Legislature(2023 - 2024)ADAMS 519
04/01/2024 10:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB268 || HB270 | |
| Amendments | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 268 | TELECONFERENCED | |
| += | HB 270 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 1, 2024
10:21 a.m.
10:21:55 AM
CALL TO ORDER
Co-Chair Johnson called the House Finance Committee meeting
to order at 10:21 a.m.
MEMBERS PRESENT
Representative Bryce Edgmon, Co-Chair
Representative Neal Foster, Co-Chair
Representative DeLena Johnson, Co-Chair
Representative Julie Coulombe
Representative Mike Cronk
Representative Alyse Galvin
Representative Sara Hannan
Representative Andy Josephson
Representative Dan Ortiz (via teleconference)
Representative Will Stapp
Representative Frank Tomaszewski
MEMBERS ABSENT
None
ALSO PRESENT
Alexei Painter, Director, Legislative Finance Division;
Representative George Rauscher; Representative Andrew Gray;
Representative Ashley Carrick.
SUMMARY
HB 268 APPROP: OPERATING BUDGET; CAP; SUPP; AM
HB 268 was HEARD and HELD in committee for
further consideration.
HB 270 APPROP: MENTAL HEALTH BUDGET
HB 270 was HEARD and HELD in committee for
further consideration.
Co-Chair Johnson reviewed the meeting agenda. The committee
would consider amendments to the operating and mental
health budgets.
HOUSE BILL NO. 268
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making capital appropriations; making
supplemental appropriations; making reappropriations;
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. 270
"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."
10:22:55 AM
^AMENDMENTS
10:23:01 AM
Co-Chair Johnson relayed that the committee had been
hearing Amendment L 7. Conceptual Amendment 1 to the
amendment was adopted at the last meeting on Thursday,
March 28, 2024, at the 1:30 p.m. meeting [see separate
minutes for detail].
Representative Josephson provided a review of Amendment L 7
(copy on file) as amended. For more than a decade, the
state had contributed $400,000 to the University of Alaska
to assist military members with tuition. The funds came
through university classes. He explained that the governor
wanted to subtract $200,000 of the total from the
University's budget in FY 25 and move the increment to the
Department of Military and Veterans Affairs (DMVA). The
University subcommittee left the $400,000 with the
University. Additionally, the DMVA subcommittee added
$200,000. He explained that Amendment L 7 as amended would
pay for the autism services with general funds that
otherwise would have gone to DMVA. If the amendment were
adopted, it would be status quo funding to the University
and would fund most of the autism services.
There being NO OBJECTION Amendment L 7 was ADOPTED as
amended.
10:26:08 AM
Co-Chair Johnson moved to amendments to the numbers section
of the operating budget.
Representative Coulombe MOVED to ADOPT Amendment N 18 (copy
on file):
DEPARTMENT: Administration
UNALLOCATED DECREMENT: ($2,188.2) general funds (1004)
DEPARTMENT: Commerce, Community, and Economic
Development
UNALLOCATED DECREMENT: ($59.5) general funds (1004)
DEPARTMENT: Corrections
UNALLOCATED DECREMENT: ($11,864.5) general funds
(1004)
DEPARTMENT: Education and Early Development
UNALLOCATED DECREMENT: ($1,398.7) general funds (1004)
DEPARTMENT: Environmental Conservation
UNALLOCATED DECREMENT: ($690.6) general funds (1004)
DEPARTMENT: Family and Community Services
UNALLOCATED DECREMENT: ($6,535.0) general funds (1004)
DEPARTMENT: Fish and Game
UNALLOCATED DECREMENT: ($950.7) general funds (1004)
DEPARTMENT: Governor
UNALLOCATED DECREMENT: ($2,128.3) general funds (1004)
DEPARTMENT: Health
UNALLOCATED DECREMENT: ($4,176.8) general funds (1004)
DEPARTMENT: Labor and Workforce Development
UNALLOCATED DECREMENT: ($507.3) general funds (1004)
DEPARTMENT: Law
UNALLOCATED DECREMENT: ($2,010.0) general funds (1004)
DEPARTMENT: Military and Veterans' Affairs
UNALLOCATED DECREMENT: ($16.1) general funds (1004)
DEPARTMENT: Natural Resources
UNALLOCATED DECREMENT: ($2,517.0) general funds (1004)
DEPARTMENT: Public Safety
UNALLOCATED DECREMENT: ($6,645.7) general funds (1004)
DEPARTMENT: Revenue
UNALLOCATED DECREMENT: ($808.0) general funds (1004)
DEPARTMENT: Transportation
UNALLOCATED DECREMENT: ($2,116.2) general funds (1004)
EXPLANATION: Half of UGF actual vacancy less vacancy
factor adjustment.
Representative Stapp OBJECTED.
Representative Coulombe explained that the amendment would
hopefully provide headroom in the budget. She noted she had
used numbers provided by the Legislative Finance Division
(LFD) (copy on file). She explained that the data showed
budgeted PCNs [position control numbers] that were vacant.
The data showed over $200 million of budgeted vacancies
after accounting for the vacancy factor (shown in the
second column to the right of the backup document for
Amendment N 18). She highlighted that the undesignated
general fund (UGF) cost of the vacancies was $89 million
(shown in column 4). The amendment would reduce the agency
budgets by half of the UGF cost. The reduction was an
unallocated cut, and the departments could choose where to
apply it. She stated there was a lot of money sitting out
there in vacancies. She relayed that the amendment was an
attempt at to increase transparency in the budgeting. She
understood some of the funding was used to pay for overtime
costs; however, she found it difficult as a legislator to
understand what was going towards overtime and what the
vacancy money was used for. She reiterated that the
amendment attempted to provide more headroom in the budget.
She noted the legislature had recently passed a $40 million
broadband bill. She expounded that the amendment would help
departments zero in on exactly what they needed, so the
legislature would know exactly what was happening. the
numbers were analyzed and put together by LFD. She deferred
detailed questions to LFD.
10:28:44 AM
Representative Cronk asked if the amendment included
seasonal positions.
Representative Coulombe stated that to her knowledge it did
not, but she deferred to LFD for detail.
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
answered that the amendment did not include seasonal
positions. The amendment only included permanent full-time
positions.
Representative Stapp stated his understanding that
typically the unfilled positions meant funding went to
cover things like overtime within the departments or it
lapsed back to the Constitutional Budget Reserve (CBR).
Mr. Painter agreed. He explained that it varied between
agencies. For example, typically vacant positions in the
Department of Corrections (DOC) resulted in the department
needing to cover with overtime at 1.5 to 2 times the
regular cost. In FY 24, the actual projected personal
services expenditures were $15 million more than budgeted
because of the overtime. He elaborated that while there
were savings from a vacant position, DOC had to make it up
at a higher cost. He detailed that DOC had vacant food
services positions and made those up by contracting out
services, sometimes at a higher cost than in-house
employees. He noted that some agencies had a lower service
level when they had vacant positions and the money lapsed
to the CBR. He relayed that in the past few years there had
been some significant amounts lapsing into the CBR from
vacant positions.
10:31:18 AM
Representative Stapp referenced the $4 million unallocated
cut to the Department of Health. He asked about how much
federal match funding was associated with the positions. He
thought all of the positions associated with the Department
of Health likely had federal matching funds.
Mr. Painter answered that he did not have the number on
hand. The backup document aggregated all UGF funding.
Representative Galvin asked if Mr. Painter was familiar
with the number of vacant positions waiting on
reclassification so they could be rehired.
Mr. Painter replied that he did not have a number, but the
administration was constantly doing classification studies.
There were a couple of reclassifications in the
supplemental budget to raise the range of certain
positions. For example, positions in the Child Support
Enforcement Division were increased by two ranges.
Additionally, some positions within the Department of
Public Safety increased by three ranges. He detailed that
child support had active recruitments going before the
reclassification and there were many more applicants after
the reclassification. He explained that some of the vacant
positions could be in active recruitment, but he did not
have a number.
Representative Galvin asked if they did not know how many
of the positions were vacant because the state was not
competitive.
Mr. Painter replied that he could not speak to the reason
for the vacancies.
