Legislature(2013 - 2014)HOUSE FINANCE 519
02/05/2014 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB266 || HB267 | |
| Fy 15 Governor's Budget Overview: Department of Education and Early Development | |
| Fy 15 Governor's Budget Overview: Department of Commerce, Community and Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 266 | TELECONFERENCED | |
| += | HB 267 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 266
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, and making
reappropriations; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from
the constitutional budget reserve fund."
HOUSE BILL NO. 267
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program."
1:37:45 PM
^FY 15 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF EDUCATION
and EARLY DEVELOPMENT
1:37:48 PM
MICHAEL HANLEY, COMMISSIONER, DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT, (DEED) introduced himself.
HEIDI TESHNER, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT,
introduced herself.
Commissioner Hanley discussed slide 2 of the PowerPoint
presentation, "Alaska Department of Education and Early
Development, FY 2015 Department Overview" (copy on file).
Mission: To ensure quality standards- based
instruction to improve academic achievement for all
students.
Core Services:
1. Public School Funding - Ensure funding is
appropriately distributed to recipients based on
legislative appropriations and by Statute.
2. Fiscal Accountability, Compliance and Oversight -
Ensure the department effectively and efficiently
manages state, federal and other funds.
3. School Effectiveness Programs - Assist districts by
providing programs, technical on-site and distance
delivery support, and early intervention services.
4. Active Partnerships - Provide opportunities for,
and collaborate with government entities, and other
public and private organizations.
Commissioner Hanley looked at slide 3, "DEED Budget by Core
Services." He stated 80 percent of the budget went directly
to school districts, was largely formula driven, and was
the location of the base student allocation (BSA). He
announced that 14 percent of the budget was used for fiscal
accountability, compliance, and oversight. He shared that 4
percent of the budget was intended for active partnerships.
He stated that 2 percent of the budget was used for school
effectiveness programs.
Commissioner Hanley discussed slide 4, "Department of
Education and Early Development Measures and Results." He
remarked that DEED used the Alaska Performance Scholarship
(APS) to measure results. He stated that there were three
cohorts of students who had access to the Performance
Scholarship. He remarked that in 2011, 28.8 percent of
students eligible for the APS; in 2012, 27.2 percent of
students were eligible for the APS; and in 2013, 31.6
percent of students were eligible for the APS.
1:42:48 PM
Commissioner Hanley highlighted slide 5, "Department of
Education and Early Development Measures and Results." The
chart represented the four year graduation rates, which was
how Alaska compared itself to other states. He remarked
that there was a common formula for how the graduation rate
was determined. He noted that the last two years showed a
two percent increase, and it was the goal of DEED to hit 90
percent by 2020. Currently, the graduation rate was 71.6
percent, so with a 2 percent per year increase, the rate
would be approximately 86 percent by 2020.
Commissioner Hanley looked at slide 6, "Department of
Education and Early Development FY 2015 Operating Budget
Governor's December 12 includes School Debt Reimbursement."
The slide contained two sets of data in both table and
graph form. The table broke the budget into two components.
The K-12 Formula Programs represented $1.4 billion of the
total $1.7 billion DEED budget. The Agency Operations
budget was $310 million, and he remarked that $213 million
of the $310 million were federal funds.
Commissioner Hanley highlighted slide 7, "Department of
Education and Early Development Operating Overview All
Funds." The slide addressed spending. He stated that 95
percent of spending was from grants in the form of
foundation formula, pupil transportation, and school debt
reimbursement programs, and child nutrition programs. The 3
percent for "Other Lines" were for contractual obligations
and responsibilities, which include travel and assessment
contracts. He shared that 2 percent of the budget was for
personal services. He noted that the bottom left corner of
the slide showed the position count: 332 full-time, 14
part-time, and 17 non-permanent.
Commissioner Hanley looked at slide 8, "Department of
Education and Early Development Agency Operations." The
left graph was the general fund operating budget, with 95
percent directed at the K-12 formula programs and 5 percent
for agency operations. The agency operations were
categorized by fund source on the right side of the slide:
68 percent federal funds, 23 percent general funds, and 9
percent other funds.
