Legislature(2003 - 2004)
04/05/2003 11:32 AM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 75
"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."
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 76
"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."
Co-Chair Harris MOVED to ADOPT Amendment DPS 1:
Department of Public Safety
Appropriation: Fire Prevention
Allocation: Fire Prevention Operations
Change:
Page 28, lines 14-15 to read:
The amount appropriated by this appropriation
includes up to $356,600 [$125,000] of the unexpended
and unobligated balance on June 30, 2003, of the
receipts collected under AS 18.70.080(b).
Delete: $231,600 of General Funds
Add: $231,600 of Receipt Supported Services
Appropriation: Statewide Support
Allocation: Alaska Criminal Records and
Identification
Change:
Page 30, lines 5-7 to read:
The amount appropriated by this appropriation
includes up to $325,000 [$125,000] of the unexpended
and unobligated balance on June 30, 2003, of the
receipts collected by the Department of Public Safety
from the Alaska automated fingerprint system under AS
44.41.025(b).
Delete: $200,000 of General Funds
Add: $200,000 of Receipt Supported Services
Appropriation: Fish and Wildlife Protection
Allocation: Enforcement and Investigative
Services Unit
Add: $23,100 of General Funds
Appropriation: Fish and Wildlife Protection
Allocation: Director's Office
Add: $6,200 of General Funds
Appropriation: Fish and Wildlife Protection
Allocation: Aircraft Section
Add: $23,000 of General Funds
Appropriation: Fish and Wildlife Protection
Allocation: Marine Enforcement
Add: $41,500 of General Funds
Appropriation: Fire Prevention
Allocation: Fire Prevention Operations
Add: $55,000 of General Funds
Appropriation: Fire Prevention
Allocation: Fire Service Training
Add: $15,200 of General Funds
Appropriation: Alaska State Troopers
Allocation: Director's Office
Add: $26,400 of General Funds
Appropriation: Alaska State Troopers
Allocation: Judicial Services - Anchorage
Add: $71,300 of General Funds
Appropriation: Alaska State Troopers
Allocation: Rural Trooper Housing
Add: $2,500 of General Funds
Appropriation: Alaska State Troopers
Allocation: Narcotics Task Force
Add: $44,100 of General Funds
Appropriation: Statewide Support
Allocation: Commissioner's Office
Add: $10,300 of General Funds
Appropriation: Statewide Support
Allocation: Training Academy
Add: $8,200 of General Funds
Appropriation: Statewide Support
Allocation: Administrative Services
Add: $57,700 of General Funds
Appropriation: Statewide Support
Allocation: Alaska Public Safety Information
Network
Add: $17,600 of General Funds
Appropriation: Statewide Support
Allocation: Laboratory Services
Add: $29,500 of General Funds
Representative Croft OBJECTED for the purpose of discussion.
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION explained
Amendment DPS 1. The amendment would restore the Governor's
original request OF $431.6 thousand to fund
telecommunications and computer services in several
allocations. General funds from Fire Prevention and Alaska
Criminal Records and Identification are supplanted with
their own excess receipt supported services by increasing
the amount available for carry-forward in FY04. These
general funds are then spread throughout the agency as
requested. No additional general fund monies would be used.
Representative Stoltze spoke in support of the amendment and
noted that the subcommittee was not able to fit the cost
within its budget.
Mr. Teal noted that the he had discussed the amendment with
the Governor's Office and that they were aware of how the
amendment would be funded.
Representative Croft questioned what receipts supported
services are being provided in Amendment PS-1.
Mr. Teal stated that the receipts are split between fire
prevention and criminal records. Charges for background
checks are used.
Representative Croft expressed concern that there are
sufficient receipts in the programs to pay for the programs.
MR. Teal affirmed that the receipts are available.
WILLIAM TANDESKE, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY
explained that the department receives funds from build plan
reviews and training.
There being NO OBJECTION, Amendment DPS 1 was adopted.
Representative Stoltze MOVED to ADOPT Amendment DPS 2:
ADD
Department of Public Safety
Alaska State Troopers
Alaska State Trooper Detachments
1108 SDPR (Statutory Designated Program Receipts) $75.0
Representative Joule OBJECTED for the purpose of discussion.
Representative Stoltze explained that the Matanuska-Susitna
Borough would provide financial support ($75 thousand) for
state trooper presence in Palmer. The borough for approval
by the Department of Public Safety would draft a contract.
The contract will specify an increase of state trooper
presence and that the additional funding will not be used to
supplant general funds or other funding for existing
services provided to the Mat-Su Borough.
Representative Joule questioned if the Borough had passed a
resolution in support of the amendment. Representative
Stoltze assured him that the Borough is supportive.
Co-Chair Harris summarized that the amendment would provide
receipt authority from the Mat-Su borough to the state to
support a trooper in their area. Representative Stoltze
clarified that the funding would pay for the overtime
required to provide extra enforcement in a specific problem
area. Commissioner Tandeske expressed support.
Representative Croft MOVED to ADOPT Amendment DPS 3:
DELETE:
Department: Public Safety
Appropriation: Alaska State Troopers
Allocation: Alaska State Troopers Detachment
Increment:
$280.0
Fund Source:
AHFC Dividend
Co-Chair Harris OBJECTED for the purpose of discussion.
Representative Croft the amendment would use AFHC receipts
to fill the public safety gap. He noted that education and
public safety are priorities and expressed concern that a
shortfall would be felt in the village public safety
officers program.
Representative Stoltze noted that there was a transfer of
funding from the village public safety officers (VPSO) to
support state troopers. He observed that $280 thousand was
kept in the Western Alaska Law Enforcement component.
Representative Joule questioned the impact in the field with
the reduction.
Commissioner Tandeske observed that the affect in the field
is difficult to state, but noted that he could not absorb
the entire amount. He stressed that he is committed to
making it work.
In response to a question by Representative Joule,
Commissioner Tandeske explained that VPSO contracts would
not be reduced. Support to the area would be impacted. He
maintained that the impact would not be felt in the rural
support area alone. He noted that he is challenged in
providing public safety for the entire state. There are
additional challenges in rural support in terms of travel.
Representative Croft summarized that there is $46 million
from AHFC dividends in the capital budget. He observed that
these projects have not been scrutinized.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Joule
OPPOSED: Chenault, Foster, Hawker, Meyer, Moses, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (2-8).
