Legislature(2007 - 2008)HOUSE FINANCE 519
02/27/2008 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB310 || HB312 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 310 | TELECONFERENCED | |
| += | HB 312 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 310
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. 312
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.
LANGUAGE
Co-Chair Chenault MOVED to ADOPT amendment LANG 1. Co-
Chair Meyer OBJECTED.
ADD a new language section:
It is the intent of the legislature that general funds
be the last fund source to be expended from any
appropriation that has multiple fund sources. It is
the intent of the legislature that the Office of
Management and Budget and the Department of
Administration assist the legislature in carrying out
this intent.
Co-Chair Chenault explained that the allocations permitted
to carry-forward non-general funds from prior fiscal years
often spend General Funds in order to maximize those carry-
forward from other funding sources. The language has been
designed to encourage agencies to follow a traditional, but
unwritten, policy that is intended to minimize lapsing
General Funds.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, LANG 1 was adopted.
2:04:42 PM
Representative Nelson MOVED to ADOPT amendment LANG 2. Co-
Chair Chenault OBJECTED.
Page 57, Line 1, following "DEVELOPMENT"
Insert "(a)"
Page 57, following Line 4:
Insert a new subsection to read:
(b) The sum of $200 thousand dollars is appropriated
from the General Fund to the Department of Education
and Early Development for payment as grants to school
districts that operate a charter school with an
average daily membership of less than 150 for support
of those charter schools in those districts for the
fiscal year ending June 30, 2009. The amount
appropriated under this subsection shall be allocated
among eligible school districts in the proportion that
the average daily membership of the eligible charter
schools in the district bears to the total average
daily membership of all eligible charter schools in
all school districts that operate an eligible charter
school.
Representative Nelson explained the proposed language.
Co-Chair Chenault stated that last year the component had
been cut to $50 thousand dollars in the Capital Budget
process. In previous years, it had been funded at $100
thousand dollars. The original intent of funding those
dollars was to help charter schools provide services while
attempting to grow the schools up to the 150 student level.
2:07:31 PM
Co-Chair Meyer pointed out that the issue comes forward
every year with the intent that it be a one-time funding.
He agreed with the comments made by Co-Chair Chenault
noting that only three schools would be impacted, Juneau,
Nome and the Kenai Borough.
Representative Nelson commented that last year it was
funded at $100 thousand dollars and the previous year it
was funded at $200 thousand dollars. Co-Chair Chenault
disagreed, stating that it was cut to $50 thousand dollars.
Representative Gara said he understood the arguments on
both sides. He explained the logic of the proposal of
placing it in the budget permanently. Co-Chair Chenault
clarified that the appropriation was made in the capital
budget, not the operating budget.
A roll call vote was taken on the motion to adopt LANG
Amendment 2.
IN FAVOR: Joule, Nelson, Crawford, Gara
OPPOSED: Hawker, Kelly, Stoltze, Thomas, Harris,
Meyer, Chenault
The MOTION FAILED (4-7).
AT EASE: 2:11:16 PM
RECONVENE: 2:27:42 PM
Representative Kelly MOVED to ADOPT amendment LANG 3.
Vice-Chair Stoltze OBJECTED.
DEPARTMENT: Department of Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Pipeline Coordinator
ADD: Subsection to Section 15:
The sum of $213.4 thousand dollars is appropriated
from federal receipts to the Department of Natural
Resources, Resource Development, Pipeline
Coordinator's office for a cooperative agreement
between the U.S. Bureau of Land Management and the
Department for the fiscal year ending June 30, 2010,
and June 30, 2011.
Representative Kelly explained that the amendment would
establish a multi-year appropriation that would sunset when
the new cooperative federal agreement with the U.S. Bureau
of Land Management ends on June 30, 2011. The agreement
will be finalized between the U.S. Bureau of Land
Management and the Department of Natural Resources,
pipeline coordinator's office. The agreement will span
three years and reappropriations shared costs to include
the building lease, IT, phones and copiers. The agreement
provides federal reimbursement of up to $276 thousand
dollars for applicable shared costs, and an increase of
$312 thousand dollars.
Vice-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
2:28:45 PM
Vice-Chair Stoltze MOVED to ADOPT amendment LANG 4. Co-
Chair Meyer OBJECTED.
AMEND LANGUAGE:
SECTION 16 by adding two new subsections:
(c) The sum of $1.270 million dollars is appropriated
from the General Fund to the Department of Public
Safety, Division of Alaska State Troopers,
special projects for rural alcoholic interdiction
efforts during the fiscal year ending June 30,
2009.
(d) If federal receipts are received by the
Department of Public Safety for the rural alcohol
interdiction program during the fiscal year
ending June 30, 2009, the appropriation in (c) of
this section is reduced by the amount of the
federal receipts.
Vice-Chair Stoltze explained that both the Department of
Public Safety and the Department of Law are requesting fund
source changes in FY09 to replace lost federal funding for
the Rural Alcohol Interdiction Program. The Department of
Public Safety requested $870 thousand dollars and the
Department of Law requested $400 thousand dollars. The
amendment funds the Department of Public Safety with the
entire General Fund replacement; the agency will continue
to provide interagency receipts to the Department of Law
for program related attorney services.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
2:30:25 PM
Co-Chair Chenault MOVED to ADOPT amendment LANG 5. Co-
Chair Meyer OBJECTED.
AMEND Section 18(d) as follows:
(e) The governor shall allocate amounts in (a) of
this section as follows:
(1) to the Department of Transportation and
Public Facilities, 65 percent of the total
plus or minus 10 percent;
(2) to the University of Alaska eight [10]
percent of the total plus or minus three
percent;
(3) to the Department of Health and Social
Services and the Department of Corrections,
not more than five percent of the total
amount appropriated for each department;
(4) to any other state agency, not more than
four percent of the total amount
appropriated;
(5) the aggregate amount allocated may not
exceed 100 percent of the appropriation.
Co-Chair Chenault explained that the amendment would
restore the fuel allocation to the University of Alaska to
the 8% level in effect for FY07 and FY08. Analysis of
supplemental requests to cover fuel costs indicates that
the change in the committee substitute would be necessary
only if General Funds were used to pay for the 100% of the
cost increases. The amendment indicates an expectation
that the University pay a share of increased fuel costs
from the University receipts.
Co-Chair Meyer WITHDREW his OBJECTION.
Representative Gara OBJECTED for discussion purposes. He
asked if fuel costs for the University would be decreased.
Co-Chair Chenault pointed out that they had been funded at
8% previously. The question was with regard to using
General Funds over other funding sources. Representative
Gara questioned how that change would affect the
University's budget.
2:33:23 PM
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
acknowledged that Representative Gara was correct in that
the University does not have other fund sources to pay for
the fuel costs. However, the 8% should be sufficient to
pay the fuel costs in FY09 if the "size of the pie is made
larger". In the committee substitute, the trigger was
increased to a maximum of $24 million dollars; at current
oil prices, the share would be increased around $37
thousand dollars.
Representative Gara referenced Sections 1, 2 & 3 and asked
if the intent was to compensate the State entities as the
benchmark. Mr. Teal said yes.
Representative Gara commented that if the goal was to get
the University coverage for the fuel costs, could the
language accomplish that. Co-Chair Chenault thought it
would. Mr. Teal advised that it would depend on how much
of the fuel costs the General Fund would pay & how much the
University receipts pay. The trigger is based on the
supplemental requests trigger for FY09; they had requested
an additional $2.3 million dollars over the amount they
received. Last year, the trigger was too low for every
department, which was adjusted by the amount distributed.
The question is who pays for it.