1:47:18 PM
Commissioner Hanley discussed slide 9, "Department of
Education and Early Development FY 2015 Governor's Budget
Highlights."
Operating Budget
K-12 Foundation Program:
$25,000.0 UGF for school district support outside the
formula to be distributed as additional state aid.
Funding will be distributed by AADM to include
district cost factors.
K-12 Support Boarding Home Grant Funding:
$961.3 UGF increase for four new residential programs
that have been approved by the department.
Alaska Higher Education Investment Fund:
AlaskAdvantage Education Grants - $1,500.0 DGF
Alaska Performance Scholarship Awards - $3,000.0 DGF
K-12 Education Formula Funding:
Forward funding of the Foundation Program and Pupil
Transportation to be deposited into the Public
Education Fund.
Commissioner Hanley looked at slide 10, "Department of
Education and Early Development FY 2015 Governor's Budget
Highlights."
Operating Budget
Pre-Kindergarten Grant Funding:
$2,000.0 UGF restores the Pre-Kindergarten Grant
program to the $2,000.0 one-time funding level of
FY2014.
Student and School Achievement:
$100.0 MHTAAR (Other) for the Mental Health Trust
Authority Grant for Alaska Autism Resource Center to
maintain current funding levels.
Alaska Challenge Youth Academy:
Decrease of $4,791.4 UGF for a transfer out of DEED's
budget and to be directly appropriated to DMVA's
Alaska Military Youth Academy allocation.
Agency Operations Efficiency Reductions:
Decrease of $646.4 UGF/Federal.
Commissioner Hanley displayed slide 11, "Department of
Education and Early Development 10-year Plan Highlights."
Operating Budget
-The Department of Education & Early Development has
incorporated all FY2015 Governor's budgeted changes
into the 10-year plan.
-The 10-year plan does not include any potential
statutory changes or associated fiscal notes.
-In FY2015-FY2024, the Foundation Formula projects
sustained funding including $25,000.0 outside the
formula as targeted funding.
-Operating cost increases include annual inflation
adjustments for contractual obligations.
-Start-up operating and maintenance costs for the
State Libraries, Archives and Museums facility, the
Sheldon-Jackson Stratton Library, and the future MEHS
aquatics facility.
1:52:53 PM
Commissioner Hanley looked at slide 12, "Department of
Education and Early Development 10-year Plan Highlights."
Capital Projects
-School district new facility Construction estimates
$50,000.0 annually and includes projects to satisfy
the Kasayulie v. State consent decree and settlement
agreement.
-School district facility Major Maintenance projects
estimates $50,000.0 annually.
-Deferred maintenance for MEHS appropriations are
included which follow the current Governor's 5-year
deferred maintenance initiative.
-Funding for the Sheldon-Jackson Stratton Library
renovation and full funding for the State Libraries,
Archives and Museums facility are included in the 10-
year projection.
Commissioner Hanley highlighted slide 13, "Department of
Education and Early Development Continued Budget Growth
Compared to 10-Year Plan." The slide represented the non-
formula general funds (GF) only. He stated that the dotted
line was a projection of 2006 to 2015, and extrapolating
beyond with an 8.1 percent growth. He noted that the line
steepness from years 2010 and 2013 was related to the
inclusion of APS, Alaska Native Science and Engineering
Program (ANSEP), early learning programs, and school
performance incentive programs.
Commissioner Hanley spoke to slide 14, "Department of
Education and Early Development Continued Budget Growth
Compared to 10-year Plan." The graph looked at all funds.
He stated that the 5 percent for agency operations did not
have an impact on the displayed trajectory. The graph did
not include a BSA increase. If the graph included the
governor's proposed BSA increase, the trajectory of the
black dotted line on the graph would increase by very
little. He stressed that the $49 million in the BSA would
have very little impact.
1:58:16 PM
Commissioner Hanley highlighted slide 15, "Education and
Early Development Budget Compared to All Agencies Budgets."
