delivery of certain substances and precursors used in                                     
          the manufacture of methamphetamine; relating to                                           
          listing certain anabolic steroids as controlled                                           
          substances; amending Rule 41, Alaska Rules of                                             
          Criminal Procedure; and providing for an effective                                        
          date."                                                                                    
          (technical title change)                                                                  
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 8, zero, Department of Health and Social Services                                  
 Fiscal Note No. 9, indeterminate, Department of Administration                                     
 Fiscal Note No. 10, zero, Department of Public Safety                                              
 Fiscal Note No. 11, indeterminate, Department of Administration                                    
 Fiscal Note No. 12, zero, Department of Law                                                        
                                                                                                    
Signing do pass: Senators Wilken, Green, Cochairs; Senators Bunde,                                  
Stedman, Dyson. Signing no recommendation: Senators Hoffman,                                        
Olson.                                                                                              
                                                                                                    
The bill was referred to the Rules Committee.                                                       
                                                                                                    
                                                                                                    

2006-01-13                     Senate Journal                      Page 1889
                        Introduction and Reference of                                            
                              Senate Resolutions                                                 
                                                                                                    
SR 5                                                                                              
SENATE RESOLUTION NO. 5 BY THE SENATE RULES                                                         
COMMITTEE,                                                                                          
                                                                                                    
                  Establishing a Senate Special Committee on                                       
          University Oversight.                                                                     
                                                                                                    
was read the first time and held on the Secretary's desk.                                           
                                                                                                    
                                                                                                    
                  Introduction and Reference of Senate Bills                                     
                                                                                                    
SB 228                                                                                            
SENATE BILL NO. 228 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act making appropriations for the operating and                                       
          loan program expenses of state government, for                                            
          certain programs, and to capitalize funds; making                                         
          appropriations under art. IX, sec. 17(c), Constitution                                    
          of the State of Alaska, from the constitutional budget                                    
          reserve fund; and providing for an effective date."                                       
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
Governor's transmittal letter dated January 11, 2006:                                               
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
The operating budget bill delivered today contains my proposal for the                              
2007 fiscal year.                                                                                   
                                                                                                    
The proposed operating budget, combined with other spending                                         
proposals, reflect my administration's commitment to ensuring each                                  
Alaskan has the opportunity to fully participate in Alaska's bright                                 
future. At the same time, our proposals ensure that the state can                                   
continue to meet its obligations, especially to those most in need.                                 

2006-01-13                     Senate Journal                      Page 1890
Unlike the first two operating budgets of this administration in which                              
we cut $150 million in general funds and 473 positions, the Fiscal                                  
Year 2007 budget proposals reflect increases in four primary program                                
areas:                                                                                              
                                                                                                    
     K-12 support - $90 million                                                                   
     The increase, which requires passage of a statute, will bring per                              
     student funding to $5,352 from the current $4,919. Increased                                   
     funds will pay the $40 million in increased retirement system                                  
     costs, provide funds to meet the increased cost of day-to-day                                  
     operations, and enable further investment in helping students                                  
     achieve.                                                                                       
                                                                                                    
     University of Alaska - $42 million                                                           
     The Alaska Scholars program is a success story in keeping                                      
     Alaska's brightest at home. Over the last five years, 98 percent of                            
     Alaska Scholars that graduated from the University stayed in                                   
     Alaska. My proposed budget includes $5 million to expand this                                  
     program to the top 15 percent from the current top 10 percent of                               
     Alaska's high school graduates.                                                                
                                                                                                    
     Other increased investment in the University includes continuing                               
     programs that address high demand careers, such as in health and                               
     teaching, and establishing a competitive university research                                   
     program that capitalizes on Alaska's geographic advantages.                                    
                                                                                                    
     Medicaid - $104 million                                                                      
     Additional funds will meet this formula-based program's                                        
     requirements due to increased caseloads and costs. Another $45                                 
     million of the increase is due to the federal government's                                     
     disapproval of the FairShare program that was put in place under                               
     the last administration. The program allowed Tribal hospitals to                               
     receive a higher reimbursement rate than non-Tribal hospitals for                              
     uncompensated care.                                                                            
                                                                                                    
     Transportation - $42 million                                                                 
     We again propose to increase funding for maintenance of the                                    
     state's highways, airports, and harbors. Some of this is to cover                              
     increased  costs  of  commodities  and  fuel.   In  addition,  we  are                         
                                                                                                    