Representative Galvin referenced the amendment's proposed
cut to the governor's office of $2.1 million. She asked if
Alaskans would see fewer services due to the position cuts.
Mr. Painter answered that it would depend on a program-by-
program basis. He explained that the amendment made
unallocated reductions, meaning agencies or the executive
branch would choose what would get cut. He could not speak
to what agencies would choose to reduce (e.g., positions or
programs).
10:34:18 AM
Representative Josephson looked at the proposed decrement
of $4 million to the Department of Health. He reasoned that
in some respects someone could look at the amount through
the lens of the total budget and view it as small. He asked
about the potential impact of the reduction given all of
the variabilities in healthcare needs, which could change
from month to month.
Mr. Painter answered it would depend on how the agency
chose to spread the unallocated reduction. For example, if
the department applied the decrement entirely to Medicaid,
it could ask for a supplemental in that same amount.
Alternatively, there would be a much higher impact if the
cut were applied to public assistance and the division
stopped processing applications.
Co-Chair Johnson recognized Representative George Rauscher
in the room.
Representative Josephson referenced the proposed decrements
to the Department of Law and Department of Public Safety.
He surmised that without hearing from the departments, it
was not possible for the committee to know what the
departments would cut. For example, the governor wanted to
hire more prosecutors to handle sexual assault cases in the
FY 25 budget in the range of $2 million. He surmised that
one option was that the governor would decide not to hire
the positions. He asked if his understanding was accurate.
Mr. Painter agreed. He explained that an unallocated
reduction directed departments to find places to make
reductions.
Representative Josephson remarked that by all indications,
there was nothing fraudulent going on. He reasoned that
because the funding lapsed, it merely remained with the
state but did not return to the CBR where it would earn a
few percent interest. He asked what happened to the lapsed
funds.
Mr. Painter explained that there were several buckets in
the budget where unspent personal services money went.
Funds went to the catastrophe reserve account to return the
account's balance back to $50 million if there were draws.
Funds also went to filling the group health life safety
account, which served as a backstop for the state health
insurance. Additionally, there was a rates moving
appropriation from the governor's office to address
insufficient rates. After those buckets were filled, the
remaining funds went to the CBR. Any lapsing money at the
end of the year would go to the CBR after the other three
or four items were filled. He noted he may be missing one
in his explanation.
10:37:26 AM
Representative Hannan asked which departments lapsed money
in FY 23. She remarked that Mr. Painter noted that DOC did
not lapse money.
Mr. Painter replied that he did not have the report on
hand. He offered to provide it to the committee.
Co-Chair Johnson asked the sponsor to elaborate on the
intention of the amendment. She believed the intention was
to ensure people knew where money was being spent.
Representative Coulombe explained that during the budget
subcommittee process she found it difficult to know where
the money was being spent by the departments. She stated
there was a lot of money floating around within the
departments and they were using the funding where they need
to, but she could not see an overtime line showing how much
money was being spent. She elaborated that the amendment
had a potential savings of $44 million, but her primary
goal was increasing transparency in the budget. She
highlighted that the vacancies addressed by the amendment
were from 2013 to 2022. She added that if there was a
reduction of services it would have already happened
because the vacancies were empty. She was not cutting a
program or anyone already in a job. She thought the
positions were being used to make it hard to see what was
actually needed by each department. She wanted to increase
budget transparency and curb the habit of letting
departments have huge slush funds. She pointed out that the
total for those years was over $200 million. She noted she
had narrowed the amount down substantially and focused on
UGF and half of UGF. She remarked that she could have opted
to list PCNs to eliminate, but she wanted the departments
to have some freedom to figure out where they wanted to
make the cuts.
10:40:26 AM
Co-Chair Johnson asked for verification that the decrements
were all UGF and not federal.
Representative Coulombe agreed.
Co-Chair Edgmon opposed the amendment. He stated that
although it offered what appeared to be a simple solution,
the underlying ramifications were highly complicated. He
was hesitant as an appropriator to give money to the
departments to make the decisions. He believed that to some
degree the legislature would be handing over its
appropriation authority to the agencies. He stated there
was an $8.3 million cut to DOC. He did not know what it
meant or where it would go. He did not see the decrements
making their way through the entire budget process and he
believed it would create a significant amount of work for
the conference committee. He would support taking the topic
up in a substantial way and thought it would be a great
discussion prior to this trying to put it into the budget.
He found the discussion about federal matching funds to be
very real and the amendment could endanger the ability to
leverage other funds in the budget.
Representative Cronk thanked the amendment sponsor for
bringing the amendment forward. He stated that one of the
biggest things legislators heard from constituents was
transparency on spending and government. He considered the
vacant PCNs from 2013 to 2022 and observed there was a lot
of money being left out there. He wondered when the
legislature would take the issue on if it did not do it in
the current session. He supported the amendment and thought
it was a rational approach.
Representative Hannan stated that questions about vacancies
were asked repeatedly to the departments during the
subcommittee process. She had served on the DOC, Department
of Public Safety (DPS), Department of Commerce, Community
and Economic Development (DCCED), and Department of
Administration (DOA) subcommittees. She did not believe
three of those departments, including DOC, could absorb the
cost. She remarked that it would create an internal
nightmare. She could perhaps get onboard with the amendment
if the committee was hearing from subcommittee chairs that
they were advocating for a cut in a department's general
vacancy because they found it to be an issue during the
subcommittee process. She emphasized that DPS, DOC, and
DCCED could not absorb the costs without creating a
substantial administrative burden. She could not support
the amendment pertaining to the budgets she was most
familiar with. She did not know whether the committee was
interested in parceling the cuts out to some departments
and not others, but she could not support the amendment
when including them all. She noted that there were
vacancies in business licensing and license renewal in
DCCED and she heard a lot from constituents that the
positions needed to be filled and people paid overtime to
fill them in order to keep people at work.
10:44:57 AM
Co-Chair Johnson appreciated the transparency piece. She
stated the vacancy rate issue had been ongoing for years.
She felt like they the legislature had to keep its eye on
it all of the time.
Representative Coulombe provided wrap up on the amendment.
She shared that she had talked to the Office of Management
and Budget (OMB) director, who had committed to not
creating anymore PCNs. The director was working with
departments to reclass PCNs if a position was needed. She
reiterated that the amendment went up to 2022 and did not
impact vacancies in the past three years. She stated that
departments still had an opportunity to reclass positions
if needed. She added that the amendment reflected half of
the UGF vacancies. She thought it seemed it was easy to dig
into the Permanent Fund [Dividend] to pay for more
government services, but when the legislature tried to hold
departments accountable and cut from them, it could not be
done.
10:46:26 AM
Representative Cronk MAINTAINED the OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Tomaszewski, Coulombe, Cronk, Stapp, Johnson
OPPOSED: Hannan, Josephson, Ortiz, Hannan, Edgmon, Foster
The MOTION to adopt Amendment N 18 FAILED (5/6).
10:47:25 AM
Representative Josephson WITHDREW Amendment N 19 (copy on
file).
Representative Hannan MOVED to ADOPT Amendment N 20 (copy
on file):
Agency: Administration
Appropriation: Public Communications Services
Allocation: Public Broadcasting - Radio
Transaction Details
Title: Intent Language for Public Radio Funding.
Wordage Type: Intent
Linkage: Allocation - Public Broadcasting - Radio
Wordage
It is the intent of the legislature that the
Department of Administration allocate the funds to
rural public radio stations whose broadcast coverage
areas serve 20,000 people or less.
Explanation
This will ensure that public radio grants will go to
rural stations that play a vital role in emergency
communications.
Agency: Administration
Appropriation: Public Communications Services
Allocation: Public Broadcasting - Radio
Transaction Details
Title: Add $1.2 million for Public Broadcasting
Section: Section 1
Type: Inc
Line Items (Amounts are in thousands)
Personal Services: 0.0
Travel: 0.0
Services: 0.0
Positions
Permanent Full-Time: 0
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund 1,200.0
Explanation
This amendment provides funding for the Public
Broadcasting radio system in the least populated areas
of the state. Public radio stations represent 11 out
of the State Emergency Alert System (EAS) Plan's 22
"Local Primary Stations," which are the primary source
of EAS information in their region. All 11 are rural
stations. This amendment recognizes that while we may
not be able to restore public broadcasting funding in
all areas of the state, the legislature can take
action to ensure that residents in some of our most
remote areas are able to maintain access to our
Emergency Alert System as well as other benefits of
public radio.
