Legislature(1997 - 1998)

04/16/1998 03:12 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE HEALTH, EDUCATION AND SOCIAL                                    
            SERVICES STANDING COMMITTEE                                        
                   April 16, 1998                                              
                     3:12 p.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Con Bunde, Chairman                                             
Representative Joe Green, Vice Chairman                                        
Representative Brian Porter                                                    
Representative Fred Dyson                                                      
Representative J. Allen Kemplen                                                
Representative Tom Brice                                                       
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Representative Al Vezey                                                        
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
* HOUSE BILL NO. 388                                                           
"An Act relating to the right to refuse to sell, give, or serve an             
alcoholic beverage."                                                           
                                                                               
     - PASSED HB 388 OUT OF COMMITTEE                                          
                                                                               
HOUSE BILL NO. 401                                                             
"An Act relating to contracts for the provision of state public                
assistance to certain recipients in the state; providing for                   
regional public assistance plans and programs in the state;                    
relating to grants for Alaska tribal family assistance programs;               
and providing for an effective date."                                          
                                                                               
     - PASSED HB 401 OUT OF COMMITTEE                                          
                                                                               
HOUSE BILL NO. 302                                                             
"An Act relating to the University of Alaska; and providing for an             
effective date."                                                               
                                                                               
     - HEARD AND HELD                                                          
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL: HB 388                                                                   
SHORT TITLE: RIGHT TO REFUSE TO SERVE LIQUOR                                   
SPONSOR(S): REPRESENTATIVES(S) DYSON                                           
                                                                               
Jrn-Date    Jrn-Page           Action                                          
 2/06/98      2241     (H)  READ THE FIRST TIME - REFERRAL(S)                  
 2/06/98      2241     (H)  HES, LABOR & COMMERCE                              
 4/09/98               (H)  HES AT  3:00 PM CAPITOL 106                        
 4/09/98               (H)  MINUTE(HES)                                        
 4/16/98               (H)  HES AT  3:00 PM CAPITOL 106                        
                                                                               
BILL: HB 401                                                                   
SHORT TITLE: STATE/REG'L/TRIBAL FAMILY ASS'T PROGRAMS                          
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                   
                                                                               
Jrn-Date    Jrn-Page           Action                                          
 2/12/98      2308     (H)  READ THE FIRST TIME - REFERRAL(S)                  
 2/12/98      2308     (H)  C&RA, HES, FINANCE                                 
 2/12/98      2308     (H)  ZERO FISCAL NOTE (DHSS)                            
 2/12/98      2308     (H)  GOVERNOR'S TRANSMITTAL LETTER                      
 3/04/98               (H)  CRA AT  8:00 AM CAPITOL 124                        
 3/04/98               (H)  MINUTE(CRA)                                        
 3/04/98      2497     (H)  CRA RPT  3DP 1DNP 1NR                              
 3/04/98      2497     (H)  DP: DYSON, KOOKESH, IVAN; DNP:                     
                            SANDERS;                                           
 3/04/98      2497     (H)  NR: RYAN                                           
 3/04/98      2497     (H)  ZERO FISCAL NOTE (DHSS) 2/12/98                    
 3/04/98      2497     (H)  REFERRED TO HES                                    
 4/16/98               (H)  HES AT  3:00 PM CAPITOL 106                        
                                                                               
BILL: HB 302                                                                   
SHORT TITLE: UNIVERSITY OF ALASKA OPERATING BUDGET                             
SPONSOR(S): REPRESENTATIVES(S) BUNDE                                           
                                                                               
Jrn-Date    Jrn-Page           Action                                          
 1/12/98      2023     (H)  PREFILE RELEASED 1/2/98                            
 1/12/98      2023     (H)  READ THE FIRST TIME - REFERRAL(S)                  
 1/12/98      2023     (H)  HES, FINANCE                                       
 2/12/98               (H)  HES AT  3:00 PM CAPITOL 106                        
 2/12/98               (H)  MINUTE(HES)                                        
 2/27/98               (H)  HES AT  3:00 PM CAPITOL 106                        
 2/27/98               (H)  MINUTE(HES)                                        
 4/07/98               (H)  HES AT  3:00 PM CAPITOL 106                        
 4/07/98               (H)  MINUTE(HES)                                        
 4/09/98               (H)  HES AT  3:00 PM CAPITOL 106                        
 4/09/98               (H)  MINUTE(HES)                                        
 4/16/98               (H)  HES AT  3:00 PM CAPITOL 106                        
                                                                               
WITNESS REGISTER                                                               
                                                                               
                                                                               
LORI NAMYNIUK                                                                  
Address Not Provided                                                           
Telephone Not Provided                                                         
POSITION STATEMENT:  Testified on HB 388.                                      
                                                                               
MORRIS BENTELY, Member                                                         
Fetal Alcohol Syndrome/Fetal Alcohol Effects Task Force                        
P.O. Box 287                                                                   
Bethel, Alaska  99559                                                          
Telephone:  (907) 543-2914                                                     
POSITION STATEMENT:  Testified on HB 388.                                      
                                                                               
JAY LIVEY, Deputy Commissioner                                                 
Department of Health and Social Services                                       
P.O. Box 110601                                                                
Juneau, Alaska  99811-0601                                                     
Telephone:  (907) 465-3030                                                     
POSITION STATEMENT:  Testified on HB 401.                                      
                                                                               
BOB CHARLES, Vice President of Operations                                      
Alaska Village Council Presidents                                              
Bethel, Alaska  99559                                                          
Telephone:  (907) 543-7300                                                     
POSITION STATEMENT:  Testified on HB 401.                                      
                                                                               
TERRY HOEFFERLE, Chief of Operations                                           
Bristol Bay Native Association                                                 
P.O. Box 310                                                                   
Dillingham, Alaska  99576                                                      
Telephone:  (907) 842-5257                                                     
POSITION STATEMENT:  Testified on HB 401 and HB 302.                           
                                                                               
DON SHIRCEL, Director                                                          
Tanana Chiefs Conference Family Services                                       
122 First Avenue, Suite 606                                                    
Fairbanks, Alaska  99701                                                       
Telephone:  (907) 452-8251                                                     
POSITION STATEMENT:  Testified on HB 401.                                      
                                                                               
SHARON OLSEN, Director                                                         
Employment and Training Programs                                               
Central Council Tlingit and Haida Indians of Alaska                            
320 West Willoughby Avenue, Suite 300                                          
Juneau, Alaska  99801                                                          
Telephone:  (907) 463-7134                                                     
POSITION STATEMENT:  Testified on HB 401.                                      
                                                                               
                                                                               
RICHARD BENAVIDES                                                              
P.O. Box 190821                                                                
Anchorage, Alaska  99519                                                       
Telephone:  (907) 337-0658                                                     
POSITION STATEMENT:  Testified on HB 302.                                      
                                                                               
PEARL STRUB, Representative                                                    
Bristol Bay Campus Advisory Council                                            
P.O. Box 1070                                                                  
Dillingham, Alaska  99576                                                      
Telephone:  (907) 842-5109                                                     
POSITION STATEMENT:  Testified on HB 302.                                      
                                                                               
