Legislature(2005 - 2006)

03/22/2006 02:46 PM House FIN


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HOUSE BILL NO. 365                                                                                                            
                                                                                                                                
     "An  Act making  appropriations  for  the operating  and                                                                   
     loan program  expenses of state government,  for certain                                                                   
     programs,    and    to    capitalize    funds;    making                                                                   
     appropriations  under art. IX, sec.  17(c), Constitution                                                                   
     of the State  of Alaska, from the  constitutional budget                                                                   
    reserve fund; and providing for an effective date."                                                                         
                                                                                                                                
HOUSE BILL NO. 366                                                                                                            
                                                                                                                                
     "An  Act making  appropriations  for  the operating  and                                                                   
     capital    expenses    of   the    state's    integrated                                                                   
     comprehensive mental  health program; and  providing for                                                                   
     an effective date."                                                                                                        
                                                                                                                                
Representative Kerttula  MOVED  to ADOPT Amendment  ADMIN #1,                                                                   
which  would  add  $1.7  million  to  the  Office  of  Public                                                                   
Advocacy.                                                                                                                       
                                                                                                                                
Co-Chair Chenault OBJECTED.                                                                                                     
                                                                                                                                
Representative Kerttula  noted  that the amendment  would add                                                                   
funds to the Governor's original  request. She emphasized the                                                                   
importance  of  the agency  in  criminal and  civil  conflict                                                                   
cases.  She noted  that it would  cost more  to defend  these                                                                   
cases with  private counsel. She  emphasized that  the agency                                                                   
had worked  with seniors  and children, and  that they  had a                                                                   
very high case load and not enough resources.                                                                                   
                                                                                                                                
2:58:06 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  conceded that  the department does  a fine                                                                   
job and acknowledged that they  are under-funded based on his                                                                   
discussion with  the personnel. He  queried how to  deal with                                                                   
supplementals and  hold agencies to the amount  specified [by                                                                   
the legislature]. He expressed  an unwillingness to accept an                                                                   
amendment stating a specific amount  and stated that he would                                                                   
not support the amendment.                                                                                                      
                                                                                                                                
Representative   Kerttula   recognized  the   problems   with                                                                   
supplementals  and  urged  the Committee  to  add  additional                                                                   
funding into the base to prevent future supplementals.                                                                          
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Kerttula, Moses, Joule                                                                                                
OPPOSED:  Kelly,  Stoltze, Weyhrauch,  Foster, Hawker,  Holm,                                                                   
          Meyer, Chenault                                                                                                       
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Kerttula MOVED to  ADOPT Amendment  ADMIN #2:                                                                   
add $1 million for the Public Defender Agency.                                                                                  
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative Kerttula  noted  that the agency is  driven by                                                                   
caseload  under   a  constitutional  provision   guaranteeing                                                                   
representation.   She   maintained  that   excess   caseloads                                                                   
sometimes result in lost cases  and delays. She also observed                                                                   
that   attorneys   often   had    to   complete   their   own                                                                   
administrative duties, resulting in inefficiency.                                                                               
                                                                                                                                
IN FAVOR: Kerttula, Moses, Joule                                                                                                
OPPOSED:  Kelly,  Stoltze, Weyhrauch,  Foster, Hawker,  Holm,                                                                   
          Meyer, Chenault                                                                                                       
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Kelly  MOVED  to ADOPT  Amendment  DCCED  #1,                                                                   
which would add  $25 thousand for the Alaska  State Community                                                                   
Services Commission.                                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative  Kelly MOVED  to ADOPT  Amendment DCCED  #2 to                                                                   
add  $900  thousand   to  the  Qualified   Trade  Association                                                                   
Contract. Co-Chair Meyer OBJECTED.                                                                                              
                                                                                                                                
Representative  Kelly spoke  to the  amendment, stating  that                                                                   
these  funds  would  provide   a  grant  to  the  Independent                                                                   
Traveler  Association.  He  explained  that  the  independent                                                                   
traveler market  has not rebounded  as well as  other tourism                                                                   
segments,  such  as  the cruise  industry.  The  request  was                                                                   
reduced  in the  subcommittee  and removed  from the  capital                                                                   
budget  to  be submitted  as  a  one  time increment  in  the                                                                   
operating budget.                                                                                                               
                                                                                                                                
3:05:03 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault asked  if  matching funds  were  involved.                                                                   
Representative  Kelly noted  that  the smaller  organizations                                                                   
felt that it would be difficult  to meet a match requirement.                                                                   
                                                                                                                                
Co-Chair  Chenault thought  that the  vehicle rental  tax was                                                                   
originally  intended  to  promote  travel in  the  state.  He                                                                   
suggested other  departments could also promote  tourism, and                                                                   
stated  his hesitance  to support the  amendment while  other                                                                   
important state issues go unfunded.                                                                                             
                                                                                                                                