Representative Moses MOVED to ADOPT Amendment DPS 4:
It is the intent of the Legislature that the Department
of Public Safety will continue to look for supportive
funding for the WV Stimson by contracting with the
western Alaska fishermen and coordinating with the
Department of Fish and Game through the test fisheries
program.
There being NO OBJECTION, it was so ordered.
Representative Joule MOVED to ADOPT Amendment DOC 1:
Corrections
Administrative Operations
Community Jails
Add: GF 400.0
Representative Joule spoke in support of the amendment. He
noted that there has been an on-going debt regarding private
or public. He observed that funding for community jails has
been stagnant. Community jails are throughout the state and
serve large areas. Contracts are between the community and
the state, yet many community jails serve more than the area
of contract and have costs beyond their contract amount.
Co-Chair Harris asked for more information regarding the
difference between the Anchorage jail and community jails.
JERRY BURNETT, DIRECTOR, ADMINISTRATIVE SERVICES DIVISION,
DEPARTMENT OF CORRECTIONS explained that the Anchorage jail
is operated by the Department of Corrections. Funding for
the Anchorage jail is a mix of state and local funds. He
felt that the budget was equitable.
Co-Chair Harris questioned what would happen if communities
decided not to fund the jails. Mr. Burnett observed that the
Department of Public Safety would have to transport people
to a correctional facility.
Representative Joule noted that if the community jails were
closed that 7,000 prisoners would have to be transported at
a greater cost to the state.
Co-Chair Harris noted that he is sympathetic to the issue,
and that he would continue to work on the amendment.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
Co-Chair Harris MOVED to ADOPT Amendment DOC 2:
Point MacKenzie Correctional Farm
Delete 100.0 GF
Co-Chair Harris explained that the amendment would reverse
an increment, which belongs in the capital budget. Mr.
Burnett did not object to placing the appropriation in the
capital budget. He explained that the funding is a mixture
of private and public.
There being NO OBJECTION, it was so ordered.
Co-Chair Harris MOVED to ADOPT Amendment DEC 1:
Co-Chair Harris explained that the amendment would add money
into the Alaska Library and Museums.
KURT FREDRICKSON, DEPUTY COMMISSIONER, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION explained that there are 5
positions in the Commissioner's Office and that it is a 30
percent reduction in their general fund component. The
deputy commissioner position would probably be affected.
There being NO OBJECTION, it was so ordered.
Representative Croft MOVED to ADOPT Amendment DEC 2:
ADD
Agency: Dept. of Environmental Conservation
BRU: Environmental Health Division
Component: Laboratory Services
Fund Source Amount
1004 General Fund $137.1
TITLE: Restore Funding for two positions: one organic
chemist and one inorganic chemist, at the State Chemistry
Laboratory.
Impacts of closing lab:
• 8 Jobs Lost
• Environmental studies program will have to cancel
classes affecting 50 students
• 5 classes will have no lab/classroom
• 7 Grants stopped mid-project
• SE Alaska Science Fair will have no place for
students to do projects
The DEC lab and chemists currently perform three main
duties. First, they analyze tests from contaminated
sites, second, they audit private labs, and third, they
act as a teaching facility for both the University and
high school. Closing the lab would be a step backwards
for both science & education in Alaska. This amendment
would keep minimum staff necessary to continue
education functions.
This lab is important to the University's economic
viability and is an integral part of both the teaching
and research function of the Environmental Science
Program. There are currently approximately 50
environmental science students at UAS, five
environmental science classes, and grant based projects
in progress utilizing the lab. The University
contributes $25,000 annually to use the lab and its
equipment, valued at $2 million dollars. Due to the
specialization of the DEC lab, it is the only southeast
location equipped to perform this type of research.
Without the lab, the Environmental Science Program
would not exist, which would force the University to
give back federal research dollars and reduce the
amount of future federal money. This would cut the
amount of programs available through the university and
is contradictory to their goals of expanding the
program and ensuring that jobs are filled within the
state rather than hiring individuals who have no
practical study in Alaska.
Students participating in the Southeast Alaska Science
Fair use the lab and rely on the expertise of the
chemists to create and test their projects. This year,
4 Juneau winners qualified for the Intel International
Science and Engineering Fair in Cleveland, Ohio. Future
science fair competitors from all of Southeast Alaska
will be affected by the closure due to limited lab
space in our region.
Agency: Dept. of Environmental Conservation
BRU: Environmental Health Division
Component: Laboratory Services
TITLE: Restore Funding for one organic chemist and one
in-organic chemist at the State Chemistry Laboratory.
Talking Points:
• 8 Positions would be lost (two retained but moved out
of lab).
• Last year the lab received $95,000 receipts from
services and space rental.
• Space for the DEC lab has been prepaid and will remain
under lease until
2006.
University of Alaska
• It makes no sense to close the lab, lose the
equipment, and hurt UAS when we already have the lab
and the lease is prepaid.
• The DEC lab in Juneau acts as a teaching facility.
Undergraduates obtaining degrees in Environmental
Science, at the University of Alaska Southeast, use
the lab's analytical equipment, valued at $2 million
dollars to do scientific research.
• Currently there are seven grant funded research
projects in progress at the lab. Grants were given
with the understanding that the University would have
adequate space and instrumentation to conduct
research.
High School
• The science fair is growing. This year was the first
year the Science Fair was open to all Southeast
Alaska Students. To encourage more SE students to
participate, the Juneau high school will be holding a
class for area wide teachers to come to Juneau and
find out more about the fair. This will increase
enrollment of other SE students, increasing the need
for a laboratory and chemists.
• While lab personnel act as mentors for high school
students, they have in the past and may continue to,
take part in judging science fair projects and may be
on the scientific review team that approves all
projects prior to entry.
• The science fair committee is made up of volunteers.
Therefore, they would not be able to accommodate
students financially to fund the services that the
lab provides if these resources were taken away.
Mr. Fredrickson spoke to the Governor's proposed amount. He
noted that the state chemistry laboratory for the drinking
water program and the underground storage tank program.
Other duties, such as chemical analysis for oil spills had
been done at the laboratory. Private labs have developed
over the years, reducing the need for the state chemistry
laboratory, which has been working with the University. He
noted that there has been private sector interest in
expanding into the facility. The laboratory is not needed
for the certification programs and maintained that the
laboratory had moved into areas that are not in the
department's mission.
