Legislature(1999 - 2000)
04/06/2000 01:50 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 441
An Act making appropriations for the operating expenses
of the University of Alaska; making appropriations
under art. IX, sec. 17c, Constitution of the State of
Alaska, from the constitutional budget reserve fund;
and providing for an effective date.
MARK HAMILTON, PRESIDENT, STATEWIDE PROGRAMS AND SERVICES,
UNIVERSITY OF ALASKA, FAIRBANKS, stated that House Bill 441
invests a one-time, state funded $34,000,000 appropriation
to the University of Alaska with a two-year lapse date. In
total, it would invest $532,654,800 in operations to the
University of Alaska.
The bill responds to the University's Board of Regents
request to help the University by making a significant and
multi-year commitment to a new direction.
President Hamilton pointed out that House Bill 441, in an
innovative fashion, would address the needs of the
University of Alaska. The bill invests a total of
$532,654,800 for operation of the University of Alaska. That
would include $66,284,700 ($34,000,000 in state funds) with
a two-year lapse date so the University could retool to meet
Alaska's changing needs.
President Hamilton noted that HB 441 would provide
$466,370,100 (including $172,143,300 in state funds) as
basic funding for FY 01.
Funds 6/30/01 Lapse 6/30/O2 Lapse
State Funds 172,143,300 34,000,000
Other funds 294,226,800 32,284,700
Total funds 466,370,100 66,284,700
The separate, two-year allocation to the University budget
would allow the Board of Regents stability in funding for
new programs and additional flexibility in meeting the
evolving needs of the students and the State. The
University would be able to begin programs with the
assurance that second year funding would be available. The
two year time span would allow new and modified programs to
begin functioning so that they can be reasonably measured as
the FY 03 budget is being considered.
President Hamilton stated that HB 441 would establish goals
for the University to meet, including providing more Alaska
trained teachers, helping diversify our economy, providing
education and training for jobs and professions that are
developing in Alaska. The Legislature expects the
University to offer quality education to its students and
retain students through graduation. It also expects the
University forge partnerships with the private sector. To
accomplish these goals, the University will need to review
all its programs and facilities and eliminate or revamp
those not contributing to these new goals.
President Hamilton urged a change to the existing document.
He stated that it was his intent, to pay from that same sum,
the salary increase agreed to through the contracts. He
noted that the faculty deserves those raises and that it
would not require extra dollars. He reiterated that the
legislation is innovative and enlightened.
Co-Chair Mulder asked for more information regarding the new
programs which would be coming on line. President Hamilton
explained that there would be programs in some direct
service areas, addressing long-term existing requirements
for the production of quality teachers in the State.
Additionally, there would be a two-year nursing graduate
program, several allied health fields, heavy equipment
operator program, additional opportunities in logistics as
well as informatics, and a degree in financing.
Co-Chair Mulder asked for further discussion on the
continuation of the four-year program and how that would
"fit" with the five-year program system. President Hamilton
noted that a State University is directed to do a four-year
program. He stated that the University was faced with a
dilemma three years ago which was either to do "quality" or
"quantity". The quality piece tried to get in consort with
the Alaska quality schools initiative. At that time, it was
assumed that the University would produce another year of
graduate level participation. He hoped that there was a
potential to merge those two programs and save a couple
faculty positions.
President Hamilton stated that the University would now
offer a four-year program and wanted to keep the five-year
program.
Representative Williams questioned investment of teacher
qualifications and expertise of the faculty and training of
the students. President Hamilton responded that the system
is improving and the programs are being revamped.
Representative Williams advised that "something is currently
broken" in the University system as it now exists.
President Hamilton assured members that many changes need to
happen which the University is now attempting. Funding this
legislation will enable these things to be addressed.
President Hamilton stated that there has been a significant
loss of confidence from loosing the accreditation by the
University of Alaska-Fairbanks. He believed that there was
great failure on the part of the University not to have
dealt with that publicly. The report that removed the
accreditation, at the same time, praised the quality of the
faculty and the quality of the students. He emphasized that
a university needs to produce the majority of the teachers
in that state. That is fundamental to the long-term support
of the community in terms of recruitment.
President Hamilton pointed out that only 15% of the faculty
of the Alaska school system come from residents within the
State. Most other states have 40% of their teachers having
been trained in their state. He reiterated that this is not
a broken system, however, it does have a bad reputation.
Co-Chair Mulder asked about the logistics program and the
vision for that program in the future. President Hamilton
advised that logistics at large has an enormous potential in
the State of Alaska. He noted that Anchorage is #2 in the
global exchange with the airport and that Fairbanks is #9.
It appears that the free market believes that this is a good
place (Alaska) to undertake this "stuff". He added that
many industries within the State have indicated their
commitment by donating approximately $1 million dollars to
the University to expand that program.
President Hamilton noted that through discussions with the
military installations, there is a great deal of interest in
the possibility of out-sourcing the logistics schools.
President Hamilton stressed that the State would be hard
pressed to understand the impact this.
Representative Williams questioned what the extra funding
would be used for. President Hamilton offered to outline
prioritized programs.
(TAPE CHANGE, HFC 00 - 105, Side 1). **Tape out of place**
Co-Chair Mulder spoke to the contracts and recognized
President Hamilton's desire to treat all his employees
equally. Co-Chair Mulder commented that the Legislature is
trying to treat all the contracts consistently. President
Hamilton stated that was fair. He added that it is his
intent to construct a "contract continuation" which would
not change the financial terms of the previous contract.
This was constructed in time so that it could be considered
along with everything else. He indicated that this is not a
small point and urged that be reconsidered.
Representative G. Davis asked if the amount of the new
contract was known.
(TAPE CHANGE, HFC 00 - 107, Side 1).
DAVE LEWIS, OPERATIONS MANAGER, ALASKA FIBERSTAR, EAGLE
RIVER, ALASKA, spoke on behalf and in support of greater
funding for the University of Alaska. He stressed that the
State needs the University for the State's economy. He
advised that it is difficult to hire from within the State
when all the children of the State move out of state for
training. Ultimately, they end up living where they
graduate from college.
BOB CONDON, PRESIDENT, ALASKA FEDERATION OF TEACHERS FOR
COMMUNITY COLLEGES, testified in support of HB 441. He
noted that their union was not included on the list proposed
by the University. He emphasized that the amount of money
needed would not change regardless of whether they were on
the list or not. Mr. Condon provided a history of their
contract. He urged that they be placed on the list.
Vice Chair Bunde questioned how many people were in that
union. Mr. Condon replied that he represented about 260
employees. There are 1,000 or more of non-represented
members and 1,000 with the United Academics.
In response to a question by Vice Chair Bunde, Mr. Condon
pointed out that their union has historically led the fight
for better working conditions and salaries.
Representative Bunde MOVED a conceptual amendment. Co-Chair
Mulder interjected that it was his intention to hold the
bill until tomorrow to discuss these issues. Representative
Bunde WITHDREW the conceptual amendment.
Co-Chair Mulder commented that it was his intent to treat
all new contracts as a "separate package". Mr. Condon
recognized that the legislation appears to have a two-year
prohibition.
HB 441 was heard and HELD in Committee for further
consideration.
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