Representative  Kelly maintained  that,  although they  could                                                                   
not dedicate  funds, there  was an  implied promise  that the                                                                   
funds would go toward tourism with a focus on such groups.                                                                      
                                                                                                                                
3:08:03 PM                                                                                                                    
                                                                                                                                
Representative Kerttula  asked   what  would  happen  if  the                                                                   
amendment were  not adopted. Representative Kelly  noted that                                                                   
he would look at adding it to the capital budget.                                                                               
                                                                                                                                
IN FAVOR: Kelly, Kerttula, Moses                                                                                                
OPPOSED:  Stoltze,  Weyhrauch, Foster,  Hawker, Joule,  Holm,                                                                   
          Meyer, Chenault                                                                                                       
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative  Kelly  MOVED  to ADOPT  Amendment  DCCED  #3,                                                                   
which would  add $210  thousand to  Community Assistance  and                                                                   
Economic Development, Community Advocacy.                                                                                       
                                                                                                                                
Representative  Kelly  MOVED  to AMEND  Amendment  DCCED  #3:                                                                   
change $210 thousand  to $150 thousand. He observed  that the                                                                   
appropriation   to   each   Regional    Seafood   Development                                                                   
Association would  be reduced from  $70.0 to $50.0.  He noted                                                                   
that  the subcommittee  added  a  one-time increment  to  the                                                                   
Regional  Seafood   Development  Associations   (RSDA's).  He                                                                   
emphasized  that the amendment  would  give the three  RSDA's                                                                   
seed money.                                                                                                                     
                                                                                                                                
3:11:32 PM                                                                                                                    
                                                                                                                                
Representative  Stoltze  asked   if  a  local  fisheries  tax                                                                   
supported the groups. Representative Kelly affirmed.                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative   Moses  MOVED   to   ADOPT  Amendment   DCCED                                                                   
Amendment  #4, which  would add  $1.8 million  to the  Alaska                                                                   
Seafood Marketing Institute (ASMI).  Co-Chair Meyer OBJECTED.                                                                   
                                                                                                                                
Representative  Moses spoke  to the  amendment. He  explained                                                                   
that the amendment  would allow the Alaska  Seafood Marketing                                                                   
Institute  to  participate  in  the industry.  The  state  of                                                                   
Alaska  has not  contributed to  ASMI  for approximately  ten                                                                   
years. He noted that $500 thousand  would allow international                                                                   
marketing in an attempt to increase  Alaska's market share in                                                                   
countries such  as Japan and  Eastern Europe. He  stated that                                                                   
Alaska spends much less than other countries on marketing.                                                                      
                                                                                                                                
3:14:26 PM                                                                                                                    
                                                                                                                                
Representative  Moses stressed  that the  state has  a vested                                                                   
interest in keeping its seafood  prices up. He concluded that                                                                   
the funds were  equal to $1 for every $2.5  that the industry                                                                   
generated.                                                                                                                      
                                                                                                                                
Representative  Weyhrauch spoke in  support of the  amendment                                                                   
and  reiterated that  the state  had not  contributed to  the                                                                   
Alaska Seafood Marketing  Institute in the past  10 years. He                                                                   
felt a  need to  support them  with the  current surplus.  He                                                                   
also observed  that marketing in other countries  resulted in                                                                   
higher sales.  He observed that there has  been approximately                                                                   
a  47  percent  increase  in  sales  of  Alaskan  seafood  in                                                                   
countries where it has been advertised.  He acknowledged that                                                                   
additional  funds  have  been   put  into  marketing  through                                                                   
regional associations.                                                                                                          
                                                                                                                                
3:16:34 PM                                                                                                                    
                                                                                                                                
Representative Joule  also spoke in support  of the amendment                                                                   
and  stressed that  Alaska is  fortunate to  have wild  stock                                                                   
present.                                                                                                                        
                                                                                                                                
Co-Chair Chenault  maintained that the state  has invested in                                                                   
seafood  marketing. While  he  acknowledged marketing  issues                                                                   
around the world he argued that  a $500 thousand general fund                                                                   
increase was substantial.                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Weyhrauch, Foster, Joule, Kerttula, Moses                                                                             
OPPOSED: Stoltze, Hawker, Holm, Kelly, Chenault, Meyer                                                                          
                                                                                                                                
Representative  Moses WITHDREW  Amendment DCCED  #5 (copy  on                                                                   
file.)                                                                                                                          
                                                                                                                                
Representative Weyhrauch MOVED to ADOPT Amendment ED #1:                                                                        
                                                                                                                                
     Add to Section 13                                                                                                          
                                                                                                                                
     (b)  The sum of $250,000 is appropriated from the                                                                          
          general fund to the Department of Education and                                                                       
          Early Development for the fiscal year ending June                                                                     
          30, 2007, for payment as grants to each school                                                                        
          district that operates a charter school with an                                                                       
          average daily membership of less than 150 for                                                                         
         support of those charter schools in those                                                                              
          districts. The amount appropriated for grants by                                                                      
          this subsection is to be allocated among eligible                                                                     
          school districts in the proportion that the                                                                           
          average daily membership of eligible charter                                                                          
          schools in a district bears to the total average                                                                      
          daily membership of all eligible charter schools                                                                      
          in all school districts that operate an eligible                                                                      
          charter school.                                                                                                       
                                                                                                                                