Representative Gara understood that adopting the amendment
indicates that the University's contribution will need to
be higher to cover the fuel costs. Co-Chair Chenault
clarified that the real issue is how much General Funds be
used. He thought the fuel mechanism was being addressed
for all departments, not just for the University.
2:39:55 PM
Co-Chair Chenault suggested that the supplemental budget
process should be the place to address the issue.
Representative Gara clarified the process of the
supplemental requests. Co-Chair Chenault stated that the
Governor's budget included $7.1 million dollars as the
trigger mechanism.
Representative Gara WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
2:43:05 PM
Co-Chair Chenault MOVED to ADOPT amendment LANG 6. Co-
Chair Meyer OBJECTED.
DELETE LANGUAGE IN SECTION 25(b) and insert:
The amount necessary to pay the first five ports of
call their share of the tax collected under AS
43.52.220 in calendar year 2008, according to AS
43.52.230(b), is appropriated from the commercial
passenger vessel excise tax account (AS 43.52.230(a))
to the Department of Revenue for payments during the
fiscal year ending June 30, 2009.
Co-Chair Chenault explained that the language would clarify
that the receipts collected in 2008 calendar year from the
commercial vessel head tax are to be distributed per AS
43.52.230(b) in fiscal year 2009. The intent is to provide
payment to the qualifying local governments upon completion
of the calendar year as soon as possible after the end of
the calendar year.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
2:44:16 PM
Representative Gara MOVED to ADOPT amendment LANG 7. Co-
Chair Meyer OBJECTED.
Page 72, following Line 21:
Insert new subsection to read:
(d) The sum of $3,500,000,000 is appropriated from
the General Fund to the budget reserve fund (art.
IX, sec. 17, Constitution of the State of
Alaska);
(e) The sum of $1,500,000,000 is appropriated from
the General Fund to the budget reserve fund (art.
IX, sec. 17, Constitution of the State of
Alaska)."
Re-letter the following subsection accordingly:
Page 73, Line 3, following "10(a)":
Insert ",27(d),"
Representative Gara explained the amendment does address
anticipated surplus for the State with the intention of
placing a certain amount of the funds into the Capital
Budget Reserve (CBR). He hoped that the amendment would
provide conversation with the Administration regarding
those surplus numbers.
Representative Gara WITHDREW amendment LANG 7.
2:45:47 PM
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Representative Hawker MOVED to ADOPT amendment HSS 1.
Vice-Chair Stoltze OBJECTED.
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Public Assistance
ALLOCATION: General Relief Assistance
DELETE: 6 Permanent Full-Time Positions
APPROPRIATION: Public Assistance
ALLOCATION: Senior Benefits Payment Program
ADD: 6 Permanent Full-Time Positions
Representative Hawker explained that the amendment would
transfer six permanent full-time positions from the Public
Assistance, General Relief Assistance Program to the Public
Assistance Senior Benefits Payment Program. The
transaction transferring the funding was accepted by the
Department of Health and Social Services budget
subcommittee, however, the six permanent full-time
positions were inadvertently omitted from the transaction.
The amendment will correct that oversight.
Vice-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
2:47:41 PM
Representative Hawker MOVED to ADOPT amendment HSS 2. Co-
Chair Meyer OBJECTED.
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Administration
ADD: $200.0 OTI/ 1 TMP
Suicide Prevention Strategy &
Implement.
FUNDING SOURCE: General Funds 1004
ADD INTENT LANGUAGE:
It is the intent of the legislature that the $200.0
increment in the FY 09 budget for the Suicide
Prevention Strategy and Implementation Plan be
dedicated to developing a best practices, evidence
based multi-dimensional strategy and implementation
plan to reduce the rates of suicide in targeted rural
regions of the state with the highest current rate of
suicide. The strategy and plan must specifically
propose the means to reduce in the rate of suicide and
address various dimensions of the issue including
differing age and social demographics of at-risk
populations as well as implementation alternatives
available in the targeted regions. The plan must be
developed in coordination with stakeholders and
relevant resources in the targeted regions. The
Suicide Prevention Strategy and Implementation Plan
must be completed and available to the legislature no
later than December 15, 2008.
Representative Hawker explained pilot project for a
targeted, evidence based, multidimensional strategy to
reduce the occurrence of suicide in Alaska. An
implementation plan is to be developed to reduce the
suicide rate in coordination with targeted regions and
communities with the targeted regions and communities with
the current highest rates of suicide.
2:58:22 PM
Representative Hawker continued the discussion regarding
the targeted base areas. He emphasized that the funds need
to be targeted into suicide prevention, which is
accomplished through HSS 2.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
3:03:45 PM
Representative Hawker MOVED to ADOPT amendment HSS 3.
Vice-Chair Stoltze OBJECTED.
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Grants
ADD: $750.0 General Fund
Substance Abuse Provider Rate Increase
FUNDING SOURCE: General Fund 1004
ADD INTENT LANGUAGE:
It is the intent of the legislature that the $750.0
increment in the FY09 budget for behavioral health
grants be used exclusively to provide additional base
funding for existing core services of current grantee
providers of adolescent and adult substance abuse
intervention or treatment services, who have
demonstrated successful outcomes documented in
accordance with the Department's performance based
evaluation procedures. The Department should continue
work on implementing a provider rate rebasing process
and specific funding recommendations for both Medicaid
and non-Medicaid providers to be completed and
available to the legislature no later than December
15, 2008.
Representative Hawker explained that the amendment
addresses all provider services that are at risk because
they are not able to meet client needs. The amendment
provides money targeted directly to the base of behavioral
health providers, specifically substance abuse providers.
It will provide $750 thousand dollars. He emphasized that
the intent language is critical to the amendment.
Representative Gara pointed out that the Department had
proposed other $1.7 million dollar request increases for
substance abuse treatment and services. He asked if the
proposed funds would replace that request. Representative
Hawker clarified why the $1.7 million dollars requests were
not honored; the proposed funding is intended to expand
programs". The subcommittee advised it was more important
to shore-up the base than to expand any programs.
3:08:37 PM
Representative Crawford appreciated the $750 thousand
dollars but preferred the numbers requested by the
Governor. He addressed the basic human service needs. He
hoped it would be different next year. He indicated
support for the amendment.
Representative Gara recalled previous testimony from a
former director of the State's substance abuse programs,
noting that the State currently provides fewer programs
than five or ten years ago. He asked if the intent was to
provide the same level of services as last year.
Representative Hawker explained that he would not want to
place the Department into a greater risk due to loss of
federal funding; he hope to address the existing provider's
ability to handle existing needs.
Representative Joule recommended the importance of
evaluating existing programs, ensuring base funding. He
spoke in support of the amendment.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
3:15:15 PM
Representative Hawker MOVED to ADOPT amendment HSS 4. Co-
Chair Meyer OBJECTED.
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Departmental Support Services
ALLOCATION: Commissioner's Office
DELETE INTENT:
It is the intent of the legislature that the
department continues working on implementing a
provider rate rebasing process.
ADD INTENT:
It is the intent of the legislature that the
department continues working on implementing a
provider rate rebasing process and specific funding
recommendations for both Medicaid and non-Medicaid
providers to be completed and available to the
legislature no later than December 15, 2008.
Representative Hawker explained that the amendment
addresses the non-Medicaid eligible re-basing
recommendations and provides more thorough intent language.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, amendment HSS 4 was adopted.
3:16:25 PM
Representative Hawker MOVED to ADOPT amendment HSS 5. Co-
Chair Meyer OBJECTED.
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Public Health
ALLOCATION: Health Planning and Infrastructure
ADD: $250.0 OTI
Anchorage Project Access
Grant to Named Recipient:
In accordance with AS 37.05.316, it is
intended that $250.0 General Fund be
provided as a grant to Anchorage
Project Access.