2006-01-13                     Senate Journal                      Page 1891
     proposing additional funding for the Alaska Marine Highway                                     
     System to cover increased fuel costs and staffing to meet                                      
     increased ports of call.                                                                       
                                                                                                    
Another major increase is $65 million for state employee salary and                                 
benefit costs. Over half of the amount ($34 million) is to pay the                                  
increased retirement system contribution.                                                           
                                                                                                    
Our administration's Fiscal Year 2007 operating budget and other                                    
proposals are investments in Alaska's future that will help create the                              
kind of Alaska in which Alaskans can fulfill their tremendous potential                             
and achieve their dreams. By our working together on what I believe                                 
to be a shared vision for the future, it will mean every Alaskan can                                
have hope for what the future will bring, instead of simply hoping for                              
a future.                                                                                           
                                                                                                    
To these ends, I look forward to working with the Legislature.                                      
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 229                                                                                            
SENATE BILL NO. 229 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "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."                                                                   
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
In accordance with AS 37.14.003(b) a report of the differences                                      
between the Governor's proposed budget and the recommendations of                                   
the Alaska Mental Health Trust Authority was transmitted.                                           
                                                                                                    
Governor's transmittal letter dated January 11, 2006:                                               
                                                                                                    

2006-01-13                     Senate Journal                      Page 1892
Dear President Stevens:                                                                             
                                                                                                    
I am today transmitting a separate FY 2007 appropriations bill for the                              
state's comprehensive mental health program. As required by statute,                                
it includes both operating and capital appropriations and is                                        
accompanied by a report outlining the differences between my budget                                 
and the recommendations of the Alaska Mental Health Trust                                           
Authority.                                                                                          
                                                                                                    
The proposed mental health budget represents a cooperative effort                                   
between state agencies, the Trustees, and Trust Authority staff.                                    
Coupled with the resources that have been appropriated in recent                                    
years, these productive working relationships have made a positive                                  
difference for Alaska's mental health beneficiaries.                                                
                                                                                                    
I look forward to working with the Legislature this session.                                        
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 230                                                                                            
SENATE BILL NO. 230 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act making appropriations for state aid to public                                     
          schools, centralized correspondence study, and                                            
          transportation of pupils; and providing for an                                            
          effective date."                                                                          
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
Governor's transmittal letter dated January 11:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill making special appropriations for the support of K-                             
12 public education in the state for fiscal year 2007.                                              

2006-01-13                     Senate Journal                      Page 1893
This bill contains an increase of $90.2 million that is contingent upon                             
passage of this legislation, which will increase the base student                                   
allocation by $433 from $4,919 to $5,352.                                                           
                                                                                                    
Upon approval, this will mean a 33 percent increase in education                                    
funding during the four years of this administration.                                               
                                                                                                    
But even more important is that we are seeing results from this                                     
increased investment.  The number of schools meeting the Adequate                                   
Yearly Progress requirement of the No Child Left Behind law has                                     
increased to 59 percent from 42 percent in 2003.  We have seen the                                  
achievement gap narrow between Native and non-Native students.                                      
                                                                                                    
I urge early and favorable action on this measure.                                                  
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 231                                                                                            
SENATE BILL NO. 231 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
               "An Act making appropriations, including capital                                    
            appropriations and appropriations to capitalize funds;                                 
          and providing for an effective date."                                                     
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
Governor's transmittal letter dated January 11:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
The capital budget bill delivered today contains my proposal for the                                
2007 fiscal year.                                                                                   
                                                                                                    
Overall, the capital budget totals $1.7 billion of which $1.1 billion will                          
be supported by federal funds.  Of this, $873 million in federal                                    
transportation funds are proposed for road, highway, ferry, and airport                             

2006-01-13                     Senate Journal                      Page 1894
projects throughout Alaska.  Another $95 million is proposed for a                                  
variety of University of Alaska projects, including $57 million to                                  
complete the Integrated Science Facility in Anchorage.  A major                                     
source of the funding for the University's projects is proceeds from                                
refinancing bonds issued by the Northern Tobacco Securitization                                     
Corporation.                                                                                        
                                                                                                    
