Legislature(2009 - 2010)HOUSE FINANCE 519
03/09/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB81 | |
| HB83 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 81 | TELECONFERENCED | |
| += | HB 83 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 81
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making supplemental
appropriations; and making appropriations under art.
IX, sec. 17(c), Constitution of the State of Alaska;
and providing for an effective date."
HOUSE BILL NO. 83
"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."
Representative Foster introduced former Department of
Transportation and Public Facilities Commissioner, Joe
Ferguson.
1:52:32 PM
Co-Chair Hawker related that the amendments to HB 81 and HB
83 are filling in pieces of the bills "left to this moment".
He explained that Section 16 of the governor's budget,
related to gasline work, had been deferred, but now would be
taken up. Co-Chair Hawker reported that he has requested a
summary of oil and gas development appropriations from the
Office of Budget and Management (OMB) and FY 2010 oil and
gas-related budget items from the Legislative Finance
Division.
Co-Chair Hawker explained the procedure to be used to
address amendments.
1:55:30 PM
Co-Chair Hawker MOVED to ADOPT Amendment 1:
Part A-Technical Correction (duplicated transaction)
DEPARTMENT: Health and Social Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Grants
DELETE: $75,000 Mental Health Trust Authority
Authorized Receipts (1092)
DELETE: $75,000 General Fund/Mental Health (1037)
EXPLANATION: This amendment removes subcommittee
transactions that duplicated Governor's transactions.
Governor's transactions accomplishing the same purpose
will be retained.
Part B-Technical Correction (duplicated transaction)
DEPARTMENT: Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Claims, Permits & Leases
DELETE: One Permanent Full-Time Position (PFT)
Line Item Transfer:
ADD: $42,100 Contractual
DELETE: $37,600 Personal Services
$3,300 Travel
$1,200 Commodities
EXPLANATION: This amendment reverses one of two
similar transactions that duplicated the House Finance
Budget Subcommittee's intent.
Part C-Correction (omitted transaction)
DEPARTMENT: Fish and Game
APPROPRIATION: Wildlife Conservation
ALLOCATION: Wildlife Conservation
ADD: $150,000 Federal Receipts (1002)
DELETE: $150,000 Fish and Game Fund (1024)
EXPLANATION: This amendment adds a fund source change
transaction that was inadvertently omitted from the
committee substitute bill.
Part D-Correction (unnecessary wordage)
DEPARTMENT: Commerce, Community and Economic
Development
APPROPRIATION: Alaska Aerospace Development
Corporation
ALLOCATION: Alaska Aerospace Development
Corporation
DELETE: Intent Wordage sec.1, page 6, line 23.
It is the intent of the legislature that the Alaska
Aerospace Development Corporation fully pay its
portion of the DOA and DCCED cost allocation plans.
EXPLANATION: This amendment removes FY09 intent
language that is no longer necessary. AADC complied
with the intent in FY09 and intends to do so in the
future.
Part E-Correction (position adjustment)
DEPARTMENT: Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Petroleum Systems Integrity Office
ADD: Four Permanent Full-Time Positions (PFT)
EXPLANATION: This amendment restores four PFT
positions that were inadvertently deleted during
subcommittee close out.
Part F-Correction (overlooked Governor's language)
Amend language section 10 (Department of Commerce,
Community, and Economic Development) by adding two new
subsections:
f) If the amount necessary to make national forest
receipts payments exceeds the amount appropriated in
sec. 1 of this Act, the amount necessary is
appropriated from federal receipts to the Department
of Commerce, Community, and Economic Development,
national forest receipts, for the fiscal year ending
June 30, 2010.
g) If the amount necessary to make payment in lieu of
taxes (PILT) payments exceeds the amount
appropriated in sec. 1 of this Act, the amount
necessary is appropriated from federal receipts to
the Department of Commerce, Community and Economic
Development, payment in lieu of taxes (PILT), for
the fiscal year ending June 30, 2010.
Explanation: The new sections allow the department to
pass federal receipts to eligible recipients and
communities without going through the Legislative
Budget and Audit review process.
These two subsections were requested by the Governor
but were omitted from the Committee Substitute for
House Bill 81 (FIN).
Part G-Correction (overlooked Governor's language)
Amend language section 11 (Department of Labor and
Workforce Development) by adding a new subsection:
(d) If the amount of designated program receipts
received under AS 43.20.014(a)(3) and deposited in
the vocational education account (AS 37.10.200)
during the fiscal year ending June 30, 2010 exceeds
the amount appropriated in sec. 1 of this Act for
purposes described in AS 37.10.200, the additional
designated program receipts are appropriated to the
Department of Labor and Workforce Development,
Alaska Vocational Technical Center, for the fiscal
year ending June 30, 2010.
Explanation: The language section (d) allows the
department to spend any Statutory Designated Program
Receipts (SDPR) they receive for vocational education
purposes in FY2010.
Part H-Correction (drafting errors)
Amend section 25:
(c) The sum of $30,248,000 [30,455,300] is
appropriated to the state bond committee from the
Alaska debt retirement fund (AS 37.15.011) for
payment of debt service, accrued interest, and
trustee fees on outstanding State of Alaska general
obligation bonds, series 2003A, for the fiscal year
ending June 30, 2010.
(e) The sum of $10,275,000 [10,067,700] is
appropriated to the state bond committee from the
Alaska debt retirement fund (AS 37.15.011) for
payment of debt service, accrued interest, and
trustee fees on outstanding State of Alaska general
obligation bonds, series 2009A, for the fiscal year
ending June 30, 2010.
(n) The sum of $22,917,325 [22,917,300] is appropriated
from the general fund to the Department of
Administration for the fiscal year ending June 30,
2010, for payment of obligations and fees for the
following facilities:
FACILITY ALLOCATION
(1) Anchorage Jail $5,103,900
(2) Goose Creek Correctional Center
17,813,425 [17,813,400]
Explanation: This amendment will correct the amounts
necessary for state debt and other obligations in sec.
25 (c), 25(e), 25(n) of the House CS for CSHB 81(FIN).
Amend section 20(q)
The sum of $459,200 is appropriated from the permanent
fund dividend (PFD) in lieu of dividends to criminals
account within the dividend fund (AS 43.23.045(a))
[general fund] to the crime victim compensation fund
(AS 18.67.162).
Explanation: Restores language requested by the
Governor.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker described the Amendment as Legislative
Finance's technical amendment.
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
explained that Amendment 1, Parts A and B, are technical
corrections of duplications. Part C is a transaction that
was left out and is now being restored. Part D is intent
language that applies to Alaska Aerospace Development
Corporation compliance, which has been corrected. Part E is
a position adjustment from the Department of Natural
Resources (DNR). Part F is language submitted by the
governor regarding federal receipts that should bypass
Legislative Budget and Audit (LB&A), which was left out of
the draft. Co-Chair Hawker added that his office had also
overlooked that language.
1:58:35 PM
Mr. Teal continued to explain that Part G similarly
addresses an amendment by the governor to the Department of
Labor (DOL) for designated receipt authority for the newly
created Vocational Education account. Part H consists of
drafting errors. Sections (c) and (e) correct a bond issue
error. Section (n) corrects an error in debt service, and
Section (q) restores the language for the Crime Victim
Compensation Fund. Co-Chair Hawker commented on the
misunderstanding.
Co-Chair Stoltze WITHDREW his OBJECTION to Amendment 1.
There being NO OBJECTION, Amendment 1 was adopted.
2:00:43 PM
Vice-Chair Thomas MOVED to ADOPT Amendment 2:
OFFERED BY: Representatives Thomas and Hawker
Part A-Fund Source Change
DEPARTMENT: Administration
APPROPRIATION: Centralized Administrative Services
ALLOCATION: Personnel
FUND CHANGE: $472,200 General Fund (1004)
($472,200) Interagency Receipts Fund (1007)
APPROPRIATION: Enterprise Technology Services
ALLOCATION: Enterprise Technology Services
FUND CHANGE: $415,900 General Fund (1004)
($415,900) Interagency Receipts Fund (1007)
EXPLANATION: Part A of this amendment pays bargaining
unit agreement costs with GF in order to avoid an
increase in chargeback rates paid by agencies. This
action was requested by the Governor, but denied by
subcommittee pending receipt of information pertaining
to recovery of non-general funds. The fund source
information requested by the subcommittee is part B of
this amendment.