KEVIN TRITT, President                                                         
Union Students                                                                 
University of Alaska Anchorage                                                 
3211 Providence Drive                                                          
Anchorage, Alaska  99508                                                       
Telephone:  (907) 786-1205                                                     
POSITION STATEMENT:  Testified on HB 302.                                      
                                                                               
ANDREW HUND                                                                    
6110 Blackberry Street                                                         
Anchorage, Alaska  99504                                                       
Telephone:  (907) 243-0428                                                     
POSITION STATEMENT:  Testified in support of HB 302.                           
                                                                               
JUDITH NELSON, Executive Director                                              
Bristol Bay Economic Development Corporation                                   
P.O. Box 1464                                                                  
Dillingham, Alaska  99576                                                      
Telephone:  (907) 842-4370                                                     
POSITION STATEMENT:  Testified on HB 302.                                      
                                                                               
PATRICK CASEY, Student                                                         
University of Alaska Fairbanks                                                 
2154 Noah Court                                                                
North Pole, Alaska  99705                                                      
Telephone:  (907) 488-6729                                                     
POSITION STATEMENT:  Testified on HB 302.                                      
                                                                               
JEAN RICHARDSON, Student                                                       
University of Alaska Fairbanks                                                 
1716 South University Avenue, Apartment B                                      
Fairbanks, Alaska  99709                                                       
Telephone:  (907) 479-5071                                                     
POSITION STATEMENT:  Testified on HB 302.                                      
                                                                               
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-47, SIDE A                                                             
Number 0001                                                                    
                                                                               
CHAIRMAN CON BUNDE called the House Health, Education and Social               
Services Standing Committee meeting to order at 3:12 p.m.  Members             
present at the call to order were Representatives Bunde, Green,                
Porter and Dyson.  Representatives Brice and Kemplen arrived at                
3:23 p.m.  Representative Vezey was absent.                                    
                                                                               
HB 388 - RIGHT TO REFUSE TO SERVE LIQUOR                                       
                                                                               
Number 0024                                                                    
                                                                               
CHAIRMAN BUNDE announced the first order of business to come before            
the committee was HB 388, "An Act relating to the right to refuse              
to sell, give, or serve an alcoholic beverage."  He asked                      
Representative Dyson to present his bill.                                      
                                                                               
Number 0071                                                                    
                                                                               
REPRESENTATIVE FRED DYSON said one of the key issues he's been                 
working on for the past couple years is fetal alcohol syndrome and             
fetal alcohol effects and in his efforts toward prevention, he                 
spent time with ARBA/CHAR, the professional organization of bar                
owners and bar workers in the state.  During his visit, concern was            
expressed regarding the legality of refusing to serve someone who's            
pregnant out of concern for alcohol poisoning of the unborn child.             
He explained Alaska's rights to refusal law states that an employee            
can refuse to serve a person if there is belief they'd be                      
endangering themselves or others.  Bar owners in Oregon have been              
sued both ways; for refusing to serve someone who is obviously                 
pregnant and for not refusing.  He understands that both lawsuits              
were unsuccessful, but still it remains an open question.                      
                                                                               
REPRESENTATIVE DYSON said, "The current state of the research says             
that we do not know that there's any safe period or safe amount of             
alcohol to be consumed that there's no danger to the unborn child.             
Apparently, the earlier in the pregnancy, the greater the danger,              
but there is apparently impact on the unborn child all the way                 
through gestation."  He said he introduced this legislation at the             
request of the bar owners.  Many of the industry representatives               
refuse to serve pregnant women as a matter of protecting the unborn            
child and there haven't been any lawsuits filed for refusal to                 
serve; however, he thinks that day is coming.                                  
                                                                               
Number 0302                                                                    
                                                                               
REPRESENTATIVE BRIAN PORTER asked if Representative Dyson's                    
research on this issue indicated what the intent was of the                    
existing statute to which this legislation is being added.                     
                                                                               
REPRESENTATIVE DYSON surmised that a bar owner does not want to                
continue to serve someone who is getting violent and may be a                  
danger to others or to themselves personally.                                  
                                                                               
Number 0386                                                                    
                                                                               
REPRESENTATIVE JOE GREEN inquired, "In drafting this, did you                  
discuss with the attorneys whether by including this, there could              
be an implied problem built for a bar owner who decides to go ahead            
- since it's a "may" not a "shall not" - and goes ahead and serves             
a pregnant woman and something happens, are you building any                   
concern here by including this specifically in the law?"                       
                                                                               
REPRESENTATIVE DYSON said industry representatives and their                   
advisors have not been wary about that.                                        
                                                                               
CHAIRMAN BUNDE noted there were individuals standing by on                     
teleconference to testify on HB 388.  He asked Lori Namyniuk to                
testify at this time.                                                          
                                                                               
Number 0463                                                                    
                                                                               
LORI NAMYNIUK testified via teleconference from Anchorage, and                 
thanked Representative Dyson for his efforts in the prevention of              
fetal alcohol syndrome and for bringing a very serious problem to              
the forefront by introducing HB 388.  She believed in the concept,             
but thought it would be difficult to legislate.  She said it is                
known that harm can be caused to a fetus prior to a woman being                
visibly pregnant which would make it difficult for bar owners to               
recognize the pregnancy.  Her research on fetal alcohol syndrome               
indicates that more serious damage is caused within the first and              
second trimester.  Also, alcohol isn't the only substance that                 
causes severe damage to unborn children; smoking also does so if               
alcohol consumption by pregnant women is legislated where will it              
stop.  She said, "I guess instead of sort of following suit with               
the work you've been doing currently, I think it would be better to            
continue those efforts and put our focus toward education in a hope            
that individuals would make informed positive choices for their                
health and the health of their children and families.  It would not            
just focus on the woman, but realize that it's a whole family                  
problem."  She said Representative Dyson's efforts with the                    
statewide coordinator and the Governor's Smart Start program were              
the beginnings of working toward both providing education and                  
direct services for women and families.  Her concern is that                   
pregnant women would view HB 388 as a punishment, and go                       
"underground" or drink in private for fear of being punished or for            
the societal judgment, and may not seek out social services or                 
residential treatment for their substance use, or worse yet, would             
not seek medical care.                                                         
                                                                               
CHAIRMAN BUNDE thanked Ms. Namyniuk for her testimony and asked                
Morris Bentely for his comments.                                               
                                                                               
Number 0628                                                                    
                                                                               
MORRIS BENTELY, Member, Fetal Alcohol Syndrome/Fetal Alcohol                   
Effects Task Force, testified via teleconference from Bethel in                
support of HB 388.  He discussed some of the problems associated               
with alcohol in the Bethel area and even though Bethel doesn't have            
any bar owners, he thought perhaps it would keep the bootleggers               
from selling alcohol to pregnant women.  He supported efforts to               
stop the problem or solve the problem before the birth of a child              
who could end up with lifelong behavioral problems.                            
                                                                               