FUNDING SOURCE: General Fund 1004
Representative Hawker explained that the amendment
addresses the Anchorage Project Access, which is based on a
national model that has proven to improve health outcomes
and reduce emergency room charity care costs. Similar to
pro bono services provided by attorneys, the model provides
specialty medical care to those who meet the qualifying
criteria; income less than 200% of the poverty level,
uninsured, medical need and Anchorage resident (10% of
quarterly referral may be referred from outside of the
Anchorage Bowl). The Anchorage Project Access is under the
501c3 umbrella of Christian Health Associates (CHA) dba
Anchorage Project Access.
Representative Crawford added, the amendment places
together willing providers and those that have the needs.
He urged passage.
Vice-Chair Stoltze inquired if the doctors providing the
pro bono were in the same class as those people exempted
from coverage in the personal injury, tried by attorneys.
3:20:35 PM
Representative Hawker did not know.
Representative Kelly asked if funding had been given to the
CHA previous years. Representative Hawker responded that
the State had previously funded the increment.
Vice-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTIONS, the amendment was adopted.
3:22:06 PM
Representative Crawford MOVED to ADOPT amendment HSS 6 for
the purpose of discussion. Vice-Chair Stoltze OBJECTED.
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Grants
ADD: $1,750,000
FUNDING SOURCE: 1037 General Fund/Mental Health
Representative Crawford discussed that for services for
substance use disorders comprehensive system of care,
Alaskans in the large urban communities, currently must
wait one to three months to receive treatment, if they do
not present a danger to themselves or others. Available
detoxification services are at a maximum capacity, and
failure to meet the need leads to more costly hospital
admissions, inappropriate incarceration, public
inebriation, and placement into the correctional system.
In addition, there is a failure to appropriately serve
dual-disordered clients, such as those with traumatic brain
injury and a substance use disorder. The increment would
fund grants to create an enhanced continuum of care, from
the least restrictive to the most intensive. Substance
abuse treatment providers also are in need of a rate
increase similar to those under consideration for other
providers within the behavioral health delivery system.
Recipients of substance abuse treatment are seldom eligible
for Medicaid. Funds are not available to provide the rate
increase through leverage of federal funds. The funding
could provide up to a 9% increase for substance abuse
treatment providers to allow providers to catch up to
current costs.
Representative Hawker agreed with Representative Crawford
assessment. There are other increments in the proposed
budget to address the above mentioned concerns. He listed
all the proposed allocations within the Department of
Health and Social Services subcommittee budget proposals.
He highlighted the allocations to the Division of
Behavioral Health.
Vice-Chair Stoltze WITHDREW his OBJECTION. Representative
Crawford WITHDREW amendment HSS 6.
3:27:51 PM
Representative Gara MOVED to ADOPT amendment HSS 7.
Representative Hawker OBJECTED.
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavior Health Grants Treatment and
Services for clients with severe mental
illness and co-occurring disorders
ADD: $1,750,000
FUNDING SOURCE: General Fund 1004
Representative Gara explained that the appropriation would
fund grants that provide essential services for the
severely mentally ill who also suffer from substance abuse
problems dual diagnosis. Needs have increased and
funding has decreased.
Representative Hawker commented that funding would be
premature at this time. Representative Gara recalled that
the previous funding as mentioned by Representative Hawker
was inadequate to prevent further losses. Without the
increment, to prevent losses to the existing services,
funding the request is essential.
Representative Hawker MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Nelson, Crawford, Gara
OPPOSED: Kelly, Stoltz, Thomas, Hawker, Joule, Meyer,
Chenault
Representative Harris was not present for the vote.
The MOTION FAILED (7-3).
AT EASE: 3:33:13 PM
RECONVENE: 3:47:46 PM
Representative Nelson MOVED to ADOPT amendment HSS 8. Co-
Chair Meyer OBJECTED.
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Public Assistance
ALLOCATION: Energy Assistance Program
ADD: $9,805,700
FUNDING SOURCE: 1004 General Funds
Representative Nelson discussed the amendment, which would
add $9.8 million General Fund dollars to the Division of
Public Assistance, Energy Assistance Program in the
Department of Health and Social Services to expand the
State's ability to provide energy assistance to low income
individuals throughout the State. The amount requested
matches the existing federal grant contribution to Low
Income Heating Energy Assistance Program (LIHEAP). LIHEAP
is a federal program, providing financial heating and
weatherization assistance. The federal contributions in
2008 were $10.970 million dollars, while the FY09
Governor's budget indicates $9.805 million dollars. In
2006, the year with the most recent available data, Alaska
provided over 10,700 households with financial heating
assistance, helping 23.4% of the 45,817 eligible households
in the State.
3:53:12 PM
Representative Hawker commented on his objection. He
claimed that he has always supported conservative economics
and had voted against the Alaska's Clear and Equitable
Share (ACES) bill because it would impair the economy's
ability to sustain needed cash flow in the future. He
addressed the negative concern regarding energy subsidies.
He concluded that it would be an expensive program and not
sustainable.
Representative Thomas recalled his oppositional testimony
on ACES due to the removal of LIHEAP. He maintained that
everyone should be treated fairly and that all State
residents have energy needs.
3:56:27 PM
Representative Gara pointed out previous year's budget
deficits, however, noted that this year, the State of
Alaska has a surplus of money, dispelling any argument that
there is no extra money. He strongly emphasized the need
to pass an energy assistance bill. He recalled how LIHEAP
had been passed last year. Thirty-six other states have
passed some sort of energy legislation. He mentioned the
fuel subsidy provided from outside the United States (US)
by the Venezuelan government and he believed that was
acceptable. He recommended that the State be patriotic
and extend a hand.
Representative Crawford remembered a previous Special
Session discussion regarding LIHEAP. He reported that
residents in his district want those with the greatest need
to receive energy assistance. He voiced support for the
amendment.
4:00:51 PM
Representative Joule voiced appreciation that the issue had
been brought forward, yet suggested that it be discussed
from both a long-term and short-term perspective. He felt
that LIHEAP was the best way to address immediate short-
term needs. He gave an example of energy saving behavior.
He reminded members that some people in Alaska have to make
difficult choices between food and fuel. He testified in
support of the amendment.
4:04:10 PM
Representative Thomas commented on his original ideas on
energy rebates, relating a personal experience with a
friend needing energy assistance. The incidence provided
the background behind the idea for a $500 rebate for the
needy. He did not think that a "band aid approach could
work. He told another personal story about the limits to
energy assistance and the need to help everyone.
Representative Harris noted support of the amendment, but
recommended that it be placed into a different bill. He
pointed out it is not a year-by-year funded item that it
should be placed into the capital budget. He agreed it is
wrong to create a band aid approach. The focus should be
on less expensive energy in the State. He spoke against
the amendment, but was willing to address the issue in
another way.
4:08:50 PM
Representative Nelson felt encouraged by hearing that there
are other options. She requested a vote. She offered
further statistics to support the amendment, pointing out
the number of people in Alaska that are suffering as a
result of the energy crisis. She maintained that federal
assistance is not keeping pace in Alaska and agreed that it
could be addressed in the capital budget.
Representative Hawker MAINTAINED his OBJECTION to the
amendment.
A roll call vote was taken on the motion.
IN FAVOR: Nelson, Crawford, Gara, Joule
OPPOSED: Stoltze, Thomas, Harris, Hawker, Kelly,
Chenault, Meyer
The MOTION FAILED (4-7).
4:12:57 PM
Representative Crawford MOVED to ADOPT amendment HSS 9.
Representative Hawker OBJECTED for discussion purposes.