Part B-Cost Recovery of Non-general Funds
APPROPRIATION: Centralized Administrative Services
ALLOCATION: Personnel
ADD: $37,200 Federal Receipts (1002)
$6,300 Interagency Receipts (1007)
$1,100 Commercial Fishing Loan Fund (1036)
$100 Fisheries Enhancement Revolving Loan
Fund (1070)
$1,200 Alaska Industrial Development & Export
Authority Receipts (1102)
$1,900 Regulatory Commission of Alaska Receipts
(1141)
$7,600 Receipt Supported Services (1156)
$800 Business License & Corporation Filing
Fees and Taxes (1175)
$2,800 Permanent Fund Dividend Fund (1050)
$400 Permanent Fund Corporation Receipts
(1105)
$100 Statutory Designated Program Receipts
(1108)
$2,500 Workers Safety and Compensation
Administration Account (1157)
$100 Second Injury Fund Reserve Account
(1031)
$100 Fishermen's Fund (1032)
$600 Building Safety Account (1172)
$1,000 Group Health and Life Benefits Fund
(1017)
$1,200 Public Employees Retirement Trust Fund
(1029)
$500 Teachers Retirement Trust Fund (1034)
$900 Alaska Oil & Gas Conservation Commission
Receipts (1162)
DELETE: $66,400 General Fund (1004)
APPROPRIATION: Enterprise Technology Services
ALLOCATION: Enterprise Technology Services
ADD: $58,500 Federal Receipts (1002)
$4,200 Interagency Receipts (1007)
$700 Commercial Fishing Loan Fund (1036)
$100 Fisheries Enhancement Revolving Loan
Fund (1070)
$800 Alaska Industrial Development & Export
Authority Receipts (1102)
$1,200 Regulatory Commission of Alaska
Receipts (1141)
$14,600 Receipt Supported Services (1156)
$500 Business License & Corporation Filing
Fees and Taxes (1175)
$8,400 Permanent Fund Dividend Fund (1050)
$200 Permanent Fund Corporation Receipts
(1105)
$100 Statutory Designated Program Receipts
(1108)
$1,500 Workers Safety and Compensation
Administration Account (1157)
$400 Building Safety Account (1172)
$1,800 Group Health and Life Benefits Fund
(1017)
$2,200 Public Employees Retirement Trust Fund
(1029)
$900 Teachers Retirement Trust Fund (1034)
$1,100 Alaska Oil & Gas Conservation Commission
Receipts (1162)
DELETE: $97,200 General Fund (1004)
EXPLANATION: The Department of Administration charges
other agencies for personnel and enterprise technology
services. In order to minimize FY2010 rate increases,
the Governor requested an addition of general funds to
DOA. This action causes the general fund to bear the
full burden of cost increases. Part B of this amendment
replaces general funds with a variety of other funds.
These non-general funds (along with the remaining
general funds in increments for this purpose) will be
distributed to agencies and recovered through rate
increases. The impact is to shift $163,600 of costs
from general funds to other funds.
Part C-Add Wordage
APPROPRIATION: Centralized Administrative Services
ALLOCATION: Personnel
ADD: The money appropriated by this appropriation may
be distributed to state departments and agencies in
order to pay service costs charged by the Department of
Administration for centralized personnel services.
APPROPRIATION: Enterprise Technology Services
ALLOCATION: Enterprise Technology Services
ADD: The money appropriated by this appropriation may
be distributed to state departments and agencies in
order to pay service costs charged by the Department of
Administration for enterprise technology services.
EXPLANATION: Part C allows funding appropriated in
parts A and B to be distributed to various agencies to
offset chargeback rate increases.
Co-Chair Hawker OBJECTED.
Vice-Chair Thomas explained that his subcommittee originally
requested to delete $472,200 in General Funds; however, at
the Department of Administration's request and with the
shifting of funds, the amendment reflects the revised
amount.
Co-Chair Hawker WITHDREW his OBJECTION. There being NO
OBJECTION, Amendment 2 was adopted.
2:02:20 PM
Representative Austerman MOVED to ADOPT Amendment 3:
OFFERED BY: Representatives Austerman and Hawker
DEPARTMENT: Commerce, Community and Economic
Development
APPROPRIATION: Community Assistance & Economic
Development
ALLOCATION: Community and Regional Affairs
ADD: $1,571,300 General Fund (1004)
EXPLANATION: Governor's 2008 legislation cut business
license fees in half, reducing state revenue by about
$3.2 million and leaving insufficient business license
revenue to pay for program costs. The Governor
requested replacement of $1,971.3 business license
receipts with GF in Community and Regional Affairs. The
subcommittee added 400.0 in business license receipts,
which left the program with a 1,571.3 reduction in
funding. This amendment restores program funding to the
level requested by the Governor.
Co-Chair Hawker OBJECTED.
Representative Austerman reported that the Department of
Commerce, Community and Economic Development subcommittee
discussed the loss of revenue from business license fees in
2008. He explained that Amendment 3 restores $1,571,300 in
General Fund program funding to the level requested by the
Governor.
Co-Chair Hawker noted that the subcommittee added $400,000
in business license receipts leaving a reduction in funding
which was fully restored.
Co-Chair Hawker WITHDREW his OBJECTION to Amendment 3.
There being NO OBJECTION, Amendment 3 was adopted.
2:04:11 PM
Representative Austerman MOVED to ADOPT Amendment 4:
OFFERED BY: Representatives Austerman and Hawker
DEPARTMENT: Commerce, Community and Economic
Development
APPROPRIATION: Alaska Energy Authority
ALLOCATION: Alaska Energy Authority Power Cost
Equalization
DELETE: $4,000,000 PCE Fund (1089)
EXPLANATION: The Committee Substitute bill bypasses
the PCE fund and appropriates money directly to the PCE
program. The appropriation of $4 million from the fund
is unnecessary because an open-ended appropriation of
GF to the PCE program for FY09 will leave the PCE fund
with a zero balance at the end of FY09. Removing this
"hollow authorization" will have no programmatic
impact; the PCE program is fully funded in FY2010 with
an open-ended GF appropriation.
Co-Chair Hawker OBJECTED.
Representative Austerman related that the amendment fully
funds Power Cost Equalization (PCE), removes hollow
authorization, and appropriates money directly to the PCE
program. Co-Chair Hawker added that the item was in the
governor's original budget and the funding was uncertain
earlier.
Representative Gara recalled that last special session the
PCE subsidy was increased to cover communities that charged
about $1 per kwh, rather than the previous amount of about
$.52 per kwh. He understood that the funding was for one
year. He suggested that this amendment would fund the older
PCE program. Co-Chair Hawker disagreed. He explained that
PCE would be funded under the current, higher appropriation
structure. Representative Gara summarized the policy call.
Representative Austerman related that there is legislation
to remove the sunset date on last year's legislation so that
the higher funding continues.
Co-Chair Hawker WITHDREW his OBJECTION. There being NO
OBJECTION, Amendment 4 was adopted.
2:07:29 PM
Vice-Chair Thomas MOVED to ADOPT Amendment 5:
OFFERED BY: Representatives Thomas and Hawker
DEPARTMENT: Department of Commerce, Community &
Economic Development
ADD: It is the intent of the legislature that any
marketing entities that receive state funding shall not
engage in any lobbying efforts of any kind.
EXPLANATION:
It is inappropriate for entities who receive general
fund money from the state to engage in lobbying
activities.
ADD: It is the intent of the legislature that any
marketing entities that receive state funding shall
coordinate their efforts when implementing their
marketing strategies. This shall include, but is not
limited to, fishing, tourism, and agriculture.
EXPLANATION:
It is economical to ask that the entities who receive
state funding should work together when marketing
Alaska and Alaskan products.
Co-Chair Hawker OBJECTED.
Vice-Chair Thomas explained that the amendment adds intent
language that any marketing entities that receive state
funding shall not engage in any lobbying efforts of any
kind.
Co-Chair Hawker added that it was intent language.
Vice-Chair Thomas explained the second part of Amendment 5.
He said it is the intent of the legislature that any
marketing entity that receives state funding shall
coordinate their efforts when implementing their marketing
strategies. He shared a story about in-state fisheries
marketing and suggested ways to help Alaskans with
marketing.
