Legislature(1995 - 1996)
04/27/1996 01:20 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL 301
"An Act relating to postsecondary education."
DIANE BARRANS, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION
COMMISSION, DEPARTMENT OF EDUCATION, spoke to the fiscal
note attached to the Executive Order (EO) which indicates a
reduction in costs because the Commission would be
eliminated. What was not included in the Executive Order
was information that the Department of Education (DOE) has a
pending RSA for $40 thousand dollars. DOE backed that
amount out of their proposed FY97 budget and the fiscal note
provided by the Department of Revenue represents that
amount.
Representative Brown MOVED to adopt Amendment #1, 9-
LS1749\K.2, Ford, 4/26/96. Ms. Barrans explained that the
amendment would eliminate the Commission and would move the
regulation of the post secondary institutions to the
Department of Education as a department function and would
also provide the needed technical corrections. She
reiterated that the amendment would eliminate the separation
of power issue, which was of concern to the Administration.
Representative Mulder asked if Amendment #1 would be
comparable to the Executive Order. Ms. Barrans stated it
would. Representative Mulder OBJECTED to Amendment #1.
A roll call was taken on the MOTION.
IN FAVOR: Brown.
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault.
Representative Grussendorf, Navarre, Hanley and Foster were
not present for the vote.
The MOTION FAILED (1-6).
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Representative Parnell MOVED to adopt Amendment #2, 9-
LS1749\K.1, Ford, 4/25/96, for purposes of discussion.
Representative Brown OBJECTED. Ms. Barrans noted that the
Commission has been supportive of the WAMI program and that
the amendment would reinstate it. She pointed out that it
was a low cost program to administer.
WENDY REDMAN, VICE PRESIDENT, UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, understood Representative Bunde's
intent in the amendment to move the WAMI program to a new
base. She acknowledged that the University was willing to
work with him on that concern.
Ms. Redman advised that the WAMI program is a major public
policy question that the State of Alaska needs to deal with.
It is an expensive program, although, it is not an expensive
program as an alternative to medical school. The University
of Washington sets aside ten seats for Alaskans. The policy
issue needs to be determined by the Legislature if the
intent is to provide for rural doctors.
She recommended establishing an interim committee to pursue
the concerns. Ms. Redman objected to Amendment #2 as
proposed. It would place into the University budget, the
money for the years 2, 3 and 4 as part of the program. She
pointed out that this was not part of the University of
Alaska's program; it is a straight pass through to the
University of Washington. It would inflate the University
of Alaska's budget.
Representative Brown asked where the first year funding
would come from. Ms. Redman replied all first year funding
is contained in the UAA budget. The students attend UAA for
the first year and then go to the University of Washington
for the next three years.
Representative Therriault asked some ideas which could
attract students to rural Alaska. Ms. Redman stated that
there are some states which pay a flat amount of money
enticing doctors into rural areas. Other states pay back
the student loans. These systems do work and would be
cheaper than the current system used in Alaska under the
WAMI program.
REPRESENTATIVE CON BUNDE commented that the driving force
behind the WAMI program was UAA. They want the program. He
thought it would be advisable to consolidate the funding
into one entity. Representative Martin noted that he did
not believe that anyone from the University "desperately"
wanted this program.
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Ms. Redman corrected that Representative Bunde had been
referring to the maintenance of the first year budget at the
University of Alaska. She added that this was a high
priority for UAA. The residency program currently being
implemented at the Anchorage hospital would not exist if it
were not for the WAMI program participation. The University
does not want the funding responsibility for years 2, 3 and
4.
In response to Representative Brown's question, Ms. Redman
noted that forty students per year are participating in the
WAMI program. Ten from each class. The cost is $2 million
dollars; emphasizing that it is a very expensive program.
Representative Brown suggested adding a Letter of Intent to
attach to the legislation.
Representative Kohring voiced his support of the amendment.
Representative Bunde thought that since years 2, 3 and 4
were at the University of Washington, that would be the
ideal place to have the funding located.
A roll call was taken on the MOTION.
IN FAVOR: Kohring, Kelly.
OPPOSED: Martin, Mulder, Parnell, Therriault,
Brown.
Representatives Navarre, Grussendorf, Hanley and Foster were
not present for the vote.
The MOTION FAILED (2-7).
Representative Mulder noted that it was his intent to
support the Letter of Intent to further investigate
alternatives.
Representative Martin MOVED to report CS SB 301 (FIN)am out
of Committee with individual recommendations and with the
attached fiscal notes. There being NO OBJECTION, it was so
ordered.
CS SB 301 (FIN)am was reported out of Committee with "no
recommendation" and with fiscal notes by the Department of
Revenue dated 4/19/96, two from the Alaska Post Secondary
Commission dated 4/02/96 and 4/19/96 and two by the
Department of Education dated 4/19/96 and a zero fiscal note
by the Alaska Postsecondary Commission.
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