CHAIRMAN BUNDE thanked Mr. Bentely for his comments.  He closed                
public testimony and asked the wishes of the committee.                        
                                                                               
Number 0688                                                                    
                                                                               
REPRESENTATIVE PORTER made a motion to pass HB 388 from committee              
with individual recommendations.  Hearing no objection, HB 388                 
moved from the House Health, Education and Social Services                     
Committee.                                                                     
                                                                               
HB 401 - STATE/REG'L/TRIBAL FAMILY ASS'T PROGRAMS                              
                                                                               
Number 0704                                                                    
                                                                               
CHAIRMAN BUNDE announced the next bill for consideration was                   
HB 401, "An Act relating to contracts for the provision of state               
public assistance to certain recipients in the state; providing for            
regional public assistance plans and programs in the state;                    
relating to grants for Alaska tribal family assistance programs;               
and providing for an effective date."  He asked Jay Livey to come              
forward to the witness stand.                                                  
                                                                               
Number 0727                                                                    
                                                                               
JAY LIVEY, Deputy Commissioner, Department of Health and Social                
Services, commented that before getting into the specifics of the              
bill, he would give the committee some background information as to            
why the department is considering this issue at this particular                
time.  He said federal welfare reform established a process, as                
part of the federal welfare reform, by which Alaska Native                     
nonprofit regional corporations, if they wished, could apply to the            
federal government and receive authorization to administer welfare             
programs in the regions.  As part of the process, the regional                 
corporations would be eligible to receive from the federal                     
government the equivalent of the federal funds that the state spent            
on welfare services within those regions in 1994.  It basically                
establishes a federal block grant for regional corporations                    
deciding to take on welfare responsibilities for their region.                 
                                                                               
MR. LIVEY said the federal funds, however, will only be about half             
of the funds that have historically been spent on welfare in                   
regional corporation areas.  He pointed out the current welfare                
program is partially state funded and partially federally funded.              
The mechanism in the federal welfare reform law only deals with the            
federal funds and HB 401 sets up a mechanism by which the state can            
fund the other half needed to run the entire program.                          
                                                                               
MR. LIVEY said the state and regional corporations have had ongoing            
meetings for the last couple years regarding the federal language              
and through those discussions, the state has come up with five                 
principles used to guide the development of HB 401.  First,  the               
state and regional corporations both recognized the primary goal to            
support self-sufficiency; everyone wants individuals to be                     
economically independent and to not be dependent on public                     
assistance programs and services.  The second principle is to                  
promote flexibility in designing local approaches to achieving                 
self-sufficiency.  The state recognized that regional corporations             
have specific conditions as well as specific economies, and wanted             
to give freedom to those corporations to develop regional                      
assistance plans that make sense to their area.  The third                     
principle was to ensure that any programs set up were efficiently              
managed, avoiding any duplication of effort and creating an economy            
of scale with regard to administrative expenditure.  Fourth was to             
discourage disparity in benefit levels in order to avoid having                
similar-situated Alaskans being treated differently with respect to            
benefits.  Fifth was to address the complex legal issues relating              
to the delegation of state authority.                                          
                                                                               
Number 0945                                                                    
                                                                               
MR. LIVEY directed the committee's attention to a flow chart                   
describing the mechanism set up by HB 401.                                     
                                                                               
Number 0959                                                                    
                                                                               
REPRESENTATIVE DYSON asked if there was any opposition to this                 
legislation?                                                                   
                                                                               
MR. LIVEY responded that most people support the concept.                      
                                                                               
Number 1011                                                                    
                                                                               
MR. LIVEY, referring to the flow chart, explained if this                      
legislation passes, the regional corporations would send the                   
department a copy of their tribal assistance plan to be reviewed               
for two sets of standards.  He continued, "First of all we would               
review those standards to make sure that the service delivery area             
that the regional corporation's proposing to serve makes sense and             
we want that to make sense in terms of the state's obligation to               
provide services.  Also, we just want to make sure the two fit                 
together so we're not duplicating administrative costs and we're               
providing the services most efficiently.  Secondly, there are five             
requirements that we believe should be in the regional                         
corporation's assistance plan - that those are five principles of              
welfare reform that we believe should be in any program in the                 
state.  Briefly, there must a dependent child in the household; the            
regional corporation payment amount must be in line with the                   
state's payment amount; minor parents must live within an approved             
adult-supervised setting; able-bodied participants must work; and              
participants must comply with child support.  If the regional                  
corporation meets those requirements, then they are eligible to                
receive a grant and the grant that we send to the regional                     
corporation then provides the state portion of the program.                    
Remember, they're already getting the federal money directly -                 
they're already getting money from the federal government - the                
state portion fills out the program for them."                                 
                                                                               
CHAIRMAN BUNDE observed the department had submitted a zero fiscal             
note.                                                                          
                                                                               
MR. LIVEY said the funds being sent to the regional corporations               
would already be in the department's budget or subject to future               
appropriation by the legislature.                                              
                                                                               
CHAIRMAN BUNDE said there should be a fiscal note showing the flow             
of funds and the volume.                                                       
                                                                               
MR. LIVEY explained one of the reasons for the zero fiscal note is             
that the amounts of money flowing back and forth will depend on how            
many regional corporations choose to participate in the program.               
                                                                               
MR. LIVEY continued with his explanation of HB 401 and said, "If               
the commission determines that it's -- you mentioned before that               
within a regional corporation there may be nontribal members who               
are being served in that area through the state program -- if the              
commission determines as a condition of receiving money from the               
state, the state can require that those individuals would be served            
by the regional corporation, again as a way of making sure that the            
state's not duplicating administrative services in those areas."               
                                                                               
MR. LIVEY concluded the department considers this a good bill for              
three reasons:  1) welfare will be more successful if locally                  
administered and locally designed to meet local economic                       
conditions; 2) there's a benefit for the state in partnering with              
the regional nonprofit corporations, many of whom have fairly                  
extensive employment and training programs already operating; and              
3) it makes sense to encourage areas of the state to take some                 
responsibility for welfare services and public service in the                  
respective areas.                                                              
                                                                               
Number 1220                                                                    
                                                                               
CHAIRMAN BUNDE questioned first what system would account for the              
expenditure of funds and secondly, what rights of appeal is                    
available for individuals who feel they are being treated unfairly.            
                                                                               
MR. LIVEY said the fiscal oversight would be the same as for                   
existing state grants and contracts with a single audit as well as             
all the department's grant regulations.  With respect to appeals,              
the regional corporation would need an approved appeal process in              
their original plan for individuals served by the regional                     
corporation program and nontribal members served by the regional               
corporation would have appeal rights through the state.                        
                                                                               
CHAIRMAN BUNDE verified for the record that the program would serve            
all residents in the area, both tribal and nontribal.                          
                                                                               
MR. LIVEY confirmed that.                                                      
                                                                               
Number 1270                                                                    
                                                                               
REPRESENTATIVE GREEN inquired if this was merely a transfer of                 
funds rather than new funds.                                                   
                                                                               