2:10:07 PM
Co-Chair Stoltze addressed part one of the amendment and
asked how broad it was. He wondered if the amendment
targets the Alaska Travel Industry Association (ATIA).
Vice-Chair Thomas pointed out that the Alaska Seafood
Marketing Institute (ASMI) is already prohibited from
running marketing campaigns against any other group in
Alaska. He explained his concerns with ATIA's stand on
halibut quotas. He pointed out the impact in District 2C
and the resulting loss of income and the negative social
effects.
Co-Chair Hawker added that the restriction is only on
entities that are marketing Alaskan products. Vice-Chair
Thomas agreed.
Co-Chair Stoltze commented that the issue has a different
dynamic in his area of the state. It is not a clear-cut
science vs. politics issue, and the North Pacific Management
Council, for example, is filled with its own group of
politicians. He thought there were enough avenues available
for communication within the tourism industry. He reported
that he has a problem with limits to halibut fisheries in
the Cook Inlet where there is less tourism.
2:14:13 PM
Co-Chair Hawker noted that it was intent language and he was
in favor of it.
Representative Kelly agreed with Co-Chair Stoltze. He
thought the amendment was too broadly worded. He gave an
example of a scenario that would prohibit a slide show by
various industry groups.
Vice-Chair Thomas thought that marketing entities paid a fee
outside of state funding. He did not want to see them take
positions which negatively impacted Alaska. He especially
took issue with telling the International Pacific Halibut
Commission how to manage the fishery. He stated that it has
been a negative impact to the 2,000 fishers in his district.
He reported that he personally has lost money. He made a
point that marketing has taken a negative direction.
Representative Kelly reiterated that the amendment was too
broad and anyone in ATIA or ASME would read it incorrectly.
He suggested spending more time on the amendment before it
is offered.
2:17:59 PM
Vice-Chair Thomas suggested splitting the motion.
Co-Chair Hawker suggested Amendment 5 be divided into
Amendments 5A and 5B.
Co-Chair Hawker WITHDREW his OBJECTION.
Vice-Chair Thomas MOVED to ADOPT Amendment 5B:
OFFERED BY: Representatives Thomas and Hawker
DEPARTMENT: Department of Commerce, Community &
Economic Development
ADD: It is the intent of the legislature that any
marketing entities that receive state funding shall to
the maximum extent practicable coordinate their efforts
when implementing their marketing strategies. This
shall include, but is not limited to, fishing, tourism,
and agriculture.
EXPLANATION:
It is economical to ask that the entities who receive
state funding should work together when marketing
Alaska and Alaskan products.
Representative Kelly OBJECTED.
2:19:49 PM
Representative Kelly suggested a friendly amendment; after
"shall" add "to the maximum extent practicable".
Co-Chair Stoltze OBJECTED to the Conceptual Amendment to
Amendment 5B. He explained that he thought it was
unnecessary.
Co-Chair Stoltze WITHDREW his OBJECTION.
2:22:06 PM
There being NO further OBJECTION, the Conceptual Amendment
to Amendment 5B was adopted.
Representative Kelly WITHDREW his OBJECTION. There being NO
OBJECTION, Amendment 5B was adopted.
Vice-Chair Thomas WITHDREW Amendment 5A. Co-Chair Hawker
agreed that intent language should apply only to state
funds.
2:23:05 PM
Representative Joule MOVED to ADOPT Amendment 6:
OFFERED BY: Representatives Joule and Hawker
DEPARTMENT: Health and Social Services
APPROPRIATION: Juvenile Justice
ALLOCATION: Probation Services
ADD: $225,000 General Fund (1004)
EXPLANATION: This amendment provides base funding for
guard hires for escorts, travel for juveniles who are
not Medicaid-eligible, psychiatric evaluations that are
not Medicaid-eligible and other various court-ordered
costs. The funding applies to youth either in division
custody or under court order to receive specified
services.
In recent years, the legislature has directed the
department to include these costs as supplemental
request. This amendment will reduce or eliminate the
need for supplemental funding.
CO-CHAIR HAWKER OBJECTED.
Representative Joule explained that the amendment would
allow Juvenile Justice to quit coming back to the
legislature through the supplemental budget process. The
amount requested has been consistent. Co-Chair Hawker
agreed. The amendment was identified during the supplemental
budget process this year. About five years ago a decision
was made regarding the probation services request, which has
remained constant since then. He stated that the item
belongs in the operating budget.
Co-Chair Hawker WITHDREW his OBJECTION to adopting Amendment
6. There being NO OBJECTION, it was so ordered.
2:25:09 PM
Representative Joule MOVED to ADOPT Amendment 7:
OFFERED BY: Representatives Joule and Hawker
DEPARTMENT: Health and Social Services
APPROPRIATION: Public Health
ALLOCATION: Chronic Disease Prevention and
Health Promotion
DELETE: $923,100 General Fund (1004)
EXPLANATION:
This amendment deletes funding for the establishment of
a new childhood obesity prevention program. The program
as proposed appears to be an investment in data
collection and analysis, with very little funding being
used to address the core issues of the problem. As
childhood obesity is a concern, further consideration
should be given to working together with the Anchorage
School District in expanding their very successful
model to other school districts.
The very gradual inclusion of school districts into the
program is of concern, as is the limited use of these
resources to assist the school districts and
communities in directly addressing this issue.
Long range cost projects for this program are projected
to be over $16 million.
Co-Chair Hawker OBJECTED for discussion purposes.
Representative Joule commented that he would like to see
more emphasis on community coalitions for such programs. He
did not want to fund a new program, given today's budget
climate.
Co-Chair Hawker agreed with the amendment. He stressed that
effort was made to understand the $15.7 million request long
range. He agreed that the issue of obesity prevention was
important, but that this program only established a data
keeping bureaucracy and did not coordinate with schools and
the Department of Education and Early Development.
2:29:10 PM
Representative Gara thought he needed more information about
the subject, although he agreed with the concept. He
wondered if the educational portion of the increment could
be included. He requested more time to understand the basis
for data gathering.
Co-Chair Hawker WITHDREW his OBJECTION.
Representative Gara OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Fairclough, Foster, Joule, Kelly, Austerman,
Thomas, Hawker, Stoltze
OPPOSED: Gara, Salmon, Crawford
The MOTION PASSED (8-3).
2:33:30 PM
Co-Chair Hawker MOVED to ADOPT Amendment 8:
OFFERED BY: Representatives Hawker by request of
Governor
DEPARTMENT: Law
APPROPRIATION: Criminal Division
ALLOCATION: See below
Law Item 1 Second Judicial Dist Fed Funds 90.0
Law Item 2 Fourth Judicial Dist Fed Funds 285.0
Law Item 3 Criminal Appeals/Special Litigation Federal
Funds 271.6
Total Federal Funds $646.6
EXPLANATION: This amendment moves Governor's requests
for lapse extensions from the supplemental bill to the
operating bill. In an effort to ensure that all money
that will be available for agency expenditure is
reviewed in conjunction with regular operating
requests, this amendment puts the Department of Law's
Federal lapse extensions before the full finance
committee for consideration as FY2010 increments.
Please see the following pages for details provided by
OMB.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained Amendment 8 consists of items that
had been in the supplemental/operating budget bill. These
are federal funds that have not been expended and which
require continuing authorization.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
2:34:37 PM
Representative Kelly MOVED to ADOPT Amendment 9:
OFFERED BY: Representatives Hawker and Kelly
DEPARTMENT: Department of Natural Resources
APPROPRIATION: Parks and Recreation Management
ALLOCATION: Parks Management
ADD: $138,500 general fund (fund code 1004)
EXPLANATION:
Since 1997 the State Parks in the Prince William Sound
area have been managed by volunteer organizations.
Despite their enormous and admirable efforts, these
organizations can no longer afford to continue losing
money and are giving up on their efforts to manage the
State Parks at places like the Worthington Glacier
(which receives over 40,000 visits annually). Alaska
State Parks has no permanent Parks presence in Valdez
or the Prince William Sound. The nearest office is
located in Soldotna, and rarely ever does a district
ranger visit the entire Prince William Sound or Valdez
area.
These parks are beautiful and are heavily used by
Alaskan residents and tourists. Unless a Valdez State
Park Ranger position is established, at least one state
park - Worthington Glacier - is almost certain to be
closed this coming summer. Additional parks in the
area are likely to also close since volunteer
organizations currently operating the parks can not
continue to lose money.