Representative Cronk OBJECTED.
Representative Hannan explained that the amendment provided
$1.2 million for the public broadcasting radio system in
the least populated areas of the state. She detailed that
public radio stations represented 11 out of the state's 22
emergency alert systems. She stressed the stations were the
primary source of emergency alert systems in much of the
state. All 11 of the radio stations were rural. The
amendment recognized that while the legislature may not be
able to restore public broadcasting funding in all areas of
the state, it was necessary to ensure residents in the most
remote areas had access to the state's emergency alert
system. She urged support for the amendment.
Representative Galvin was supportive of the amendment,
primarily due to the very convincing advocacy from the
Alaska Regional Coalition, which included the Tanana Chiefs
Council, Maniilaq, Kawerak, Chugachmiut, Inupiat Community
of the Arctic Slope, and Central Council of Tlingit Haida.
She highlighted that the coalition members represented
70,000 Alaskans. She believed they needed to have access,
especially to emergency information.
Representative Ortiz supported the amendment. He asked
members to recall the critical role that public radio
played in relationship to the Wrangell landslide disaster
in the past fall. He reminded committee members that there
had been testimony from a variety of people on the
important role the Wrangell public radio station played in
providing information to people who were literally cut off
from information following the landslide. He stressed
public radio had been the way people in Wrangell knew what
was happening. He stated it was a clear example about the
critical role public radio played in emergency
broadcasting, particularly in rural communities.
Representative Tomaszewski asked how much funding had been
requested by DOA. He asked what the additional funding
would be used for.
Co-Chair Edgmon stated it was a tough amendment because
unfortunately in the past the governor had vetoed every
dollar the legislature had appropriated to public
broadcasting. He recalled the legislature had included an
additional $1 million in the budget the previous year and
it had been vetoed. He stated that public radio in his
hometown of Dillingham was limping along with a manager and
one reporter. He stated the $1.2 million was not enough. He
was conflicted because he thought it may get vetoed.
10:52:49 AM
Representative Cronk WITHDREW the OBJECTION.
Representative Stapp OBJECTED.
Representative Hannan provided wrap up on the amendment.
She responded to a question by Representative Tomaszewski
and relayed that the DOA line item was zero. She addressed
her reasoning for including the increment in the budget and
risking a veto. She highlighted that the governor began his
State of the State address with comments about the increase
in disasters in Alaska. She believed there would be more
communities needing communication in the face of a
disaster. She explained that that in the past, the public
radio network across the state was able to keep rural
stations alive. She pointed out that it had been a number
of years since the state had put any money into public
radio. She elaborated that the urban stations were able to
fundraise and get underwriting to keep themselves afloat.
Thus far, the rural stations had been able to piece it
together, but they would not be able to in the future. She
relayed there would be a time when emergency broadcasts
would not be transmitted, and the rural stations would
close. She believed it was worth the risk to put the
funding in the budget. She added that the amendment was
focused solely on the 11 remote communities with small
populations and no other viable options such as commercial
radio.
A roll call vote was taken on the motion.
IN FAVOR: Josephson, Ortiz, Cronk, Galvin, Hannan, Edgmon,
Foster
OPPOSED: Stapp, Tomaszewski, Coulombe, Johnson
The MOTION PASSED (7/4). There being NO further OBJECTION,
Amendment N 20 was ADOPTED.
10:55:36 AM
Representative Josephson MOVED to ADOPT Amendment N 21
(copy on file):
Agency: Commerce, Community & Econ Dev
Appropriation: Community and Regional Affairs
Allocation: Community & Regional Affairs
Transaction Details
Title: Grant to Econsult Solutions, Inc. for Alaska
Filming Initiative Feasibility Study
Section: Section 1
Type: IncOTI
Line Items (Amounts are in thousands)
Personal Services: 0.0
Travel: 0.0
Services: 0.0
Commodities: 0.0
Capital Outlay: 0.0
Grants: 50.0
Miscellaneous: 0.0
Positions
Permanent Full-Time: 0
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund 50.0
Explanation
The Alaska Filming Initiative has requested this
appropriation for the purposes of conducting a
comprehensive feasibility study to understand how firm
incentives can boost the Alaska economy, create jobs,
and put the state on the global cinematic map.
Representative Cronk OBJECTED.
Representative Josephson explained that the amendment had
come to him by way of two advocates who traveled to Juneau
asking the legislature to launch a comprehensive study to
see whether an Alaska film initiative could be recommenced.
He noted that the state used to have a robust film program.
The individuals argued that it would help boost the
economy, create jobs, and put the state on the global
cinematic map. Additionally, he had received an email from
a man named Steven Cornfield who had noted there were 192
supporters and had provided a list of names from around the
state. He relayed that Alaska's film program went into the
early part of the last decade and was reformed by former
Senator Mia Costello to give it new, but truncated life.
The program had been done away with in what he referred to
as the Alaska recession in the teens. He asked for support
for the amendment.
Representative Stapp opposed the amendment. He liked the
concept of a film industry. He thought a much more in depth
conversation would be required related to a feasibility
study. He did not know who the company was or what it would
do with the study. He shared that one of his first jobs in
the Army was on the movie set of Big Miracle. He
highlighted that the actors had flown up their own personal
catering company to feed the staff on the state taxpayer
dime. He did not know that the legislature would want to
visit that type of subsidy again under that structure.
Representative Cronk MAINTAINED the OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Ortiz, Galvin, Hannan, Josephson
OPPOSED: Stapp, Tomaszewski, Coulombe, Cronk, Foster,
Edgmon, Johnson
The MOTION to adopt Amendment 21 FAILED (4/7).
Representative Coulombe noted that Representative Ortiz had
requested to be allowed to present his amendments in
person; therefore, Amendment N 22 would be rolled to the
bottom of the packet.
Representative Josephson requested to roll Amendment N 23
to immediately follow Amendment N 24 at the appropriate
time. He explained that it meant all of the amendments
pertaining to the Alaska Seafood Marketing Institute (ASMI)
would be rolled to a later time.
11:00:21 AM
AT EASE
11:01:14 AM
RECONVENED
Representative Josephson requested to roll Amendment N 23
until a later time.
Co-Chair Johnson noted that Amendment N 24 would also be
rolled to a later time.
Representative Josephson MOVED to ADOPT Amendment N 25
(copy on file):
Agency: Commerce, Community & Econ Dev
Appropriation: Community and Regional Affairs
Allocation: Community & Regional Affairs
Transaction Details
Title: Grant to the Municipality of Anchorage:
State Match for East 56th Avenue Shelter
Section: Section 1
Type: IncOTI
Line Items (Amounts are in thousands)
Personal Services: 0.0
Travel: 0.0
Services: 0.0
Commodities: 0.0
Capital Outlay: 0.0
Grants: 4,000.0
Miscellaneous: 0.0
Positions
Permanent Full-Time: 0
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund 4,000.0
Explanation
The former Solid Waste Services Administration
building at 1111 E 56th Avenue has been identified and
used as an emergency cold weather shelter in Anchorage
this year. The current operating costs of the shelter
are estimated to be $3.94 million for the total cost
between October 15 - April 30. This funding is
covered. However, the shelter is also able to be used
as a low-barrier shelter that could be used between
May 1 - October 15. The cost for doing so would amount
to another $3.6 million.
The Anchorage Assembly and Mayor have jointly
requested (through Anchorage Resolution 2023-37 and
the 2024 Anchorage Legislative Program) a $4 million
match for the Alaska Legislature to keep the shelter
running year-round. This amendment would allow this to
happen.
Representative Stapp OBJECTED.