Representative Stoltze OBJECTED.                                                                                                
                                                                                                                                
Representative Weyhrauch noted   that  charter   schools  had                                                                   
received state support  for the last two years.  He explained                                                                   
that the  amendment allowed  funds to  go to charter  schools                                                                   
with populations  of less than  150 students. He  stated that                                                                   
otherwise  these small  schools  were incorporated  into  the                                                                   
funding  formula   for  the   larger  schools,   which  would                                                                   
significantly  reduce their funding.  He stressed  the amount                                                                   
of time already spent by these  schools in fundraising. There                                                                   
are schools in Kenai, Nome and  Juneau.  He observed that the                                                                   
amount was less than they originally requested.                                                                                 
                                                                                                                                
3:22:10 PM                                                                                                                    
                                                                                                                                
Representative  Stoltze  expressed  his  support  of  charter                                                                   
schools, and noted their reliance on volunteerism.                                                                              
                                                                                                                                
3:22:59 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  questioned  if  the  amendment  would                                                                   
result  in   level  funding  with  FY   2006.  Representative                                                                   
Weyhrauch confirmed.                                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative  Kerttula  WITHDREW   Amendment  #2  (copy  on                                                                   
file.)                                                                                                                          
                                                                                                                                
Representative Weyhrauch MOVED  to ADOPT  Amendment ED  #3 to                                                                   
appropriate $49.5  thousand general  funds to the  Department                                                                   
of  Education  and  Early  Development,  Alaska  Library  and                                                                   
Museums, Archives for program support.                                                                                          
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Kerttula  MOVED  to ADOPT  Amendment ED  #4 to                                                                   
add $500 thousand to Head Start Grants.                                                                                         
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative Kerttula  explained  that the amendment  would                                                                   
provide  enough   funding  in  the  Head  Start   Program  to                                                                   
incorporate many  of the 850 children  on the wait  list. She                                                                   
explained  that  these  children  were  beneath  the  poverty                                                                   
guidelines. She proposed that  spending this money would have                                                                   
future benefits and pointed out  that the state of Alaska had                                                                   
not  funded  preschool  program,  and  that  the  Head  Start                                                                   
program had been flat funded for  the past several years. She                                                                   
noted  that  all  Head  Start  Grants  were  completed  on  a                                                                   
competitive basis.  She noted  that the first  lady supported                                                                   
this program.                                                                                                                   
                                                                                                                                
3:26:38 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault  noted the  decrease  of  $272 in  federal                                                                   
funds and asked where this occurred.                                                                                            
                                                                                                                                
EDDY JEANS, DIRECTOR, EDUCATION  SUPPORT SERVICES, DEPARTMENT                                                                   
OF   EDUCATION   AND   EARLY   DEVELOPMENT,   confirmed   his                                                                   
understanding  that the  funding for  the Head Start  Program                                                                   
would  be   decreased  by  $270   thousand  by   the  federal                                                                   
government in the coming year.                                                                                                  
                                                                                                                                
3:27:44 PM                                                                                                                    
                                                                                                                                
IN FAVOR: Kerttula, Moses, Joule                                                                                                
OPPOSED:  Kelly,  Stoltze,  Weyhrauch, Hawker,  Holm,  Meyer,                                                                   
          Chenault                                                                                                              
                                                                                                                                
Representative Foster was absent from the vote.                                                                                 
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative Joule MOVED  to ADOPT Amendment  ED #5  to add                                                                   
$5  million to  Teaching  and  Learning Support  for  Teacher                                                                   
Mentoring.                                                                                                                      
                                                                                                                                
Representative Stoltze OBJECTED.                                                                                                
                                                                                                                                
Representative Joule explained   that   the   funding   would                                                                   
support  the  teacher  mentoring program.  He  discussed  the                                                                   
origin  of the  program and  emphasized the  success of  past                                                                   
teacher  mentoring   programs.  He   noted  that   37  school                                                                   
districts  participated  in this  program  and  demonstrating                                                                   
that  participation  in  this   voluntary  program  increased                                                                   
teacher  retention in  the state. He  observed that  teachers                                                                   
who are initially  mentored in rural Alaska  might eventually                                                                   
move  to  larger  districts  in   the  state.  He  noted  the                                                                   
importance  of retaining  teachers throughout  the state  and                                                                   
urged support.                                                                                                                  
                                                                                                                                