The addition of a Park Ranger position in Valdez would
vitalize volunteer efforts by allowing the parks to
remain open. This new position would oversee
maintenance and upkeep of 14 state marine parks in
Prince William Sound.
The Valdez Area State Parks Citizens Advisory Board has
prioritized this request as their number 1 issue and
has expressed the critical nature of the situation to
me directly. A survey conducted last summer indicates
that visitors spend $12.2 million annually to enjoy PWS
state parks, which results in 103 local jobs.
Here is breakdown of the budget request:
Park Ranger (Range 16A - 12 $71,200
months)
Vehicles: Ranger (4WD pickup $7,500
truck) & Fuel ACC/volunteer
(surplus truck) & Fuel
Park Maintenance & Janitorial $6,500
Supplies
Toilet Pumping (Worthington & $900
Blueberry Lake)
Garbage Removal (Worthington & $5,900
Blueberry Lake)
Travel & Per Diem for Park $8,000
Maintenance in PWS
Boat Maintenance, Harbor Slip, $4,500
Operation
Volunteer Support $2,000
Alaska Conservation Corps (4 $10,000
months)
Office/Shop Rental & Utilities $12,000
Road Maintenance: Annual Grading $10,000
and Snow Removal at Blueberry Lake
& Worthington Glacier
TOTAL $138,500
Co-Chair Hawker OBJECTED.
Representative Kelly explained that the amendment was
requested by Representative Harris. It would replace a Park
Ranger position and park supplies in the Valdez/Prince
William Sound area, which is no longer managed by volunteer
organizations.
Co-Chair Hawker informed the Committee that the Department
of Natural Resources was involved in drafting the amendment.
He also reported on a formal notice by the volunteer
organizations that they would not be able to keep managing
the state parks in the Prince William Sound area.
Representative Kelly added that loss of volunteers was an
issue.
Co-Chair Hawker REMOVED his OBJECTION to Amendment 9. There
being NO OBJECTION, it was so ordered.
2:37:27 PM
Co-Chair Hawker added three to the list of sponsors to
Amendment 10: Gara, Crawford, and Salmon.
Representative Fairclough MOVED to ADOPT Amendment 10:
OFFERED BY: Representatives Fairclough, Stoltze,
Hawker, Gara, Crawford, and Salmon
DEPARTMENT: Public Safety
APPROPRIATION: Council on Domestic Violence and
Sexual Assault
ALLOCATION: Council on Domestic Violence and
Sexual Assault
ADD: $500,000 PFD Criminal Funds (1171)
EXPLANATION: This amendment brings the FY2010 budget
for the Council on Domestic Violence closer to the
FY2010 Governor's request. The Governor requested an
increase of $1,677.9. The Committee Substitute bill
includes an increase of $296.0. Due to extraordinarily
high PFDs, the amount of available PFD criminal funds
is sufficient to fund this amendment.
Co-Chair Hawker OBJECTED.
Representative Fairclough explained that all of her
colleagues recognize the issue of domestic violence in
Alaska. She thanked the subcommittee chair for increasing
the request by $296,000. It was not as much as the governor
had proposed, $1.6 million. She requested an additional
$500,000 to help private, non-profit programs in all areas
of domestic violence.
2:39:41 PM
Representative Crawford did not object to the amendment, but
questioned the funding source. He discussed a bill
regarding funds to children of incarcerated felons and
wondered what would happen if there was not enough PFD money
to fund both programs.
Co-Chair Hawker commented that the base funding and the
additional funding for the Council on Domestic Violence and
Sexual Assault were from PFD crime funds. There is an
extraordinary amount of PFD crime funds available this year
due to the one-time increase in the PFD last year. He noted
that the issue of sustained funding would return next year.
He added that Section 20 (q) of the bill addresses the Crime
Victim Compensation Fund in the amount of $459,200, which
Representative Crawford was referring to.
Co-Chair Stoltze questioned what would happen if dividend
and revenue funds fall short. Co-Chair Hawker commented on
Co-Chair Stoltze's choice to prioritize the sustained
general funding commitment into the Law Enforcement Officers
increments for Village Public Safety Officers. Co-Chair
Stoltze pointed that that came in after $74 per barrel oil.
Co-Chair Hawker echoed Co-Chair Stoltze's concerns. He
believed the budget was responsible, but not sustainable.
2:43:48 PM
Representative Fairclough appealed to the Committee to
support Amendment 10. She reported that public testimony
showed a need for this funding.
Co-Chair Hawker referred to a document which showed that
Alaska has made an increased commitment to the prevention of
domestic violence. In FY 04 only $4.7 million was put into
this program. This year, $4.5 was added to that amount.
Co-Chair Hawker WITHDREW his OBJECTION to Amendment 10.
There being NO OBJECTION, it was so ordered.
2:45:43 PM
Representative Foster MOVED to ADOPT Amendment 11:
OFFERED BY: Representatives Foster and Hawker
DEPARTMENT: Transportation and Public
Facilities
APPROPRIATION: Marine Highway System
ALLOCATION: Marine Vessel Operations
ADD: $4,617,600 Marine Highway Fund
(1076)
ADD: New subsections to section 20 (fund
capitalization)
(t) The sum of $5,000,000 is appropriated from the
general fund to the Alaska marine highway system fund
(AS 19.65.060(a)).
(u) The unexpended and unobligated balance of the
appropriation made in sec. 19 (d) (1), ch. 27, SLA 2008
to the Department of Transportation & Public Facilities
is reappropriated to the Alaska marine highway system
fund (AS 19.65.060(a)). (Effective date June 30, 2009)
EXPLANATION: The addition of $4.6 million to the FY2010
base budget will allow the AMHS to continue the
schedule covering operations through September 2009.
However, in combination with subcommittee actions, the
additional expenditures authorized by this amendment
leave the marine highway fund with a projected year-end
FY2010 deficit in excess of $4 million.
New section (t) eliminates the projected deficit. New
section (u) reappropriates available FY09 fuel trigger
funding (estimated to be $9.2 million) to the marine
highway fund, allowing the fund to fulfill its role as
a stabilizing force.
Language (in section 19 of the committee substitute
bill) allowing expenditures of marine highway program
receipts in excess of the appropriations made in the
operating budget (subject to LB&A Committee review)
permits the Department to spend additional marine
highway funds through the RPL process.
Co-Chair Stoltze OBJECTED.
LARRY LABOLLE, STAFF, REPRESENTATIVE RICHARD FOSTER,
explained that the amendment addresses two unresolved issues
that were left out after subcommittee budgets were closed
out. The first appropriation would add $4.6 million to the
Marine Highway Operations. The governor had requested this
one-time increment as a part of the base budget, however, an
explanation of how the funds would be used was not given.
The second part of the amendment deals with capitalizing the
Marine Highway Stabilization Fund, now that projections are
available.
Mr. LaBolle listed the three sections of the amendment: the
first two are the addition of money to the Marine Highway
Operations, the third section of the amendment deals with
the unexpended and unobligated balance of the appropriation,
the fuel trigger funding for $9.2 million. This combination
should make the Marine Highway capable of carrying out their
schedule through 2009 and will capitalize the fund to ensure
adequate cash flow.
Co-Chair Hawker agreed with the amendment. He appreciated
the efforts by the Department of Transportation and Public
Facilities. With the adoption of the amendment, the
operating request will be fully funding, the bargaining unit
included, and lapse money will be spent. Last year's fuel
trigger was placed at the peak of oil prices. It appeared
that the Marine Highway System would be lapsing $9.2 million
of fuel trigger money. The amendment would provide for
continued spending authority and a $10 million cushion as an
operations buffer.
2:50:44 PM
Mr. LaBolle related that the amendment puts about $15
million more into the fund, the amount that was vetoed last
year by the governor. Co-Chair Hawker summarized the
capitalization process last year, whereby the legislature
had appropriated a $25 million increment to the Marine
Highway and the governor vetoed $15 million of that amount.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
2:51:55 PM
Vice-Chair Thomas MOVED to ADOPT Amendment 12:
OFFERED BY: Representatives Thomas and Hawker
DEPARTMENT: Transportation and Public
Facilities
APPROPRIATION: Marine Highway System
ALLOCATION: Marine Vessel Operations
ADD INTENT:
It is the intent of the legislature that money
allocated for the Marine Transportation Advisory Board
not be spent for any other purpose.