Developing Alaska's natural resources continues to be my                                            
administration's major priority.  This includes getting Alaska's                                    
transportation infrastructure ready for gas pipeline construction, doing                            
further geologic work, and providing access to resources around the                                 
state through the "Roads to Resources" program.                                                     
                                                                                                    
The Fiscal Year 2007 capital budget also includes $132 million in                                   
state funds for a major transportation initiative, which includes Juneau                            
Access funding of $45 million and $50 million to extend the Alaska                                  
Railroad from Delta to the Canadian border.                                                         
                                                                                                    
In other legislation I will be proposing that $86 million of the current                            
year's surplus also be used for transportation projects that meet local                             
community transportation priorities, as well as $43 million to meet                                 
deferred maintenance needs of state facilities and programs.                                        
                                                                                                    
I look forward to working closely with this Legislature to jointly craft                            
a capital budget that provides Alaska residents essential state services                            
and creates good jobs for hard working Alaskans.                                                    
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 232                                                                                            
SENATE BILL NO. 232 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act making special, supplemental, capital, and                                        
          other appropriations, amending appropriations, and                                        
          making appropriations to capitalize funds; and                                            
          providing for an effective date."                                                         

2006-01-13                     Senate Journal                      Page 1895
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
Governor's transmittal letter dated January 12:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
I am today transmitting an FY 2006 supplemental appropriations bill                                 
for increased energy costs and for certain time-sensitive items. A                                  
spreadsheet summarizing the requests is enclosed, along with backup                                 
information for each.                                                                               
                                                                                                    
I encourage your early and favorable action on this measure.                                        
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 233                                                                                            
SENATE BILL NO. 233 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
             "An Act making appropriations for capital projects;                                   
          and providing for an effective date."                                                     
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
Governor's transmittal letter dated January 12:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
The supplemental capital budget bill introduced today reflects the third                            
area of investment of the current year's revenue surplus.  This $129                                
million proposal for roads and deferred maintenance is in addition to                               
tapping 50 percent of the surplus to fund K-12 education next year and                              
saving $400 million to invest in the gas pipeline.                                                  
                                                                                                    
This legislation proposes to invest $86 million in transportation                                   
projects around the state.  Providing state funds instead of relying only                           
on federal funds will shorten the construction timeframe so that                                    

2006-01-13                     Senate Journal                      Page 1896
Alaskans will get the benefit from these improvements sooner rather                                 
than later.  These projects build on my transportation initiative that the                          
Legislature approved last session.                                                                  
                                                                                                    
In addition, the bill proposes to invest $43 million to start meeting the                           
deferred maintenance needs of state facilities and programs.                                        
                                                                                                    
I look forward to working with the Legislature on meeting these and                                 
other priorities this session.                                                                      
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 234                                                                                            
SENATE BILL NO. 234 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
              "An Act relating to a community dividend program;                                    
          and providing for an effective date."                                                     
                                                                                                    
was read the first time and referred to the State Affairs and Finance                               
Committees.                                                                                         
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Revenue                                                     
 Fiscal Note No. 2, Department of Commerce, Community and                                           
       Economic Development                                                                         
                                                                                                    
Governor's transmittal letter dated January 13:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill relating to a community dividend program.                                       
                                                                                                    
This bill would establish the community dividend program, under                                     
which several types of grants would be awarded to municipalities for                                
use for specified public services.  The bill provides for appropriation                             
for  the  program  from   amounts  deposited  into  the   Alaska   capital                          

2006-01-13                     Senate Journal                      Page 1897
income fund, established in AS 37.05.565 by ch. 49, SLA 2005.  The                                  
Alaska capital income fund is financed by the earnings on Amerada                                   
Hess settlement deposits to the Alaska Permanent Fund.                                              
                                                                                                    
The bill provides first for a base grant to municipalities, then for an                             
organizational grant to newly organized boroughs.  Any amounts                                      
remaining from a fiscal year's appropriation would be distributed on a                              
pro rata basis to municipalities as a supplemental grant.                                           
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 235                                                                                            
SENATE BILL NO. 235 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
               "An Act relating to a public school performance                                     
              incentive program; and providing for an effective                                    
          date."                                                                                    
                                                                                                    
was read the first time and referred to the Health, Education and Social                            
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Education and Early                                               
       Development                                                                                  
                                                                                                    
Governor's transmittal letter dated January 13:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that would provide for a public school performance                              
incentive program.  This program is an innovative approach to                                       
creating a learning environment in which students will improve more                                 
rapidly than would usually be expected.                                                             