A roll call vote was taken on the motion to ADOPT Amendment
DEC 2.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
Co-Chair Harris MOVED to ADOPT Amendment DLWD 1:
DEPARTMENT: LABOR & WORKFORCE DEVELOPMENT
Appropriation: Office of the Commissioner
Allocation: Commissioner's Office
Delete: 100,000 OF
Appropriation: Vocational Rehabilitation
Allocation: Independent Living Rehabilitation
Add: 200,000 OF
DEPARTMENT OF FISH AND GAME
Appropriation: Administration and Support
Allocation: Commissioner's Office
Delete: 100,000 OF
Explanation:
This amendment removes a total of $200,000 ($100,000
from each of the Commissioner's Offices in DFG and
Labor) and replaces a portion of the general funds cut
by the Governor in the Independent Living
Rehabilitation Program.
Co-Chair Harris explained that the amendment would add $200
for the Independent Living Rehabilitation Program by taking
$100 from the commissioner's offices of the Department of
Fish and Game and the Department of Labor and Workforce
Development.
Representative Croft questioned the cost of fully funding
the Independent Living Rehabilitation Program.
GREG O'CLARAY, COMMISSIONER, DEPARTMENT OF LABOR spoke to
the amendment. He summarized that the funding level would be
near of just above the original request of $618 thousand. He
observed that there are three positions in the
commissioner's office and that they are sufficient funds to
take the cut.
There being NO OBJECTION, it was so ordered.
Department of Labor & Workforce Development
Vocational Rehabilitation
Independent Living Rehabilitation
Increment: $35.5 SGF
Representative Croft spoke in support of fully funding the
component. Co-Chair Harris noted his intent to continue to
work to do so.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
Representative Joule MOVED to ADOPT Amendment DLWD 3:
Business Partnerships
Kotzebue Tech Center Operations Grant:
300.0 GF
Representative Joule spoke in support of the amendment. The
amendment would restore funding for The Kotzebue Technical
Center. He stressed the importance of the Center in
providing qualified workers and vocational education, which
he felt was inadequately funded.
Vice-Chair Meyer observed that the component's funding was
discussed and concluded that the funds were not needed.
TAPE HFC 03 - 51, Side B
Representative Joule observed that the Governor has
emphasized resource development in rural Alaska and
developing human resources. He observed that further
reductions in state support would jeopardize private
support.
Commissioner O'Cleary noted that the Kotzebue Technical
Center is one of the major learning centers and that they
are pursuing federal funding for its support.
Representative Joule noted that while the Center is in
Kotzebue is a statewide postsecondary institution and
Co-Chair Harris promised to continue working to fully fund
the component.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Foster, Joule, Moses
OPPOSED: Chenault, Hawker, Meyer, Stoltze, Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (4-6).
Co-Chair Harris MOVED to ADOPT Amendment DEED 1:
K-12 Support
Foundation Formula Program
$1,340,900
Co-Chair Harris observed that there was a double decrement
and that the amendment would restore to the correct amount.
There being NO OBJECTION, it was so ordered.
Co-Chair Harris MOVED to ADOPT Amendment DEED 2:
Alaska Library and Museums
ADD 23,200 ILTF
Co-Chair Harris observed that the component was heavily
commented on during public testimony. The amendment would
provide one-time funds for the Sheldon Jackson Museum in
Sitka.
There being NO OBJECTION, it was so ordered.
Representative Croft MOVED to ADOPT Amendment DEED 3:
Page 1, line 1, after "appropriations", insert:
"and reappropriations"
ADD:
University of Alaska
Budget Reductions/Additions -System wide
Budget Reductions/ Additions -System wide
$6,728,800 reappropriation of the unexpected and
unobligated funds described under Section 1, Chapter
94, SLA 2002, page 11, lines 17 & 18.
$3,575,200 unappropriated AHFC dividend
Explanation: The Governor recommended a $10.3
million dollar increase in the UA budget this year-
sufficient to maintain the momentum and meet the basic
fixed costs because he sees the University as essential
to the economic growth and vitality of the state. This
amendment seeks to restore the University budget to the
Governor's level
Budget Impact: Net $0 GF
Representative Croft spoke in support of the amendment. He
noted that the amendment would not restore the entire
amount needed to fund the Alyeska Central School [Alyeska].
He maintained that the cost would be a net zero, since the
students would otherwise participate through other
programs. He observed that the program, which predates
statehood, is successful. He observed that specialized
teachers provide needed services. He maintained that no
other options are better than what is provided by the
Alyeska program. He spoke in further support of the
amendment.
Co-Chair Harris clarified that students would appear in the
foundation formula at 80 percent.
KAREN REHFELD, ACTING COMMISSIONER, DIVISION OF EDUCATION
SUPPORT SERVICES, DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT explained that the amendment anticipates that
legislation (HB 174) would pass, which would eliminate the
summer school component and retain the regular school. The
cost of the summer school component, which would be
eliminated, is projected at $1.170.4 million. The total
cost of the program is a little more than $5 million.
Vice-Chair Meyer noted that the subcommittee did not
address the issue. He noted that the legislation would have
additional consideration and recommended that the
subcommittee's recommendation be retained.
Representative Joule suggested that the funding be retained
in the budget while the legislation runs its course. He
noted that he Alaska Central School is accredited. He noted
the compelling public testimony is support of the program.
In response to a question by Co-Chair Harris, Ms. Rehfeld
noted that other programs have received conditional
accreditation. Co-Chair Harris observed that students
attending conditional accreditation would be able to submit
their degrees to colleges. Ms. Rehfeld observed that many
school districts provide summer school. Alyeska is the only
school allowed to receive state funding for summer school.
She observed that the department determined that other
programs could provide the services. She observed that the
department's proposed elimination of the program is in
response to the request to find areas where services can be
provided through a different model. She stated that
students that currently served through the Alyeska Central
School can continue to receive services through other
programs. She acknowledged that Alyeska is unique and has
more contact with certified teachers and is more "hands
on", however, there are other statewide programs that are
interested in trying to tailor their programs to meet the
needs of these students.
Representative Croft summarized that the funding has been
zeroed out prior to the adoption of the legislation. He
questioned why parents and students that have found an
affective model for their children should be forced into
other programs. He pointed out that the legislature has
emphasized standards.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
Representative Croft MOVED to ADOPT Amendment DEED 4:
Increment:
ADD: $500.0 AIDEA DIVIDENDS
Education & Early Development
K-12 Support
Community Schools
Explanation: This increment will restore funds for
the Community Schools programs. Community schools
statewide use this small amount of money to leverage
matching funds that in FY02 were in excess of $7
million in small grants, volunteer and in-kind donated
services. Community Schools offer essential services
such as Adult Basic Education, student prep work for
benchmark tests, and supervised after school programs
for children of working parents. This program serves
thousands of adults and children statewide each year.