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Grants
ADD: $100,000
FUNDING SOURCE: General Funds
Representative Crawford stated that the amendment would add
an increment back into the budget that was deleted from the
Governor's amended budget. The money would provide grants
for training of service providers for the treatment of
people with traumatic brain injuries. The training program
would include three separate components:
• Contracted brain injury specialists utilizing Alaska
Psychiatric Institute's tele-behavorial health
project and other communication options for case
consultation;
• Regional workshops specific to needs of the area
utilizing multidisciplinary hub and spoke model
highlighting the needs across several life domain;
and
• Developing training format and material to include
self study modules utilized in other states. The
project is designated grant request to the Alaska
Brain Injury Advisory Board.
Representative Crawford continued that the increment would
ensure that every provider serving Alaskans with a brain
injury would have access to a brain injury specialist for
consultation and would have a road map on how to address
the screening, assessment, referral and treatment planning.
Representative Hawker explained that HSS 9 was an item that
was requested by the Alaska Mental Health Trust. There had
been confusion about the funding for Traumatic Brain Injury
(TBI). It had not made it through the subcommittee process
due to the above mentioned confusion.
4:17:52 PM
Representative Hawker MOVED to AMEND HSS Amendment 9,
changing the fund source to the Alaska Mental Health Trust
Authority (AMHTA). There being NO OBJECTION, the proposed
change was adopted.
Representative Hawker WITHDREW his OBJECTION to the
amendment. There being NO further OBJECTION, amended HSS 9
was adopted.
4:19:19 PM
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
Co-Chair Chenault MOVED to ADOPT amendment LABOR 1. Co-
Chair Meyer OBJECTED.
DEPARTMENT: Department of Labor & Workforce
Development
APPROPRIATION: Construction Academy Training
ALLOCATION: Construction Academy Training
ADD: $3,5000 OTI
FUNDING SOURCE: General Funds
Co-Chair Chenault explained that the Alaska Construction
Academy training opportunities, more appropriately belongs
in the operating budget, not in the capital as proposed by
the Administration.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
4:20:05 PM
Co-Chair Chenault MOVED to ADOPT amendment LABOR 2. Co-
Chair Meyer OBJECTED.
DEPARTMENT: Department of Labor & Workforce
Development
APPROPRIATION: Commissioner and Administrative
Services
ALLOCATION: Office of Citizenship
DELETE: $65.6 General Funds
DELETE the following intent language:
It is the intent of the legislature that the
Department of Labor and Workforce Development use this
allocation to fund a permanent full-time position in
the Kodiak Job Center and eliminate the permanent
full-time position in the Juneau Job Center.
Co-Chair Chenault noted that the amendment would zero out
the allocation and would eliminate the intent language for
the Office of Citizenship. He stated that those services
are provided by the federal government.
Co-Chair Meyer agreed, indicating that it has become a
duplicative function provided also by the federal
government. He agreed the State funding should be limited.
The congressional delegation has offices in Juneau and they
could be contacted regarding such matters.
Co-Chair Meyer WITHDREW his OBJECTION.
4:22:38 PM
Representative Gara OBJECTED, noting that people without
money attempting to obtain citizenship cannot afford to
hire an attorney for help. He addressed the Office of
Citizenship's role, advising that the State only assists
with legal immigration issues.
Co-Chair Meyer reported that the Juneau position had been
vacant for a year and that there had not been a high demand
for those services.
Vice-Chair Stoltze agreed with the comments of Co-Chair
Meyer. He opined that the amendment was not consistent
with the Department of Labor and Workforce Development's
mission.
Representative Gara MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Thomas, Harris, Hawker, Kelly, Stoltze,
Chenault, Meyer
OPPOSED: Crawford, Gara, Joule, Nelson
The MOTION PASSED (7-4).
4:28:39 PM
Representative Crawford WITHDREW LABOR 3.
Representative Crawford MOVED to ADOPT amendment LABOR 4.
Co-Chair Meyer OBJECTED.
DEPARTMENT: Department of Labor & Workforce
Development
APPROPRIATION: Workforce Development
ALLOCATION: Southwest Alaska Vocational & Education
Center Operating Grants
ADD: $195,000
FUNDING SOURCE: 1004 General Funds
Representative Crawford explained that the amendment was
requested by Governor Palin through her 2/13/08 budget
amendments, which was rejected by the House budget
subcommittee. Southwest Alaska Vocational & Education
Center (SAVEC's) federal earmark for operational expenses
will end in FY08. Receipts are insufficient to cover
operating costs. Without temporary assistance, the Center
would not be able to operate in FY09. General Funds are
requested to sustain operations for one year. The Center
is located in King Salmon and serves the Bristol Bay area.
4:30:40 PM
Representative Joule spoke of a personal experience
visiting the Southwest Alaska Vocational & Education
Center. He urged support for the amendment.
Co-Chair Meyer acknowledged that it is a federal earmark
that will no longer be received. He reported that monies
had just been approved for the construction of the academy
and the pipeline training. The center does receive
Vocational-Technical Education Center (VOC/TEC) funds. The
Administration wants to develop a strategic plan to take
care of all training center needs. He pointed out that the
Red Dog mine was contributing to the training center in
Fairbanks. He thought that they should seek funding
dollars from the mining or fishing industry.
4:35:35 PM
Representative Harris asked about the anticipated end of
the federal earmark dollars and questioned if the VOC/TEC
facility would close. Representative Crawford responded
that it would not be closing but rather would be operated
by an employee with no services offered. The education
season would be lost. He questioned whether it could be
placed into the capital budget. Representative Harris
asked if Representative Crawford would be supportive of
working on it through the capital budget. Representative
Crawford replied he gratefully would.
Representative Crawford WITHDREW amendment Labor 4.
4:37:17 PM
DEPARTMENT OF LAW
Vice-Chair Stoltze MOVED to ADOPT amendment LAW 1.
Representative Gara OBJECTED.
DEPARTMENT: Department of Law
APPROPRIATION: Civil Division
ALLOCATION: Commercial & Fair Business
DELETE: $503.2 SPDR (1108)
ADD: $263.2 General Fund (1004)
MODIFY conditioning language as follows:
The amount allocated for Commercial and Fair Business
section includes the unexpected and unobligated
balance on June 30, 2008, of designated program
receipts [and general fund program receipts] of the
Department of Law, Commercial & Fair business section
that are required by the terms of a settlement or
judgment to be spent by the State for consumer
education or consumer protection.
Vice-Chair Stoltze explained that the amendment would limit
receipts that could be carried forward to those that are
restricted to use of consumer education or protection. It
could reduce the authorization level of those receipts to
what is intended to be a sustainable level of spending
($400). The reduction in authorization prevents the
Department from depleting its reserves of Statutory
Designated Program Receipts (SDPR). The Department will
require partial replacement of the SDPR (with General
Funds) in order to maintain the current level of activity.
Representative Gara asked if the amendment would alter any
departmental plans for next year's staffing. Co-Chair
Chenault understood that the Department of Law supports the
plan.
Representative Gara WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
4:39:22 PM
Vice-Chair Stoltze MOVED to ADOPT amendment LAW 2.
Representative Gara OBJECTED.
DEPARTMENT: Department of Law
APPROPRIATION: BP Corrosion (New)
ADD: $4,700,00 OTI
FUNDING SOURCE: General Funds (1004)
Vice-Chair Stoltze explained that the BP Corrosion
Litigation funding, which created a new appropriation for
the Oil, Gas and Mining allocation. The subcommittee
received an amendment request less than one day before the
scheduled closeout meeting and did not have time to
recommend a funding level.