3:31:28 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer noted  previous discussions  in the  Education                                                                   
Subcommittee   and  noted   it   had  the   support  of   the                                                                   
Commissioner of Education. He  explained that the program was                                                                   
started  by the  federal government.  The  state must  decide                                                                   
whether to  continue the program.  He noted the  high request                                                                   
amount pf $5  million and observed that the  Anchorage School                                                                   
District has its own program.  He noted that the Subcommittee                                                                   
questioned  whether   retired  teachers   might  be   a  less                                                                   
expensive  option.  He noted  the  subcommittee's  discomfort                                                                   
with the high cost of the program.                                                                                              
                                                                                                                                
3:33:05 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault   acknowledged   that   the   program   was                                                                   
beneficial, but  expressed concern with the  cost and pointed                                                                   
out  that  there  are  many  unresolved   issues  surrounding                                                                   
education.  He referred  to  the cost  differential  problem,                                                                   
which might  be part of the  solution. He stated that  he was                                                                   
not comfortable supporting the  amendment, but suggested that                                                                   
it might be revisited later in the session.                                                                                     
                                                                                                                                
3:34:30 PM                                                                                                                    
                                                                                                                                
Representative  Joule  agreed   that  sometimes  issues  were                                                                   
raised to continue dialogue on  the House Floor. He commended                                                                   
larger school districts for continued  the program, but noted                                                                   
that  raising energy  costs  in smaller  districts  prevented                                                                   
monies  from being directed  to other  programs. He  conceded                                                                   
that movement  had been made,  but emphasized  the importance                                                                   
if  assisting young  teachers  early on  in  the process.  He                                                                   
maintained that  providing assistance  to new teachers  would                                                                   
help them  to transition and  result in greater  retention in                                                                   
Alaska. He welcomed further discussion.                                                                                         
                                                                                                                                
3:36:31 PM                                                                                                                    
                                                                                                                                
Representative Kelly acknowledged   the  cost  of  having  to                                                                   
recruit  and  retain  new teachers,  but  conceded  that  the                                                                   
funding level was  not sustainable. He mentioned  a time when                                                                   
Fairbanks  put a  great  deal of  effort  into mentoring.  He                                                                   
observed  that the  state  was not  producing  the amount  of                                                                   
teachers needed to fill current job openings.                                                                                   
                                                                                                                                
Representative  Joule  pointed  out  that it  would  be  more                                                                   
difficult to restart the program.                                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Foster, Joule, Kerttula, Moses                                                                                        
OPPOSED:  Hawker,  Holm,  Kelly, Stoltze,  Wehyrauch,  Meyer,                                                                   
          Chenault                                                                                                              
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative Joule MOVED  to ADOPT Amendment  ED #6  to add                                                                   
$750 thousand to support the work  of Ready to Read, Ready to                                                                   
Learn  Alaska Task  Force  in the  Department  of Health  and                                                                   
Social Services.                                                                                                                
                                                                                                                                
Representative Stoltze OBJECTED.                                                                                                
                                                                                                                                
3:40:05 PM                                                                                                                    
                                                                                                                                
Representative Joule  explained that the  amendment supported                                                                   
the Ready to Read program. He  noted that pre K programs have                                                                   
been eliminated.  He emphasized the importance  of instilling                                                                   
early reading skills  in 3 to 5 year olds,  and proposed that                                                                   
work at  this level would result  in benefits in  the overall                                                                   
system. He  stressed that  these funds  are an investment  in                                                                   
students  in  the  state  of Alaska,  which  would  pay  huge                                                                   
dividends.  He  pointed  out that  studies  correlated  early                                                                   
education to a lack of a prison record.                                                                                         
                                                                                                                                
Representative  Hawker observed that  the program  started in                                                                   
the Health and  Social Services budget. The  Subcommittee did                                                                   
not  accept the  appropriation  and  recommended  that it  be                                                                   
directed  to the  Education  budget.  He conceded  that  this                                                                   
program provided benefit, but  questioned why it had begun in                                                                   
the  Department  of Health  and  Social Services  budget.  He                                                                   
suggested that it pointed to a  family responsibility. He did                                                                   
not believe  the state had a  primary role at this  level. He                                                                   
mentioned  that  there  were  a  number  of  social  services                                                                   
already  available to  support  young children,  such as  day                                                                   
care, which is funded at $53 million  a year. He was not sure                                                                   
that the state should support this program.                                                                                     
                                                                                                                                
3:45:53 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer conceded  that this  was a difficult  decision                                                                   
and   noted   the   long   discussions   in   the   Education                                                                   
Subcommittee. He  observed that the intent of  the task force                                                                   
was to  provide these services  to all young children  in the                                                                   
state.  He  pointed  out  however, that  the  funding  was  a                                                                   
placeholder,  since the task  force was not  yet sure  how to                                                                   
spend the  money. He felt  the amendment would  be premature.                                                                   
The $750  thousand was  merely for the  task force,  with the                                                                   
services portending a much larger amount.                                                                                       
                                                                                                                                
Representative Hawker clarified  that the child care benefits                                                                   
proposal was  $48 million vs.  $53 million in  the Department                                                                   
of Health and Social Services.                                                                                                  
                                                                                                                                