The bars on the graph showed the total agency non-formula
GF budget, and the numbers included programs like Parents
as Teachers, Best Beginnings, theme-based education, the
Alaska Advantage Grant, and the APS. He remarked that the
DEED agency budget represented only 2 percent of the
state's agencies budget.
Commissioner Hanley discussed slide 16, "DEED Formula and
Non-Formula Funding."
The department's total GF budget grew over $410
million (45 percent) between FY06 and the FY15
Governor's Request - an average annual growth rate for
that period of 8.1 percent.
The department's total FY15 GF budget request for DEED
formula and non-formula programs equals $3,973 per
resident worker.
Co-Chair Austerman asked for a description of the "Aquatic
Facility." Commissioner Hanley replied that there was a 50
meter swimming pool at Mt. Edgecumbe, which was in need of
an upgrade.
Co-Chair Austerman looked at slide 4, and expressed concern
regarding the 70 percent that were not represented in the
APS program. He felt that there should be an overall
holistic view of education for all students, rather than
the students that were eligible for APS. Commissioner
Hanley agreed to provide more information, including a
report that outlined the components of findings related to
APS functionality.
2:02:08 PM
Co-Chair Stoltze queried the optimistic projections for
graduation rates. Commissioner Hanley replied that he hoped
to continue to see 2 percent growth. He remarked that it
was important to work with the marginal students, but
agreed that there was a point where the effort might become
futile.
Co-Chair Stoltze shared a story about someone who dropped
out of school to start a business. He would like to see a
cost comparison between a public school student, charter
school student, home school student, and private school
student. He felt that the anecdotes might be more useful
than the facts, because he already knows the facts. He
would also like to examine the cost of retirement.
Commissioner Hanley agreed to provide that information.
2:09:33 PM
Vice-Chair Neuman looked at the number of vocational
programs available, and remarked that approximately 60
percent was not focused on vocational training.
Commissioner Hanley responded that the vocational training
was not a separate budgetary component, but was part of a
grant. He stated that the largest focus of DEED was to set
up the residential schools that could focus on the
technical and vocational courses.
Vice-Chair Neuman stated that math was one of the most
difficult school subjects. He wondered if there was a plan
to add more math classes. Commissioner Hanley agreed, but
stated that those decisions were most often made at the
local level.
Representative Gara expressed concern about staff losses
across the state. He wondered if DEED had calculated an
estimate base student allocation (BSA) adjustment in an
attempt to avoid future budget decreases. Commissioner
Hanley replied that an estimate was offered two years ago
through the superintendent's organization, but he had not
calculated another recently. He stated that he did not have
current estimates.
2:15:36 PM
Co-Chair Austerman noted that the governor's bill pointed
to a BSA estimate. He wondered how the estimate was
determined without current data. Commissioner Hanley
replied that the governor took the initiative to focus
targeted funds for targeted outcomes. The governor was
willing to estimate a one and one-half increase of the
current BSA. The governor recognized the increase as modest
with Alaska's fiscal climate.
Representative Gara stressed that he would like more
information from DEED regarding its needs. He felt that
reducing the number of teachers and staff did not have a
positive impact on education. He stated that the
legislature had conducted some surveys and agreed to
provide legislative research report, but he felt that DEED
should provide better information in order for the
legislature to make an informed decision. The governor's
proposed $80 increase to the BSA would result in even more
teacher lay-offs in Anchorage. Commissioner Hanley stated
that the governor had proposed an increase to the BSA that
would hopefully reduce the number of lay-offs of education
staff in Alaska.
Representative Gara wondered if the governor would be
willing to have a discussion that could stem the continual
layoffs in public education. Commissioner Hanley replied
that he believed the governor would focus on that, and was
interested in having more conversations.
2:20:52 PM
Representative Munoz wondered if DEED had analyzed the
impact of the one-time funding. Commissioner Hanley
responded that there were several districts that recognized
that it was one-time funding and incorporated it into
infrastructure. He stated that it would require a
conversation with every district to see that it was used as
intended. He felt that the answer would be different from
every district.