LAW 2 requests $4.7 million dollars for the BP Corrosion
Litigation request. It also places "sideboards" on where
the appropriation can be spent by placing the Oil, Gas and
Mining allocation into its own separate appropriation. The
current allocation for Oil, Gas and Mining contained on
line 22 of the draft would be removed and added to the $4.7
million dollars approved in the amendment and placed into a
new separate appropriation.
The agency's provided the following explanation for the
requested increment:
Department of Law requests an appropriation for FY 2009 in
the amount of $4.7 million to pursue claims for penalties
and lost revenues for the 2006 Prudhoe Bay pipeline spills
and production shutdowns. The Department's current
investigation, funded through the Response Fund, is ongoing
but is expected to be complete next fall. A limited
tolling agreement with BP Exploration (Alaska), Inc. with
regard to potential claims subject to a two year statute of
limitations will expire as early as September 2008. While
the investigation is not yet complete, Department of Law
anticipates making a recommendation to pursue the State's
claims.
The subcommittee understands that it is unlikely that an
agreement could be reached to resolve the claims prior to
expiration of the tolling agreement. Expiration of the
tolling agreement means that the State would need to file a
court case later this year or risk certain claims being
time barred; hence this request for an appropriation to
fund the anticipated litigation in FY 2009.
He continued that the Department of Law's investigation
includes evaluation of claims for lost revenues. At the
Alaska Legislature Joint Natural Resources Committees'
hearing on August 18, 2006, former Attorney General David
W. Marquez outlined the Department's investigation of
spills and pipeline corrosion issues. His written comments
are available. As directed by the former Governor, the
effort includes "reviewing the State's rights, particularly
the full extent to which BP and possibly other parties can
be held legally responsible for losses incurred by the
state."
Vice-Chair Stoltze added that due to delays in obtaining
documents and information from BP, the investigation is not
yet complete. Although to date, approximately 2 million
pages of documents have been provided, subpoenaed documents
important to evaluation of the losses have not been
produced. Based upon information gathered to date, the
Department anticipates making a recommendation to commence
litigation to recover the State's revenue losses, as well
as civil penalties and damages under the environmental
statutes. In March and August of 2006, crude oil leaked
from oil transit lines (OTL5) operated by BP at Prudhoe
Bay.
In its Plea Agreement with the United States executed in
October 2007, BP acknowledged that it "acted negligently by
failing to adequately inspect and clean the OTLs." The
company is "required to operate the OTL's as a reasonable
operator." BP "did not expend sufficient resources to
address the complex issues of corrosion in the OTL's." "BP
failed to clean the OTL's with a piece of equipment called
a maintenance pig and inspect the pipe for corrosion
activity with a smart pig." The admissions are borne out
by the State's investigation. BP documents substantiate
that these failings resulted in shutdowns and reduced
production of tens of millions of barrels of crude oil in
2006-07. The loss of revenue in royalties and taxes to the
State for those years amounts to several hundred million
dollars.
He maintained that this is a complex matter with many
documents. It is anticipated that the FY 2009 litigation
phase activities will cost $4.7 million for costs of
counsel, document management, experts, and litigation
costs. The case budget for FY 2009 is broken down into pre-
litigation filing activities with nine months of
litigation. It is anticipated that the litigation will
last three to fours years and that further appropriations
will be needed in future years.
Co-Chair Chenault reiterated that the request would be a
multi-year component. He noted the backup contained in the
previous amendment. He understood that there would be a
request each year for the litigation process.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
4:42:21 PM
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
Vice-Chair Stoltze MOVED to ADOPT amendment DMVA 1. Co-
Chair Meyer OBJECTED.
DEPARTMENT: Department of Military & Veterans Affairs
APPROPRIATION: Military & Veteran's Affairs
ALLOCATION: AK. Statewide Emergency Communications
DELETE: $3.3 Federal (1002)
ADD: $3.3 General Funds (1004)
Vice-Chair Stoltze explained that the amendment would
correct an FY08 fund source change that was inadvertently
removed.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
4:43:06 PM
Vice-Chair Stoltze MOVED to ADOPT amendment DMVA 2. Co-
Chair Meyer OBJECTED.
DEPARTMENT: Department of Military & Veterans
Affairs
APPROPRIATION: Military & Veterans Affairs
ALLOCATION: Veterans Services
ADD: $30,000
FUNDING SOURCE: General Fund (1004)
Vice-Chair Stoltze explained the amendment would provide
increased grants for the Veterans outreach programs. The
Veterans' service organization might play the most
important role in the veteran community. The Veterans of
Foreign Wars, the American Legion and the Disabled Veterans
of America interact daily with Alaskans and are led by
veterans who have earned the trust of their brothers.
Representative Harris inquired who had requested the
amendment. Vice-Chair Stoltze responded that the issue has
been ongoing for the past few years and that Representative
Foster had supported the intent. Representative Harris
indicated his support for the amendment, noting that the
issue had not been addressed for quite some time. Co-Chair
Chenault agreed.
Representative Harris MOVED to AMEND the amount, raising it
to $45 thousand dollars. There being NO OBJECTION, DMVA 2
was amended.
Co-Chair Meyer WITHDREW his OBJECTION to the amended DMVA
2. There being NO further OBJECTION, it was adopted.
4:47:34 PM
DEPARTMENT OF NATURAL RESOURCES
Representative Kelly MOVED to ADOPT DNR 1. Co-Chair Meyer
OBJECTED.
DEPARTMENT: Department of Natural Resources
APPROPRIATION: Fire Suppression
ALLOCATION: Fire suppression Preparedness
DELETE: $61.0 General Funds
Representative Kelly explained that the subcommittee budget
had inadvertently included $61 thousand General Fund
dollars more than what was requested for the cost increases
for helicopters and fixed-wing aircraft contracts. The
amendment would remove the $61 thousand dollars of excess
General Funds.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
4:48:09 PM
Representative Kelly MOVED to ADOPT amendment DNR 2. Co-
Chair Meyer OBJECTED.
DEPARTMENT: Department of Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Geological Development
ADD: $1,200.0
FUNDING SOURCE: $850.0 General Fund
$350.0 State Designated Receipts
Representative Kelly explained the amendment would move the
requested dollar amount from the capital budget to the
operating budget.
Co-Chair Meyer WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
4:49:00 PM
Representative Kelly MOVED to ADOPT amendment DNR 3.
Representative Hawker OBJECTED.
DEPARTMENT: Department of Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Oil & Gas Development
ADD: $200.0
FUNDING SOURCE: General Funds - $200.0
Representative Kelly explained the amendment would move the
requested amount from the capital budget to the operating
budget and changes the fund source from the Alaska Capital
Fund to General Fund.
Representative Hawker WITHDREW his OBJECTION. There being
NO further OBJECTION, it was adopted.
4:49:47 PM
Representative Kelly MOVED to ADOPT amendment ADOPT DNR 4.
DEPARTMENT: Department of Natural Resources
APPROPRIATION: State Public Domain & Access
ALLOCATION: RS2477/Navigability Assertions &
Litigation Support
ADD: $300.0
FUNDING SOURCE: General Funds
Representative Kelly explained that the amendment would
move the component funding from the capital budget to the
operating budget. There being NO OBJECTION, it was
adopted.
AT EASE: 4:50:22 PM
RECONVENE: 4:51:13 PM
Representative Kelly MOVED to ADOPT amendment DNR 5. Co-
Chair Chenault OBJECTED.
DEPARTMENT: Department of Natural Resources
APPROPRIATION: State Public Domain & Public
Access
ALLOCATION: RS2477/Navigability Assertions &
Litigation Support
ADD: $100.0
FUNDING SOURCE: General Funds
Representative Kelly explained that DNR 5 would move
funding from the capital budget to the operating budget and
authorize one new Natural Resource Specialist II position
to support the RS2477 Surveys providing on-site inspection,
public issue resolution, research and small contract
management.