Representative Joule  suggested that the task  force might be                                                                   
able  to  identify  current state  agencies  as  methods  for                                                                   
improving  learning for  young  children.  He emphasized  the                                                                   
need for  funding to allow the  task force to  interface with                                                                   
the  current   program.  He  noted  that  his   own  district                                                                   
currently  chose to  make this  investment,  even though  the                                                                   
department  is not  supporting  the funding.  He referred  to                                                                   
studies that demonstrate that  young children benefit a great                                                                   
deal from this type of intervention.                                                                                            
                                                                                                                                
3:50:04 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault   agreed   that  earlier  intervention   in                                                                   
education is better.  However, he noted that it  was a policy                                                                   
question whether the  state or the family ought  to have that                                                                   
responsibility.  He conceded  that  some  families might  not                                                                   
have the ability  to provide these resources,  but questioned                                                                   
the role of the state.                                                                                                          
                                                                                                                                
3:50:59 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Joule, Kerttula, Moses                                                                                                
OPPOSED:  Hawker,  Holm, Kelly,  Stoltze, Weyhrauch,  Foster,                                                                   
          Chenault, Meyer                                                                                                       
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
3:51:51 PM                                                                                                                    
                                                                                                                                
Representative Kerttula MOVED to ADOPT ED 7:                                                                                    
                                                                                                                                
     DEPARTMENT:         Department of Education                                                                                
     APPROPRIATION:      Teaching and Learning Support                                                                          
     ALLOCATION:         Student and School Achievement                                                                         
                                                                                                                                
     ADD:           $50.0                                                                                                       
                                                                                                                                
     FUNDING SOURCE:     GF code 1004                                                                                           
                                                                                                                                
Co-Chair Chenault OBJECTED.                                                                                                     
                                                                                                                                
Representative  Kerttula   explained  the   amendment,  which                                                                   
supports  a  20 year  old  program.  The Alaska  Mineral  and                                                                   
Energy  Resource Education  Fund  (AMEREF)  is a  partnership                                                                   
between  the State  of  Alaska  Department of  Education  and                                                                   
private  industry to  provide  Alaska students  and  teachers                                                                   
with the knowledge and skills  to make informed and objective                                                                   
decisions relating to mineral,  energy, and forest resources.                                                                   
The key  component of the  program is the curriculum  modules                                                                   
provided to teachers  around the state.  These  modules cover                                                                   
such subjects  as Alaska's Mining History,  Alaska's Geology,                                                                   
Alaska's  Minerals and  Mining,  Ecology/Economy, Energy  and                                                                   
the Environment and Alaska's Forestry.   Funding is needed to                                                                   
update   and   revise  the   curriculum   modules   including                                                                   
incorporating the  newly approved state science  standards as                                                                   
well  as  new  technologies.  She spoke  in  support  of  the                                                                   
amendment and  stressed its effectiveness. She  observed that                                                                   
there is currently no good outside source.                                                                                      
                                                                                                                                
Co-Chair Chenault did not support the amendment.                                                                                
                                                                                                                                
Co-Chair  Meyer acknowledged  the worth  of the program,  but                                                                   
observed  that the  state  already contributes  $50  thousand                                                                   
dollars  toward  the program.  He  hoped  to see  the  mining                                                                   
industry to take the program over.                                                                                              
                                                                                                                                
Representative  Kerttula pointed out  that the State  reduced                                                                   
funding,  which AMEREF  picked  up. The  money  is needed  to                                                                   
update and revise the science  curriculum. She stated that it                                                                   
was a worthwhile program.                                                                                                       
                                                                                                                                
3:55:03 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Joule, Kerttula, Moses                                                                                                
OPPOSED:  Hawker,   Kelly,   Stoltze,    Weyhrauch,   Foster,                                                                   
          Chenault, Meyer                                                                                                       
                                                                                                                                
Representative Holm was absent from the vote.                                                                                   
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
3:55:50 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch MOVED to ADOPT Labor #1:                                                                               
                                                                                                                                
     (d)  The  sum  of  $200,000  is  appropriated  from  the                                                                   
     general fund  to the Department  of Labor  and Workforce                                                                   
     Development,  independent   living  rehabilitation,  for                                                                   
     partial  funding   of  interpreter  referral   line  and                                                                   
     transition of  youth to employment, for the  fiscal year                                                                   
     ending June 30, 2007.                                                                                                      
                                                                                                                                
Co-Chair Chenault OBJECTED.                                                                                                     
                                                                                                                                
Representative Weyhrauch  explained that the  amendment would                                                                   
appropriate   $200  thousand   for  the  independent   living                                                                   
rehabilitation.  He  emphasized  that the  funding  helps  to                                                                   
keep people in their homes. It is a one-time appropriation.                                                                     
                                                                                                                                
Co-Chair   Chenault   acknowledged   that  the   program   is                                                                   
worthwhile.                                                                                                                     
                                                                                                                                