Increment:
Education & Early Development
K-12 Support
Foundation Program
$ 16,261.158 AIDEA
(This is to be reflected in the language section as an
adjusted ADM grant.)
Explanation: This would put $80 per student into the
foundation formula section of the budget as adjusted
average daily membership.
Budget Impact: Net: $0 GF,
$13,261,658 unappropriated AIDEA dividend
Representative Croft spoke in support of the amendment and
observed that legislation would allow an ADIEA dividend.
The amount would make a grant, which is identical to the
amount contained in SB 1. He pointed out that education
funding has not taken inflation into consideration.
Co-Chair Harris questioned if the $500 thousand reduction
was at the request of the Governor. Ms. Rehfeld explained
that legislation would address the issue. She noted that HB
165 would eliminate funding for community schools. She
maintained that it is not the Department's intent to
eliminate the community school program. The Department
recognizes the importance of the program. The statutory
entitlement to the program is $3.5 million, which has not
been fully funded. She observed that the amendment would
not come close to supporting the entire program. The
Department's proposal is to eliminate the program.
Co-Chair Harris stated that he would oppose the amendment
since there are bills that would address the issue.
Vice-Chair Meyer stated that the emphasis of the
subcommittee was on pupil transportation and learning
opportunity grants. The Subcommittee concluded that user
fees could support the community school program. He noted
that one alternative was to place the program into the
foundation formula.
Representative Joule the Community School Program was begun
in order to draw communities into the life of its children.
He observed that 50 of 53 school districts have programs.
Community schools offer over 20,000 programs and
activities: over 342,000 activity hours were logged, 64,000
kids served, and 390,000 adults served. He maintained that
it is "spark plug" funding; the program generates a whole
community engine. There are a variety of good, healthy
activities for communities.
A roll call vote was taken on the motion to ADOPT Amendment
DEED 4.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
Co-Chair Harris MOVED to ADOPT Amendment DOR 1:
Department of Revenue
Page 31, line 21
Delete: -1,300,000
Add: -150,000
Page 31, line 27
Delete: 1,300,000
Add: 150,000
Explanation:
This amendment replaces a $1.3 million dollar
unallocated general fund reduction with a $150 thousand
unallocated general fund reduction and reduces funding
for the Alaska Natural Gas Development Authority to
$150,000.
Co-Chair Harris explained that the amendment would delete
the $1.3 million dollar unallocated general fund reduction
with a $150 thousand unallocated general fund reduction and
reduces funding for the Alaska Natural Gas Development
Authority to $150 thousand.
Representative Croft spoke against the amendment. He
acknowledged the need to restore funding to the Department
of Revenue. He expressed his strong belief that the
proposal was not appropriate based on merit and public
testimony.
Co-Chair Harris observed that he presenting the will of his
caucus.
A roll call vote was taken on the motion to ADOPT Amendment
DOR 1.
IN FAVOR: Chenault, Foster, Hawker, Meyer, Stoltze, Williams
OPPOSED: Croft, Joule, Harris, Moses
Representative Whitaker was absent from the vote.
The MOTION PASSED 6-4.
Co-Chair Harris MOVED Amendment ADF&G 1:
Department of Fish and Game
Administration and Support
Boards of Fisheries and Game
Delete: 56.4 General Funds
Add: 56.4 Federal Funds
Administration and Support
Advisory Committees
Delete: 56.4 General Funds
Add: 56.4 Federal Funds
Explanation: Technical Amendment transferring funds between
components.
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF FISH AND GAME explained that the
amendment would correct a technical error.
There being NO OBJECTION, it was so ordered.
Representative Joule MOVED to ADOPT Amendment ADF&G 2:
AGY. Department of Fish & Game
BRU. Subsistence
COM. Subsistence
ADD: $200,000 GF
Representative Joule observed that the amendment would
restore adequate funding by offsetting the 20% reduction in
AIDEA contributions. Without funding restoration, regional
subsistence harvest and use updates will be reduced from a
five-year to a seven-year frequency. He emphasized that the
Boards of Fish and Game, who rely on accurate, current
information to implement subsistence priority laws, and to
make allocation and regulatory decisions among users, also
use the information.
Mr. Brooks noted that the department took a cut in the
subsistence component but believes that the can maintain
core functions. He acknowledged that services would be
slowed.
Co-Chair Harris questioned the affect of federal management
on the operations of the Division of Subsistence. Mr. Brooks
noted that he Department is working with the state and
federal boards.
Representative Joule observed that if the reduction is
maintained that the Division would have suffered a 50
percent cut.
TAPE HFC 03 - 52, Side A
Representative Joule continued to argue in support of the
amendment.
Mr. Brooks noted that the federal Office of Subsistence
Management obtains some of the fieldwork and pays for some
provided by the state of Alaska. Data is used by state
boards and used to make comments to the federal government.
Mr. Brooks noted surveys are cycled through. Where there are
issues the Department will try to do more frequent surveys.
Representative Croft observed that federal boards have a
stronger mandate for subsistence and questioned if sport and
commercial uses would be adversely affected without
sufficient data.
Mr. Brooks maintained that the state is not in threat of a
loss of data. The state of Alaska recognizes the priority
for subsistence. The Division of Commercial Fisheries
manages the subsistence fisheries harvesting.
Representative Croft felt that the middle ground was being
lost and felt that a disservice was being made in not
restoring the appropriation.
Representative Joule spoke in support of the amendment.
Rural communities are happy with federal management.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Foster, Joule, Moses
OPPOSED: Chenault, Hawker, Stoltze, Williams, Harris
Representatives Whitaker and Meyer were absent from the
vote.
The MOTION FAILED (4-5).
Representative Croft asked that the Amendment DCED 1 be
divided into Amendment DCED 1 and 1A. Co-Chair Harris
concurred.
Co-Chair Harris MOVED to ADOPT Amendment DCED 1:
Department of Community and Economic Development
Alaska Science and Technology Foundation
Delete:
10,518,600 Alaska Science and Technology Endowment
Income
90,000 statutory designated program receipts
Co-Chair Harris observed that the amendment would eliminate
funding for the operating functions of the Alaska Science
and Technology Foundation (ASTF).