Representative Josephson explained that the former solid
waste services administration building was located in his
district. The building had been used as an emergency cold
weather shelter and the current operating costs were
estimated at $3.94 million between mid-October and the end
of April. He explained that the municipality noted that the
funding was covered; however, the shelter could also be
used as a low barrier shelter in the coming summer. The
cost for doing so would amount to another $3.6 million. He
shared that the Anchorage Assembly and mayor had jointly
requested a $4 million match from the legislature to keep
the shelter running year-round. He added it was Mayor
Bronson's top operating request. He relayed that the
Anchorage Coalition to End Homelessness and the Bronson
administration highlighted that the homelessness crisis had
impacted all of the western United States and Anchorage in
a profound way in that many people were homeless and not
directly from Anchorage. He added that Anchorage welcomed
all of its guests, but nonetheless it was a shared problem.
He noted it was the third of three requests by the mayor
including the Don Young Port modernization, energy
reliability and affordability in Cook Inlet, and the
funding addressed by the amendment.
11:04:28 AM
Representative Galvin supported the amendment. She reminded
committee members that soon there would be 900 Alaskans
released from housing in Anchorage. She highlighted that 60
percent of the individuals were not from Anchorage. She
stressed it was a statewide concern. She stated that the
request was a relatively low dollar figure when considering
how it may help connect more Alaskans to services as they
would have a place to go during the daytime and to access
services to help them on their way to an independent life.
She appreciated hearing it was a request from Mayor
Bronson. Additionally, she had heard from all of the
Anchorage Assembly members it was a key priority. She
believed the issue had a large impact on the travel
industry when there were not places for people to be. She
stated the amendment was a temporary economic solution.
11:06:17 AM
AT EASE
11:06:25 AM
RECONVENED
Representative Stapp did not support the amendment. He
referenced the language "low barrier shelter." He had been
told the term meant a place where homeless people could go
throughout the day where they could use drugs and alcohol
in a safe place. He did not believe the state should be in
the business of giving million dollar grants to places that
allow homeless individuals to use substance abuse
materials.
Representative Coulombe supported the amendment. She
relayed that Anchorage had been struggling with
homelessness for some time. She had always believed it was
a statewide issue, not just an Anchorage problem. She
highlighted that Anchorage had put millions of dollars
towards solving the issue and had received very little
state support. She remarked that the funding represented a
very small amount when compared to the funding that had
been directed at the problem. The funding would ensure the
shelter could be open year-round. She explained that it
impacted tourism because there were numerous problems in
downtown Anchorage and the shelter gave people a place to
be. More importantly, the space provided people with
shelter and safety. She stated it was something Anchorage
had been dealing with and she had not seen a lot of state
support for the issue. She added that it was not only
people from Anchorage who the city was dealing with. She
urged support for the amendment.
Representative Josephson provided wrap up on the amendment.
He spoke to Representative Stapp's comment about low
barrier shelters. He had heard from Anchorage
Assemblymember [Anna] Brawley who was an expert in the area
that low barrier did not mean people were invited to bring
their stash of drugs and alcohol into the shelter. He
explained the term meant there was a welcome sign and
individuals would not be screened and given drug tests to
gain admittance. He believed there were facility rules and
did not believe it was accurate to describe the shelter as
a party house.
Representative Cronk MAINTAINED the OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Galvin, Hannan, Josephson, Ortiz, Coulombe
OPPOSED: Cronk, Stapp, Tomaszewski, Foster, Edgmon, Johnson
The MOTION to adopt Amendment N 25 FAILED (5/6).
[Note: Action on Amendment N 25 was rescinded during the
4/3/24 1:06 p.m. meeting. The amendment was reconsidered
and adopted on a vote of 7/4. See separate minutes for
detail.]
11:10:07 AM
Co-Chair Johnson rolled Amendment N 26 to the bottom of the
amendment packet.
Representative Josephson MOVED to ADOPT Amendment N 27
(copy on file):
Agency: Commerce, Community & Econ Dev
Appropriation: Community and Regional Affairs
Allocation: Community & Regional Affairs
Transaction Details
Title: Grant to the Iditarod Trail Committee, Inc.
for Iditarod Stimulus Funding
Section: Section 1
Type: IncOTI
Line Items (Amounts are in thousands)
Personal Services: 0.0
Travel: 0.0
Services: 0.0
Commodities: 0.0
Capital Outlay: 0.0
Grants: 1,400.0
Miscellaneous: 0.0
Positions
Permanent Full-Time: 0
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund 1,400.0
Explanation
The most prestigious sled dog race in the world, the
Iditarod, is facing severe fiscal restraints following
three significant factors: inflation, the pandemic,
and criticism from PETA. The COVID-19 pandemic left
many dog mushers/teams without the ability to seek
supplemental income by offering sled dog tours to
tourists. Inflation has driven the price of dog food
up almost 50%, with some mushers reporting spending
nearly $42,000 a year just to feed dogs. Lastly, PETA
has publicly criticized the event as being harmful to
dogs and, as a result, major sponsors like Alaska
Airlines, ExxonMobil, Coca-Cola and Wells Fargo have
ended race sponsorships. The result is a budget
problem significant enough to threaten the future of
this Alaskan pastime.
The CEO of the Iditarod requested $1.4 million to
offset these costs to the organization and mushers in
order to safely secure the future of the race for both
Alaskans and tourists.
Representative Cronk OBJECTED.
Representative Josephson relayed that prior to the start of
session he had talked with the director of the Iditarod who
had been visiting the Capitol Building. The director had
noted that because of criticism from groups like People for
the Ethical Treatment of Animals, major sponsors like
Alaska Airlines, ExxonMobil, Coca-Cola, and Wells Fargo had
ended race sponsorship for the Iditarod. Consequently, the
director requested state support for the race. He was not
an expert on the economic benefits Alaska received as a
result of the race. He thought the benefits must be
considerable in the villages along the race route. Benefits
were also considerable in Mat-Su and Anchorage.
Additionally, the state received some free media, which
must benefit tourism. The race was something the state took
pride in, and he believed it was a worthy cause. The
amendment would be a grant in need of aid through DCCED. He
asked for members' support.
Representative Cronk MAINTAINED the OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Hannan, Josephson, Ortiz, Galvin, Foster
OPPOSED: Tomaszewski, Coulombe, Cronk, Stapp, Edgmon,
Johnson
The MOTION to adopt Amendment N 27 FAILED (5/6).
11:13:25 AM
AT EASE
11:14:55 AM
RECONVENED
Representative Josephson MOVED to ADOPT Amendment N 28
(copy on file):
Agency: Commerce, Community & Econ Dev
Appropriation: Community and Regional Affairs
Allocation: Community & Regional Affairs
Transaction Details
Title: Grant to Volunteers of America Alaska for
Volunteers of America Direct Services (FY2025-FY2026)
Section: Section 1
Type: IncT
Line Items (Amounts are in thousands)
Personal Services: 887.9
Travel: 0.0
Services: 212.5
Commodities: 0.0
Capital Outlay: 0.0
Grants: 0.0
Miscellaneous: 0.0
Positions
Permanent Full-Time: 0
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund 1,100.4
Explanation
This appropriation to the Volunteers of America will
help ensure direct-service staff are able to spend the
maximum amount of time with clients as possible, that
clients face less hurdles to services, and help
support young Alaskans struggling with mental health.
The cost breakdown over two years is as such:
Project Personnel ($1,775,800)- Psychiatric & medical
staff, leadership staff capacity to execute facility &
system projects.
Facility Projects ($75,000)- Facility adjustments to
residential center for anti-ligature precautions,
security system, and intake office.
System Projects ($350,000)- Agency systems
enhancements to support increased service volume &
maximize staff efficiency.
Representative Cronk OBJECTED.
Representative Josephson explained the amendment included a
$1.1 million grant to Volunteers of America (VOA) Alaska
for direct services for an expansion of their continued
care. He noted the item was complicated in some respects.
He referenced a productive Lunch and Learn on February 22
where the issue had been talked about. He stated that the
term "volunteers" was a misnomer. The organization worked
primarily with dual diagnosis youths with mental health and
substance abuse problems. The organization had the only
non-tribal 24-hour residential care facility in Alaska. The
facility was called ARCH [Adolescent Residential Center for
Help] and located in the Eagle River area. He noted he had
toured the facility a couple of times. He explained that
there were 1,900 children in Alaska admitted somewhere with
behavioral health diagnoses. Only 30 to 40 percent of the
adolescents had a continued care plan when they left. The
amendment was an expansion of VOA's footprint and also
provided the organization with more capacity to treat young
people. He elaborated that VOA director Julia Luey noted
that in a single year Medicaid paid out $83 million for
children to leave Alaska to go to psychiatric hospitals,
while only $32 million was spent on community-based
services. He elaborated that of the 1,600 children taken in
by the Office of Children's Services (OCS) for abuse, 53
percent received behavioral health services. He noted that
in many cases there was a dead end due to a lack of
continuing care. He expounded that 28 percent of those
children spoke to suicidal ideation. The amendment was
designed to build out the continuum of care.