Representative Chenault MOVED  to AMEND Amendment: reduce the                                                                   
appropriation to $150 thousand.  There being NO OBJECTION, it                                                                   
was amended.                                                                                                                    
                                                                                                                                
Representative  Hawker OBJECTED for  a comment. He  expressed                                                                   
the  desire  to  see the  services  coordinated  between  the                                                                   
Department  of  Labor  and  Workforce   Development  and  the                                                                   
Department of Health and Social Services.                                                                                       
                                                                                                                                
Representative Hawker WITHDREW his OBJECTION.                                                                                   
                                                                                                                                
Representative Kelly  referred to the number  of constituents                                                                   
testifying regarding  the budget and pointed out  that few if                                                                   
any testified in  favor of further cuts. He  thought that the                                                                   
budget  was not  sustainable.  He maintained  that there  are                                                                   
many equally deserving programs,  but indicated that he would                                                                   
support the amendment.                                                                                                          
                                                                                                                                
There being NO OBJECTION, LABOR #1 was adopted.                                                                                 
                                                                                                                                
4:00:48 PM                                                                                                                    
                                                                                                                                
Representative Kerttula MOVED to ADOPT Labor #2:                                                                                
                                                                                                                                
     DEPARTMENT:         Department of Labor                                                                                    
     APPROPRIATION:      Workforce Development                                                                                  
     ALLOCATION:         Adult Basic Education                                                                                  
                                                                                                                                
     ADD:           $450.0                                                                                                      
                                                                                                                                
     FUNDING SOURCE:     GF code 1004                                                                                           
                                                                                                                                
     EXPLANATION:   This  amendment  will restore  the  Adult                                                                   
     Basic Education  Program to the  full $1 million.   This                                                                   
     program  prepares Alaskans  for employment by  providing                                                                   
     instruction  in  basic skills  and  GED preparation  and                                                                   
     testing.    The increment  will  enable  the program  to                                                                   
     increase  their  GED  graduates  by 630  and  will  also                                                                   
     provide  a   trades  apprenticeship  and   job  training                                                                   
     curriculum.   The additional  funding is also  needed to                                                                   
     maintain,  monitor and  update the  databases and  train                                                                   
     the ABE program staff                                                                                                      
                                                                                                                                
Representative Stoltze OBJECTED.                                                                                                
                                                                                                                                
4:01:22 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula  stated  that  the  amendment  would                                                                   
restore the  Adult Education Program  to the requested  limit                                                                   
of  $1 million.  She  referred  to testimony  indicating  the                                                                   
importance  of  the program  in  allowing people  to  improve                                                                   
their  lives.  The  Adult  Basic   Education  Program  issues                                                                   
certificates   to   the  highest   percentage   of   Alaskans                                                                   
graduating through  any program. There are 630  graduates per                                                                   
year. She reiterated that it would be money well spent.                                                                         
                                                                                                                                
Representative  Joule  noted that  he  worked  at the  Alaska                                                                   
Technical Center in Kotzebue and  recounted successful use of                                                                   
the  program.   He  urged  passage   of  the   amendment  and                                                                   
maintained it was a worthwhile expense.                                                                                         
                                                                                                                                
4:05:47 PM                                                                                                                    
                                                                                                                                
GUY   BELL,    ASSISTANT   COMMISSIONER,   OFFICE    OF   THE                                                                   
COMMISSIONER, DEPARTMENT OF LABOR  AND WORKFORCE DEVELOPMENT,                                                                   
explained that the GED program  is the single largest source,                                                                   
with 20%, of high school diplomas.                                                                                              
                                                                                                                                
Representative Hawker was shocked.                                                                                              
                                                                                                                                
Representative  Kerttula  stated  that  there  was  no  other                                                                   
program giving  GED's in the State. Co-Chair  Chenault stated                                                                   
this was in addition to what was requested.                                                                                     
                                                                                                                                
4:08:22 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Joule, Kerttula, Moses                                                                                                
OPPOSED: Hawker, Holm, Kelly, Stoltze, Foster, Chenault,                                                                        
                                                                                                                                
Vice-Chair  Meyer and  Representative  Weyhrauch were  absent                                                                   
from the vote.                                                                                                                  
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
4:09:14 PM                                                                                                                    
                                                                                                                                
Representative Kerttula MOVED to ADOPT Labor #3:                                                                                
                                                                                                                                
     DEPARTMENT:    Department of Labor                                                                                         
     APPROPRIATION: Workers' Compensation and Safety                                                                            
     ALLOCATION:    Wage and Hour Administration                                                                                
                                                                                                                                
     ADD:           $199.5                                                                                                      
                                                                                                                                
     FUNDING SOURCE:GF code 1004                                                                                                
                                                                                                                                
     EXPLANATION:   This  amendment will  restore funding  to                                                                   
     the  $299.2 level  requested by  Department of  Labor to                                                                   
     establish  three  new  Wage   and  Hour  Investigator  I                                                                   
     positions  to improve resident  hire results  and ensure                                                                   
     compliance   with   prevailing   wage  laws.      Public                                                                   
     construction  projects have  increased by  23% since  FY                                                                   
     2003 and  existing staff is insufficient  to perform on-                                                                   
     site  inspections.   These positions  will result  in an                                                                   
     additional 800 on-site inspections annually.                                                                               
                                                                                                                                