Representative Croft spoke against the amendment. He
stressed that Alaska's future resides in the programs
supported by ASTF. He stressed that the nature of investment
capital is that not every venture is successful. He
maintained that ASTF has hit some big developments that have
helped the state and emphasized that technological
innovation is vital to Alaska's future. He acknowledged that
investment priorities might need to be redirected.
TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
COMMUNITY AND ECONOMIC DEVELOPMENT observed that the Alaska
Science and Technology Foundation has appropriated 126
million dollars: $63 million to grants. He noted that some
portion of some grants is repaid. Under $500 thousand has
been repaid.
Co-Chair Harris summarized that $500 thousand had been
repaid on approximately $20 million in loans.
Mr. Lawson noted that ASTF has granted $126 million: $63
million to various grants. Most of the grants have a clause
for repayment upon commercialization. He noted that under
$500 thousand of the grant amount has been repaid. A third
of the $63 million was in loans.
Co-Chair Williams recalled that, according to the
Legislative Budget and Audit Committee, the pay back on
loans was only $260 thousand. The University also received
some funding from ASTF. He did not feel that, under the
proposed $900 million budget deficient, that the state
should make investments, which only return $260 thousand on
$60 million.
Mr. Lawson noted that of $63 million, $25 million went to
technical projects, $10 million into knowledge projects, $8
million in partnerships, $5 million for Internet service for
K-12, $2 went to science grants for K-12 teachers, and $13
million for operations of ASTF. The rest has gone to the
University, the Kodiak Launch Complex, and the Alaska
Aerospace Development Corporation for operations.
Representative Croft pointed out that no other venture
capital firm is directed to pay teachers to wire schools or
fund the University. The earnings have been spent on worthy
policy goals. Some of the funds have been used to provide
jobs that counter balance the fisheries decline.
Co-Chair Harris clarified that $43 million of the $62
million went to grants, which he did not used in the
comparison. He observed that $20 million went to projects
that were to be repaid when they were successful.
Representative Croft spoke against the amendment.
A roll call vote was taken on the motion to adopt Amendment
DCED 1.
IN FAVOR: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
OPPOSED: Croft, Joule, Moses
Representative Whitaker was absent from the vote.
The MOTION PASSED (7-3).
Co-Chair Harris MOVED to ADOPT Amendment DCED 1A.
(d) The balance of the Alaska science and technology
endowment (AS 37.17.020) on June 30, 2003, including
unobligated and unencumbered earnings, is appropriate
to the general fund.
Representative Croft OBJECTED. He questioned why the
endowment should be eliminated. He also asked why, if it is
eliminated, part of the appropriation is not being spent to
fund education properly. He pointed out that the endowment
would be put into the Constitutional Budget Reserve,
allowing a simple majority to make the decisions regarding
its use.
A roll call vote was taken on the motion to adopt Amendment
DCED 1A.
IN FAVOR: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
OPPOSED: Croft, Joule, Moses
Representative Whitaker was absent from the vote.
The MOTION PASSED (7-3).
Representative Moses MOVED to ADOPT Amendment DCED 2:
ADD:
Community & Economic Development
Power Cost Equalization
Power Cost Equalization
$4,300.0 AHFC Dividends
Fund source: Power Cost Equalization Electrification Fund.
Representative Moses spoke in support of the amendment and
observed that funding would come from AHFC dividends
Co-Chair Harris observed that PCE has been funded at $12
million. Full funding is $15.6 million. He questioned if the
amendment would bring funding to $20 million.
Mr. Teal explained that the amendment would capitalize the
endowment at $20 million dollars. He explained that only
$12.2 million is available at the current time.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Foster, Joule, Moses
OPPOSED: Chenault, Hawker, Meyer, Stoltze, Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (4-6).
Representative Croft MOVED to ADOPT DCED 3:
Safe Communities and Revenue Sharing Programs
Page 57, line 1
Replace subsections a and b with the following
language:
(a) The sum of $4,193,900 is appropriated from
the international trade and business endowment (AS
37.17.440) to the Department of Community and Economic
Development for distribution through the Safe
Communities Program
(AS 44.33.119-.125).
(b) After the appropriation made by (a) of this
section, the balance of the international trade and
business endowment (AS 34.17.440) on June 30, 2003,
including any unobligated and unemcumbered earnings, is
appropriated to the Department of Community and
Economic Development for distribution through the State
Revenue Sharing Program (AS 29.60.010-.310).
Page 57, following line 9
Add the following new subsection:
(d) The sum of $2,500,000 is appropriated from
the state land disposal income fund (AS 38.04.022) to
the Department of Community and Economic Development
for distribution through the State Revenue Sharing
Program (AS
29.60.010-.310).
Explanation:
This amendment (1) restores funding for the Safe
Communities Program to the FY03 level and (2) restores
approximately $2.7 million (of a $3.2 million reduction
from FY03 funding level) to the Revenue Sharing
program. Both are accomplished without additional
general fund expenditures.
Representative Croft maintained that grants not state
bureaucracy has been reduced in the proposed budget. He
maintained that the pain has been passed to the municipal
level. The amendment would restore revenue sharing and
municipal assistance.
Representative Joule spoke in support of the amendment. He
noted rising insurance costs, increased PERS, and debt
reimbursement. Costs are being shifted to local communities.
There has been a $40 million cut to municipalities over ten
years.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
Co-Chair Harris MOVED to ADOPT Amendment DHSS 1:
Human Services Community Matching Grant
Insert 1.3 million
Delete 850,000 thousand
Co-Chair Harris observed that the amendment is at the
request of the Governor.
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES spoke in support of
the amendment. In response to a question by Representative
Croft, Ms. Clarke noted that the FY 02 level for the Human
Services Community Matching Grant was $1.716.9 million.
Representative Croft observed that the grants have been at
the $1.7 million level for the past six or seven years. The
amendment would result in 25 percent reduction. He did not
object to the increase, but felt that the overall reduction
would hurt agencies.
Representative Stoltze observed that Subcommittee Chair;
Representative Hawker restored a portion of the funding.
Representative Hawker explained $850 thousands was restored
in the Subcommittee, which was two-thirds of the FY03
funding level. He spoke in support of the amendment.
Representative Chenault WITHDREW Amendment DHSS 2.