2006-01-13                     Senate Journal                      Page 1898
This program would inspire and empower Alaska's outstanding                                         
educators to use their expertise and innovative instructional practices                             
to improve student growth and achievement.  A performance incentive                                 
program would enhance Alaska's teacher recruitment efforts, raise                                   
accountability by linking the incentive payments directly to increased                              
levels of student achievement, and promote effective instruction, staff                             
collaboration, and shared responsibility.  The program would                                        
encourage public schools to adjust schedules to maximize instructional                              
time and align teacher skills to student needs.                                                     
                                                                                                    
This bill would authorize a substantial performance incentive                                       
payment, subject to appropriation, to school personnel -- up to $5,500                              
for certificated personnel such as teachers, counselors, and                                        
administrators, and up to $2,500 for noncertificated personnel such as                              
instructional aides, school nurses, and school secretaries.  Public                                 
school personnel would be eligible for a performance incentive                                      
payment if the students in their school achieved substantial                                        
improvement on the statewide assessments.                                                           
                                                                                                    
The program provided for in this bill is unique in two ways.  First, it is                          
intended that a performance incentive payment would be made when                                    
students achieve more than one year's academic growth.  We expect                                   
learning growth in students each year, and public school personnel are                              
paid to teach students a normal year's worth of information.  This                                  
program, however, would reward public school personnel if students                                  
acquire more than one year's worth of growth.  When students gain                                   
more than one year's worth of growth, they will advance one or more                                 
levels on the state's statewide achievement assessments, triggering a                               
performance incentive payment.  If students are already at the most                                 
advanced level, keeping them advanced would trigger a payment.                                      
                                                                                                    
Tying the performance incentive payment to growth would mean that                                   
all public schools would have an opportunity to earn the payment.                                   
Because the performance incentive payment would not be pegged at a                                  
set level of achievement, public schools that have high-achieving                                   
students would not have an advantage over schools with low-                                         
achieving students.  All children can learn, and all can improve their                              
achievement level.  Schools would not be in competition with each                                   
other -- a school would be eligible for the performance incentive                                   
payment if its students achieve sufficient growth, even if some other                               
schools show more growth or faster growth.                                                          

2006-01-13                     Senate Journal                      Page 1899
The second unique aspect of this proposed program is that it is                                     
intended to apply to all public school employees.  Even                                             
noninstructional personnel would be eligible for the performance                                    
incentive payment if the students at the public school achieved the                                 
requisite growth.  This would create within the public school building                              
a community in which all employees have a stake in the success of the                               
students.  Teachers who teach subjects that are not tested,                                         
administrators, paraprofessionals, and support staff all would have an                              
incentive to encourage students to excel at all scholastic pursuits, and                            
to keep students interested and engaged.  The school community                                      
would have an incentive to work together for the greater good.                                      
                                                                                                    
The details of the performance incentive program would require                                      
mathematical formulae and the setting of eligibility requirements that                              
are best left to regulation.  The Department of Education and Early                                 
Development (department) would have to determine what level of                                      
growth is appropriate for the performance incentive payment -- if it is                             
too easy or too difficult to obtain, it would not provide an incentive.                             
The department also would provide in regulation for a mechanism to                                  
reward school district central office personnel -- such as a curriculum                             
or special education director -- who have a significant influence on the                            
achievement of the students in the eligible schools in that district.                               
                                                                                                    
The bill provides that a payment under the program is not included in                               
an employee's compensation for retirement purposes.  Also, under the                                
bill, whether an employee does or does not receive a performance                                    
incentive payment would have no bearing on the employee's                                           
evaluation, and a school district could not diminish or supplant an                                 
employee's regular salary because the employee received a payment.                                  
                                                                                                    
This program is not intended to have any effect on the current or                                   
future levels of foundation or other funding for public education.  This                            
program is intended to reward excellence by providing incentives for a                              
public school community to work collaboratively to exceed the                                       
expected level of learning for all students in a single year.  Foundation                           
funding and this program are entirely separate and each stands on its                               
own.                                                                                                
                                                                                                    
                                                                                                    
                                                                                                    