Representative Munoz felt that there could be more money
for education. She wanted to know why some districts were
struggling more than others across the state. Commissioner
Hanley replied that some districts operate very
efficiently, but others did not.
Representative Guttenberg looked at slide 3, and wondered
what was used as a benchmark for the fiscal accountability
and school effectiveness programs. Commissioner Hanley
replied that the school effectiveness programs had data
regarding institutes, participation, mentoring, coaching,
and state system of support. The fiscal accountability,
accounting, and oversight portion was based around the
responsibility of monitoring the use of the funds to meet
both state and federal guidelines. The component had
audits and reports to ensure accountability for both state
and federal funds.
2:25:56 PM
Representative Guttenberg wondered if there would be a
change in accountability when the funding changed.
Commissioner Hanley replied that DEED did not have a tool
to measure local effectiveness at a school level. He stated
that there were local measures, but DEED was not able to
reflect the impact of one less teacher on student
effectiveness directly.
Representative Guttenberg felt that an analysis of
graduation rates correlating with teacher lay-offs would be
beneficial to the legislature. Commissioner Hanley stated
that there were standard based assessments and graduation
rate assessments that DEED conducted. He agreed to provide
that information. He stressed that determining a cause
based on those assessments was challenging.
Representative Guttenberg felt that the positive effect of
vocational training needed to translate across the state.
Representative Wilson stressed that the discussion was
about local control, and pointed out that there should be a
determination of how much DEED should intervene in local
schools.
2:30:29 PM
AT EASE
2:32:22 PM
RECONVENED
^FY 15 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT
2:32:34 PM
SUSAN K. BELL, COMMISSIONER, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, delivered her
PowerPoint presentation: "House Finance Committee
Department Overview." She stated that many changes were
made during her four years with the department. She noted
that marketing and infrastructure development was thriving.
Commissioner Bell began with slide 2, "Department
Organization." She noted that the six corporate agencies
had a board or commission that directed their work. She
stated that the six agencies within the department.
Commissioner Bell continued with slide 3, "Core Services;
FY 2015 Budget." She described the pie chart and detailed
the agencies that added to the department's budget.
2:36:53 PM
Commissioner Bell discussed slide 4, "Economic Growth."
Division of Economic Development
-Tourism marketing and new air connections
contributed to third consecutive year of growth
(1.84 million visitors)
-Promoted new Icelandair flights to Alaska in the
UK, France, Sweden, Denmark, the Netherlands, and
Germany and brought Top Chef program to Alaska,
reaching 2.6 million viewers.
-Presented Opportunity Alaska seminar at Toronto
mineral industry conference; exposure to 39,600
attendees with 325 follow up contacts
-Promoted manufacturing sector and made in Alaska
products at U.S. Manufacturing Summit by National
Retail Federation and Walmart
-24 film production approved for tax credit based
on $40 million spend
-283 loans for $28.5 million to Alaska owned
businesses throughout the state
-Extensive outreach to rural and coastal Alaska
regions to promote utilization of loan programs
2:41:56 PM
Commissioner Bell continued with slide 5, "Economic
Growth."
Alaska Industrial Development and Export Authority
-Net asset value over $1.1 billion (June 2013)
-$20.7 million dividend to the state in FY2014
-Created and retained more than 297 construction
jobs and 893 permanent jobs
-Completed 10 loan participations totaling $11.5
million
-Completed the first phase of the Mustang oil
development project on the North Slope
-Completed the $77 million expansion of the
Ketchikan shipyard
-Developing the Interior Energy Project,
including an LNG liquefaction facility on the
North Slope
Commissioner Bell looked at slide 6, "Economic Growth."
Alaska Seafood Marketing Institute
-Export value up nearly 85 percent to $3.2
billion in ten years
-Maintained Alaska seafood brand as the second
most commonly specified on U.S. menus
-Conducted trade missions, media outreach, and
chef tours to Alaska from Brazil, Germany, Japan
and China
-Conducted national promotions in more than
11,000 restaurants, participated in 17
foodservice distributor promotions, and attended
19 foodservice trade shows
-Expanded collaboration with tourism marketing
program, Alaska Grown, and Nutritious Foods in
Schools grants
Commissioner Bell highlighted slide 7, "Sustainable
Energy."