Representative Croft MOVED to ADOPT Amendment DHSS 3:
Department of Health and Social Services Human Services
Community Matching Grant
Page 21, lines 24-30
Delete Intent:
"It is the intent of the legislature that the Human
Services Community Matching Grant funding will be
phased out in equal reductions over a period of three
years. This phased reduction is to facilitate
development of Faith Based and other community focused
initiatives to supplant dependency upon direct State
funding. Faith Based and other community focused
initiatives are most appropriate to direct specific
resources to particular community needs, complimenting
the concentration of State resources on core public
health and social services needs."
There being NO OBJECTION, it was so ordered.
Representative Joule MOVED to ADOPT Amendment DHSS 4:
Agency: Department of Health and Social Services
BRU: Seniors and Disability Services
Component:Community Developmental Disabilities Grants
Add: $1,794.7 GFIMH for underutilized and
nonhabilitive grants Fund Source: AHFC Dividend
Agency: Department of Health and Social Services
Component:Human Services Community Matching Grant
Add: $428.4
Fund Source: AHFC Dividend
Agency: Department of Health and Social Services
BRU: Behavioral Health
Component:Services to the Chronically Mentally ill
Add: $466.5
Fund Source: AHFC Dividend
Agency: Department of Health and Social Services
BRU: Behavioral Health
Component:Behavioral Health Grants Add: $683.4
Fund Source: AHFC Dividend
Agency: Department of Health and Social Services
BRU: Children's Services
Component:Children's Trust Program
Add: $75.5
Fund Source: AHFC Dividend
Agency: Department of Health and Social Services
BRU: Behavioral Health
Component:Services for Seriously Emotionally Disturbed
Youths Add: $100.2
Fund Source: AHFC Dividend
Agency: Department of Health and Social Services
BRU: Public Assistance
Component: Public Assistance Administration/Healthy
Families Add: $1,083.4
Fund Source: AHFC Dividend
Agency: Department of Health and Social Services
BRU: Children's Services
Component: Family Preservation/Family Support Grants
Add: $270.6
Fund Source: AHFC Dividend
Representative Joule spoke in support of the amendment. He
pointed out that the Department of Health and Social
Services budget is the largest in state government. He
observed that most of the subcommittee work was done without
impact statements. The amendment would allow recipients of
the services would be given time to find other funding. He
maintained that the service help strengthen and preserve
families.
TAPE HFC 03 - 52, Side B
Representative Joule noted that a child is abused every hour
and stressed the importance of the amendment. A child is
abused about every hour in Alaska.
Co-Chair Harris observed that the fund source would be the
Alaska Housing Finance Corporation dividend.
Representative Croft noted that the total amount for the
component would be $4.474 with the deletion of the human
services grants, which was funded in the previous
amendments.
Representative Hawker noted that every dollar is a direct
affect to members of the society. He observed that it was a
difficult decision but that state revenues are not
sufficient. He stressed that the intent is to protect the
most essential services and emphasized that the explosive
growth of the Medicaid budget made it difficult to continue
funding other programs.
Although the programs have great merit Representative Hawker
was not certain that they were essential. He observed that a
significant amount of mental health component was restored.
Advocacy grants were not funded. He emphasized that he was
careful not to advocate for any particular agency or
advocacy. Service delivery models have been changed and some
of the services would be provided by other means. He
expressed support for the Governor's proposal and spoke
against the amendment.
Representative Croft spoke to the Southeast Alaska
Independent Living (SAIL) grants. He noted that advocacy
could mean education for severally disabled persons. He
continued to speak in favor of the amendment.
Representative Joule spoke to the SAIL grants. He observed
that some of the persons on the waitlist are working
multiple jobs.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
Co-Chair Harris MOVED to ADOPT Amendment DHSS 5:
Administrative Services Commissioner's Office
Delete
$33,500 General Funds/Match
$73,000 Federal Funds
ADD
Alaska Library and Museums Library Operations
$30,000GF
Explanation: This amendment removes a total of $100,500
of funds from DH&SS Commissioner's Office and places
$30,000 of general funds in the Library Operations
component in DEED for the SLED program.
Co-Chair Harris explained that the amendment would save some
general funds.
There being NO OBJECTION, it was so ordered.
Representative Croft MOVED to ADOPT Amendment UNIV 1:
Page 1, line 1, after "appropriations",
Insert: "and reappropriations"
ADD:
Increment:
University of Alaska
Budget Reductions/ Additions -System wide
$6,728,800 reappropriation of the unexpected and
unobligated funds described under Section 1,
Chapter 94, SLA 2002, page 11, lines 17 & 18.
$3,575,200 unappropriated AHFC dividend
Explanation:
The Governor recommended a $10.3 million dollar
increase in the UA budget this year- sufficient to
maintain the momentum and meet the basic fixed costs
because he sees the University as essential to the
economic growth and vitality of the state. This
amendment seeks to restore the University budget to the
Governor's level
Budget Impact: Net $0 GF
Representative Croft read from the Governor's impact
statement and spoke in support of the amendment.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Joule, Harris, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze, Williams
Representative Whitaker was absent from the vote.
The MOTION FAILED (4-6).
Representative Croft MOVED to ADOPT Amendment LEG 1:
Legislature
Legislative Operating Budget
Delete: 12.OGF
Legislative Ethics
Select Committee on Ethics
Add: 12.0 GF
A reduction of 12.0 was made in subcommittee to travel
to cover office space rental. The Ethics Committee is
located at the Anchorage Legislative Information
Office building. Increase cost in Anchorage office
space for the Legislature was provided with an
increment of 70.0 in the Legislature's operating
budget. A reduction in the Ethics budget is not needed
to cover office space.
Representative Croft spoke in support of the legislation. He
pointed out that statute states that the Ethic's Committee
should be allowed office space, which has been traditionally
given. The cost would be deducted from their operating
budget. He observed, "it could be misconstrued as us
disciplining the Ethic's Committee, for them disciplining
us."
A roll call vote was taken on the motion.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
Representative Croft MOVED to ADOPT Amendment GOV 1:
Office of the Governor
Executive Operations Executive Office
Decrement:`$167.1 GF
Department of Labor & Workforce Development
Business Partnerships Adult Basic Education
Increment: $167.1 GF
Explanation: These funds represent a 5.9% reduction
of Adult Basic Ed GF. This amendment would restore GF
to the FY03 Conference Committee amount of $1,739.5.