2006-01-13                     Senate Journal                      Page 1900
This bill is good for children and good for Alaska.  I urge your prompt                             
and favorable action on it.                                                                         
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 236                                                                                            
SENATE BILL NO. 236 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
            "An Act relating to the dividend paid to the state by                                  
                 the Alaska Housing Finance Corporation; and                                       
          providing for an effective date."                                                         
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Revenue                                                     
                                                                                                    
Governor's transmittal letter dated January 13:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill relating to the dividend paid to the state by the                               
Alaska Housing Finance Corporation.                                                                 
                                                                                                    
As a result of the Governmental Accounting Standards Board                                          
Statement No. 34 ("GASB 34"), governmental entities no longer are                                   
allowed to report contributed capital and retained earnings on their                                
balance sheets.  In addition, the balance sheet itself has now been                                 
renamed to "Statement of Net Assets."  Under the rules of pre-GASB
34 generally accepted accounting principles, capital grants and other                               
transfers to or on behalf of the state were considered a return of capital                          
to the state and were shown as a reduction of contributed capital --                                
thus, not affecting net income.  The GASB 34 requires these same                                    
amounts to be included in net income (now called "Change in Net                                     
Assets").                                                                                           

2006-01-13                     Senate Journal                      Page 1901
The bill would permit the Alaska Housing Finance Corporation to                                     
remove those expenditures from "Change in Net Assets" before the                                    
dividend is calculated.   It further would allow the Alaska Housing                                 
Finance Corporation to remove prior years' capital appropriations from                              
"Change in Net Assets" before the dividend is calculated.                                           
                                                                                                    
The primary objective of these changes is to bring the corporation's                                
reconciliation and calculation of the dividend into compliance with                                 
GASB 34 rules.                                                                                      
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 237                                                                                            
SENATE BILL NO. 237 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act increasing the number of superior court                                           
          judges designated for the third judicial district, to                                     
          provide additional superior court judges at                                               
          Anchorage, Palmer, and Kenai; and providing for an                                        
          effective date."                                                                          
                                                                                                    
was read the first time and referred to the Judiciary and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Alaska Court System                                                             
                                                                                                    
Governor's transmittal letter dated January 13:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that would add a total of four superior court judge                             
positions to the third judicial district in the state court system.                                 

2006-01-13                     Senate Journal                      Page 1902
As Alaska's population grows, the demand on the court system from                                   
both civil and criminal cases increases.  The population growth does                                
not occur uniformly throughout the state.  The Matanuska-Susitna                                    
Borough had a 77 percent increase in population from 1990 to 2004                                   
and a 39 percent increase in felony case filings for fiscal year 2004.                              
The Palmer court is perhaps the most overcrowded court in the system.                               
                                                                                                    
The impact on the court system of felony criminal cases is very                                     
burdensome.  Criminal cases, particularly violent felony criminal                                   
cases, are often the most complex and time-sensitive types of cases                                 
handled by the court system.  They are also the most likely type of                                 
case to proceed to a time-consuming trial.  Time is of the essence to                               
both the victims of crimes waiting for justice to be served and the                                 
accused seeking resolution to the criminal charges.                                                 
                                                                                                    
The additional superior court judge positions provided for under this                               
bill are essential to the efficient operation of the court system.                                  
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 238                                                                                            
SENATE BILL NO. 238 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
             "An Act increasing the base student allocation used                                   
           in the formula for state financing of public education;                                 
          and providing for an effective date."                                                     
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Education and Early                                               
       Development                                                                                  
 Fiscal Note No. 2, Department of Education and Early                                               
       Development                                                                                  

2006-01-13                     Senate Journal                      Page 1903
Governor's transmittal letter dated January 13:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that would raise the base student allocation for                                
students attending public school grade levels kindergarten through 12                               
(K-12) beginning in  fiscal year 2007.  Under the bill, the base student                            
allocation would increase from $4,919 to $5,352 on July 1, 2006, an                                 
approximately 8.8 percent increase over last year.  This is the fourth                              
increase in the base student allocation since 2003, when the allocation                             
was $4,010.  These four increases amount to a 33 percent increase                                   
during this Administration.                                                                         
                                                                                                    
This bill is an important element of my continuing effort to finance K-                             
12 public education at a level that meets the increased costs our school                            
districts have experienced over the last several years.  This increase in                           
the base student allocation will add approximately $90 million to the                               
state financing of public education, bringing the total state contribution                          
to $928,087,440.                                                                                    
                                                                                                    