Alaska Energy Authority
-Renewable Energy Fund invested $227.5 million in
251 projects (Rounds I-VI; Round VII underway)
-Disbursed $40.4 million in PCE grant payments in
FY 2013
-Rural power system upgrades (53 of 114
completed)
-New Emerging Energy Technology Fund program
evaluated 70 proposals, 16 projects funded in FY
2013 (Round II selection underway)
-Awarded seven village energy efficiency program
grants totaling $1.38 million
-Continued progress towards regulatory work for
Susitna-Watana Hydro project, conducting 58 field
studies in 2013
2:49:18 PM
Commissioner Bell highlighted slide 8, "Sustainable
Energy."
Alaska Gasline Development Corporation
-Advanced pipeline and facilities front end
engineering and design for class III cost
estimates
-Conducted extensive field program for
geotechnical, wetlands, and cultural resource
data
-Engaged USDOT's Pipeline and Hazardous Materials
and Safety Administration on needed special
permits
-Selected open season management contractor
-Incorporated new organizational structure into
business and project execution plans
Commissioner Bell discussed slide 9, "Strong Communities."
Community and Regional Affairs
-RUBA assisted 198 communities, trained 216
utility managers
-$1.8 billion distributed through 2,341 state and
federal grants
-Over $112 million distributed for community
revenue sharing, PILT, NFR, fisheries business
tax, fisheries landing tax
-Bulk fuel loans totaling $7.4 million to 65
communities
-Fuel Watch Initiative made 586 calls to 309
communities verifying adequate financial
resources and actions for winter fuel
-Preparing digital community profile maps for 19
communities in North Slope and Northwest Arctic
Boroughs
-Completed full value determinations for 36
municipal governments (18 boroughs and 18 cities
in unorganized boroughs)
2:54:10 PM
Commissioner Bell highlighted slide 10, "Consumer
Protection."
Banking and Securities
-Conducted examinations of 40 depository and non-
depository institutions
-Issued new licenses to 2 premium finance
companies, 1 payday lender, 151 mortgage
broker/lenders, and 60 money services businesses
-Issued license renewals to 14 payday lenders, 28
premium finance companies, 1 small loan company,
1 business industrial development corporation
(BIDCO)
-Collected over $12.9 million in fees and
assessments
Corporations, Business and Professional Licensing
-Renewed 35,269 business licenses (67,074 active)
and 28,697 professional licenses (66,894 active),
a 3 percent increase from FY 2012
-Newly framed/registered corporations total
6,329, a 6 percent increase over FY 2012
-Corporate entities in good standing increased
from 60 to 91 percent due to courtesy notices and
a new IT system
-Quarterly financial reports for professional
licensing programs now available on website for
licensees, stakeholders, and the public
Commissioner Bell looked at slide 11, "Consumer
Protection."
Insurance
-Issued or renewed 29,008 licenses, 95 percent
submitted electronically (45,316 active
licensees)
-Registered 16 purchasing groups; admitted 15 new
insurance companies, four surplus line insurers,
and seven risk retention groups
-Opened 54 and closed 77 criminal investigations;
investigated 238 consumer complaints, took
actions resulting in $194,648 to consumers
-Collected $65.8 million in premium taxes,
penalties and fees in FY 2013
Commissioner Bell discussed slide 12, "Consumer
Protection."
Alcoholic Beverage Control Board
-Licensees achieved 89 percent compliance with
underage related laws, continuing a steady
increase for the fourth year
-Twenty two package stores, an increase of seven,
are qualified to provide written orders from
rural local option communities
Regulatory Commission of Alaska
-Revised telecommunication regulations to promote
greater regional competition in response to
changes in intrastate long distance market
-Discovery regulations designed to improve the
process and provide increased efficiency in
contested cases
-Approved application from Hilcorp Alaska, LLC
for acquisition of natural gas assets in Cook
Inlet
Commissioner Bell looked at slide 13, "Challenges."