Co-Chair Hawker OBJECTED.
Vice-Chair Thomas explained that the intent of the amendment
is that the money allocated for the Marine Transportation
Advisory Board not be spent for any other purpose.
Co-Chair Hawker REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
2:53:17 PM
Representative Fairclough MOVED to ADOPT Amendment 13:
OFFERED BY: Representatives Fairclough and Hawker
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Systemwide Education and Outreach
TRIN: $1,253,000 Total and 9 PFT positions
$922,600 General Fund (1004)
$320,400 Univ Rcpts (1048)
$10,000 UA Interagency Rcpts (1174)
APPROPRIATION: University of Alaska
ALLOCATION: Kenai Peninsula College
TROUT: $1,253,000 Total with 9 PFT positions
$922,600 General Fund (1004)
$320,400 Univ Rcpts (1048)
$10,000 UA Interagency Rcpts (1174)
EXPLANATION: This amendment accepts a pair of
transactions proposed in the Governor's budget which
transfers the Mining and Petroleum Training Services
(MAPTS) from Kenai Peninsula College to Systemwide
Education and Outreach.
Co-Chair Hawker OBJECTED.
Representative Fairclough explained that the amendment was
necessary due to lack of time to talk to the University
about this issue.
Co-Chair Hawker REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
2:54:09 PM
Representative Fairclough MOVED to ADOPT Amendment 14:
OFFERED BY: Representatives Fairclough and Hawker
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Small Business Development Center
ADD: $550,000 General Fund (1004)
DELETE: $550,000 Business License Receipts (1175)
EXPLANATION: Replaces business license receipts with
general funds as requested by the Governor. Governor's
legislation cut business license fees in half, leaving
insufficient revenue to pay for program costs.
Co-Chair Hawker OBJECTED.
Representative Fairclough explained that the amendment
changes the fund source to allow the University more
flexibility when using general funds rather than business
license receipts.
Co-Chair Hawker WITHDREW his OBJECTION to Amendment 14.
There being NO OBJECTION, it was so ordered.
2:54:57 PM
Representative Fairclough MOVED to ADOPT Amendment 15:
OFFERED BY: Representatives Fairclough and Hawker
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Anchorage Campus
ADD: $500,000 General Fund (1004)
EXPLANATION: This amendment funds the operating and
maintenance costs necessary to open the new Integrated
Sciences Building (ISB) in the fall of 2009.
Completion of the 120,000 square foot facility will
approximately double the amount of space devoted to
science instruction and research programs.
Co-Chair Hawker OBJECTED.
Representative Fairclough explained that there is a concern
at the University whether there would be enough funding to
open their new Integrated Sciences Building. This money -
$500,000 - would enable that to happen.
Co-Chair Hawker added that he talked with personnel who
agreed that $500,000 was adequate for the request.
Representative Gara cautioned that he would object if money
was being taken out of a teaching program.
Co-Chair Hawker REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
2:57:50 PM
Representative Crawford MOVED to ADOPT Amendment 16:
OFFERED BY: Representative Crawford
DEPARTMENT: Commerce, Community, and Economic
Development
APPROPRIATION: Alaska Energy Authority
ALLOCATION: Statewide Project Development,
Alternative Energy and Efficiency
ADD: $360,300 General Funds (1004)
Support for Energy Planning- $150.0
Funding for AEA Executive Director- $210.3
EXPLANATION: This restores funding recommended in the
Governor's Amended budget for senior staff in the AEA
office including the executive director.
AEA staff are charged with statewide energy planning,
preparing for the governor's transition to a 50%
renewable grid by 2025, and reviewing and recommending
projects for the Renewable Energy Grant Fund.
The change made by the subcommittee reflects more than
a 30% reduction to the governor's requested budget. In
the FY09 budget, these functions were funded in part
through a fund transfer from the Governor's Executive
Operations budget.
Co-Chair Hawker OBJECTED.
Representative Crawford related that the state made a
commitment toward renewable energy for $300 million over
five years. The Alaska Energy Authority (AEA) that would
administer the funds was not funded adequately to oversee
the workload necessary to handle energy planning. The
amendment restores funding for AEA.
Co-Chair Hawker thought Representative Crawford's concerns
had merit, however, he noted that there were other sources
of funding available, such as AIDA. He spoke against the
amendment.
3:00:55 PM
Representative Austerman clarified that the positions were
created using CIP money and additional funds should not be
requested now.
Representative Gara summarized that the issue is that AEA
has the responsibility to deal with the state's renewable
energy. He noted that without adequate AEA support, money
will be spent in the wrong places, at a waste to the state.
Stimulus plans require a statewide plan in which AEA will be
involved. He stressed the need to support AEA.
Co-Chair Hawker felt that there were sufficient funds in AEA
to fund the position.
A roll call vote was taken on the motion.
IN FAVOR: Gara, Salmon, Crawford
OPPOSED: Joule, Kelly, Thomas, Austerman, Fairclough,
Foster, Hawker, Stoltze
The MOTION FAILED (8-3).
3:04:43 PM
Representative Crawford WITHDREW Amendment 17.
3:05:10 PM
Representative Crawford MOVED to ADOPT Amendment 18:
OFFERED BY: Representative Crawford
DEPARTMENT: Fish and Game
APPROPRIATION: Division of Wildlife Conservation
ALLOCATION: Wildlife Conservation
ADD: $200,100 General Funds (1004)
Wildlife Biologist II $74.3
(PCN 11-2218; range 16)
F&W Technician 3 (range 11) $40.8
Travel, signage, small equipment,
trail maintenance, supplies $85.0
EXPLANATION: Several constituent groups and
organizations have concerns about inadequate funding
for the management of wildlife refuges in Southcentral
Alaska and the problem it is creating. This is an
area-wide issue that primarily affects Anchorage, Mat-
Su and Kenai.
There are 25 wildlife refuges in Southcentral, covering
2.5 million acres of land. Thirteen of these refuges,
with nearly a million acres, are found in the
Anchorage, Mat-Su, and Kenai areas alone. The budget
for managing these 25 refuges, which span from Yakutat
to Dillingham, is $15,000. This level of funding has
created a number of public safety issues and habitat
degradation in those refuges closest to population
centers.
People are using the refuges as a place to dump cars,
appliances, and trash. There is a substantial amount
of illegal target shooting, illegal tree cutting, and
in some cases illegal cabins are being built on public
lands.
The division has had a vacant Refuge Manager position
for the last four years. This is a Palmer-based
wildlife biologist PCN. Filling this position and
adding a seasonal Fish and Wildlife Technician 3 would
help solve the public safety issues outlined above. In
addition, increasing the current $15,000 management
budget by $85,000 to a total of $100,000 would enable
the division to effectively manage this resource and
make the refuges safer and more accessible for
Southcentral families.
Co-Chair Hawker OBJECTED.
Representative Crawford explained that the amendment was a
fairness issue and was needed to fund management of wildlife
refuges in Southcentral Alaska. The small amount of money
would fund one manager, would coordinate volunteer efforts,
and would make a difference in the lives of Southcentral
Alaskans.
Co-Chair Hawker admitted not knowing much about the
amendment.
3:07:58 PM
Vice-Chair Thomas observed that the amendment was addressed
in the subcommittee and a recommendation made that it be
included in the capital budget.
Co-Chair Hawker MAINTAINED his OBJECTION.
Representative Crawford explained that the intent is to
support an on-going program.
3:09:00 PM
A roll call vote was taken on the motion.
IN FAVOR: Gara, Salmon, Crawford
OPPOSED: Joule, Kelly, Thomas, Austerman, Fairclough,
Foster, Hawker
Co-Chair Stoltze was absent from the vote.
The MOTION FAILED (3-7).
3:09:58 PM
Representative Crawford WITHDREW Amendment 19.
Co-Chair Hawker observed that the amendment was brought
forward by the minority leader. He pointed out that the
funding for Child Care Benefits was increased in the
subcommittee to 50 percent of the incremental request.