Co-Chair Chenault WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
4:52:22 PM
Representative Kelly MOVED to ADOPT amendment DNR 6.
Representative Hawker OBJECTED.
DEPARTMENT: Department of Natural Resources
APPROPRIATION: Parks & Recreation Management
ALLOCATION: Parks & Recreation Access
ADD: $283,300
FUNDING SOURCE: $70,000 Federal 1002
$113,300 Interagency Receipts
10007
$100,000 SDPR 1108
Representative Kelly explained that costs to the State
parks, fish and game, transportation and public facilities
and other partner projects are increasing each year and
additional staff was needed to handle the increased
workload. Three new positions were added in the FY08
Management Plan and two seasonal positions were converted
to full time status. New positions included an Engineering
Assistant to perform developmental and professional
engineering duties for the Design and Construction section;
an Environmental Impact Analyst to serve as coordinator on
environmental studies, construction permitting and
monitoring to meet National Environmental Policy Act (NEPA)
compliance standards; and a Natural Resource specialist
assigned to the Interpretation and Education section.
Those positions are all currently filled. The funding for
the positions is derived directly from the projects they
are working on (non General Funds) and a combination of
federal, interagency and statutory designated program
receipts.
Representative Hawker WITHDREW his OBJECTION. There being
NO further OBJECTION, it was adopted.
4:53:55 PM
Representative Thomas MOVED to ADOPT amendment DNR 7. Co-
Chair Chenault OBJECTED.
DEPARTMENT: Department of Natural Resources
APPROPRIATION: State Parks
ALLOCATION: Park Management
ADD: $92.9
FUNDING SOURCE: General Funds - OTI
Representative Thomas explained that the Chilkoot River
Corridor is an important public use area in northern Lynn
Canal. The area boasts an important salmon run used by
sport, subsistence and commercial fishermen, and is also
used by the general public for outdoor recreation. The
uses often conflict and there is a serious public safety
issue with the number of bears in close proximity to
anglers and campers. The amendment would provide one-time
funding for a planning process including all stakeholders
in a land use plan that will protect public safety.
Co-Chair Chenault WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
4:56:00 PM
DEPARTMENT OF PUBLIC SAFETY
Vice-Chair Stoltze MOVED to ADOPT amendment DPS 1.
Representative Hawker OBJECTED for discussion purposes.
DEPARTMENT: Department of Public Safety
APPROPRIATION: Alaska Fire Standards Council
ALLOCATION: Alaska Fire Standards Council
ADD: $220,000
FUNDING SOURCE: General Fund - 1004
Vice-Chair Stoltze explained that the subcommittee
recommended that $220 thousand General Fund dollars be
added to the Alaska Fire Standards Council appropriation to
assist the council is developing and regulating fire
training standards. The Alaska Fire Standards Council was
established by the Legislature in 1998; however, it has not
been adequately funded to establish and implement needed
fire training standards for the fire departments throughout
Alaska.
Representative Harris indicated his support for the
amendment.
Representative Hawker WITHDREW his OBJECTION. There being
NO further OBJECTION, it was adopted.
4:59:47 PM
DEPARTMENT OF NATURAL RESOURCES
Representative Gara requested information from the
Administration regarding changes in the Department of
Natural Resource budget. He mentioned concerns with the
monitoring of the pipeline in order to prevent future
spills. In previous years it had been addressed in the
Department of Environmental Conservation subcommittee
process; this year it was moved to the Department of
Natural Resources. The Administration is requesting $530
thousand dollars for additional staff, which was denied.
He asked the position of the Administration.
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
responded that in the proposed budget, there is a funding
request from the Department of Natural Resources and in the
Department of Environmental Conservation budget for the
Petroleum Assistance Integrity Office (PAIO). There is
$837 thousand dollars in the Department of Natural
Resources and four positions in the Department of
Environmental Conservation. In the amended budget, the
Administration requested adding another four positions and
an additional $23 thousand dollars for those efforts. She
offered to provide details on the workload of that Office.
It is an important issue. There was a capital project
approved in FY08.
Representative Kelly noted that the subcommittee denied the
increase, noting that the growth in those areas was
significant for both departments. It has dramatically
increased. He added that there is concern with the North
Slope focus and he did not want to see it overdone. He
reiterated concern with the amount of growth in that area.
Representative Gara inquired the Administration's position
with the loss of the increment. Ms. Rehfeld pointed out
that the entire country is looking at Alaska responsible
resource development. The Governor believes strongly that
the area needs the resources to do the job.
Representative Gara requested that the Administration
provide back-up regarding the monitoring with & without the
extra funding. Ms. Rehfeld offered to provide that
information.
5:06:01 PM
DEPARTMENT OF PUBLIC SAFETY
Vice-Chair Stoltze MOVED to ADOPT amendment DPS 2.
Representative Hawker OBJECTED.
DEPARTMENT: Department of Public Safety
APPROPRIATION: Fire & Life Safety
ALLOCATION: Fire & Life Safety Operations
ADD: $11.7 General Fund - 1004
DEPARTMENT: Department of Public Safety
APPROPRIATION: Alaska State Troopers
ALLOCATION: AK State Troopers Detachments
ADD: $382.8 General Funds - 1004
DEPARTMENT: Department of Public Safety
APPROPRIATION: Statewide Support
ALLOCATION: Administrative Services
ADD: $11.5 General Funds - 1004
DEPARTMENT: Department of Public Safety
APPROPRIATION: Statewide Support
ALLOCATION: Alcoholic Beverage Control Board
ADD: $1.1 General Funds - 1004
Vice-Chair Stoltze explained that the House Finance
Committee (HFC) subcommittee received the four amendment
requests less than one day before the scheduled closeout
meeting and did not have the time necessary to recommend a
fund level. This is the first time in years that the
agency requested increments for increased vehicles costs.
Per testimony by the Department, the agency has been able
to absorb the costs by utilizing funds appropriated to
trooper detachments though vacancy rate adjustments. It is
recommended that the increments be funded at half the
requested level since the subcommittee has no historical
data to review actual vehicle costs. A further review of
the costs and the trooper vacancy rates will be examined in
the next budget cycle.
Representative Hawker mentioned truth in budgeting; he
worried about managing the budget through vacancy rates.
He projected that there will be serious issues over the
next few years for the Department of Public Safety to meet
the State's core issues. He respected the judgment of the
subcommittee to honor half of the request.
Representative Hawker WITHDREW his OBJECTION. There being
NO further OBJECTION, it was adopted.
5:08:56 PM
DEPARTMENT OF NATURAL RESOURCES
Representative Harris realized that neither of the
commissioners from the Department of Environmental
Conservation or the Department of Natural Resources
attended or spoke with the subcommittee chairs about their
PAIO requests. He requested that both those commissioners
visit the Speaker's office before the vote is taken to the
House floor. Ms. Rehfeld agreed.
5:10:08 PM
DEPARTMENT OF PUBLIC SAFETY
Vice-Chair Stoltze MOVED to ADOPT amendment DPS 3.
Representative Hawker OBJECTED.
DEPARTMENT: Department of Public Safety
APPROPRIATION: Council on Domestic Violence &
Sexual Assault
ALLOCATION: Council on Domestic Violence &
Sexual Assault
DELETE: $1.2
FUNDING SOURCE: Permanent Fund Felon Funds
(1171)
Ms. Rehfeld requested a brief At-Ease.
AT EASE: 5:10:35 PM
RECONVENE: 5:27:20 PM
Ms. Rehfeld explained that the Administration had over
allocated the amount of Permanent Fund Dividend (PFD) felon
funds available for expenditure for FY09; the amendment
corrects that and reduces the authorization by $1.2
thousand dollars.