-High cost of energy impacts residents, businesses and
economic development efforts
-Gaps in critical infrastructure including roads,
ports, communications, and processing facilities
-Uncertainty hampering private investment
-Federal regulatory and permitting delays and denials
-Maintain awareness in national and international
markets about Alaska products and services
-Geographic scale impacts logistics and transportation
costs
2:59:30 PM
JEANNE MUNGLE, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT
OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
highlighted slide 14, "Budget by Fund Source." She stated
that the slide was a reflection of the budget decrease
between FY 14 and FY 15. She looked at the UGF portion, and
remarked that the graph reflected a $7.2 million reversal
from UGF, as a result of power cost equalization (PCE).
There was an increase in the DGF line as a result of the
PCE, so it was basically an endowment fund funding change.
The other funds decreased as a result of unneeded
interagency receipt authority. The federal funds
experienced a very small reduction as a result of ERA funds
and other federal funds that were no longer available.
Ms. Mungle explained slide 15, "Budget by Line Item, FY
2014 to FY 2015." She stated that the chart represented the
budget by line item. She remarked that there was an
increase in personal services due to salary and health care
increases. The travel portion showed a decrease due to a
one-time increment for the military training credit fiscal
note. The services decreased by $5,382 and commodities also
experienced a decrease. The capital outlay remained
stagnant, and the grants and benefits experienced a slight
increase.
Ms. Mungle addressed slide 16, "Performance Measures,
Economic Growth."
Target: Create, or retain, 500 permanent jobs annually
through the Project Development and Commercial
Finance programs
Ms. Mungle looked at slide 17, "Performance Measures."
Target: 100 percent of municipal governments provide
essential public services
Ms. Mungle discussed slide 18, "LFD: Share of Agency
Operations (GF Only)."
The department's GF budget grew by $72.1 million
between FY 06 and FY 15. The total percentage of GF
growth from FY 06 to FY 15 Governor's Request is 109
percent. The department's total FY 15 Governor's
Request GF budget equals $417 per resident worker.
Ms. Mungle looked at slide 19, "LFD: Funding Sources."
The percentage of general funds (UGF and DGF) in the
department's budget was 57 percent in FY 06 and is 67
percent in FY 15 Governor's Request.
Commissioner Bell explained slide 21, "LFD: Ten-Year Plan
(All Funds)." She stated that the slide showed what would
happen over the decade, if there was a continued 8.5
percent growth. The department had been very dynamic with
the additions of new divisions and changes in PCE fund. She
remarked that there had been spikes due to the addition of
legislative finances. She explained that the green dotted
line showed what would occur at a growth rate of 8.5
percent.
Co-Chair Austerman remarked that he would like to see a
plan to increase economic development in Alaska. He felt
that the administration should make economic development a
priority; otherwise the legislature would form a commission
to examine economic development. He felt that there needed
to be a new economic base to carry the state forward.
Commissioner Bell responded that DCCED takes economic
development very seriously. She looked specifically at the
diversifying of economic development projects. She stated
that there were a number of responsibilities related to
economic development and stressed that DEED would continue
to discuss that DCCED took economic development very
seriously.
Co-Chair Austerman felt that DCCED was doing its job, and
felt that there was a step that needed to be taken.
3:07:41 PM
Co-Chair Austerman looked at slide 4, and wondered where
there was a mention of commercial fisheries. He looked at
page 29 and 30 of the "Alaska North to Opportunity" (copy
on file). He pointed out that there was a focus on tourism.
He stated that fisheries was the number three industry in
Alaska, and felt that it needed to have an equal focus as
tourism. Commissioner Bell agreed that there should be a
focus on fisheries, and shared that there would many areas
in which DCCED enhanced the fishing industry.