Representative Stoltze OBJECTED.                                                                                                
                                                                                                                                
Representative Kerttula  spoke    to   the   amendment.   She                                                                   
explained  that   the  amendment  would  restore   the  level                                                                   
requested   by  the   Department  of   Labor  and   Workforce                                                                   
Development.   She   observed   support  from   the   General                                                                   
Contractors  Association  and  members  of  the  public.  She                                                                   
observed  that  with  the  increase  in  public  construction                                                                   
programs, the existing staff in the Department of Labor was                                                                     
unable  to get to  job sites  to do  proper inspections.  The                                                                   
amendment  would allow  800 more  inspections  per year.  The                                                                   
state  of   Alaska  has  a   prevailing  wage   law.  Without                                                                   
enforcement  some  contractors  may  misclassify  workers  to                                                                   
lower paying crafts  with little threat of being  caught. The                                                                   
amendment would help level the  playing field. She maintained                                                                   
that without  the funding some  contractors would  not follow                                                                   
ethical work practices.                                                                                                         
                                                                                                                                
4:11:01 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  conceded that the  amount was not  as much                                                                   
as requested,  but felt  that it might  be enough  to suffice                                                                   
for now.                                                                                                                        
                                                                                                                                
Representative Holm  asked whether there were  any cases that                                                                   
raised   suspicion    about   contractors    not   complying.                                                                   
Representative Weyhrauch said  that  although  they  had  not                                                                   
heard any testimony,  the presence of the  program preventing                                                                   
poor practices.                                                                                                                 
                                                                                                                                
Representative  Hawker agreed  that the  state needed  to pay                                                                   
attention  to current  laws  in this  area.  He endorsed  the                                                                   
amendment.                                                                                                                      
                                                                                                                                
Representative Kelly noted  the increase and proposed  that a                                                                   
great deal of enforcement already  occurred in the workplace.                                                                   
                                                                                                                                
Representative Kerttula  pointed  out that testimony revealed                                                                   
that only  160 projects  were surveyed,  and inspectors  were                                                                   
overwhelmed.   She  noted  testimony   estimating   that  800                                                                   
projects need auditing.                                                                                                         
                                                                                                                                
Representative Chenault spoke against the amendment.                                                                            
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Joule, Kerttula, Hawker                                                                                               
OPPOSED:  Holm, Kelly, Stoltze,  Weyhrauch, Foster, Chenault,                                                                   
          Meyer                                                                                                                 
                                                                                                                                
Representative Moses was absent from the vote.                                                                                  
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative  Kelly MOVED  to ADOPT  Amendment Labor  #4 to                                                                   
add  $47.9  thousand Independent  Living  Rehabilitation  for                                                                   
Assisted Living Care for the Elderly and Blind.                                                                                 
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Chenault  MOVED to ADOPT  Amendment Labor #5  to add                                                                   
$50.0 thousand  general  funds for an  office of  Citizenship                                                                   
Assistance activities in the Kodiak office.                                                                                     
                                                                                                                                
Representative Stoltze OBJECTED.                                                                                                
                                                                                                                                
Co-Chair Chenault  noted that the amendment  generated from a                                                                   
Committee  member,  and  stated   that  Kodiak  had  a  large                                                                   
Filipino population  and believed  they needed a  position of                                                                   
Citizen Assistance.                                                                                                             
                                                                                                                                
Representative  Stoltze WITHDREW  objection.  There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Chenault MOVED to ADOPT Amendment LAW #1:                                                                              
                                                                                                                                
     * Sec. 15.  DEPARTMENT OF LAW. The sum  of $1,500,000 is                                                                   
     from  the general fund  to the  Department of  Law, oil,                                                                   
     gas,  and mining,  for  work related  to  the state  gas                                                                   
     pipeline,  to  bringing   North  Slope  natural  gas  to                                                                   
     market,  and to  other  oil and  gas  projects, for  the                                                                   
     fiscal year ending June 30, 2007.                                                                                          
                                                                                                                                
Representative Stoltze OBJECTED.                                                                                                
                                                                                                                                
4:17:27 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  observed that the amendment  would provide                                                                   
$1.5 million  for related  oil and  gas projects. The  monies                                                                   
were split between  the FY 06 and 07 budgets.  He pointed out                                                                   
that the FY 07 funding was taken  out of the supplemental and                                                                   
added  to the  FY 07  operating  budget. He  observed that  a                                                                   
large amount of money has been  spent over the last few years                                                                   
for  pipeline  and  other  negotiations  and  noted  concerns                                                                   
regarding  accounting  for those  expenditures.  He had  been                                                                   
reassured that the  funding was spent in the  correct manner.                                                                   
He concluded that  at this time, with the PPT  tax before the                                                                   
Legislature,  the  money must  be  invested.  He stated  that                                                                   
although he was reluctant to spend  the money, he believed it                                                                   
was necessary.                                                                                                                  
                                                                                                                                