3:11:20 PM
Representative Crawford MOVED to ADOPT Amendment 20:
OFFERED BY: Representative Crawford
DEPARTMENT: Department of Labor and Workforce
Development
APPROPRIATION: Workers' Compensation and Safety
ALLOCATION: Wage and Hour Administration
ADD: $150,000 General Fund $75.0 (1004)
Workers Safety $75.0 (1157),
EXPLANATION: This increment is to fund two
investigators in the Wage and Hour Agency. The
investigators will perform Title 36 and workers'
compensation classification fraud investigations. The
positions will also assist in child labor, uninsured
employer and other necessary wage and hour and workers'
compensation investigations.
Co-Chair Hawker OBJECTED.
Representative Crawford shared his personal history with the
Iron Workers Union. He explained that the amendment would
fund Wage and Hour investigation positions, which were
eliminated while vacant. There were approximately five
positions eliminated; one was reinstated. He stressed that
there is a backlog of work.
Representative Fairclough noted that the request was not
supported as a priority by the governor.
3:14:25 PM
Representative Gara spoke to the governor's priority list.
He stressed that commissioners are directed toward specific
requests. He stressed the need to evaluate the requests
based on public need.
Co-Chair Hawker MAINTAINED his OBJECTION.
Representative Crawford acknowledged that it may not be an
administration priority, but asserted that the work is not
getting done and more help is needed to address violations.
3:17:23 PM
A roll call vote was taken on the motion.
IN FAVOR: Gara, Salmon, Crawford
OPPOSED: Joule, Thomas, Austerman, Fairclough, Foster,
Hawker
The MOTION FAILED (3-6).
Co-Chair Stoltze and Representative Kelly were absent from
the vote.
AT EASE: 3:18:19 PM
RECONVENE: 3:33:52 PM
Representative Crawford MOVED to ADOPT Amendment 21:
OFFERED BY: Representative Crawford
DEPARTMENT: Revenue
APPROPRIATION: Administration and Support
ALLOCATION: Commissioner's Office
ADD: $119,000 General Fund $46.4 (1004)
I/A Receipts $72.6 (1007)
EXPLANATION: This reverses a decrement made by the
budget subcommittee, and restores a Special Assistant
position in the commissioner's office.
The position in question is an essential liaison
between the Department and the legislature for oil and
gas issues. He is also a well regarded researcher and
aide who helps maximize the efficiency and
effectiveness of the commissioner and deputy
commissioner in his department.
The 2010 legislative session will face several
significant issues and it would benefit the state to
have this person continue in his position.
Co-Chair Hawker OBJECTED.
Representative Crawford explained that the amendment
restores a Special Assistant position in the Department of
Revenue.
Co-Chair Hawker responded that it is an issue of positions,
not individuals. He argued that creating special assistant
positions are expensive.
3:37:59 PM
Representative Crawford spoke in support of continuing the
position.
A roll call vote was taken on the motion.
IN FAVOR: Salmon, Crawford, Gara
OPPOSED: Kelly, Thomas, Austerman, Fairclough, Foster,
Joule, Hawker, Stoltze
The MOTION FAILED (3-8).
3:39:28 PM
Representative Crawford MOVED to ADOPT Amendment 22:
OFFERED BY: Representative Crawford
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION ADD FUNDING SOURCE
Anchorage $780,300 $690,300 Gen
Campus Fund (1004)
$90,000 Univ
Rcpt (1048)
Tanana $ 63,200 $47,200 Gen
Valley Fund (1004)
Campus
$16,000 Univ
Rcpt (1048)
Juneau $ 67,000 $56,300 Gen
Campus Fund (1004)
$10,700 Univ
Rcpt (1048)
College of $ 48,800 $40,800 Gen
Rural and Fund (1004)
Community
$8,000 Univ
Development
Rcpt (1048)
Fairbanks $ 112,400 $87,400 Gen
Campus Fund (1004)
$25,000 Univ
Rcpt (1048)
Totals $1,071,700 $922,000 Gen
Fund (1004)
$149,700 Univ
Rcpt (1048)
EXPLANATION:
This amendment restores Priority Program Enhancement
and Growth Increments for Health Academic Programs to
the funding level supported by the Governor.
Program requests will support UA's next step in
building strong health occupation training programs. UA
has accomplished significant results in health
instructional programs; however, the state needs and
opportunities in this area are monumental and require
this as well as future state investments.
Co-Chair Hawker OBJECTED.
Representative Crawford pointed to the crying need for
adequate health care positions and university programs to
support them. The funding would be spread across the five
campus's in the state.
Co-Chair Hawker explained that the subcommittee included
half the amount requested by the university, but not the
entire amount. He felt that the budget was development
occurred during a time of adequate revenue. Now there is a
multi-billion dollar shortfall. He stood behind the
subcommittee's decision and maintained that there have been
no reductions to university services, but rather increases.
Representative Fairclough thought the increases to the
university budget totaled about $2.2 million.
Representative Hawker agreed that it was a continued
investment with adjusted increases.
3:43:40 PM
Representative Gara maintained that this amendment was
necessary. The unemployment rate is rising and there are an
inadequate number of health care providers. The state
should be funding these jobs to help ward off unemployment.
He argued that the university should produce jobs that are
needed and are good for the economy.
Co-Chair Hawker disagreed that the university is there to
produce people to find jobs.
Representative Fairclough reported about the internal
reallocation of funds the university has been doing. She
referred to page 71 of their red book. There were millions
of general funds that were redistributed to a performance
funding pool. The University of Anchorage redistributed
$2.3 million to program priorities. One of the reasons for
the subcommittee's decision to make a reduction was because
of the university's ability to redistribute funds. She
recognized that some programs can't be sustained in this
economy. She gave an example of the difficulty of offering
new programs and sustaining them.
Co-Chair Hawker appreciated the level of diligence the
university subcommittee used to make decisions.
3:49:15 PM
Representative Crawford urged support for Amendment 22.
Co-Chair Hawker MAINTAINED his OBJECTION to the motion.
A roll call vote was taken on the motion.
IN FAVOR: Salmon, Crawford, Gara
OPPOSED: Thomas, Austerman, Fairclough, Foster, Joule,
Kelly, Stoltze, Hawker
The MOTION FAILED (3-8).
3:51:17 PM
Representative Crawford MOVED to ADOPT Amendment 23:
OFFERED BY: Representative Crawford
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Tanana Valley Campus
ADD: $162,900 $98,600 General Funds (1004)
$64,300 Univ Rcpt (1048)
EXPLANATION:
Law Enforcement Academy Base Funding
This request provides base funding for the Tanana
Valley Campus (TVC) Law Enforcement Academy. The
academy conducts basic police training for Interior
Alaska, rural municipalities, and employers of security
personnel. The training consists of students who are
both current recruit employees of a law enforcement
academy as well as students who are considering a
career in law enforcement. All students in the program
will be seeking Alaska Police Standards Certification,
which will make them eligible for employment with any
of the approximately 21 State Enforcement Agencies, or
the 43 municipal police departments within the State of
Alaska. In addition to these agencies, many private
security companies give enhanced consideration to
hiring a candidate who possesses an Alaska Police
Standards Council certificate. Approval of Law
Enforcement as a new "occupational endorsement" at UAF
is anticipated, recognizing the value to students of
completing this academy and securing Alaska Police
Standards certification.
Co-Chair Hawker OBJECTED.
Representative Crawford argued in support of the amendment
because it provides funding for the Tanana Valley Campus Law
Enforcement Academy. All students in the program will be
seeking Alaska Police Standards Certification, which will
make them eligible for employment with any of the 21 State
Enforcement Agencies, or the 43 municipal police departments
within the state. He wanted to see Alaskans trained in law
enforcement jobs.
Co-Chair Hawker reiterated his stance on the previous
amendment.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Salmon
OPPOSED: Thomas, Austerman, Fairclough, Joule, Kelly,
Hawker, Stoltze
Representative Foster was absent from the vote.
The MOTION FAILED (3-7).
3:53:52 PM
Representative Gara MOVED to ADOPT Amendment 24:
Page 60, following line 16:
Insert a new bill section to read:
"* Sec. 10. DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT. The sum of $23,027,000 is appropriated
from the general fund to the Department of Education
and Early Development for distribution as learning
opportunity grants to each school district based on
adjusted (ADM) as calculated under AS 14.17.410(b)(1)
for the fiscal year ending June 30, 2010."