MR. LIVEY explained the general fund portion is money that is                  
already being spent on behalf of welfare clients in those areas.               
For example in the Alaska Village Council Presidents (AVCP) region,            
the state is already paying for welfare services in that region.               
                                                                               
CHAIRMAN BUNDE asked Bob Charles to present his remarks at this                
time.                                                                          
                                                                               
Number 1300                                                                    
                                                                               
BOB CHARLES, Vice President of Operations, Alaska Village Council              
Presidents (AVCP), testified via teleconference from Anchorage that            
AVCP supports HB 401 and urges its adoption by the legislature.  He            
said the AVCP was established in 1964, incorporated in 1978 and                
serves 47 villages in the Yukon-Kuskokwim-Delta region.  In 1978,              
the AVCP began contracting with the federal government primarily               
with the Bureau of Indian Affairs, to provide services to the                  
people in the Yukon-Kuskokwim-Delta area.  The AVCP has formed the             
Yukon/Kuskokwim Health Corporation and the regional housing                    
authority as separate organizations to provide health and housing              
services.  He described the services provided by AVCP for families,            
children and elders in the region including a variety of training              
and technical assistance services for village administrators; a                
fairly large village public safety officer program; a Head Start               
Program and various other programs.                                            
                                                                               
Number 1485                                                                    
                                                                               
CHAIRMAN BUNDE observed that AVCP must be very busy, and asked if              
they could take on another project like administering the welfare              
program proposed under HB 401.                                                 
                                                                               
MR. CHARLES explained the AVCP has a fairly good sized structure in            
place in all the villages that allows AVCP the opportunity to                  
administer this as just another program.  He noted that recently               
AVCP operated a contract with the Division of Public Assistance for            
the Work Force Development Project, in which the division initially            
wanted AVCP to work with 328 two-parent families, but AVCP set a               
goal of 510 families and since starting last July, the number has              
increased to 760 families.                                                     
                                                                               
CHAIRMAN BUNDE thanked Mr. Charles for his testimony and asked Mr.             
Hoefferle to present his comments.                                             
                                                                               
Number 1544                                                                    
                                                                               
TERRY HOEFFERLE, Chief of Operations, Bristol Bay Native                       
Association (BBNA), testified via teleconference from Dillingham.              
He said the Bristol Bay Native Association is an association of 31             
tribal communities in Bristol Bay.  He noted he would address two              
issues in his testimony.  First, the capacity of organizations like            
BBNA to operate a program such as that being proposed in HB 401 and            
BBNA's accountability for operating programs such as this.  He said            
there are 12 regional nonprofit Native associations in the state of            
Alaska which have many similarities.  Generally, the associations              
were formed to work toward passage of the land claims settlement               
act and once regional corporations were formed under that act, the             
12 regional nonprofit associations took on the task of not for                 
profit social issues - issues such as education and the economies              
of the region, et cetera.  Currently, the BBNA operates over 30                
programs ranging from the village public safety officer program to             
Head Start to elderly nutrition programs to employment and training            
program.  The association has an annual budget of $16 million and              
294 employees; 55 of which are employed in the central office and              
239 are employed at village locations throughout the region.                   
Currently, BBNA operates nine programs that are directly related to            
employment and training, education on welfare assistance type                  
programs, general assistance employment and training, higher                   
education and child care programs with a budget of $1.7 million.               
All the programs are operated under Public Law 103-477 which allows            
tribal organizations to combine the funding for similar kinds of               
federal programs that are operated either from the Departments of              
Education or Health and Social Services or the Bureau of Indian                
Affairs.  By combining the operation of these programs, BBNA has               
achieved a number of administrative savings; it reduced the                    
administrative costs of those programs by 30 percent and has placed            
those savings directly into increased client services.  The PL 103-            
477 programs years ago began to set the stage for much of what is              
now called welfare reform as enacted by the federal government and             
the state of Alaska in recent years.  A combination of those                   
programs has provided a model for "one stop shops" that the state              
of Alaska is utilizing to implement the temporary assistance for               
the needy families' program enacted by the legislature two years               
ago.  The Tribal Work Experience program which BBNA and their                  
sister organizations operate throughout the state marked the way               
for Work fare where individuals are required to provide local work             
service in order to receive general assistance benefits.  The                  
Bristol Bay Native Association has operated these programs under               
the (indisc.) of the United States Government and also operated                
similar types of programs under contract with the state of Alaska.             
                                                                               
MR. HOEFFERLE said BBNA is familiar with not only operating                    
programs that apply to all the residents in Bristol Bay but also               
operates different programs that only Native members of the                    
association are eligible for.  For 30 years BBNA has adequately                
reported and accounted for the expenditure of federal funds.                   
During his eight year tenure at BBNA, the audits have never raised             
a question regarding cost.                                                     
                                                                               
MR. HOEFFERLE concluded the PL 103-477 program provides the model              
by which their association would implement HB 401.  Currently, in              
the state of Alaska, the implementation of welfare reform                      
legislation in the urban areas provide the way for the people to               
get on welfare and a way for people to get into a job.  In rural               
Alaska, the system provides for a way to get on welfare, albeit a              
much harder way to get on welfare and it provides no road to jobs.             
This is just a recognition that it's much more difficult to develop            
jobs than it is to cut a welfare check.  But the Alaska Temporary              
Assistance to  Needy Families Act includes a counseling and                    
planning individual work responsibility plan to help people find               
their way off welfare and into work, but it's impossible to provide            
this counseling and assistance by means of telephone, particularly             
where cultural and language differences may be quite different from            
one community to another.  The BBNA employs approximately 60                   
employees that are performing different jobs whose expertise could             
be used to leverage state funds to provide a better service to the             
residents of the state who need these services.                                
                                                                               
CHAIRMAN BUNDE thanked Mr. Hoefferle for his comments and asked Don            
Shircel to testify at this time.                                               
                                                                               
Number 1860                                                                    
                                                                               
DON SHIRCEL, Director, Tanana Chiefs Conference (TCC) Family                   
Services, testified via teleconference from Fairbanks.  He holds a             
Master of Science degree in behavioral disabilities and administers            
$6 million of the total $55 million annual budget of state and                 
federal health and social service programs operated by Tanana                  
Chiefs Conference.  He said as a social service professional and               
program planner, he strongly supports HB 401.  In a state,                     
especially of our size, it makes a lot of sense to regionally                  
design and administer temporary assistance programming.  House Bill            
401 is consistent with the same rationale from which state and                 
federal welfare reform emerged.  Programs closest to the people are            
more responsive, relevant, effective and efficient than large                  
centrally administered "one size fits all" programs planned and                
administered outside the community.                                            
                                                                               