Representative Hawker WITHDREW his OBJECTION. There being
NO further OBJECTION, it was adopted.
5:28:25 PM
Vice-Chair Stoltze MOVED to ADOPT amendment DPS 4.
Representative Hawker OBJECTED for discussion.
DEPARTMENT: Department of Public Safety
Page 31, INSERT after line 25:
It is the intent of the legislature that the
Department of Public Safety provides additional state
trooper coverage for international border communities
to help meet Federal and Homeland Security
requirements.
Page 32, INSERT after line 32:
It is the intent of the legislature that
Permanent Fund felon and misdemeanant funds should be
used before general funds for Council on Domestic
Violence and Sexual Assault (CDVSA) program funding.
RENUMBER accordingly
EXPLANATION: Intent Language
This intent language was approved and listed in the
subcommittee report, however the language was not
included when the committee substitute was drafted.
This amendment fulfills the wishes of the
subcommittee.
Vice-Chair Stoltze explained the amendment, addition of
intent language, was approved and listed in the
subcommittee report; however, the language had not been
included when the committee substitute was drafted. The
amendment fulfills the wishes of the subcommittee.
Representative Hawker WITHDREW his OBJECTION. There being
NO further OBJECTION, it was adopted.
5:30:42 PM
Vice-Chair Stoltze MOVED to ADOPT amendment DPS 5.
Representative Hawker OBJECTED for discussion purposes.
DEPARTMENT: Department of Public Safety
APPROPRIATION: AST
ALLOCATION: AST Detachment
ADD: $75.0
FUNDING SOURCE: General Funds
Vice-Chair Stoltze explained the amendment, which would
restore funding to three shooting ranges:
• Anchorage
• Fairbanks
• Juneau
Representative Hawker WITHDREW his OBJECTION. There being
NO further OBJECTION, it was adopted.
5:33:35 PM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Representative Thomas MOVED to ADOPT DOTPF 1. Vice-Chair
Stoltze OBJECTED.
DEPARTMENT: Department of Transportation $ Public
Facilities
APPROPRIATION: Commissioner's Office
ALLOCATION: Unallocated Reduction
DELETE: $35,000
FUNDING SOURCE: General Funds
Representative Thomas explained that the amendment would
provide for the discontinuance of use of State funds for
conducting public survey polls.
Representative Thomas proceeded to WITHDRAW the DOTPF 1.
5:34:42 PM
Representative Thomas MOVED to ADOPT amendment DOTPF 2.
Co-Chair Chenault OBJECTED.
DEPARTMENT: Department of Transportation &
Public Facilities
APPROPRIATION: Marine Highway System
ALLOCATION: Marine Vessel Operations
ADD: $2,297,600 General Fund
(OTI)
$1,950,000 Marine Highway
Funds
ADD the following Language:
The amount appropriated from the General Fund to the
Marine Highway System, is reduced by an amount equal
to any appropriation to the Alaska Marine Highway
System Fund (AS 19.65.060(a) passed by the Twenty-
Fifth Alaska State Legislature in 2008 and enacted
into law; the reduction may not exceed $2,297,600.
Representative Thomas clarified the intent of the
amendment, which provides a one time increment funding
necessary for the Alaska Marine Highway System to avoid the
curtailment of service to Southwest Alaska from November
2008 through April 2009 while the M/V Tustumena is in a
Capital Improvement Project (CIP) project. The amendment
would add back:
• Southwest service increased from one week per month
to two weeks per month;
• Cross Gulf returning to two northbound and two
southbound {with stops in Yakutat) per month during
that time period; and that the
• Positively impacted communities would be Homer,
Seldovia, Chenga Bay, Kodiak, Whittier, Yakutat,
Ketchikan & Juneau.
Representative Thomas MOVED to AMEND DOTPF 2 by deleting
the language:
"The amount appropriated from the general
fund to the Marine Highway System, is
reduced by an amount equal to any
appropriation to the Alaska Marine Highway
System Fund (AS 19.65.060(aA) passed by the
Twenty-Fifth Alaska State Legislature in
2008 and enacted into law; the reduction
may not exceed $2,297,600."
There being NO OBJECTION, the language was deleted.
Co-Chair Chenault MAINTAINED his OBJECTION on the amended
DOTPF 2.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Harris, Gara, Joule, Thomas
OPPOSED: Hawker, Kelly, Stoltze, Chenault, Meyer
Representative Nelson was not present for the vote.
The MOTION FAILED (5-5).
5:38:44 PM
Representative Thomas MOVED to ADOPT amendment DOTPF 3.
Co-Chair Chenault OBJECTED.
DEPARTMENT: Department of Transportation and
Public Facilities
APPROPRIATION: Highways, Aviation & Facilities
ALLOCATION: Central Region Highways & Aviation
ADD: $300,000
FUNDING SOURCE: General Funds
Representative Thomas explained that $300 thousand dollars
be included in the budget to purchase calcium chloride for
dust control in the Central Region. Kodiak and other
communities in the Central Region have limited roads, but
the parts that are not paved are hazardous during the dry
weather. Limited visibility for drivers, health concerns
for those with respiratory problems, and dust concerns for
homeowners are factors that could be tolerable if there was
an adequate amount of calcium chloride available for all
communities in the Central Region.
Co-Chair Chenault asked if during the subcommittee process,
it was determined that there were insufficient amounts.
Representative Thomas responded, it was less than needed in
only the Central Region area.
Representative Joule asked if dust control activities could
be happening in other areas of the State. Representative
Thomas explained that the calcium chloride work should be
addressed every year.
Co-Chair Chenault MAINTAINED his OBJECTION, claiming that
health concerns had been addressed in the Department of
Transportation and Public Facilities budget. He pointed
out that it had been included in the Capital Budget
requests. He maintained that there are other more
important issues in the budget, which need to be addressed.
A roll call vote was taken on the motion.
IN FAVOR: Gara, Joule, Thomas, Crawford
OPPOSED: Harris, Hawker, Kelly, Stoltze, Meyer,
Chenault
Representative Nelson was not present for the vote.
The MOTION FAILED (4-6).
5:41:38 PM
UNIVERSITY OF ALASKA
Co-Chair Chenault MOVED to ADOPT amendment UA 1.
Representative Hawker OBJECTED.
DEPARTMENT: University of Alaska
APPROPRIATION: University Campuses
ALLOCATION: University of Alaska - Anchorage
ADD: $320.0 General Funds
$273.4 University Receipts
FUNDING SOURCE: General Fund, University
Receipts
Co-Chair Chenault explained that the amendment would fund
the College of Arts and Sciences general education
requirements to meet student demand for Tier 1 and Tier II
general education courses.
Representative Hawker WITHDREW his OBJECTION. There being
NO further OBJECTION, it was adopted.
5:44:01 PM
Co-Chair Chenault MOVED to ADOPT UA 2. Vice-Chair Stoltze
OBJECTED.
DEPARTMENT: University of Alaska
APPROPRIATION: University Campuses
ADD Intent Language:
It is the intent of the Legislature that those
students qualifying for the University's Scholars'
Program who require remedial coursework must reimburse
the University for tuition for those particular
courses.
Co-Chair Chenault explained that there are a number of
students who receive scholarships under the Scholar's
Program, who must take remedial courses prior to enrollment
in regular & college levels.
Representative Harris questioned if that were a large
number of students who qualify for that program. Co-Chair
Chenault responded that there are some students that
qualify for the program that are required to take those
remedial classes.
Representative Joule added comments, noting that there
should be a legislative discussion on statewide education
delivery.
Co-Chair Chenault WITHDREW UA 2.