Representative Josephson explained that VOA was seeking the
state's investment in the amount of $1.1 million for two
years of funding to support its transition into an
integrated model of care. The transition was in response to
the ongoing youth mental health crisis in Alaska, which was
worsened by the COVID-19 pandemic, and the evolving needs
of youth and their families. The work would position VOA to
open Alaska's first detox facility for youth. In the past
three years, VOA expanded its capacity for community-based
services by 300 percent, impacting 1,124 youth, young
adults, and families in FY 23. The facility would provide
psychiatric services and the work would include facility
enhancements and software updates, which would enable VOA
to continue growing to meet the needs. He continued to
review benefits of the program. He relayed the investment
was critical to maintain and enhance behavioral health
services for youth in the state. He suspected advocates had
met with other committee members and their staff during the
current session. He urged support for the amendment.
Representative Galvin supported the amendment. She had not
visited the facility, but she had been invited several
times. She met with the individuals leading the charge. She
understood that some people believed the state should not
house people unless they had been through detox and yet,
the state did not have enough detox opportunities. She
referenced her understanding that the facility would be the
first non-tribal detox facility for youth. She strongly
supported the amendment.
Representative Stapp supported the idea but did not
currently support the amendment. He thought the money
should be in the grants line in the amendment rather than
the services and personal services lines. He wanted to see
a similar $1.1 million reduction [somewhere else in the
budget]. He had the things available but was unable to get
them done prior to the meeting. He supported the concept
but would not support it currently until he figured the
mechanizations out.
11:21:23 AM
Representative Coulombe asked if the funds would go in the
base budget or were a one-time increment.
Representative Josephson replied that the funds would occur
two times, once in FY 25 and once in FY 26.
Representative Josephson provided wrap up on the amendment.
He highlighted that costs associated with juvenile justice
and shipping kids out of state were considerable. He
pointed out that the cost of sending kids out of state was
three times what was spent on in-state children with dual
diagnosis. He relayed that VOA was the only organization in
the state with a facility to offer youth substance abuse
services. The organization provided a unique service. He
relayed that the state had invested in a VOA school-based
program a couple of years back. He thought about juvenile
justice issues, promise the state had with North Star
[Youth Court], the Department of Justice report of problems
at OCS. He cited past remarks by Ms. Luey that the kids
were in a fast moving river and VOA was designed to pull
them out of the river. The funding was a way to hopefully
circumvent the spending of much more general fund money. He
stated it was among the most important amendments he would
offer to the budget.
11:23:17 AM
AT EASE
11:26:28 AM
RECONVENED
Representative Cronk WITHDREW the OBJECTION.
Representative Coulombe OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Galvin, Hannan, Josephson, Ortiz, Stapp, Cronk,
Edgmon, Johnson
OPPOSED: Tomaszewski, Coulombe, Foster
The MOTION PASSED (8/3). There being NO further OBJECTION,
Amendment N 28 was ADOPTED.
11:27:31 AM
Representative Hannan MOVED to ADOPT Amendment N 29 (copy
on file):
Agency: Commerce, Community & Econ Dev
Appropriation: AK Gasline Development Corp
Allocation: AK Gasline Development Corp
Transaction Details
Title: Remove Funding for the Alaska Gasline
Development Corporation Section: Section 1
Type: Dec
Line Items (Amounts are in thousands)
Personal Services: -4,222.8
Travel: -71.4
Services: -1,818.0
Commodities: -60.0
Capital Outlay: 0.0
Grants: 0.0
Miscellaneous: 0.0
Positions
Permanent Full-Time: -10
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund -3,086.1
1235 AGDC-LNG -3,086.1
Explanation
Since 2014 the state has appropriated more than $180
million to the Alaska LNG Project Fund. We have very
little to show for that investment. AGDC has failed to
attract a single investor over its entire existence.
Many experts in the industry have said the project
iterations over the years have not attracted
participants because they simply do not pencil out.
This also goes for AGDC's latest "Hail Mary" pitch for
an in-state line, taking advantage of growing
desperation across the Railbelt due to the looming
energy crisis.
As a prominent member of the other body said of AGDC
earlier this session, "At some point, we need to have
a conversation about mothballing it." This is that
conversation.
Representative Stapp OBJECTED.
Representative Hannan explained the amendment would defund
the Alaska Gasline Development Corporation (AGDC). She
detailed that since 2014, the legislature appropriated $180
million to the Alaska LNG [liquid natural gas] project fund
with very little to show for the investment. She detailed
that AGDC had failed to attract a single investor over its
entire existence. She elaborated that many experts in the
industry had said the project iterations over the years had
not attracted participants because they did not pencil out.
She stated it also applied to AGDC's recent "hail Mary"
pitch for an instate line that took advantage of people's
crisis thinking about the Railbelt energy crisis. She
referenced a comment by a member from the other body
earlier in the year that at some point there needed to be a
conversation about moth balling the agency.
Representative Galvin requested to be recused from the vote
due to family involvement in AGDC.
Representative Stapp OBJECTED.
11:29:09 AM
Representative Cronk thought there was likely some validity
to the money that had been spent. He remarked that it was
difficult to bail on the idea. He believed it was easy for
people who did not live in the Interior or Southcentral to
say that the project may never pan out. He did not support
the amendment because some sort of gasline was crucial for
the state and its energy needs. He hoped it occurred sooner
rather than later. He was definitely willing to have the
conversation because he thought it was necessary to sit
down and determine whether the idea was a fallacy or could
come into play. He had heard rumors recently that the
project had possibility. He stated it was a big possibility
for Alaska because the energy was needed.
Co-Chair Edgmon agreed with the comments. He stated that
every year he drifted closer to wanting to remove the
funding and close the project. Since 2014, permitting had
taken place and there was a federal guarantee to ensure the
$150 million the legislature was told Goldman Sachs would
procure, but it had not happened the past year. He reasoned
that at some point the stranded gas would make its way to
market in the future. He was conflicted, but he did not
know it was the time to remove all funding; however, there
were an increasing number of arguments every year to do
just that.
Representative Stapp was not currently in favor of complete
liquidation of AGDC. He was very inclined to take a
decrement out of the personal services line to send a
message. He recalled that the previous year one AGDC
employee told him they had the greatest economic project in
the history of the North American continent, which had
clearly not turned out to be true. Additionally, a second
AGDC employee had expressed high confidence AGDC would
receive the front engineering and design money; however,
the money had not yet been secured. He did not support
defunding AGDC; however, he may support a slight decrement
to the personal services line.
11:32:47 AM
AT EASE
11:34:17 AM
RECONVENED
Representative Stapp MOVED to ADOPT conceptual Amendment 1
to Amendment N 29. He explained that the conceptual
amendment would restore $5,573,600 back to AGDC's budget
due to the way Amendment N 29 was drafted. The conceptual
amendment would decrement the personal services line. He
did not appreciate the two people from AGDC coming to the
House Finance Committee making promises. He believed the
best way to hold people accountable was to do a decrement
in the personal services line.
11:35:25 AM
AT EASE
11:36:55 AM
RECONVENED
Representative Stapp clarified the conceptual amendment
would restore the cuts in the underlying amendment minus
$598,588 in general funds. The amendment would result in
maintaining the vast majority of the appropriation to AGDC
minus $598,588.
11:37:30 AM
Co-Chair Johnson asked for the total for the total
decrement proposed in conceptual Amendment 1.
Representative Stapp replied that the decrement was
$598,588.
Representative Hannan supported the conceptual amendment.
