04/13/2013 09:00 AM Senate FINANCE

HOUSE BILL NO. 180                                                                                                            
                                                                                                                                
     "An Act relating to the Alaska Challenge Youth                                                                             
     Academy; and providing for an effective date."                                                                             
                                                                                                                                
9:05:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TAMMIE  WILSON, stated that the  objective of                                                                    
the  Alaska  Military  Youth Academy  was  to  assist  young                                                                    
Alaskans between  the ages of  16 and 19,  who statistically                                                                    
are headed for a  troubled future, to become self-confident,                                                                    
contributing  citizens of  the  state. She  shared that  the                                                                    
academy offered a 22 week  residential program and that upon                                                                    
completion the  cadets were  involved in  a 12  month after-                                                                    
care  program   to  further   their  education,   enter  the                                                                    
workforce,  or enlist  in the  military. She  said that  the                                                                    
academy had graduated 4000 cadets  in the last 20 years; the                                                                    
academy  graduated   approximately  300  cadets   per  year.                                                                    
She  related that  the bill  would  change the  name of  the                                                                    
Alaska Military  Youth Academy and  also change  the formula                                                                    
program. She  explained that the academy  currently received                                                                    
7 times  the base  student allocation  (BSA), but  should be                                                                    
funded based on performance.                                                                                                    
                                                                                                                                
9:07:27 AM                                                                                                                    
                                                                                                                                
MCHUGH PIERRE,  DEPUTY COMMISSIONER, DEPARTMENT  OF MILITARY                                                                    
AND  VETERANS AFFAIRS  (DMVA), related  that the  department                                                                    
had worked closely with the  bill sponsors. He stressed that                                                                    
the academy was one of the  best programs in the country. He                                                                    
believed  that the  legislation would  allow the  department                                                                    
more planning time with their  budget cycle. He related that                                                                    
the current  funding formula had  been established  to allow                                                                    
the  division to  grow, which  it had.  He relayed  that the                                                                    
division  now  had  the  ability  to  remove  the  "training                                                                    
wheels"  and  become more  independent.  He  hoped that  the                                                                    
division could work through the  full budget process for the                                                                    
coming fiscal year and debate the merits of the program.                                                                        
                                                                                                                                
9:08:48 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough noted  fiscal note  3 from  DMVA. She                                                                    
related  that the  proposed operating  funding for  FY14 was                                                                    
$11,074,600.                                                                                                                    
                                                                                                                                
Mr. Pierre commented  that the note reflected  that the bill                                                                    
would  have zero  impact on  the FY14  budget and  might not                                                                    
impact FY15. He said that the  bill would impact the way the                                                                    
money came to  the program. He noted the  reduction from the                                                                    
Department  of  Education  and Early  Childhood  Development                                                                    
(DEED)of approximately  $4 million  in FY14. He  stated that                                                                    
the department  would come  forward in  FY15 to  request the                                                                    
appropriation from the general fund.                                                                                            
                                                                                                                                
9:10:19 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman  wondered  where the  interagency  receipts                                                                    
were being reduced from.                                                                                                        
                                                                                                                                
Mr. Pierre explained that instead  of appropriating money to                                                                    
DEED,  the funds  would be  appropriated  directly to  DMVA.                                                                    
Senator  Hoffman  understood that  the  BSA  would not  need                                                                    
funding for academy students.                                                                                                   
                                                                                                                                
Mr.  Pierre replied  in the  affirmative. He  furthered that                                                                    
instead  of receiving  money from  the  BSA, the  department                                                                    
would receive it directly from the general fund.                                                                                
                                                                                                                                
9:11:06 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:11:50 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair  Fairclough noted  fiscal note  4 from  DEED. She                                                                    
wondered if  the department was  planning of  returning year                                                                    
after  year  to  request  the   allocation  and  should  the                                                                    
committee be  put on  notice that there  would be  a general                                                                    
fund request every year.                                                                                                        
                                                                                                                                
Mr. Pierre responded that every  year the academy would come                                                                    
back and  request a  certain amount based  on the  number of                                                                    
cadets  expected to  graduate.  He stated  that the  program                                                                    
served students  who had  dropped out  of public  school and                                                                    
that that number  could fluctuate. He said  that the program                                                                    
served between 9 and 10  percent of the drop out population.                                                                    
He relayed that  the department would address  the number of                                                                    
students each year and how  much general fund match would be                                                                    
appropriate to fund the student population.                                                                                     
                                                                                                                                
Representative Wilson interjected  that the academy received                                                                    
the  names of  drop outs  from school  superintendents on  a                                                                    
yearly  basis and  that  the  role of  DEED  was  as a  pass                                                                    
through grant.                                                                                                                  
                                                                                                                                
9:13:41 AM                                                                                                                    
                                                                                                                                
Senator Olson  understood that the  students at  the academy                                                                    
currently received 7 times the BSA.                                                                                             
                                                                                                                                
Mr. Pierre explained  that the existing formula  was 7 times                                                                    
the  BSA, times  the number  of residential  students as  of                                                                    
October 1;  plus .6 times  the BSA multiplied by  the number                                                                    
of  non-residential  students as  of  October  1, minus  the                                                                    
federal  match. He  said the  cost was  roughly $35,000  per                                                                    
graduated student.                                                                                                              
                                                                                                                                
9:14:49 AM                                                                                                                    
                                                                                                                                
Senator Olson  noted that roughly 4,000  cadets came through                                                                    
the academy and 70 percent graduated.                                                                                           
                                                                                                                                
Mr.  Pierre replied  that there  had been  a total  of 4,000                                                                    
graduated  in  20  years.  He  said  that  the  academy  had                                                                    
approximately  400 cadets  entering  the  program per  year,                                                                    
with roughly 300 graduates.                                                                                                     
                                                                                                                                
9:15:56 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough OPENED public testimony.                                                                                  
                                                                                                                                
Vice-Chair Fairclough CLOSED public testimony.                                                                                  
                                                                                                                                
Senator Bishop MOVED to REPORT  HB 180 out of committee with                                                                    
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
9:16:38 AM                                                                                                                    
                                                                                                                                
HB  180 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with  two previously  published  fiscal                                                                    
impact notes: FN3(MVA) and FN4(EED).                                                                                            
                                                                                                                                
9:16:40 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:19:43 AM                                                                                                                    
RECONVENED