There was no testimony or discussion in the L&C
Subcommittee regarding Adult Basic Ed, but recipients
of services have provided the following information:
1. English is taught through the Anchorage Literacy
Project to people who are living and working in
Alaska but who do not speak English as a first
language.
2. Adult Basic Education tutors help with important
life skills: how to make doctor's appointments,
learning to drive, how to work with school
districts so children of recipients get good
educations.
3. Adult Basic Education students get help working
toward a GED or high school diploma.
4. American culture and history is taught to
immigrants through the Anchorage Literacy Project.
Adult Basic Education provides important learning
opportunities for life skills necessary to ensure that
program recipients and their families remain self-
supporting and independent of other state services.
Representative Croft spoke in support of Amendment GOV 1. He
observed that he would leave the reduction to the Governor.
Co-Chair Harris stated that he would not support the funding
source.
Representative Joule pointed out that the high school
qualifying exit exam would be in place in the next year and
suggested that it may place a greater demand on adult
education.
Representative Croft defended the funding source and spoke
in support of the amendment. He maintained that the Governor
could find $167 thousand in his budget for adult education.
Amendments GOV 2 and 3 were WITHDRAWN.
Representative Croft MOVED to ADOPT Amendment GOV 4:
Decrement:
$2000.00 GF
Office of the Governor
State Wide Unallocated Reduction
State Wide Unallocated Reduction
Explanation: This takes the $2 million cut to the
Office of the Governor - Statewide Unallocated
Reduction and makes it $4 million.
Co-Chair Harris OBJECTED. He spoke in support of controlled
reductions as opposed to unallocated reductions.
Representative Stoltze agreed.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
Representative Croft MOVED to ADOPT Amendment GOV 5:
Office of the Governor
Statewide Unallocated Reduction
Statewide Unallocated Reduction
Decrement: $16,761,158 OF
Insert:
Page 2, line 7, insert a new paragraph to read:
"It is the intent of the legislature for
unallocated general fund cuts to be taken across the
board to reduce state bureaucracy through cuts to
travel, upper and mid level management, and to reduce
the overall size and cost of state government. This
intent applies to all general fund appropriations
covered in this section."
Renumber accordingly.
Explanation: This amendment is designed to express
legislative intent of cutting the "bloat" from state
government.
ADD:
Increment:
$500.0 GF
Education & Early Development
K-12 Support
Community Schools
Explanation: This increment will restore funds for
the Community Schools programs. Community schools
statewide use this small amount of money to leverage
matching funds that in FY02 were in excess of $7
million in small grants, volunteer and in-kind donated
services. Community Schools offer essential services
such as Adult Basic Education, student prep work for
benchmark tests, and supervised after school programs
for children of working parents. This program serves
thousands of adults and children statewide each year.
Education & Early Development
K-12 Support
Foundation Program
Increment:
$ 16,261.158 GF
(This is to be reflected in the language section as an
adjusted ADM grant.)
Explanation: This would put $80 per student into the
foundation formula section of the budget as adjusted
average daily membership.
Budget Impact: Net $0
Representative Croft spoke in support of the amendment and
emphasized the need to single education out as the number
one priority. He observed that it is not the ideal way to
cut the budget or fund schools, but emphasized that
inflation has eaten away at school programs.
Co-Chair Harris stressed that the appropriate way to fund
education would be through pending legislation.
Representative Hawker maintained that the commitment to
education has been made through restorations in the
Department of Education and Early Development budget.
Representative Croft asserted that drastic cuts to education
were modified. He pointed out to public testimony from
around the state that indicated that teachers were being
cut.
A roll call vote was taken on the motion.
IN FAVOR: Chenault, Croft, Joule, Moses
OPPOSED: Foster, Hawker, Meyer, Stoltze, Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (4-6).
Co-Chair Harris MOVED to ADOPT Amendment LANG 1:
Page 60, following line 6:
Insert a new bill section to read:
"* Sec. 27. SALARY AND BENEFIT ADJUSTMENTS. (a)
The operating budget appropriations made to the
University of Alaska in sec. 1 of this Act include
amounts for salary and benefit adjustments for
university employees who are not members of a
collective bargaining unit and for implementing the
monetary terms of the following collective bargaining
agreements with entities representing employees of the
University of Alaska:
(1) Alaska Higher Education Crafts and
Trades Employees;
(2) Alaska Community Colleges' Federation of
Teachers;
(3) United Academics;
(4) United Academics-Adjuncts.
(b) The operating budget appropriations made in
sec. 1 of this Act include $11,935,700 to implement the
monetary terms for the fiscal year ending June 30,
2004, of the following collective bargaining
agreements:
(1) Alaska Public Employees Association, for
the Confidential Unit;
(2) Alaska Public Employees Association, for
the Supervisory Unit;
(3) Alaska State Employees Association, for
the General Government Unit;
(4) Alaska Vocational Technical Center
Teachers' Association, representing teachers at the
Alaska Vocational Technical Center;
(5) Alyeska Central School Education
Association, representing teachers at the Alyeska
Central School;
(6) Inlandboatmen's Union of the Pacific,
representing the unlicensed marine unit;
(7) Public Employees Local 71, for the
Labor, Trades and Crafts Unit;
(8) Public Safety Employees Association, for
the Correctional Officers Unit;
(9) Public Safety Employees Association,
representing state troopers and other commissioned law
enforcement personnel;
(10) Teachers' Education Association of Mt.
Edgecumbe.
(c) If a collective bargaining agreement listed
in (b) of this section is not ratified by the
membership of the respective collecting bargaining
unit, the appropriations made by this Act that are
applicable to that collective bargaining unit's
agreement are reduced proportionately by the amount for
that collective bargaining agreement, and the
corresponding funding source amounts are reduced
accordingly."
Renumber the following bill sections accordingly.
Page 64, lines 30 - 31:
Delete "29(c), 29(i), 29(j), 29(k), 29(l), 29(m),
29(n), 29(o), and 30"
Insert "30(c), 30(i), 30(j), 30(k), 30(l), 30(m),
30(n), 30(o), and 31"
Mr. Teal explained that the amendment addresses labor
contract agreements and clarified that subsection (a) does
not appropriate funds. Subsection (b) notes that section 1
contains the appropriation.