MR. SHIRCEL gave the committee a little background on some of TCC's            
efforts to date.  He remarked that since 1993, member communities              
of the Tanana Chiefs Conference initiated and have been jointly                
implementing over $1.3 million annually of "workfare" assistance               
programming under the BIA assistance grant program.  Over the                  
course of the past three years, the Tanana Chiefs Conference has               
conducted  regional, subregional and village community meetings and            
teleconferences regarding the development and implementation of                
state and federal welfare reform legislation and programming.  As              
part of the Interior region's TANF program planning process, TCC               
conducted a regionwide survey in December 1996 of its member                   
communities to determine local preferences in program design.  In              
March 1997, TCC developed and circulated for discussion a draft                
regional TANF program concept paper based on consensus elements of             
the survey.  They solicited and received comment on each program               
element of the plan at the TCC annual convention and board of                  
directors meeting and held a special board of directors meeting in             
June 1997 to establish consensus on all key program design                     
elements.  Additional discussion and input from Interior                       
communities was initiated through separate subregional board                   
meetings in the fall of 1997 and a draft regional TANF plan was                
developed and distributed for public review by each of the 37                  
communities in the service area and three separate teleconferences             
were held to solicit additional comments on the draft plan.  In                
February 1998, a final draft of the plan was developed which                   
incorporated the comments garnered through the community public                
review process.  The executive board of directors of TCC reviewed              
and approved the regional TANF plan on February 24, 1998, and TCC              
has submitted the plan for approval to the U.S. Department of                  
Health and Human Services.  These formal decision processes, along             
with a regionwide public awareness effort utilizing the agency's               
regional newsletter and ongoing planning sessions with other                   
regional Native nonprofit corporations and the state of Alaska,                
Division of Public Assistance, constitute the broad range of                   
sustained planning and public awareness efforts utilized by TCC                
which were incorporated into the development of their plan.  In the            
truest sense of the word, the TCC plan is programming developed by             
the communities themselves.  The deliberate actions that have been             
taken to reach consensus on all aspects regarding the design of                
their region plan, assures maximum ongoing collaboration between               
the local and regional partners of the project, creates a                      
collective ownership, investment and commitment by all parties                 
regarding the goals of the plan and establishes a shared                       
responsibility toward reaching the objectives of the joint                     
programming.  The TCC plan has been developed by Interior Alaska               
communities with and for their families.                                       
                                                                               
MR. SHIRCEL continued the regional plan is designed through ongoing            
local discussion and regional consensus decision making processes,             
focusing on available resources, practical realities and the joint             
investments and commitments of over 37 Interior communities.  While            
many of the specific elements of the TCC TANF plan are identical to            
those of the state to assure standards of fairness to all Alaskan              
citizens, many key elements differ as a reflection of the strong               
attitudes and local values of communities in Interior Alaska.  The             
TCC plan incorporates the same standards relative to available                 
income and allowable exemptions.  It incorporates the same                     
definitions for earned and unearned income, the same standards of              
need and eligibility, the same amount of benefits for children,                
pregnant women and disabled adults and the same 60 month life-time             
limit to assistance.  The TCC TANF plan differs from the state's               
temporary assistance plan only in that their regionally designed               
plan gets a far bigger bang for the buck than the state's current              
program.  For the same dollar amount under the TCC plan, all                   
applicants are required to undergo alcohol and substance abuse                 
evaluations and follow the recommendations of the evaluation or                
lose a percentage of their benefit.  For those who comply with the             
evaluation recommendation within six months, their benefits are                
restored and the percentage withheld is returned to them upon                  
successful completion of their treatment.  Under the TCC plan, all             
parents receiving benefits are required to attend their children's             
parent teacher conferences and include their children in regular               
health screenings made available in the community.  Failure to do              
so results in a reduction in their benefits.  Under the TCC plan in            
two-parent households in which domestic violence is a problem, the             
perpetrator is required to leave the home and receive counseling,              
by court order if necessary.  He may receive a portion of the                  
household benefit only if he continues counseling outside the home.            
The TCC TANF plan actually reduces the benefits of nondisabled                 
adults by 5 percent and requires more households to work more than             
does the current state plan.  Under the current state TANF plan,               
households are required to engage in 20-35 hours of work activities            
within two years from the time of their application.  Under the TCC            
plan, the same households are required to engage in 25-35 hours of             
work activities within two months of the time of their application             
for benefits.  Under the same current use of these same funds, one-            
stop centers are financed and available in only a handful Alaska's             
urban centers.  The TCC plan incorporates a service delivery system            
that includes 37 existing community based offices and assigned                 
staff located in one-stop centers in each of the communities of the            
service area created through shared funding from new and existing              
federal program funds.  These shared staff and facilities are                  
funded through the combined resources of multiple federal programs             
to minimize administrative cost and maximize the level of                      
collaboration with other support services needed by families                   
seeking to enter the labor market.                                             
                                                                               
MR. SHIRCEL concluded Alaska's rural communities, through the                  
regional nonprofit corporations, have been designing programs to               
better fit the needs of their families.  Many have also been                   
developing local and regional infrastructures that now rival the               
state's capacity to provide a comparable level of local service                
delivery especially in rural remote areas.  For communities in the             
Interior, this is and has been the case for quite some time.  House            
Bill 401 would maximize our efforts to combine programs and funding            
streams to more efficiently and effectively get people off of                  
welfare and on to work.  He said TCC requested the committee to                
seriously consider moving this bill out of committee and onto                  
passage.                                                                       
                                                                               
CHAIRMAN BUNDE thanked Mr. Shircel for his remarks and asked Sharon            
Olsen to come forward to the witness table.                                    
                                                                               
Number 2202                                                                    
                                                                               
SHARON OLSEN, Director, Employment and Training Programs, Central              
Council Tlingit and Haida Indians of Alaska, said much of her                  
testimony had already been discussed by previous witnesses.                    
Central Council is made up of 22 communities through the Southeast             
region and has found that with industries like logging and fishing             
slowing down or even closing, many tribal members are in need of               
assistance.  According to BIA's 1995 Labor Force Report, the                   
overall unemployment percentage of Indians residing in Southeast               
Alaska unemployed or not in the labor force is about 60 percent.               
                                                                               
MS. OLSEN had prepared a brief summary of Central Council's tribal             
TANF plan including their goals, principles and strategies, some of            
which are to emphasize work, promote self-sufficiency, promote                 
education, discourage unwed pregnancies, promote family stability,             
promote responsibility, discourage dependency, minimize bureaucracy            
and maintain a safety net.  She directed the committee's attention             
to a letter written to Commissioner Perdue supporting HB 401 and               
expressing the concerns of the Central Council.  Also included with            
her materials was a special report she had prepared which discusses            
what Central Council is doing in terms of their involvement in the             
welfare reform movement.  For example, Central Council implemented             
the Job Opportunities and Basic Skills program in 1989, has a one-             
stop shop and has consolidated under Public 103-477, and made major            
expansions in employment and training, one of which is the new                 
regional vocational training and resource center under                         
construction.                                                                  
                                                                               
MS. OLSEN noted that Sealaska Corporation had just presented                   
Central Council with $150,000 ....                                             
                                                                               
TAPE 98-47, SIDE B                                                             
Number 0002                                                                    
                                                                               