I urge your prompt and favorable action on this measure, for the sake                               
of Alaska's public schools and our children.                                                        
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
                                                                                                    
                        Consideration of the Calendar                                            
                                                                                                    
                                  Citations                                                      
                                                                                                    
Honoring - Leanne Tomson-Flickinger                                                                 
Senator(s) Bunde, Ben Stevens, Cowdery, Davis, Dyson, Ellis, Elton,                                 
Green, Guess, Hoffman, Huggins, Kookesh, Olson, Seekins, Stedman,                                   
Gary Stevens, Therriault, Wagoner, Wilken                                                           
                                                                                                    
                                                                                                    

2006-01-13                     Senate Journal                      Page 1904
Honoring - Orin Seybert, Alaska Business Junior Achievement Hall of                                 
Fame Laureate                                                                                       
Senator(s) Ben Stevens, Bunde, Cowdery, Davis, Dyson, Ellis, Elton,                                 
Green, Guess, Hoffman, Huggins, Kookesh, Olson, Seekins, Stedman,                                   
Gary Stevens, Therriault, Wagoner, Wilken                                                           
                                                                                                    
In Memoriam - Fern Angela Kubley                                                                    
Representative(s) Weyhrauch, Kerttula                                                               
Senator(s) Elton, Ben Stevens, Bunde, Cowdery, Davis, Dyson, Ellis,                                 
Green, Guess, Hoffman, Huggins, Kookesh, Olson, Seekins, Stedman,                                   
Gary Stevens, Therriault, Wagoner, Wilken                                                           
                                                                                                    
In Memoriam - Nicholas Kokotovich                                                                   
Representative(s) Weyhrauch, Kerttula                                                               
Senator(s) Elton, Ben Stevens, Bunde, Cowdery, Davis, Dyson, Ellis,                                 
Green, Guess, Hoffman, Huggins, Kookesh, Olson, Seekins, Stedman,                                   
Gary Stevens, Therriault, Wagoner, Wilken                                                           
                                                                                                    
In Memoriam - William Harley "Bill" Stalnaker                                                       
Representative(s) Weyhrauch, Kerttula                                                               
Senator(s) Elton, Ben Stevens, Bunde, Cowdery, Davis, Dyson, Ellis,                                 
Green, Guess, Hoffman, Huggins, Kookesh, Olson, Seekins, Stedman,                                   
Gary Stevens, Therriault, Wagoner, Wilken                                                           
                                                                                                    
In Memoriam - Genevieve "Gen" F. Harmon                                                             
Representative(s) Weyhrauch, Kerttula                                                               
Senator(s) Elton, Ben Stevens, Bunde, Cowdery, Davis, Dyson, Ellis,                                 
Green, Guess, Hoffman, Huggins, Kookesh, Olson, Seekins, Stedman,                                   
Gary Stevens, Therriault, Wagoner, Wilken                                                           
                                                                                                    
In Memoriam - Elisabeth Sheldon Hakkinen                                                            
Representative(s) Thomas                                                                            
Senator(s) Kookesh, Ben Stevens, Bunde, Cowdery, Davis, Dyson,                                      
Ellis, Elton, Green, Guess, Hoffman, Huggins, Olson, Seekins,                                       
Stedman, Gary Stevens, Therriault, Wagoner, Wilken                                                  
                                                                                                    
Senator Gary Stevens moved and asked unanimous consent that the                                     
citations be adopted. Without objection, the citations were adopted and                             
referred to the Secretary for transmittal.                                                          
                                                                                                    
                                                                                                    

2006-01-13                     Senate Journal                      Page 1905
                             Unfinished Business                                                 
                                                                                                    
HJR 5                                                                                             
Senator Bunde, Chair, moved and asked unanimous consent that the                                    
Labor and Commerce Committee referral be waived on CS FOR                                           
HOUSE JOINT RESOLUTION NO. 5(RES) Opposing imposition of                                            
a milk tax on Alaskans. Senator Ellis objected, then withdrew his                                   
objection. There being no further objection, the bill was referred to the                           
Rules Committee.                                                                                    
                                                                                                    
SB 8                                                                                              
Senator Elton moved and asked unanimous consent to be shown as a                                    
cosponsor on the SENATE BILL NO. 8 "An Act relating to a student                                    
loan repayment program for nurses, and amending the duties of the                                   
Board of Nursing that relate to this program; and providing for an                                  
effective date." Without objection, it was so ordered.                                              
                                                                                                    