She supported having the conversation on the record that
the committee's expectations for AGDC were higher than the
agency had delivered, and the focus needed to be fixing the
Railbelt energy problem regardless of the status of an
instate gasline. She thought the state should not just
continue to say that someday there would be the penultimate
access to LNG. She knew the underlying amendment would not
be popular, but she wanted the committee's expectations on
the record. She wanted two of the highest paid state
employees to pay more attention to Alaskans' need for a
return on investment. She supported the decrement to the
personal services line.
11:39:04 AM
Representative Galvin asked to be recused from the vote due
to family involvement in AGDC.
Co-Chair Foster OBJECTED.
Co-Chair Edgmon OBJECTED to conceptual Amendment 1 to
Amendment N 29 for purposes of discussion.
Representative Josephson asked for verification that the
conceptual amendment would continue to split the funding
source in the underlying amendment 50/50 between general
funds and AGDC LNG.
Representative Stapp agreed.
Co-Chair Edgmon WITHDREW the OBJECTION.
Co-Chair Johnson OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Hannan, Ortiz, Stapp, Tomaszewski, Coulombe,
Cronk, Galvin, Josephson, Foster, Edgmon
OPPOSED: Johnson
The MOTION PASSED (10/1). There being NO further OBJECTION,
conceptual Amendment 1 to Amendment N 29 was ADOPTED.
Co-Chair Edgmon stated that the conceptual amendment passed
without objection and the underlying amendment was adopted
on a vote of 10/1.
There being NO further OBJECTION Amendment L 29 was ADOPTED
as AMENDED.
Co-Chair Johnson relayed the committee would take a 10
minute break.
11:43:15 AM
AT EASE
11:53:13 AM
RECONVENED
Representative Stapp clarified that the intention of
Amendment L 29 as amended was an approximate decrement of
$598,600 to the personal services line in UGF. With the
adoption of the amendment the fund source split for AGDC
would be approximately $2,487,500 UGF with a fund source
code of 1004 and $3,086,100 in AGDC interagency receipts
with a fund source code of 1235.
Co-Chair Johnson rolled Amendment N 30, sponsored by
Representative Ortiz, to the bottom of the amendment list.
11:58:21 AM
Representative Josephson MOVED to ADOPT Amendment N 31
(copy on file):
Agency: Education & Early Dev
Appropriation: Education Support and Admin
Allocation: Student and School Achievement
Transaction Details
Title: Reduce Grant Funding for Hunting Education
Section: Section 1
Type: Dec
Line Items (Amounts are in thousands)
Personal Services: 0.0
Travel: 0.0
Services: 0.0
Commodities: 0.0
Capital Outlay: 0.0
Grants: -500.0
Miscellaneous: 0.0
Positions
Permanent Full-Time: 0
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund -500.0
Explanation
This program will provide competitive grant funding to
school districts for hunter education, gun safety, and
archery. This will teach students firearm safety,
respect for natural resources, and wildlife
conservation. This is a permanent increment, and the
program will be administered by DEED.
Representative Cronk OBJECTED.
Representative Josephson explained the amendment would cut
the grant for hunting education in half. He did not believe
there needed to be a permanent increment for the item.
Representative Cronk opposed the amendment. He stated that
hunting safety was mandatory in many units across Alaska.
He elaborated that getting safety training and qualified
with hunter education could be a tough process, especially
in rural Alaska. He detailed that hunting provided food
security and was part of a cultural way of life. He noted
it was grant funding that allowed different groups to get
out and provide hunter safety and archery education. He
stated it was very good for kids. He remarked that most
importantly, it helped support lifestyle in rural and urban
Alaska. The amendment went against the lifestyle he lived.
He saw the real need for gun safety. He remarked that it
was hard to get people out to rural Alaska to work with
kids. He stated that every one of the programs he had seen
in schools was interactive and taught kids a substantial
amount. He spoke to the importance of the gun safety
aspect.
Co-Chair Johnson spoke against the amendment. She was
supportive of anything that helped children understand how
guns worked and how to respect them. She also supported
getting people away from video games and out into nature.
Representative Cronk MAINTAINED the OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Josephson
OPPOSED: Stapp, Tomaszewski, Coulombe, Cronk, Galvin,
Hannan, Ortiz, Edgmon, Foster, Johnson
The MOTION to adopt Amendment N 31 FAILED (1/10).
12:01:58 PM
Representative Galvin MOVED to ADOPT Amendment N 32 (copy
on file):
Agency: Education & Early Dev
Appropriation: Education Support and Admin
Allocation: Early Learning Coordination
Transaction Details
Title: Add Funding for Parents as Teachers Program
Section: Section 1
Type: Inc
Line Items (Amounts are in thousands)
Personal Services: 0.0
Travel: 0.0
Services: 0.0
Commodities: 0.0
Capital Outlay: 0.0
Grants: 500.0
Miscellaneous: 0.0
Positions
Permanent Full-Time: 0
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund 500.0
Explanation
Direct state funding for Parents as Teachers (PAT)
program from DEED, in cooperation with the Department
of Health, to meet waitlist needs and to support this
child abuse and neglect prevention program.
Representative Cronk OBJECTED for discussion.
Representative Galvin explained that the amendment added
$500,000 to the grant program for Parents as Teachers. She
referenced a backup document for the amendment provided to
committee members (copy on file) that described services
provided by the program. The second page described how the
program was seated in the Alaska Reads Act. She detailed
that approximately 30 percent of children beginning
kindergarten in Alaska were ready to learn and had the
average vocabulary skills necessary. She stressed that 70
percent were not ready. She highlighted that a lot of
learning happened at home when parents, as first teachers,
understood how to engage and interact with their kids. The
program was over 30 years old and had begun in the Midwest.
The program had been in Alaska for decades and was an
evidence-based home visiting model used by Parents as
Teachers affiliates. The program provided services to
families with children from the prenatal period through
kindergarten. The program was a critical part of supporting
early childhood education because it helped parents know
how to be interactive to ensure their kids developed the
skills necessary for the next step in learning. The
services were delivered by trained parent educators who
visit homes and build relationships between the caregiver
and child while teaching about optimal early childhood
development learning.
Representative Galvin highlighted that parents were
continually learning in their knowledge of how to support a
child as they develop. The program helped that support. She
detailed that the program was administered by the Section
of Women's, Children's and Family Health through a contract
with the Department of Education and Early Development
(DEED). She relayed that the Parents as Teachers program
was located across the state including the communities of
Anchorage, Toksook Bay, Kodiak, and Juneau. There were
waitlists throughout the state and RurAL CAP wanted to
bring in three more rural communities. She had just
received news that there were $726,000 in federal matching
grants that required $242,000 in non-federal matching funds
($1 in state funds for every $3 in federal funds). The
additional funding would support an additional 100 to 200
families across Alaska. She believed it was a wonderful
opportunity for children to be better prepared for
kindergarten. She asked members to support the amendment.
12:06:17 PM
Representative Stapp thanked Representative Galvin for
identifying the amendment. He believed that if the item was
to go through the Department of Health it should have a
federal receipt authority match. He thought the department
likely could receive the match. He would vote against the
amendment at present, but he supported revisiting the topic
later after looking into it.
Representative Coulombe asked if the funding was going into
the base or was a one-time increment. She asked if the
people going in to teach parents through the program were
state workers.
12:07:39 PM
Representative Cronk asked how much funding the program
currently had.
Representative Galvin provided wrap up on the amendment and
responded to prior questions from committee members. She
stated that according to Trevor Storrs at Alaska Children's
Trust, current MIECHV [Maternal, Infant, and Early
Childhood Home Visiting] funds managed by the Department of
Health, Section of Women's, Children's and Family Health
did not require any matching funds. She noted that Mr.
Storrs shared the information because it may help grow
support if individuals understood the opportunity for
federal matching funds. She stated that MIECHV was a
federal initiative designed to support pregnant women and
families, particularly those at risk, through voluntary
home visiting programs. The programs provided valuable
resources, guidance, and support. She added that Parents as
Teachers had been approved as one of the programs. The
current funding in the DEED budget for the program was
$474,700. She relayed that the funding was a one-time grant
for the program. She believed the biggest black hole for
children in Alaska was what was being done to help children
aged zero to five to be prepared and in helping young
parents have the skills they need to be a first teacher.