MS. OLSEN continued .... had computer training, small business,                
tourism, mining, construction and a variety of other training that             
Central Council has actually taken to the villages and helped train            
and place people in their respective villages.  She noted that her             
briefing statement discusses some of the impacts of welfare reform.            
Oftentimes being forced to work first without adequate training                
reduces the likeliness of success in the work force.  Central                  
Council views that as a very serious issue and as such designed                
training and concentrated on preparing individuals for work so an              
individual is not just placed in a job but keeps and grows in the              
job.  She said Alaska Natives make up about 17 percent of the                  
state's total population and about 36 percent of the state's                   
welfare assistance caseload.  She has been stressing to the tribal             
leaders and organizations that everyone needs to play a part in                
reducing welfare.  Her report talks about conducting tribal census             
which would identify needs of the tribal members by community,                 
encourages contact with legislators and congressmen to advocate for            
a state match, to insist on equal access of services, to prepare               
for census 2000 by making sure there's accurate information, to                
work with the state on the economic development plan, to support               
the state/tribal liaison position which has now been filled, to                
monitor the impacts of the food stamp and child support enforcement            
programs and stresses that tribal leaders must play an active role             
in the state's strategic plan for welfare reform.                              
                                                                               
Number 0374                                                                    
                                                                               
REPRESENTATIVE GREEN referred to the chart Ms. Olsen had                       
distributed and asked, "I see this very impressive chart and if we             
were to overlay the population of Natives in these various                     
communities would it look similar; in other words, is there a                  
geographic difference in the unemployment or the recipient rate or             
is it far less, say they're more job opportunities in a place like             
Juneau than there would be in some of these other communities."                
                                                                               
MS. OLSEN said "There are; in fact, Juneau, Sitka and Ketchikan,               
even though they have the largest number of people on welfare,                 
those seem to be the only places where there's permanent type work.            
Otherwise we deal with seasonable work situations."                            
                                                                               
CHAIRMAN BUNDE asked if there would be any net loss of benefits to             
recipients under this plan and if there was an administrative cap?             
                                                                               
MR. LIVEY replied there is an administrative cap of 20 percent set             
in federal law which would be applied to the tribal assistance plan            
as approved.                                                                   
                                                                               
Number 0509                                                                    
                                                                               
CHAIRMAN BUNDE closed public testimony on HB 401 and asked the                 
wishes of the committee.                                                       
                                                                               
Number 0515                                                                    
                                                                               
REPRESENTATIVE DYSON made a motion to pass HB 401 from committee.              
                                                                               
Number 0520                                                                    
                                                                               
REPRESENTATIVE PORTER made the following comment for the record:               
"The first time that I heard of this bill and was told of it, a                
couple of things popped into my mind that would be of concern, but             
the bill has anticipated them and met them.  This isn't an                     
abdication of state power to anybody, it's just a delegation of                
state power like the state does in a myriad of situations by                   
contracting out, if you will, to nonprofit organizations for the               
delivery of services.  It's, I guess in the Republican sense,                  
privatization - nothing wrong with that - and the only thing I'm a             
little disappointed in is not seeing a negative fiscal note for                
some of the money that's going to be saved by doing this.                      
Although, it's going to Finance ....  It will serve nontribal                  
members as well as tribal members and it's a system that is set up             
and in listening to some of the descriptions of the systems in                 
place, I'm not kidding when I say I wish we could do that in                   
Anchorage.  I'm ready."                                                        
                                                                               
Number 0590                                                                    
                                                                               
REPRESENTATIVE DYSON said there are several reasons he's                       
enthusiastic about it.  One, it continues an effort that                       
Representative Ivan has been working on in trying to make                      
government and delivery of services work better all over Alaska.               
Quite a number of rural communities have been contracting with                 
nonprofits and tribal organizations to deliver services of all                 
kinds and his sense is there's a significant amount of competency              
developed in many communities.                                                 
                                                                               
CHAIRMAN BUNDE noted there was a motion before the committee.  He              
asked if there was objection.  Hearing none, HB 401 passed out of              
the House Health, Education and Social Services Standing Committee.            
                                                                               
HB 302 - UNIVERSITY OF ALASKA OPERATING BUDGET                                 
                                                                               
Number 0713                                                                    
                                                                               
CHAIRMAN BUNDE announced the next item on the agenda was HB 302,               
"An Act relating to the University of Alaska; and providing for an             
effective date."   He explained the basics of the bill would                   
suggest that if a foundation formula is valuable for an equitable              
distribution of state funds in K-12, then it's very likely that                
same philosophy would apply to postsecondary education.  The bill              
does include a formula for distributing state funds based on the               
complexity of the study and the year in which a student is involved            
assuming that a senior of engineering requires more financial                  
support than a freshman English major.  The committee had before               
them a committee substitute which needed to be adopted for                     
discussion.                                                                    
                                                                               
Number 0784                                                                    
                                                                               
REPRESENTATIVE PORTER made a motion to adopt proposed committee                
substitute, 0-LS1285/F, Ford, 4/16/98, as the working draft.                   
Hearing no objection, that version was before the committee.                   
                                                                               
CHAIRMAN BUNDE directed the committee's attention to Amendment 1 to            
page 2, line 14, which calls for inflation proofing at 2 percent of            
the university's budget.  He made a motion to adopt Amendment 1 on             
page 2, line 14, following "year", insert ", plus two percent for              
inflation".                                                                    
                                                                               
Number 0835                                                                    
                                                                               
REPRESENTATIVE BRICE objected.  He questioned what the 2 percent               
was based on - was it a conglomeration of all the various inflation            
factors such as periodicals, book costs, academic learning, et                 
cetera.                                                                        
                                                                               
CHAIRMAN BUNDE responded it reflects the consumer price index (CPI)            
plus what he thinks is a reasonable amount in light of the state's             
current financial setting.                                                     
                                                                               
REPRESENTATIVE BRICE inquired if it was straight CPI not adjusted              
higher education CPI.                                                          
                                                                               
CHAIRMAN BUNDE said that was correct.  He asked if there was                   
further discussion.                                                            
                                                                               
REPRESENTATIVE BRICE said he would feel more comfortable if it was             
a floating inflation factor based on what the university is facing             
in terms of funding.                                                           
                                                                               
CHAIRMAN BUNDE reiterated he thought the 2 percent was feasible in             
today's financial situation.                                                   
                                                                               
Number 0941                                                                    
                                                                               
REPRESENTATIVE BRICE made a motion to amend Amendment 1 to delete              
2 percent and insert 3 percent.                                                
                                                                               
Number 0958                                                                    
                                                                               
CHAIRMAN BUNDE objected.                                                       
                                                                               
REPRESENTATIVE BRICE commented that while 2 percent is nice,                   
sometimes there's 10-15 percent inflation in certain areas of the              
university and in other areas there's none.  It's very complex, and            
he thought a straight 2 percent would cause the university more                
problems in the future.  He withdrew his amendment to Amendment 1.             
                                                                               