Representative  Stoltze expressed  support for funding  civil                                                                   
lawyers. He  noted the amount  of outstanding tax  cases, and                                                                   
the   cost  of   contracted  attorneys.   He  commended   the                                                                   
dedication of  attorneys working for the department.  He also                                                                   
noted that the  intention was not to hire too  many attorneys                                                                   
out of Washington D.C.                                                                                                          
                                                                                                                                
4:20:03 PM                                                                                                                    
                                                                                                                                
Representative Hawker WITHDREW  his OBJECTION. There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Representative  Stoltze  MOVED  to ADOPT  Amendment  LAW  #2,                                                                   
which  would add  $141.8 thousand  in general  funds for  the                                                                   
Third Judicial  District, Anchorage to restore  a therapeutic                                                                   
courts attorney.                                                                                                                
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Chenault  MOVED to  ADOPT Amendment  DMVA #1  to add                                                                   
$150 thousand for Homeland Security Emergency Services.                                                                         
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Holm MOVED to ADOPT  Amendment DOTPF #1 to add                                                                   
$1.5  million  Northern  Region  Highways  and  Aviation  for                                                                   
increased Dalton Highway maintenance and operations.                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
4:22:10 PM                                                                                                                    
                                                                                                                                
Representative  Moses MOVED  to ADOPT  Amendment DOTPF  #2 to                                                                   
add  $543.8 thousand  for five  positions and  to extend  the                                                                   
hours  of operation  at Kodiak,  Dillingham, Unalaska,  Nome,                                                                   
Kotzebue, Wrangell and Petersburg.                                                                                              
.                                                                                                                               
Representative Stoltze OBJECTED.                                                                                                
                                                                                                                                
FRANK   RICHARDS,  STATEWIDE   MAINTENANCE  AND   OPERATIONS,                                                                   
DEPARTMENT OF TRANSPORTATION AND  PUBLIC FACILITIES, spoke to                                                                   
the amendment.  He explained that  the amendment  would allow                                                                   
extended  hours in  rural  certificated  airports, where  air                                                                   
carriers would  like better  service on  the runway  for snow                                                                   
and ice  removal. The  additional service  would affect  both                                                                   
passenger  and  cargo  flights.   He  explained  that  missed                                                                   
approaches  result in  returns to  Anchorage, which  prevents                                                                   
food stuffs  and medical evacuation  staff from  arriving. He                                                                   
observed  support   in  rural   areas.  He  noted   that  the                                                                   
legislature  approved 75% of  their FY 06  request on  six of                                                                   
the  airports:   Petersburg,   Nome,  Bethel,  Kotzebue   and                                                                   
Dillingham. The amendment would  expand service to Kodiak and                                                                   
Unalaska.                                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Foster, Joule, Kerttula                                                                                        
OPPOSED:  Stoltze,  Weyhrauch,  Hawker, Holm,  Kelly,  Meyer,                                                                   
          Chenault                                                                                                              
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative  Joule WITHDREW  Amendment DOTPF  #3 (copy  on                                                                   
file.)                                                                                                                          
                                                                                                                                
Representative  Kerttula  MOVED  Amendment #4,  DOTPF,  which                                                                   
would add $2,355.8  million for Alaska Marine  Highway System                                                                   
Vessel Operations.                                                                                                              
                                                                                                                                
Co-Chair Chenault OBJECTED.                                                                                                     
                                                                                                                                
Representative  Kerttula explained  that the amendment  would                                                                   
restore the reduction of additional  weeks of service for the                                                                   
cross gulf service  between Juneau and Whittier  from October                                                                   
to June  30, 2006  on the  M/V Kennicott.  She observed  that                                                                   
many travelers depend on the service,  including legislators,                                                                   
military and other state employees.                                                                                             
                                                                                                                                
NANCY SLAGLE, DIRECTOR, DIVISION  OF ADMINISTRATIVE SERVICES,                                                                   
DEPARTMENT OF TRANSPORTATION AND  PUBLIC FACILITIES, observed                                                                   
that  the amendment  would  restore  funding  reduced by  the                                                                   
Subcommittee as an unallocated reduction.                                                                                       
                                                                                                                                
4:26:48 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault   observed    that   there   are   concerns                                                                   
regarding  fast  ferry  service  and other  issues  with  the                                                                   
Alaska  Marine Highway  System. He expressed  a hesitance  to                                                                   
add support at this time.                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Joule, Kerttula                                                                                                
OPPOSED:  Stoltze,  Weyhrauch, Foster,  Hawker, Holm,  Kelly,                                                                   
          Meyer, Chenault                                                                                                       
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
HB  365 and  HB 366  were  heard and  HELD  in Committee  for                                                                   
further consideration.                                                                                                          

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