SB 218                                                                                            
Senators Guess, Dyson, Elton, Kookesh, Green, Olson, Hoffman                                        
moved and asked unanimous consent to be shown as cosponsors on                                      
SENATE BILL NO. 218 "An Act relating to periodic polygraph                                          
examinations for sex offenders released on probation or parole and to                               
sentencing for sex offenders and habitual criminals." Without                                       
objection, it was so ordered.                                                                       
                                                                                                    
Senator Cowdery moved and asked unanimous consent to be excused                                     
from a call of the Senate from January 23 to plane time, January 24.                                
Without objection, Senator Cowdery was excused.                                                     
                                                                                                    
Senators French, Olson moved and asked unanimous consent to be                                      
excused from a call of the Senate on January 17 to morning plane                                    
time. Without objection, Senators French, Olson were excused.                                       
                                                                                                    
Senator Dyson moved and asked unanimous consent to be excused                                       
from a call of the Senate from 8:00 p.m., January 27 to evening plane                               
time, January 30. Without objection, Senator Dyson was excused.                                     
                                                                                                    
Senator Bunde moved and asked unanimous consent to be excused                                       
from a call of the Senate from afternoon plane time, January 20 to                                  
morning plane time, January 23. Without objection, Senator Bunde                                    
was excused.                                                                                        

2006-01-13                     Senate Journal                      Page 1906
Senator Seekins moved and asked unanimous consent to be excused                                     
from a call of the Senate from morning plane time, January 17 to                                    
morning plane time, January 18. Without objection, Senator Seekins                                  
was excused.                                                                                        
                                                                                                    
                                                                                                    
                                Announcements                                                    
                                                                                                    
Announcements are at the end of the journal.                                                        
                                                                                                    
                                                                                                    
                                 Adjournment                                                     
                                                                                                    
Senator Gary Stevens moved and asked unanimous consent that the                                     
Senate stand in adjournment until 11:00 a.m., January 17, 2006.                                     
Without objection, the Senate adjourned at 10:21 a.m.                                               
                                                                                                    
                                                                Kirsten Waid                        
                                                     Secretary of the Senate                        
                                                                                                    
                                                                January 2006                        

2006-01-13                     Senate Journal                      Page 1907
                                Announcements                                                    
                                                                                                    
Americans with Disabilities Act Notice - Persons with disabilities who require                      
special accommodation or alternative communication formats to access                                
committee meetings may contact the appropriate committee office or the                              
Legislative Information Office in their community. Reasonable advance                               
notice is needed to accommodate the request. For further information, call the                      
ADA Coordinator at 465-3854 Voice/465-4980 TDD.                                                     
                                                                                                    
                             STANDING COMMITTEES                                                 
+ indicates teleconference                                                                          
= indicates bill previously heard/scheduled                                                         
                                                                                                    
                         COMMUNITY & REGIONAL AFFAIRS                                            
                                                                                                    
Jan 16        Monday                                Beltz 211         1:30 PM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Jan 18        Wednesday                             Beltz 211         1:30 PM                     
+ SB 219 COMMUNITY DIVIDEND PROGRAM                                                                 
                                                                                                    
Jan 20        Friday                                Beltz 211         1:30 PM                     
              No Meeting Scheduled                                                                  
                   ----------------------------------------                                        
                                                                                                    
                                   FINANCE                                                       
                                                                                                    
Jan 16        Monday                    Senate Finance 532            9:00 AM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Jan 17        Tuesday                   Senate Finance 532            9:00 AM                     
     SB  55 AGRICULTURAL LAND                                                                       
     HB 217 FULL & TRUE VALUE OF TAXABLE MUNI PROP.                                                 
              Bills Previously Heard/Scheduled                                                      
                                                                                                    
Jan 18        Wednesday                 Senate Finance 532            9:00 AM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Jan 19        Thursday                  Senate Finance 532            9:00 AM                     
= SB  54 PROTECTIVE ORDERS FOR SEXUAL ASSAULT                                                       
     HB 283 AK HOUSING FINANCE CORP BOARD COMP.                                                     
              Bills Previously Heard/Scheduled                                                      
                                                                                                    
Jan 20        Friday                    Senate Finance 532            9:00 AM                     
              No Meeting Scheduled                                                                  

