04/01/2005 01:30 PM House FINANCE

HOUSE BILL NO. 67                                                                                                             
                                                                                                                                
          "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."                                                                                               
                                                                                                                                
Co-Chair Chenault  mentioned that  the issues  in HB  67 have                                                                   
been discussed in subcommittee.   He related that this budget                                                                   
is a $271,492,000  increase over the  FY 05 plan.   He listed                                                                   
increases  in  various  areas.    He  thanked  all  committee                                                                   
members for their  hard work.  He concluded  that this budget                                                                   
goes  a long  way to  address the  needs of  the citizens  of                                                                   
Alaskans.                                                                                                                       
                                                                                                                                
Vice-Chair   Stoltze   thanked   Bruce   Tangeman   for   his                                                                   
assistance.                                                                                                                     
                                                                                                                                
3:36:01 PM                                                                                                                    
                                                                                                                                
Representative  Joule opined that  progress has been  made in                                                                   
developing  this budget,  but some  issues still  need to  be                                                                   
addressed.   Though oil projections  may spike and  the state                                                                   
does well, impacts on communities  may be harmful.  There are                                                                   
currently  9 communities  that  no longer  function well,  17                                                                   
with serious  debt issues,  and 39  that have terminated  key                                                                   
services.  He emphasized  that the state needs to  step up to                                                                   
the plate and  provide assistance.  He related  that matching                                                                   
grants allow communities  to improve.  He expressed  a belief                                                                   
that if  teen alcohol prevention  programs are  funded, money                                                                   
can be  saved in  other areas.   He  encouraged the  House of                                                                   
Representatives to consider pro-active action.                                                                                  
                                                                                                                                
3:41:46 PM                                                                                                                    
                                                                                                                                
Representative  Croft noted that  the budget has  nothing for                                                                   
K-12  education,  and the  fast  track  bill with  funds  for                                                                   
education  is being  "held hostage".   The  increase for  the                                                                   
university  is 5 percent,  the amount  for municipalities  is                                                                   
nothing,  and  there  is  nothing  for  PERS  and  TRS.    He                                                                   
emphasized that  the overall operating budget  increases 13.7                                                                   
percent,  yet  does not  fund  education. He  voiced  serious                                                                   
concerns about municipalities and education.                                                                                    
                                                                                                                                
3:44:17 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault   said  he  does  not  believe   that  the                                                                   
committee approved the language  that the other body has used                                                                   
in  their education  bill, HB  1.   The conference  committee                                                                   
should address that concern.                                                                                                    
                                                                                                                                
3:45:06 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  MOVED  to  report   CSHB  67  (FIN)  out  of                                                                   
Committee with  individual recommendations.   There  being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB 67 (FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation.                                                                                                                 
                                                                                                                                
3:46:07 PM