She relayed that there were waitlists for the program. She
highlighted that every $1 spent on early childhood
education saved $8 down the road. She stated that the
return on investment was unquestionable.
12:11:33 PM
AT EASE
12:12:21 PM
RECONVENED
Co-Chair Johnson noted there were some questions on the
funding.
Representative Galvin clarified that the funds would be in
the base budget. She asked Mr. Painter to explain.
Mr. Painter clarified that the increment in the amendment
was permanent and would be in the base budget. He relayed
that the federal funding was not part of the amendment as
it had been learned about after the amendment had been
drafted.
Representative Galvin explained that the funds were in the
base budget and went through a grant program. She noted
there were different grantees listed on the backup document
including Kids Corp, RurAL CAP, and in areas such as
Kodiak, Juneau, and Haines. She clarified that Parents as
Teachers did not use state employees. She noted that state
employees were responsible for administering the grants to
ensure the program met guidelines and money was dispersed
accordingly.
Representative Cronk MAINTAINED the OBJECTION.
A roll call vote was taken on the motion to adopt Amendment
N 32.
IN FAVOR: Ortiz, Galvin, Hannan, Josephson
OPPOSED: Stapp, Tomaszewski, Coulombe, Cronk, Foster,
Edgmon, Johnson
The MOTION to adopt Amendment N 32 FAILED (4/7).
12:15:11 PM
Representative Josephson MOVED to ADOPT Amendment N 33
(copy on file):
Agency: Education & Early Dev
Appropriation: Education Support and Admin
Allocation: Early Learning Coordination
Transaction Details
Title: Increase Head Start Grants to Provide
Grantees with Additional Matching Funds
Section: Section 1
Type: Inc
Line Items (Amounts are in thousands)
Personal Services: 0.0
Travel: 0.0
Services: 0.0
Commodities: 0.0
Capital Outlay: 0.0
Grants: 200.0
Miscellaneous: 0.0
Positions
Permanent Full-Time: 0
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund 200.0
Explanation
$5,000,000 was added for Head Start grants during the
House Finance Education and Early Development
subcommittee process. However, the Alaska Early
Childhood Advocacy Group asked for $5.2 million to
total $12 million in state investment. This amendment
adds the remaining part of that request.
Representative Cronk OBJECTED.
Representative Josephson remarked that the amendment may
seem unnecessary and/or de minimis; however, in order to
fully match the funding, the state needed to contribute
$5.2 million [for Head Start grants]. The state had
contributed $5 million. He was told the previous week that
the Head Start program at Meadow Lakes in the Mat-Su Valley
with 48 kids would be closing at the end of May. He
clarified that the facility had not stated they would not
close if the $200,000 increment was included in the budget.
Additionally, there were 51 Head Start seats also closing
in Anchorage. The amendment finished the job done by the
subcommittee. He asked for members' support.
Co-Chair Edgmon thanked the Co-Chair Johnson and the
subcommittee for the $5 million in the budget currently
before the committee, which he saw as a big step forward.
He recognized that the $200,000 was less material, but
important. He advocated for the Head Start program, which
had been the primary player for early learning in Alaska
for many years. He highlighted that the program was seeing
a steady erosion and perhaps an eventual demise because
unfortunately the state was not keeping up with the federal
match rate of 20 percent. He believed the state's
contribution had been up to 12 percent. He explained that
the Head Start program was having difficulty keeping up in
an environment where the Alaska Reads Act was beginning to
compete. He noted that the Reads Act was not fully funded.
Co-Chair Johnson noted that $5 million had been put in the
budget by the subcommittee, which was included in the bill
before the committee. The increment in the amendment was in
addition to the $5 million. Additionally, the committee had
included $5 million in the FY 24 budget, and it had not
been retained through the whole budget process. She hoped
the $5 million would make it through the budget process.
She remarked on the value of the program. She had concerns
that adding more funding could decrease the likelihood the
funding would make it through the process.
Representative Cronk MAINTAINED the OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Galvin, Hannan, Josephson, Ortiz, Coulombe,
Edgmon, Foster, Johnson
OPPOSED: Stapp, Tomaszewski, Cronk
The MOTION PASSED (8/3). There being NO further OBJECTION,
Amendment N 33 was ADOPTED.
12:19:32 PM
Representative Josephson WITHDREW Amendment N 34 (copy on
file).
Representative Galvin MOVED to ADOPT Amendment N 35 (copy
on file):
Agency: Education & Early Dev
Appropriation: Education Support and Admin
Allocation: Early Learning Coordination
Transaction Details
Title: Add Funding for Best Beginnings' Imagination
Library
Section: Section 1
Type: Inc
Line Items (Amounts are in thousands)
Personal Services: 0.0 Travel: 0.0
Services: 0.0
Commodities: 0.0
Capital Outlay: 0.0
Grants: 320.0
Miscellaneous: 0.0
Positions
Permanent Full-Time: 0
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund 320.0
Explanation
This amendment would allow more communities, children,
and families to access the highly successful early
literacy program Imagination Library.
Representative Cronk OBJECTED.
Representative Galvin explained that the amendment would
add $320,000 UGF for the Best Beginnings Imagination
Library. The amendment would invest in early reading
through the Dolly Pardon Imagination Library. The program
provided age appropriate early literacy children's books
and parent education weekly newsletters to help parents
know how to read to their children and talk to them to grow
their vocabulary. She stated that engagement activities
were extremely important in children's readiness for
kindergarten. The funding would allow more families to
access the program. She explained that books arrived
monthly to children from birth to age five, serving 112
Alaska communities. The program was supported statewide by
Best Beginnings as a public/private partnership. She
detailed that Best Beginnings provided training and
financial assistance to local organizations. Participation
in the Imagination Library nearly doubled from 2010 to
2018. In 2018, 24,586 children across the state received
over 200,000 books. The amendment supported the
continuation and expansion of the program in Alaska. She
added that Imagination Library participation was associated
with new data showing higher reading and math achievement
in grade 3.
12:22:06 PM
Representative Stapp had a conflict because his kids
received the books in the mail.
Representative Cronk OBJECTED.
Representative Stapp appreciated the amendment but did not
support the amendment. He noted the amendment would add
$320,000 to the base budget and he was not aware of the
program's resources. He did not know what the increment
would do.
Co-Chair Johnson clarified that no matter how members voted
on the amendment the Dolly Pardon program still sent books
to preschoolers.
Representative Hannan supported the amendment. She remarked
that although the Imagination Library provided the service
at a very low cost, the program was not free. There were
grant funds available through a variety of organizations
across the state to provide the service. For example,
Bartlett Hospital in Juneau enrolled every child born at
the hospital in Best Beginnings through a grant that was
locally received. She noted that the program was not
available statewide. The amendment would provide more kids
with access to the program. The idea of putting literacy in
the hands of children was the best way to make reading a
life skill. She detailed that three or four-year-olds
receiving the books knew the books came to them, which gave
them ownership and pride in the idea that the skill and
resource were theirs. She referenced the goal of improving
literacy across the state. She emphasized that helping
people who were the least likely have a lot of access to
get better access to literacy tools was beneficial and had
a strong return on investment.
12:25:08 PM
Representative Cronk clarified for the public watching the
meeting that adding money to the base meant the funding
would be permanently in the budget. He stated that adding
funding to the base meant the budget continued to grow. He
clarified that he was not saying the Imagination Library
was not a good program. He noted that some of the votes
were very difficult, but once money was added to the base
it would be there going forward.
Representative Galvin provided wrap up on the amendment.
She addressed points discussed by other committee members.
She highlighted there were approximately 50,000 children in
Alaska between the age of zero to five. Currently, 24,586
children received the books. She appreciated that a couple
of her colleagues in the legislature had children receiving
the books. She also believed it was very important that
children with parents who did not know how to navigate had
the opportunity to get the books. She stressed that it gave
children the leg up that they needed. She referenced a
comment about whether there was any data showing the
program would make a difference in a child's higher
literacy skills. She considered that it may not make a
difference for her colleagues' children because she
imagined they were interactive and read a lot; however, it
made a big difference for some children. She pointed out
that the state spent over $1 billion [annually] on its
public school system. She emphasized that a significant
portion of that money was spent to help bring children up
to speed because 70 percent of the kids were arriving one
to two years behind their peers and what was considered
ready to read. She stated that the increment was an
investment, but it would make a mark and more children
would receive the books. She did not believe the program
would go away because a lot of small communities,
especially affluent ones, would provide funding to the
Dolly Pardon Imagination Library. The amendment would
direct $320,000 into zero to five-year-olds. She thought it
would potentially bring a return on investment that would
help the K-12 system do much better.