Renumber the following bill sections accordingly.
Page 76, lines 22 - 23:
Delete "20, 22, 25(j), 25(k), 26(e), and 26(f)"
Insert "21, 23, 26(j), 26(k), 27(e), and 27(f)"
Page 76, line 30:
Delete "Sections 26(d) and 28"
Insert "Sections 27(d) and 29"
Page 76, line 31:
Delete "sec. 29"
Insert "sec. 30"
Co-Chair Hawker OBJECTED.
Representative Gara explained that the amendment would fund
learning opportunity grants to each school district based on
adjusted ADM. It would be an increase in student allocation
funding by $100. He noted that last year a two-year
education budget and many reforms were adopted with every
school district benefitting. He argued that this year's
increase of $100 to the base student allocation would result
in cuts to various districts, especially the larger
districts. He said he introduced the bill to begin the
discussion about equity in funding student allocations. He
stated his intent to withdraw the amendment after the
discussion.
Representative Gara emphasized the need for a "hold even"
budget for school districts.
Co-Chair Hawker addressed last year's student funding, which
was a three-to-five-year commitment. It was not based only
on base student allocation, but also on the regional cost
differential factor, and special needs student funding. He
did not agree that the state was decreasing funding to
education. He maintained that the forward funding and new
district cost factors, plus intensive needs student funding
would adequately fund schools. He shared that the budget
reflects the results of the bi-partisan education funding
task force.
4:00:26 PM
Representative Gara spoke to the phase-in of the Institute
of Social and Economic Research (ISER) study, which would
help rural school districts. He maintained that the
majority of schools in the state would have to cut back. He
requested more discussion on the issue.
Co-Chair Hawker noted that the special needs factor provides
substantial funding to urban schools and is the single
greatest increment to the Anchorage School District's
budget. He emphasized the need to consider all components
of education funding.
Representative Gara added that there was also $20 million in
last year's budget for a fuel subsidy for schools, which
will not be in this year's budget.
Representative Gara WITHDREW Amendment 24.
4:03:06 PM
Representative Gara MOVED to ADOPT Amendment 25:
OFFERED BY: Representative Gara
DEPARTMENT: Education and Early Development
APPROPRIATION: Teaching and Learning Support
ALLOCATION: Early Learning Coordination
ADD: $1,200,000, 1004 Gen Fund, (Increase Head Start
Grant program Funding).
EXPLANATION: The amendment is intended to increase
the current Head Start Grant Program Funding increment
from $800,000.00 to $2,000,000. Head Start anticipates
with a funding increase to $2,000,000 they could serve
200 more children. Head Start estimates that 7,727
eligible children do not participate in the program and
there is currently a 900-1,000 child waitlist.
Co-Chair Hawker OBJECTED.
Representative Gara called the amendment a stopgap measure.
It provides an extra $1.2 million to early education in Head
Start. There is a waiting list of 900 children for the Head
Start program. The Head Start program has requested $2
million to cut the waiting list to 700. The current budget
would cut the waiting list by only 80 students. He
maintained that the one thing the state can do to promote
better education is to think "outside the box" and fund
early education.
Co-Chair Hawker noted that the subcommittee for education
funded the administration's requests 100 percent. The
administration brought forward the $800,000 increment for
Head Start, as well as others.
Representative Fairclough referred to the $800,000 increment
for Head Start and reported that the subcommittee looked at
methods of expanding the program. The current cash flow
shortage was a factor in making the budget increment. She
mentioned that Representative Gara's bill was considered
during the development of the bill.
Co-Chair Hawker commented on potential stimulus money for
education.
4:07:02 PM
Representative Gara pointed out that discussions on early
education have been productive and positive. He agreed that
the question is where the money will come from.
Representative Kelly observed that he was not excited about
early education because of the poor job public education was
doing. He thought that parents should be parenting three
and four year olds, rather than schools.
Co-Chair Hawker agreed that it was also a socio-economic
consideration.
Representative Fairclough reported that Commissioner Ledoux
explained that the program is not meant to replace
parenting. She stressed that the $2 million budgeted for
the pilot program would help parents help their children.
Representative Kelly maintained his position.
4:10:25 PM
Representative Gara responded to the idea that parents need
to be involved. He stated that there were cheaper ways to
provide early education than through Head Start. He
maintained that early education with the parents-as-teachers
model especially works.
Representative Gara WITHDREW Amendment 25.
Representative Kelly talked about the Dolly Parton
Imagination Library program. He agreed that there are less
expensive ways to provide early education.
4:12:35 PM
Representative Joule commented on his efforts to keep early
education in the department and in the budget. He reminded
the Committee that a number of items do not get discussed in
committee because they were addressed in subcommittee.
Representative Crawford noted that often parents are not
able to provide adequate early education. He spoke in favor
of the amendment and any efforts made for early education.
4:15:21 PM
Representative Gara MOVED to ADOPT New Amendment 26:
OFFERED BY: Representatives Gara and Hawker
DEPARTMENT: Health and Social Services
APPROPRIATION: Office of Children's Services
ALLOCATION: Office of Children's Services
ADD: $30,000, general funds, 1004
EXPLANATION: Produce a television and radio Public
Service Announcement (PSA), highlighting the need for
Alaska foster homes in the state, and urging Alaskans
to learn more about becoming a foster parent. The
PSA's would air on television and radio via the Alaska
Broadcaster's Association's Non-commercial Sustaining
Announcement Program (NCSA). Through this "Community
Voice" program the PSA's would be placed on 21
television stations and 60 radio stations across the
state for approximately a month and a half at two
different times during the year. The PSA would also be
placed on APRN for four weeks (two weeks at two times
during the year) because of its reach into rural
Alaska. The $30,000 includes visual scripting,
direction, talent coordination, on location shoot,
pre/post production work and dub to stations. The ads
would reach approximately 80,000 Alaskans, and the
response rate is expected to be about 3%--that's 2,400
people who will seek out more information about
becoming foster parents. The Department shall in its
discretion, utilize these funds at radio and television
outlets that produce the most effective outreach.
Co-Chair Hawker OBJECTED.
Representative Gara spoke of a shortage of foster parents in
Alaska. He believed that more people ought to hear about
the need for more foster parents. He suggested that
producing television and radio advertising would assist in
urging Alaskans to learn more about becoming a foster
parent.
Co-Chair Hawker added that this is a one-time funding. Old
Amendment 26 targeted only rural foster homes.
4:18:05 PM
Vice-Chair Thomas shared a story about how difficult it is
to fill out the foster parent application. Adoption
paperwork is additionally cumbersome.
Co-Chair Hawker suggested that the department was aware of
that problem.
Co-Chair Hawker WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
4:19:25 PM
Representative Gara MOVED to ADOPT Amendment 27:
OFFERED BY: Representatives Gara and Hawker
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Behavioral Health, Health Care
Services, Office of Children's
Services, Senior Disability
Services
ALLOCATION: Denali KidCare
ADD: $25,000 General Funds, 1004.
EXPLANATION: Provide $25,000 in funding for
television and/or radio advertising for Denali KidCare.
All of the advertisements would occur in two non-
consecutive calendar months.
Co-Chair Hawker OBJECTED.
Representative Gara explained that the amendment would
provide $25,000 for funding for television advertising for
Denali KidCare. He spoke of this method as an effective
outreach.
Co-Chair Hawker related changes in the federal and State
Children's Health Insurance Program (SCHIP) and the merits
of public outreach.
4:21:16 PM
Representative Fairclough offered a friendly amendment to
include "and/or radio" after "television" in the
explanation. She spoke of a concern about the expense of
television.
Representative Kelly said he has a problem with raising
Denali KidCare to 200 percent of poverty level. He was not
in support of Denali KidCare.
Co-Chair Hawker noted it was for one-time funding.
Co-Chair Hawker WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
Representative Gara added that he wished to see the
advertisements produced "in house" by the department.
4:23:55 PM
Co-Chair Hawker noted that Legislative Finance terms one-
time increments as "INC. OTI".
Representative Gara MOVED to ADOPT Amendment 28:
OFFERED BY: Representative Gara
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Grants
ADD: $750,000 General Fund/Mental Health (1037)
EXPLANATION: The amendment is intended to restore the
Governor's proposed increment for grants to Community
Based Substance Abuse Services.