5:48:18 PM
Co-Chair Chenault MOVED to ADOPT UA 3. Vice-Chair Stoltze
OBJECTED.
DEPARTMENT: University of Alaska
APPROPRIATION: UAA - Small Business Development
Center
ADD: $550.0
FUNDING SOURCE: Business License Receipts
Co-Chair Chenault acknowledged that the component more
appropriately belongs in the operating budget, not in the
capital budget. The Administration requested the
appropriation be moved.
Vice-Chair Stoltze WITHDREW his OBJECTION. There being NO
OBJECTION, it was adopted.
5:49:16 PM
Representative Kelly MOVED to ADOPT Amendment UA 4. Vice-
Chair Stoltze OBJECTED.
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska Campuses
ALLOCATION: System Reductions/Additions
ADD: $3201.1
FUNDING SOURCE: General Funds
Representative Kelly explained that the amendment would
restore funding for non-represented step increased requests
as calculated by the University & using a grid rather than
a step increase system.
Vice-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
5:51:24 PM
Representative Kelly MOVED to ADOPT amendment UA 5. Vice-
Chair Stoltze OBJECTED.
DEPARTMENT: University of Alaska
APPROPRIATION: Statewide Programs & Services
ALLOCATION: Statewide Programs & Services
ADD: $202.2
FUNDING SOURCE: General Funds
Representative Kelly explained that the amendment would add
programs and services for the step increase requests.
Vice-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
5:52:20 PM
Representative Gara WITHDREW amendment UA 6.
5:52:50 PM
Representative Joule MOVED to ADOPT amendment UA 7. Vice-
Chair Stoltze OBJECTED.
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Statewide Budget Reductions /
Additions-System wide
ADD: $600,000
FUNDING SOURCE: 1004 General Funds
Representative Joule spoke to the amendment, which would
address the Alaska Native Science & Engineering Program
(ANSEP). In May 2008, ANSEP will graduate 23 Alaska
Native engineers and scientists from the University. More
than 50 organizations support the effort with cash and
internships. Beginning with high school freshmen,
structured programs lead students each step of the way
through high school, into the undergraduate years, on to
gradate school and into professional life. At each level,
the goal is to create empowerment and excitement around
careers in engineering and science. ANSEP is unique from a
budgetary perspective. Funding formulas for neither
Alaskan high schools, nor the University system cover ANSEP
costs, yet both benefit from the program.
5:58:42 PM
Representative Harris inquired if the request had been
included in the University's budget. Representative Joule
explained that the total budget is a little more than $2
million dollars, of which $300 thousand dollars is State
money. It is uncertain how much longer the "soft" money
will be available. The appropriation would add in the
partnership. Representative Harris questioned if $300
thousand would be sufficient.
6:00:06 PM
Co-Chair Chenault acknowledged that the program appears to
be working.
Co-Chair Chenault MOVED to AMEND amendment UA 7 to delete
"$600 hundred thousand dollars" and insert "$300 thousand
dollars, indicating it should be used for tutoring in
distance learning. Representative Joule understood that
success comes in incremental steps. He accepted that as a
"friendly" amendment.
Representative Kelly OBJECTED. He clarified that there is
federal funding, but there is no request in the Regent's
budget for the item. He expressed concern that the funds
would be targeted and the focus split.
Co-Chair Chenault stipulated his preference for the
tutoring and long distance learning programs, explaining
that the intent was to minimize management.
6:03:34 PM
Representative Kelly expressed concern that steps have by-
passed the University Board of Regent's process; he did not
want to see a split appropriation, telling educators how to
allocate their funds.
A roll call vote was taken on the motion to amendment UA 8.
IN FAVOR: Gara, Hawker, Joule, Stoltze, Thomas,
Crawford, Harris, Chenault,
OPPOSED: Kelly
Representative Nelson was not present for the vote.
The MOTION PASSED (9-1).
6:05:24 PM
A roll call vote was taken on the main motion to adopt the
amended UA 8.
IN FAVOR: Gara, Hawker, Joule, Stoltze, Thomas,
Crawford, Harris, Chenault, Meyer
OPPOSED: Kelly
Representative Nelson was not present for the vote.
The MOTION PASSED (9-1).
6:06:33 PM
Representative Crawford MOVED to ADOPT amendment UA 8.
Vice-Chair Stoltze OBJECTED.
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Budget Reductions / Additions-
System-wide
ADD: $5,318,900
FUNDING SOURCE: 1004 General Funds
Representative Crawford explained that the University Board
of Regents recommended increased funding for initiatives
to improve student success and prepare Alaskans for Jobs.
The funding was not included in the subcommittee
recommendation. The amendment would provide funding for
the following efforts:
• Preparing Alaskans for Jobs: Fisheries - $1 million
• University Research Investment: Engineering,
Transportation, & Energy - $500 thousand
• University Research Investment: Biomedical, Health &
Competitive Research - $1.6 million dollars
• Student Success: Meeting Student Demand - $300
thousand dollars
• Student Success: Student Success Initiatives - $1.5
million dollars
6:11:14 PM
Co-Chair Chenault pointed out that some of the programs had
merit, however, he had reservations regarding a few.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Crawford, Gara
OPPOSED: Kelly, Stoltze, Thomas, Harris, Hawker,
Meyer, Chenault
Representative Nelson was not present for the vote.
The MOTION FAILED (3-7).
6:14:06 PM
Representative Kelly MOVED to ADOPT amendment UA 9. Vice-
Chair Stoltze OBJECTED.
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: System Reductions/Additions
ADD: $364.3
FUNDING SOURCE: General Funds - 1004
Representative Kelly explained that the amendment would
reinstate funding for step increases for the Alaska Higher
Education Crafts and Trades Employees, the "blue-collar"
employee. There is a tentative agreement that those
members are in the process of ratifying. The agreement
includes small grid movements and high dependence on annual
steps. By law, if the terms of the contracts are not
funded, the University cannot pay the negotiated
provisions. Meeting the terms of the contract, which is
expected to be ratified, requires restoration of the $264
thousand dollars cut by the subcommittee. In subsequent
collective bargaining negotiations, the University will
present an alternative compensation schedule that is more
grid reliant than step for adoption.
Vice-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, it was amended.
6:15:37 PM
Representative Joule indicated his appreciation of the
process that the Co-Chairs provided to the House Finance
Committee during the budget deliberation process.
Representative Thomas echoed previous comments, adding
gratitude to the Administration and the Legislative Finance
Division staff for their willingness to helpfully
participate.
Vice-Chair Stoltze directed his comments to the reduced
time schedule the subcommittees had. He stated his
appreciation of the process.
Representative Kelly requested that the Legislative Finance
Division submit a spreadsheet indicating all the changes
made by the whole Committee during the budget process.
Co-Chair Chenault acknowledged frustrations regarding the
process and the difficulty, which resulted from the 90-day
session. He listed the difficulties resulting for the
subcommittees given the shortened deliberation periods. He
emphasized that the process had suffered given the 90-day
session.
Co-Chair Meyer MOVED to report CS HB 310 (FIN) out of
Committee as amended with individual recommendations and
providing permission to allow the Alaska Legal Services and
Legislative Finance Division, latitude to make all
necessary technical and conforming corrections. There
being NO OBJECTION, it was so ordered.
CS HB 310 (FIN) was reported out of Committee with
"individual" recommendations.
Co-Chair Meyer MOVED to report CS HB 312 (FIN) out of
Committee as amended with individual recommendations and
providing permission to allow the Alaska Legal Services and
Legislative Finance Division, latitude to make all
necessary technical and conforming corrections. There
being NO OBJECTION, it was so ordered.
CS HB 312 (FIN) was reported out of Committee with a "do
pass" recommendation
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