Representative Cronk MAINTAINED the OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Galvin, Hannan, Josephson, Ortiz
OPPOSED: Tomaszewski, Coulombe, Cronk, Stapp, Foster,
Edgmon, Johnson
The MOTION to adopt Amendment N 35 FAILED (4/7).
12:29:02 PM
Representative Josephson MOVED to ADOPT Amendment N 36
(copy on file):
Agency: Education & Early Dev
Appropriation: Education Support and Admin
Allocation: Career and Technical Education
Transaction Details
Title: Coding in Minecraft Program for School
Districts to Meet Computer Science Education
Initiative
Section: Section 1
Type: Inc
Line Items (Amounts are in thousands)
Personal Services: 0.0
Travel: 0.0
Services: 1,200.0
Commodities: 0.0
Capital Outlay: 0.0
Grants: 0.0
Miscellaneous: 0.0
Positions
Permanent Full-Time: 0
Permanent Part-Time: 0
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund 1,200.0
Explanation
This request is to continue providing virtual educator
courses for Coding in Minecraft, a computer science
credential program with supporting curriculum
delivered through Minecraft Education, which is
currently being funded through federal COVID-19 relief
funds. The curriculum is fully aligned with the Alaska
Computer Science Standards to ensure quality of
learning. It also provides licenses to any public
school in Alaska and immerse students through game-
based learning to develop and prove their coding
skills using MakeCode and JavaScript or Python. This
program has been very successful and since its launch
in September 2022, Alaska has seen the fastest
adoption curve of any state.
Representative Cronk OBJECTED.
Representative Josephson noted that he was not an expert in
Minecraft, but he knew enough to argue the merits of the
amendment. He had been told that the governor wanted the
appropriation. The Minecraft program was currently being
used and was designed to enhance computer science
education. He noted that while it sounded like gaming, it
was about something constructive and real that was
important to students. The request was to continue
providing virtual educator courses for coding in Minecraft,
a computer science credential program with supporting
curriculum delivered through Minecraft Education. He noted
there were people who may ask why not go to an Office Max
to buy the software version of the program. He clarified
that the software version did not include assessments,
certifications, and teachers were needed to run the
program. The amendment would provide funding for the
purchase of licensing for third-party software that added
educational instruction materials and allowed standards and
oversight to achieve nationally recognized accreditation.
The state was currently paying for the program with COVID-
19 funding and the amendment would use general funds.
Representative Josephson noted that members of the
committee had school districts that would be impacted by
the failure to adopt the amendment including the Tok
school, Walter Northway school, Sandpoint school, a school
in the Bering Strait, Paul Asicksik school, Unalakleet
school, Arctic Light school, West Valley, Anne Wien school
Ryan middle school, Ketchikan high school, Schoenbar middle
school, the Aniak junior and senior high school, Auntie
Mary Nicoli elementary school, Bethel regional school,
Alakanuk school, Marshall school, Burchell high school,
Colony high school and middle school, Denina elementary
school, Mat-Su central school, Meadow Lakes elementary,
Sherrod elementary, Valley Pathways school, Wasilla middle
school, Nenana City public school, Petersburg school,
Mitkof middle and high school, and Evergreen elementary in
Wrangell. He stated the funding impacted a lot of schools
represented by members of the committee. He asked for
members' support.
12:33:09 PM
Representative Stapp was fascinated by the amendment and
had done research into the issue. He thought kids learning
code was great, but he did not believe it cost $1.2 million
to get kids to code in Minecraft. He had looked at the
funding mechanism from the department and the order was 500
units of coding in Minecraft curriculum at $2,418 apiece.
The second part of the appropriation was Minecraft
education additions for teachers at $0.84 for 80 units and
a total of $67.20. The third part pertained to the free
license version of the software at 1,200 units. He thought
the amendment was a great exercise in how much things
should cost. He highlighted that the coding version of
Minecraft cost $40 on Steam. He noted that the
appropriation in the amendment equated to $249 per student.
He wanted kids to be able to learn to code, but he did not
believe it cost $249 per student. He opposed the amendment.
Co-Chair Foster supported the amendment. He noted that
Bering Strait School District and Lower Yukon Schools were
in his district. He supported helping urban and rural kids
to become more tech savvy. He noted that the $1.2 million
cost was spread over quite a few schools.
Representative Coulombe had put forward the amendment in
subcommittee. She shared some concerns expressed in
subcommittee. She had shared the same concerns voiced by
Representative Stapp. Several members were concerned about
the cost. Another member had expressed concern about
starting something with COVID-19 funding and continuing it
after the money was gone. Another member thought the focus
should be on the Alaska Reads Act and having kids read
before learning to code. One committee member had reported
that a school district in Southeast was able to use
Minecraft at a much cheaper cost. The district could still
pursue the funds through DEED, but it had decided to do it
on its own without the exorbitant price.
12:36:49 PM
Co-Chair Edgmon asked Representative Josephson to verify
that the governor supported the increment. He thought the
commissioner of DEED supported the item. He noted it was
difficult to keep kids in school when they reached a
certain age. He asked Representative Josephson as a former
teacher whether it was the kind of program that could
encourage kids to learn more about the computer sciences in
general. He noted that Representative Josephson had listed
numerous rural schools in his explanation of the amendment.
Co-Chair Johnson recognized Representative Andrew Gray in
the room.
Representative Cronk highlighted that the issue reflected
the woes of federal funding. The funds were received and
became part of everyday life and the budget got bigger and
bigger. He remarked that federal money was great, but if it
continued on and on it became state money. He stated that
it was necessary to budget the money the state had.
Co-Chair Johnson agreed with Representative Cronk that it
was a tough amendment. She knew the governor supported
coding and teaching kids to code. She also wanted to
support the subcommittee chairs for their work. She would
vote against the amendment.
Representative Cronk WITHDREW the OBJECTION.
Representative Coulombe OBJECTED.
12:40:16 PM
Representative Josephson provided closing remarks. He
relayed that the free software would require teachers to be
certified in a relevant field, whereas the increment in the
amendment would pay for software through third parties. He
confirmed that the DEED commissioner supported the
increment. He highlighted that Alaska had the highest
adoption rate of any state using the program. He considered
that it may relate to why Governor Dunleavy talked about a
Harvard study indicating Alaska had the finest charter
schools. He pointed out that regular live lessons could
include engagement with homeschool students. He could
understand why the governor supported the funding. He noted
that the price was $2,418 for 500 units, which added up to
the $1 million when throwing in education licenses per
teacher and per student. He did not believe it looked like
there was excess funding, it merely reflected the cost. He
asked for members' support for the amendment.
12:41:43 PM
AT EASE
12:42:23 PM
RECONVENED
Representative Coulombe MAINTAINED the OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Galvin, Hannan, Josephson, Ortiz, Foster
OPPOSED: Cronk, Stapp, Tomaszewski, Coulombe, Johnson,
Edgmon
The MOTION FAILED (5/6).
Co-Chair Johnson stated it was a good time to take a break.
The next meeting noticed for 1:30 p.m. would be delayed
until after floor session.
HB 268 was HEARD and HELD in committee for further
consideration.
HB 270 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
12:45:08 PM
The meeting was adjourned at 12:45 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 268 Conceptual Amendment 1 to Lang. Amendment 7 Stapp.pdf |
HFIN 4/1/2024 10:00:00 AM |
HB 268 |
| HB 268 Supporting documentation to Amendment 18 Coulombe 040124.pdf |
HFIN 4/1/2024 10:00:00 AM |
HB 268 |
| HB268 AMD1TO AMD 29 STAPP 040124.pdf |
HFIN 4/1/2024 10:00:00 AM |
HB 268 |
| HB 268 Backup Amendment 32 Galvin 040124.pdf |
HFIN 4/1/2024 10:00:00 AM |
HB 268 |