Co-Chair Hawker OBJECTED.
Representative Gara, in referring to both Amendment 28 and
Amendment 29, spoke of the administration's $1.5 million
increment for Substance Abuse and Behavioral Health
Services. For a number of years there have been cuts in the
Substance Abuse programs. Beginning two years ago, some of
those funds were added back. Last year he requested an
estimate from Legislative Legal regarding the total amount
cut, which was estimated at about 50 percent. He pointed
out that there were waiting lists for treatment programs.
He expected further discussions on treatment programs during
the budget process.
Representative Gara WITHDREW Amendment 28.
Co-Chair Hawker commented on whether there really had been
reductions or increases in these programs. In this
particular component, between FY 07 and FY 10 there has been
a 158 percent funding increase for a total of $39.1 million.
Regarding the all Behavior Health Grants, there has been a
150 percent increase to $75.6 million.
AT-EASE: 4:28:27 PM
RECONVENE: 4:30:42 PM
Co-Chair Hawker thought the conversation on these budget
items would continue throughout the budget process.
4:32:03 PM
Representative Gara WITHDREW Amendment 29.
Representative Gara MOVED to ADOPT Amendment 30:
OFFERED BY: Representative Gara
DEPARTMENT: Department of Public Safety
APPROPRIATION: Council on Domestic Violence and
Sexual Assault
ALLOCATIONS: Council on Domestic Violence and
Sexual Assault
ADD: $1,381.9, General Funds, 1004.
EXPLANATION: The amendment is intended to restore the
Governor's proposed increment for the Council on
Domestic Violence and Sexual Assault.
Co-Chair Hawker OBJECTED.
Representative Gara related that he was trying to determine
if the amount passed was adequate to fund the Council on
Domestic Violence and Sexual Assault. The amendment would
restore the governor's proposed increment.
Co-Chair Hawker pointed out the state of Alaska is last in
the category of private benevolency. The state is almost
entirely dependent on the state budget to fund such
organizations. He stated that he is looking for long-term,
sustainable funding for benevolent programs.
Representative Joule added that the funding is for a topic
that is difficult to talk about. He suggested continuing to
talk about it. He stressed that there is a need to change
the behavior of those who commit such acts of violence. He
related that he would continue to work on the problem.
Co-Chair Hawker recalled public testimony from Dillingham
that addressed domestic violence and the need for a shelter.
He agreed that examining the causes and focusing on
prevention was important.
Representative Foster asked about the Alaska Women's Lobby
statement of support. He questioned the statistics of the
handout that said that one in four Alaskan women would be
sexually assaulted and two would be raped.
Co-Chair Hawker appreciated Representative Foster's
observation.
4:38:47 PM
Representative Fairclough thought that wasn't the intent of
the statement. Representative Foster questioned the
validity of the handout and termed it inflammatory.
Co-Chair Hawker commented that it was poorly written.
Representative Foster maintained that half of the men in
Alaska were not rapists.
Representative Fairclough appreciated the concern of the
Committee. She reported that she has tried hard in her work
with women's issues not to overstate issues. She related
that there are thousands of men who step up to make sure
that Alaska women and children are safe. She pointed out
that boys and men are also raped and less likely to report.
She added that domestic violence and sexual assault is a
cross-cultural problem and it is a disservice to inflate
numbers. Words are very important and are meant to
highlight a serious problem. Domestic violence and sexual
assault are societal issues and many people are passionate
about them; however, the right words need to be used.
Representative Gara WITHDREW Amendment 30.
4:44:11 PM
Representative Gara MOVED to ADOPT Amendment 31:
OFFERED BY: Representative Gara
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATIONS: Anchorage Campus, Fairbanks Campus,
Interior-Aleutians Campus, Juneau
Campus
ADD: $1,030.0 TOTAL ($800.0 General Fund, 1004; $230.0
University Receipts, 1048)
Anchorage Campus: TOTAL $364.3--$304.3 General
Funds (1004), $60.0 University Receipts (1048).
Fairbanks Campus: TOTAL $365.0--$225.0 General
Funds (1004), $140.0 University Receipts (1048).
Interior-Aleutians Campus: TOTAL $100.7--$95.7
General Funds (1004), $5.0 University Receipts
(1048).
Juneau Campus: TOTAL $200.0--$175.0 General Funds
(1004), $25.0 University Receipts (1048).
EXPLANATION: The amendment is intended to restore the
Governor's proposed increment for the University K-12
outreach.
Co-Chair Hawker OBJECTED.
Representative Gara explained that the amendment would
restore the governor's proposed increment for the
university's K-12 outreach. He spoke of the ability of the
university to ready students for life after high school.
The request is for $1 million. He suggested the Committee
look at the usefulness of the request.
Co-Chair Hawker related that the education and workforce
development budgets were combined under one subcommittee
headed by Representative Fairclough. Representative
Fairclough pointed out that she would have liked to do more,
but the job was difficult due to the revenue situation.
4:48:44 PM
Representative Fairclough reported on her thirty years of
support for education in the state. She maintained that due
to budget constraints, issues had to be prioritized. She
explained that the K-12 Outreach would be a new program and
it was evaluated on sustainability. She discussed the role
of the university as it relates to curriculum for teachers.
It became apparent that the math and science curriculum
needed retooling. As requested by the university, an
increment for $600,000 was approved to hire a specialist to
examine curriculum in those areas, as well as in the areas
of art, technology, and social studies. She requested
information from the university about resources for
teachers. The subcommittee did provide $600,000 for
outreach to increase students' abilities to perform in
college.
Co-Chair Hawker added that the area of workforce and
development was being looked at holistically.
4:53:06 PM
Representative Gara WITHDREW Amendment 31.
4:53:32 PM
Representative Gara MOVED to ADOPT Amendment 32:
OFFERED BY: Representative Gara
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: System Reductions/Additions
ADD: $2,500,000
FUNDING SOURCE: General Funds 1004
EXPLANATION:
Need Based Grants
To minimize any added administrative burdens, the
intent is to administer these funds through existing
mechanisms for the university's existing, internally
funded, needs-based grant aid program, the UA Grant.
This program reserves one percent of tuition revenue
for needs-based financial aid awards.
General Fund revenue of $2.5 million will be added to
the University of Alaska's System Reductions and
Additions allocation. This funding will be distributed
to campuses in a manner consistent with the UA Grant
program for financial aid awards.
Co-Chair Hawker OBJECTED.
Representative Gara recalled previous support for the
university's financial aid program, which is the second
lowest per capita of any other state. Alaska has the worst
rate of attendance for college. One of the reasons students
don't go to college or get job training is due to lack of
money. Tuition has gone up 10 percent a year over the last
four years. The proposed amendment replicates last year's
funding. It adds $2,500,000 for aid to students who cannot
afford a college education. That amount is about one-third
of what is needed. He reported that if this does not pass
there is some money at the university and in the Alaska
Commission on Postsecondary Education (ACPE) for low income
grants. The amendment is being requested through the
university because ACPE has a statutory cap.
Co-Chair Hawker recalled seeing the same amendment last
year. He related that it did not make the cut in the
university's requests. Until it becomes a key priority, it
belongs in the conversation, but not in the budget.
4:58:54 PM
Representative Joule observed that he wouldn't be supporting
the amendment. He argued that just because something is not
on the university's priority list is not a valid reason for
not supporting the request. The legislature is an
independent body.
Representative Kelly mentioned that the students had this
item high on their list. He suggested loosening payback
requirements that focused on the student applicant. He
thought there could be some permanent fund dividend
involvement for collateral.
5:02:04 PM
Representative Gara agreed with Representative Joule. He
pointed out that the university has focused on financial aid
reform. He questioned the omission in the governor's
budget. He called the amendment a stop gap.
Co-Chair Hawker MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Salmon
OPPOSED: Austerman, Fairclough, Foster, Joule, Kelly,
Thomas, Hawker, Stoltze
The MOTION FAILED (3-8).
HB 81 and HB 83 were heard and HELD in Committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB81 Amendments 030909.pdf |
HFIN 3/9/2009 1:30:00 PM |
HB 81 |
| Amendment action 030909 HB81.pdf |
HFIN 3/9/2009 1:30:00 PM |
HB 81 |
| New Amendment 26.doc |
HFIN 3/9/2009 1:30:00 PM |
HB 81 |