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY
OF ALASKA, summarized that the amendment would approve the
additional $7 million in contracts compensation increases
without additional funding. The University would be directed
to use existing resources. She questioned if the state would
be allocated additional funding for similar increases in
contract negotiations.
Co-Chair Harris clarified that the second section allocates
$11.9 million to cover the increase in contract negotiations
for state employees.
Ms. Redman questioned why the contracts increases would be
approved for the state but not the University. Co-Chair
Harris explained that the reasoning was that the University
could raise additional funds.
Ms. Redman stressed the affects of flat funding. She
maintained that students and teachers would be lost. Fix
costs are real. The university cannot absorb the reductions.
Costs will result in reductions. Major program reductions
would occur. There is no way to pay for $10 million in
additional costs.
Representative Croft MOVED to AMEND Amendment LANG 1 to add
to (a) on line 4: $6.9 million dollars for salary and
benefits to pay for fixed costs [to the University].
Mr. Teal pointed out that the language is not the
appropriation. The language refers to the appropriation in
section 1. The increase would also need to be added to
section 1.
Co-Chair Harris observed that the amendment to the amendment
would pertain to section 1.
Representative Croft spoke in support of the amendment.
In response to a question by Representative Joule, Ms.
Redman clarified that the University has been directed to
pay the contracts without funding. Once the legislature
directed the University to pay the costs and the University
did not. The courts upheld the University's position. The
second time the legislature directed the University to pay
the costs without additional funds the increases they were
directed that the costs were included in their budget.
Ms. Redmond indicated that programs would have to be cut to
fund the addition. Employees would be impacted.
Co-Chair Harris questioned if the University has the ability
to raise funding from means other than tuition. Ms. Redman
noted that donations are usually directed to specific
programs. The land trust is fully utilized. There is no
ability to generate funding other than tuition. Tuition
covers 30 percent. The total salary cost is $13 million.
TAPE HFC 03 - 53, Side A
A roll call vote was taken on the motion to amend the
amendment.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
There being NO OBJECTION, Amendment LANG 1 was adopted.
Co-Chair Harris MOVED to ADOPT Amendment LANG 2:
Delete: general fund
Add: Alaska debt retirement fund (AS 37.15.011)
Page 57, line 5
Delete: general fund
Add: Alaska debt retirement fund (AS 37.15.011)
Page 60, line 30
Delete:40,877,900
Add: 33,995,900
Explanation:
This amendment affects the source of money used to
capitalize the Alaska debt retirement fund; it replaces
general funds with $2.5 million surplus cash in the
state land disposal income fund and the entire balance
of the International Trade and Business Endowment
(estimated to be $4.3 82 million).
Co-Chair Harris spoke in support of the amendment. He noted
that funds would be used to capitalize the Dept Retirement
Funds.
Representative Croft noted that the amendment reduces the
general fund appropriation, but that the total general fund
draw is not reduced. The funds would be transferred to the
Constitutional Budget Reserve.
A roll call vote was taken on the motion.
IN FAVOR: Chenault, Foster, Hawker, Meyer, Moses, Stoltze,
Williams, Harris
OPPOSED: Croft, Joule
Representative Whitaker was absent from the vote.
The MOTION PASSED (8-2).
Co-Chair Harris MOVED to ADOPT Amendment LANG 3:
Amendment LANG 2 would substitute, "state bond
committee" for the Division of Finance and the Treasury
Division throughout the bill.
The Department of Administration acts as the fiscal
agent for the state bond committee, however, the
Department has established an accounting structure for
the state bond committee and prefers that the committee
be named in the appropriations bill. This amendment has
no fiscal impact.
Co-Chair Harris explained that Amendment LANG 3 was a
technical amendment.
There being NO OBJECTION, it was so ordered.
Representative Joule MOVED to ADOPT Amendment LANG 4:
School Debt Reimbursement
Page 60, line 30
Delete: 40,877,900
Add: 47,480,300
Page 61, line 12
Delete: 59,421,700
Add: 66,024,100
Page 61, line 15
Delete: 30,821,700
Add: 37,424,100
Fund Source:
ABFC Dividend
Explanation:
This amendment adds $6,602,400 GF to the debt
retirement fund. The additional funds are appropriated
to the Department of Education and Early Development
for school debt reimbursement.
The amendment funds the school debt reimbursement
program at the 70% level approved by the legislature
last year. The Governor's bill and this committee
substitute reduce the funding level by 10%, so that
state reimbursement of municipal school debt is 63% of
municipal costs.
Co-Chair Harris OBJECTED.
Representative Joule spoke in support of the amendment. He
stressed that local communities would have to come up with
the additional 10 percent and emphasized that the burden is
being shifted.
Co-Chair Harris questioned if the amendment would fully fund
the component. Representative Joule thought that it would.
Representative Joule spoke in support of the amendment and
noted that many communities are already at their cap [for
local contribution to education].
Co-Chair Harris observed that the Committee would work to
find funding for the component, but that he would object at
the moment.
Representative Ethan Berkowitz observed that the importance
of the keeping the commitment to education. Co-Chair Harris
noted that the commitment was subject to appropriation, but
observed the moral commitment.
Co-Chair Harris noted that many members would like to fund
the amendment and noted that they would continue to find
funding.
A roll call vote was taken on the motion to adopt Amendment
LANG 4.
IN FAVOR: Croft, Joule, Moses
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze,
Williams, Harris
Representative Whitaker was absent from the vote.
The MOTION FAILED (3-7).
Co-Chair Williams MOVED to report CSHB 75 (FIN) out of
Committee. There being NO OBJECTION, it was so ordered.
Co-Chair Williams observed the need to bring spending under
control and live within the state's means. He stressed the
need for a fiscal plan and observed that the cuts will need
to be made without additional revenues. The Constitutional
Budget Reserve is estimated to run out in 2006. He looked
forward to working with the Governor and resource industry
to create a healthy private sector, and an effective and
efficient state government.
Representative Joule observed that the budget is a long way
from being over and that the legislature had several pieces
of legislation that would affect the budget. He maintained
that budget reductions do not reflect the work of missions
and measures.
Co-Chair Harris acknowledged that the process was not
finished and that it is not perfect. He noted the
cooperation of minority members.
Co-Chair Williams MOVED to report CSHB 76 (FIN) out of
Committee. There being NO OBJECTION, it was so ordered.
CSSSHB 75 (FIN) and CSSSHB 76 (FIN) were REPORTED out of
Committee with a "do pass" recommendation.
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