Co-Chair Austerman noted that ASMI was a board that was
outside of DCCED's prevue. He remarked that the effort of
the DCCED was what he was concerned with, not just the
participation of DCCED on ASMI. Commissioner Bell responded
that ASMI had a focus on the economic value of Alaska
seafood and understanding that 64,000 were directly or
indirectly employed in the seafood industry. She remarked
that DCCED considered the seafood industry Alaska's largest
private sector employer.
Co-Chair Austerman disagreed and did not see that reflected
in economic development.
3:16:40 PM
Co-Chair Stoltze echoed the concerns. He looked at the
Alcoholic Beverage Control (ABC) Board. He wondered why the
ABC Board was not focused on growing and enhancing the food
and beverage industry. He stressed that there should be a
discussion regarding streamlining and whether or not there
were licensing issues with individuals in the food and
beverage industry. He remarked that the effort to move the
ABC Board from Department of Public Safety (DPS) to DCCED
was good policy, but bad politics.
3:23:32 PM
In response to a question from Co-Chair Stoltze,
Commissioner Bell stated that DCCED was accessible for any
insurance questions. She stated that the Tourism Marketing
Program was in its third year, and had $18.7 million with
the combination of general funds with receipt authority.
She stated that the financial and staff resources were
reflective in the activities. She understood the ABC
Board's focus on commerce and business, and pointed out
that there should also be a public safety aspect of the ABC
Board.
Co-Chair Stoltze announced that the legislature also
intended the ABC Board to maintain a public safety focus.
Commissioner Bell agreed.
Co-Chair Stoltze clarified some numbers. Commissioner Bell
stated that the insurance budget request for FY 15 was $7.6
million, so the balance went into the general fund.
Representative Guttenberg expressed concern about broadband
access across the state, and asked for efforts of DCCED
regarding accessibility. Commissioner Bell replied that the
Broadband Task Force was working to address the issue. She
agreed to provide further information. She remarked that
there was continued progress for broadband access.
3:30:59 PM
Representative Costello remarked that innovation was the
key to growing the economy. She wondered if it was time to
rethink the issue of jobs versus bringing new industries to
the state. Commissioner Bell responded that public-private
partnerships were essential to growing the economy of the
state. She stated that DCCED attended various conferences,
included the International Economic Development Council.
She stressed that DCCED was using its resources and trying
to stay in line with the best practices, share information
during the interim, and converse with the private sector.
Co-Chair Austerman handed the gavel to Co-Chair Stoltze.
Vice-Chair Neuman wondered if the ABC Board had made a
determination regarding the conflict of owning a brewery
license and a restaurant license. Commissioner Bell replied
that the ABC Board was working to keep the business
operational, and agreed to provide more information.
3:37:34 PM
Vice-Chair Neuman stressed that sport fishing was very
important, and pointed out that there was a recent crisis
related to the sport fishing industry. He felt that DCCED
had not helped to mitigate that problem. He stressed that
there should be a focus on sport fishing marketing through
tourism or ASMI. Commissioner Bell replied that the tourism
marketing program highlighted sport fishing across the
state.
HB 266 was HEARD and HELD in committee for further
consideration.
HB 267 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| FY15 DEED HFIN Budget Overview 2_5_2014.pdf |
HFIN 2/5/2014 1:30:00 PM |
DEED Budget Overview HFIN |
| DCCED-HFC Overview 02 04 2014 FINAL PDF.pdf |
HFIN 2/5/2014 1:30:00 PM |
DCCED Budget Overview HFIN |
| DCCED Department Overview publication.pdf |
HFIN 2/5/2014 1:30:00 PM |
DCCED Overview |
| FY2014_Supplemental_Requests_2-3-14.pdf |
HFIN 2/5/2014 1:30:00 PM |
HB 299 |
| FY2014_Supplemental_Summary_2-3-14.pdf |
HFIN 2/5/2014 1:30:00 PM |
HB 299 |
| DCCED 2013-08-AK-Broadband-Task-Force-Report_A-Blueprint-for-Alaska's-Broadband-Future.pdf |
HFIN 2/5/2014 1:30:00 PM |
DCCED Budget Overview Response HFIN |