                                                                               
CHAIRMAN BUNDE asked if there was further objection to Amendment 1.            
Hearing none, Amendment 1 was adopted.  He noted there were a                  
number of individuals wishing to testify on HB 302.  He asked                  
Richard Benavides to testify at this time.                                     
                                                                               
Number 1032                                                                    
                                                                               
RICHARD BENAVIDES testified via teleconference from Anchorage,                 
providing his experience with the university system in Anchorage.              
He first attended the university in 1975 when there was just the               
Anchorage Community College, obtaining an associates degree in                 
1982.  He is anticipating getting his bachelor's degree in May in              
journalism and public communication.  He noted that Wendy Redman               
had previously testified she wasn't real supportive of the                     
legislature micro managing the university system and the university            
had set up different committees in an effort to make some changes.             
For instance, the committee that's trying to increase the                      
reallocation from $6 million to $10 million over the next three                
years from administration back into instruction which he thought               
begs the question of changing how the university is funded.  He                
said, "We all realize that an English 111 class is going to cost a             
heck of a lot less than a doctoral or master's degree program, but             
I think we should stop this turf fighting where only doctoral                  
degrees are allowed at the University of Alaska Fairbanks (UAF).               
If they feel that that's part of the problem with funding them,                
certainly the University of Alaska Anchorage (UAA) would love to               
have a couple of doctoral programs and while HB 302 may not be the             
answer to equitable or any more financing or funding for UAA, it               
sure does acknowledge the level of the courses the system has for              
all Alaska.  .... it doesn't take a rocket scientist to see that               
Anchorage is the communications, transportation, financial                     
(indisc.), administrative center for the majority of everything                
that occurs here in Alaska and the entire state should have a                  
vested interest in ensuring that UAA can provide for the                       
development of an educated work force for those areas.  So, some               
change is necessary in the funding of UAA and if this legislation              
can at least eliminate that glaring fact, I'm all for it."                     
                                                                               
CHAIRMAN BUNDE thanked Mr. Benavides for his testimony and asked               
Pearl Strub to present her comments at this time.                              
                                                                               
Number 1160                                                                    
                                                                               
PEARL STRUB, Representative, Bristol Bay Campus Advisory Council,              
testified via teleconference from Dillingham.  She said during this            
past year, the Bristol Bay campus has served 650 students per                  
semester in 32 different communities.  The university system has               
sustained reduced budgets for many years and each of the reductions            
has had an effect throughout the system, reaching as far as the                
campus in Bristol Bay.  She said the rural campuses have lost                  
faculty and staff which has drastically reduced the effectiveness              
and services to students.  She feels the budget reallocations                  
between campuses if necessary are best worked out by the campuses              
rather than using a per student formula.  Other factors need to be             
considered such as the number of sites a campus serves, the size of            
available classrooms, or the amount the campus has matched toward              
federal and private grants for increased outside funding coming                
into the campus program.  Currently, the Bristol Bay campus runs on            
kind of a bare bones budget, but through educational partnerships              
the campus brings in an additional 50 percent over and above its               
operating budget from other sources in Bristol Bay, including                  
shared funding with other agencies in order to serve the 32                    
villages serving the 650 students.  Educational partnerships with              
nearly every social, business, educational and health organization             
operating in the Bay help to extend the campus services; however,              
if HB 302 is enacted, the campus, because of a relatively small                
enrollment, may be reduced beyond the point where it can continue              
to provide services to a needy and deserving student body.  Most               
Bristol Bay students would not be able to move to a larger campus              
to obtain an education; such a move would be a financial and social            
hardship from which rural families, especially those relying on                
subsistence, would not be able to recover.  Without available                  
education, individuals would be locked into a total reliance on the            
fishing economy.                                                               
                                                                               
MS. STRUB continued that this year more than ever, due to the                  
disastrous fishing season and the prediction of an equally                     
disastrous fishing season this year, Bristol Bay residents need                
access to training that would prepare them for other work.  The                
campus is the most effective way to deliver the necessary training             
programs.  Therefore, she requested that no allocation of funds be             
made by an enrollment formula, but rather the university be allowed            
to make the judgment call of where the funds should go based on                
current training needs.                                                        
                                                                               
CHAIRMAN BUNDE thanked Ms. Strub for testifying and asked Kevin                
Tritt to come forward to present his remarks.                                  
                                                                               
Number 1315                                                                    
                                                                               
KEVIN TRITT, President, Union Students, University of Alaska                   
Anchorage, expressed his appreciation to the committee for                     
addressing this issue.  He was somewhat concerned with                         
misinformation that may be circulating regarding the situation at              
the university.  He also expressed concern that while this bill is             
an effort to rectify what is viewed by many people as an unfair                
situation, it would also be circumventing a process which the Board            
of Regents has put in place to do just that - address this issue.              
The allocation committee is looking at the distribution formula -              
the allocation model - to determine how the resources provided by              
the state may be better allocated between the campuses.  He                    
believed it would be premature to legislate a process that really              
should be the purview of the regents, before the board has had a               
full opportunity to examine the facts and come forward with a                  
recommendation.  He is very confident with the committee's ability             
to examine this issue and to come up with a resolution that's                  
equitable for everyone. He said one of the things that's come up in            
the committee's investigation thus far is that the disparity most              
people are talking about generally refers to the 60/30 split                   
between Fairbanks and Anchorage; i.e., 60 percent of the students              
go to Anchorage, but UAA only gets 30 percent of the funding, and              
30 percent of the students go to Fairbanks, and UAF gets 60 percent            
of the funding.  He said that is really deceiving and when the                 
committee started looking into it, they realized it wasn't true.               
                                                                               
MR. TRITT explained the public arguments being made are based on               
unresearched and inaccurate facts and it's driving a wedge between             
the Fairbanks and Anchorage campuses.  He stated, "That's why when             
our assembly put forward a resolution recently in support of this              
legislation, I encouraged them very strongly to reword it and to               
account for certain factors that I didn't feel were in the                     
resolution.  That was not done and I chose not to sign it because              
I didn't feel it was going to be a productive effort and I knew                
what kind of feedback we would be getting from the Fairbanks                   
students which has happened."  In conclusion, he respects this                 
effort on the part of the legislature and believes the issue needs             
to be addressed, but the regents are undertaking the process.  He              
urged the committee to hold off on this until the regents have had             
an opportunity to finish what they've started.                                 
                                                                               
CHAIRMAN BUNDE thanked Mr. Tritt for his comments.                             
                                                                               
Number 1480                                                                    
                                                                               
REPRESENTATIVE DYSON asked Mr. Tritt how much more time would be               
fair in his mind for the regents to go through the process.                    
                                                                               
MR. TRITT responded the committee was appointed last fall and he               
believes the committee is expected to have its work completed on               
this issue by the end of the summer.  He added that he's been                  
advised there's a lot more detail that needs to be looked into                 
because not everything meshes real well.                                       
                                                                               
CHAIRMAN BUNDE noted that not everyone shares the same level of                
confidence as Mr. Tritt.                                                       
                                                                               