2006-01-13                     Senate Journal                      Page 1908
                     HEALTH, EDUCATION & SOCIAL SERVICES                                         
                                                                                                    
Jan 16        Monday                          Butrovich 205           1:30 PM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Jan 18        Wednesday                       Butrovich 205           1:30 PM                     
+             Overview: No Child Left Behind Act Update                                             
              U.S. Department of Education                                                          
                                                                                                    
Jan 20        Friday                          Butrovich 205           1:30 PM                     
              No Meeting Scheduled                                                                  
                   ----------------------------------------                                        
                                                                                                    
                                  JUDICIARY                                                      
                                                                                                    
Jan 17        Tuesday                         Butrovich 205           8:30 AM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Jan 18        Wednesday                       Butrovich 205           8:30 AM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Jan 19        Thursday                        Butrovich 205           8:30 AM                     
+ SB 200 USE OF FORCE TO PROTECT SELF/HOME                                                          
+ SB 218 CRIMINAL SENTENCING AND POLYGRAPHS                                                         
+ SB  10 PARENTAL LIABILITY FOR CHILD'S DAMAGE                                                      
                   ----------------------------------------                                        
                                                                                                    
                               LABOR & COMMERCE                                                  
                                                                                                    
Jan 17        Tuesday                               Beltz 211         1:30 PM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Jan 19        Thursday                              Beltz 211         1:30 PM                     
+ SB 136 UNEMPLOYMENT COMPENSATION BENEFITS                                                         
+ HB 108 WATER & SEWER UTILITIES OF POLIT. SUBDIV.                                                  
              <Bill Hearing Postponed>                                                              
                   ----------------------------------------                                        
                                                                                                    
                                  RESOURCES                                                      
                                                                                                    
Jan 16        Monday                          Butrovich 205           3:30 PM                     
              No Meeting Scheduled                                                                  
                                                                                                    
                                                                                                    
                                                                                                    

2006-01-13                     Senate Journal                      Page 1909
                                  RESOURCES                                                      
                                 (continued)                                                     
                                                                                                    
Jan 18        Wednesday                 Senate Finance 532            1:00 PM                     
              -- Time and Location Change --                                                        
+             Joint w/(H) Resources                                                                 
              Overview: Department of Natural Resources                                             
                                                                                                    
Jan 18        Wednesday                 Senate Finance 532            3:00 PM                     
              -- Time and Location Change --                                                        
              Joint w/(H) Resources                                                                 
+             Overview:                                                                             
              Petroleum Profit Sharing                                                              
              Production Tax Systems                                                                
                                                                                                    
Jan 20        Friday                          Butrovich 205           3:30 PM                     
              No Meeting Scheduled                                                                  
                   ----------------------------------------                                        
                                                                                                    
                                STATE AFFAIRS                                                    
                                                                                                    
Jan 17        Tuesday                               Beltz 211         3:30 PM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Jan 19        Thursday                              Beltz 211         3:30 PM                     
              No Meeting Scheduled                                                                  
                   ----------------------------------------                                        
                                                                                                    
                                TRANSPORTATION                                                   
                                                                                                    
Jan 17        Tuesday                         Butrovich 205           1:30 PM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Jan 19        Thursday                        Butrovich 205           1:30 PM                     
              No Meeting Scheduled                                                                  
                   ----------------------------------------                                        
                                                                                                    
                               JOINT COMMITTEES                                                  
                                                                                                    
                             LEGISLATIVE COUNCIL                                                 
                                                                                                    
Jan 18        Wednesday                  House Finance 519           12:00 PM                     
              Legislative Council Meeting                                                           
                   ----------------------------------------                                        
                                                                                                    

2006-01-13                     Senate Journal                      Page 1910
                                OTHER MEETINGS                                                   
                                                                                                    
                       JOINT LEGISLATIVE HEALTH CAUCUS                                           
                                                                                                    
Jan 18        Wednesday                       Butrovich 205          12:00 PM                     
              "Alcohol, the Great Destroyer"                                                        
              Light Lunch will be served                                                            
                   ----------------------------------------                                        
                                                                                                    
                                JOINT SESSION                                                    
                                                                                                    
Feb 08        Wednesday                    House Chamber            11:00 AM                      
              Chief Justice Bryner's                                                                
              Annual State of the Judiciary Message