REPRESENTATIVE DYSON observed, "It seems to me what we're after is             
not fairness but rationality and statistics - students and the                 
money doesn't necessarily indicate that it's fair or unfair, but               
what needs to be is a rational system which is what I think the                
bill sponsor is after."                                                        
                                                                               
Number 1560                                                                    
                                                                               
REPRESENTATIVE PORTER commented the perception of unfairness in the            
distribution of university funds between campuses was present in               
the 1960s when he attended UAA and he questioned why the university            
was just now putting a committee together to look at this issue.               
                                                                               
CHAIRMAN BUNDE said the ultimate goal, at least in his mind, is to             
have more money for the university, but if there isn't a rational              
perception of fairness where the largest group of voters reside,               
there won't be any additional money.                                           
                                                                               
CHAIRMAN BUNDE asked Andrew Hund to present his testimony at this              
time.                                                                          
                                                                               
Number 1600                                                                    
                                                                               
ANDREW HUND testified via teleconference from Anchorage and                    
expressed his gratitude to Chairman Bunde for sponsoring HB 302, an            
issue that should have been addressed many years ago.  The Union               
Students, University of Alaska Anchorage, recently passed a                    
resolution in support of HB 302 and believes the bill will                     
accomplish two things.  First, HB 302 brings to light the unfair               
distribution of funding between UAF and UAA campuses.  The unequal             
distribution of funds has been the result of the Board of Regents              
lack of decisions and as a result the UAA campus has suffered.  One            
way in which the difference in funding can be seen is the adjunct              
faculty rate between campuses.  For example, UAA has an adjunct                
faculty rate of 65 percent, whereas UAF has an adjunct faculty rate            
of 35 percent.  He stressed the union students are not advocating              
that UAF faculty rate be lessened, but rather advocating that UAA              
have the same rate as UAF.  The second area is that HB 302 will                
indirectly address the excessive administration costs of the                   
university system.  Currently, the UAF administration is 250                   
percent more than comparable universities, even with a 28 percent              
cost of living increase added on.  This is a major problem for                 
getting any more funding because currently $49.8 million is spent              
in administration costs.  He urged the committee to pass HB 302.               
                                                                               
CHAIRMAN BUNDE thanked Mr. Hund for his testimony and asked Judith             
Nelson to present her comments at this time.                                   
                                                                               
Number 1709                                                                    
                                                                               
JUDITH NELSON, Executive Director, Bristol Bay Economic Development            
Corporation, testified via teleconference from Dillingham.  She                
said the Bristol Bay Economic Development Corporation is the CDQ               
group for Bristol Bay and one of the focuses of their program is               
training in employment and education of residents of Bristol Bay to            
provide skills for gainful employment.  They work closely with the             
Bristol Bay campus in this endeavor.  She pointed out that much of             
the delivery of services is done via telephone which is a hard way             
to learn, but people are doing it successfully.  She noted Bristol             
Bay has a very small campus, has always been very poorly funded and            
has continually fought for equity in funding.  She said the current            
budget of $600,000 barely funds the necessities and the Bristol Bay            
campus also needs quality in education delivery, but the formula               
proposed in HB 302 will further harm the Bush campuses.                        
                                                                               
CHAIRMAN BUNDE thanked Ms. Nelson for her testimony and asked                  
Patrick Casey to come forward to present his comments.                         
                                                                               
Number 1800                                                                    
                                                                               
PATRICK CASEY, Student, University of Alaska Fairbanks, testified              
that as a former member of the military, he knows that micro                   
managing doesn't work and in his opinion HB 302 is micro                       
management.  The mentality of "robbing Peter to pay Paul" doesn't              
help the university campuses, but rather hurts the entire                      
university system.  He suggested the level of funding should be                
increased to the high level instead of taking from one campus and              
giving to another.                                                             
                                                                               
CHAIRMAN BUNDE thanked Mr. Casey for his comments and asked Terry              
Hoefferle to testify at this time.                                             
                                                                               
Number 1860                                                                    
                                                                               
TERRY HOEFFERLE, Chief of Operations, Bristol Bay Native                       
Association, testified via teleconference from Dillingham,                     
expressing his outrage at HB 302.  He said a funding formula that              
looks at degrees and the number of graduates that a university                 
seems tied to, does not accurately reflect what postsecondary                  
education is really all about in rural Alaska.  He stated in rural             
Alaska, postsecondary education is more than a means of getting a              
degree, it's a means of getting a job and one of the ways rural                
areas work toward local hire and higher employment is by hiring                
people who may not have quite the necessary skills or education for            
a position, but to train that person while on the job.  The Bristol            
Bay campus is a dynamic and invaluable part of the local economy.              
Currently, the Bristol Bay Native Association has got a number of              
partnerships going on with the Bristol Bay campus, providing a                 
variety of training and education programs.  He further discussed              
the Bristol Bay campus programs and achievements.  He concluded                
this legislation would cripple the Bristol Bay campus and the local            
economy's ability to respond to living in the twentieth century.               
                                                                               
Number 2036                                                                    
                                                                               
CHAIRMAN BUNDE recalled the Bristol Bay campus had a $600,000                  
budget and approximately 600 students which makes that campus one              
of the more economical campuses.  He recollected the cost per                  
student at UAA is approximately $15,000, $20,000 at UAF and                    
$22,000-$23,000 at UAS.                                                        
                                                                               
MR. HOEFFERLE pointed out the accomplishments at the Bristol Bay               
campus are done with considerable partnering throughout the                    
community.  The accomplishments he had spoken to were those which              
the Bristol Bay Native Association has with the Bristol Bay campus             
and there are similar partnerships with other agencies and                     
institutions.                                                                  
                                                                               
CHAIRMAN BUNDE thanked Mr. Hoefferle and asked Jean Richardson to              
present her comments at this time.                                             
                                                                               
Number 2095                                                                    
                                                                               
JEAN RICHARDSON, Student, University of Alaska Fairbanks, said                 
parts of HB 302 would be great if the university budget actually               
increased with inflation.  However, the reallocation between                   
campuses would be terrible.  She said the university budget is                 
complex; there's research, community services, the community                   
colleges and universities have been combined so some schools are               
commuter colleges, others are residential campuses and UAA is                  
making a transition to a stronger on-campus life, all of which take            
different amounts of funding.  It's a very complex system and the              
Board of Regents exist to balance those needs and in her opinion               
has done so fairly well.  She said reallocating from rural campuses            
at this point where overhead is a big part of their budget would be            
extremely detrimental.                                                         
                                                                               
Number 2163                                                                    
                                                                               
CHAIRMAN BUNDE asked if there was additional public testimony.                 
Hearing none, he announced HB 302 would be held in committee and               
heard at a later date.                                                         
                                                                               
ADJOURNMENT                                                                    
                                                                               
Number 2180                                                                    
                                                                               
CHAIRMAN BUNDE adjourned the House Health, Education and Social                
Services Standing committee at 4:45 p.m.                                       

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