HOUSE BILL NO. 325 An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date. HOUSE BILL NO. 326 An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date. DEPARTMENT OF ADMINISTRATION Representative Grussendorf MOVED to ADOPT Amendment DOA-4. Co-Chair Hanley OBJECTED. Amendment DOA-4 would add $310 thousand dollars for labor union contract negotiations. Representative Grussendorf spoke in support of the amendment. Representative Davis stated that the department indicated that the appropriation could be handled through a reappropriation. Representative Grussendorf stressed that the contract negotiations have to take place. ALISON ELGEE, DEPUTY COMMISSIONER, DEPARTMENT OF ADMINISTRATION explained that all of the state's labor contracts have been put into a cyclical environment so that they can all be negotiated at the same point in time. This was done to allow staff to be reduced on an ongoing basis, to the level necessary for contract administration. The amendment would be used to hire temporary contractors or employees to work on contract negotiations. The department identified additional longevity bonus funding that would be available to fund this item. It would require a reappropriation and an extended lapse date. The funding is still available. Representative Grussendorf WITHDREW the amendment. Representative Grussendorf MOVED to ADOPT Amendment DOA-5 (copy on file). Amendment DOA-5 would add $167.3 to the Alaska Public Officers Commission. He observed that the agency would incur more expenses in regards to upcoming elections. He pointed out that it would be a one-time increment. Representative Davis spoke against the amendment. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Therriault, Hanley The MOTION FAILED (3-8). DEPARTMENT OF EDUCATION Co-Chair Hanley MOVED to ADOPT Amendment DOE-1 (copy on file). Amendment DOE-1 adds $660,931.3 million dollars to the K-12 Support BRU. It allows for enrollment increases in the existing foundation formula. He observed that if SB 36 is passed that additional funding could be contained in a fiscal note. Representative Martin expressed concern that students are being double counted. Co-Chair Hanley stressed that the department would be requested to revise the numbers based on actual enrollments. There being NO OBJECTION, it was so ordered. Representative Kelly MOVED to ADOPT Amendment DOE-2A (copy on file). Amendment DOE-2A would transfer $410 thousand dollars from Tuition Students to Quality Schools. He explained that the increase would fund contractual costs association with mandated exit exams. There being NO OBJECTION, it was so ordered. Representative Kohring MOVED to ADOPT Amendment DOE-3 (copy on file). Co-Chair Hanley OBJECTED. Amendment DOE-3 would add $500 thousand dollars to the Department of Education for the Alyeska Central School and add legislative intent that additional general fund support be used to augment funding that the School receives through the Foundation Formula. He maintained that savings in the Department of Commerce and Economic Development and the Department of Environmental Conservation could cover the appropriation. He stressed that education is an essential main function of government. Representative Kohring MOVED to reduce "$500" to "$300". There being NO OBJECTION, it was so ordered. Representative Kelly spoke against the amendment. He acknowledged that the Alyeska Central School does a good job. Representative Grussendorf spoke against the amendment. He observed that augmenting leads to problems with the foundation formula. Representative Martin spoke in support of the amendment. Representative Davies pointed out that the school is fully funded. A roll call vote was taken on the motion. IN FAVOR: Kohring, Martin OPPOSED: Kelly, Moses, Davies, Davis, Grussendorf, Foster, Hanley, Therriault Representative Mulder was absent from the vote. The MOTION FAILED (2-8). Representative Kohring MOVED to ADOPT Amendment DOE-4 (copy on file). Amendment DOE-4 would delete funding from the Alaska State Council on the Arts. He maintained that the arts are not an essential component of state government. He asserted that the private sector could support art expenditures. Representative Kelly observed that the arts have been cut to a level that only allows them to attract federal funds. Any further reductions would result in the loss of federal funds. He pointed out that the program has been cut by millions of dollars. A roll call vote was taken on the motion. IN FAVOR: Kohring OPPOSED: Davies, Davis, Foster, Grussendorf, Kelly, Kohring, Martin, Moses, Mulder, Therriault, Hanley The MOTION FAILED (1-10). Representative Grussendorf MOVED to ADOPT Amendment DOE-6 (copy on file). Representative Kelly OBJECTED. Amendment DOE-6 would add $300 thousand dollars to Quality Schools. Representative Grussendorf explained that the amendment would allow for assistance to low-performing schools. Representative Kelly observed that the exit exam was funded. Representative Grussendorf questioned what good an exit exam would bring if students were not brought up to a level that they can pass. Representative Kelly noted the level of existing state support. He asked "when is enough, enough". Representative Davies noted that his wife is a teacher in Fairbanks. He observed frustrations by teachers that students are not prepared due to family circumstances. He stressed that teachers need to have the tools to identify children that have deficiencies and provide extra help. He noted that teachers spend a lot of their own time and money to get materials ready for classes. Representative Martin noted that schools receive money for counselors and teaching aides. Representative Davies did not recall aides in classrooms he had visited. Representative Grussendorf pointed out that schools in bilingual districts have more difficulty. A roll call vote was taken on the motion. IN FAVOR: Moses, Davies, Grussendorf, Foster OPPOSED: Martin, Mulder, Davis, Kelly, Kohring, Hanley, Therriault The MOTION FAILED (4-7). Representative Grussendorf MOVED to ADOPT Amendment DOE-7 (copy on file). Representative Kelly OBJECTED. Amendment DOE-7 would add $250 thousand dollars to Quality Schools for statewide reading improvement. Representative Grussendorf emphasized the importance of reading skills. (Tape Change, HFC 98 -110, Side 1) Representative Kelly spoke in opposition to the amendment. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Therriault, Hanley The MOTION FAILED (3-8). Representative Grussendorf MOVED to ADOPT Amendment DOE-8 (copy on file). Amendment DOE-8 would restore funding for preschool certification and on-site inspections. Representative Kelly maintained that it is reasonable for providers to pay for the cost of certification. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Hanley Co-Chair Therriault was absent from the vote. The MOTION FAILED (3-7). Representative Grussendorf MOVED to ADOPT Amendment DOE-9 (copy on file). Amendment DOE-9 would change $121.3 thousand dollars in program receipts to statutory designated program receipts. Co-Chair Hanley clarified that the Legislative Finance Division did not feel that the funds would fall under the definition of statutory designated program receipts. KAREN REHFELD, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF EDUCATION explained that the department feels that the funds fit the definition of statutory designated program receipts because of the contractual relationship with subscribers to the Alaska Career Information System. The Governor also asked for an increment of $70 thousand dollars in non-general funds. The current funding level does not support the cost of the program. The Department of Education is dependent on the Department of Labor for Alaska specific career information. The Department of Labor does not have funding available for the program. Representative Kelly questioned if the program was identified for phasing out. Mr. Rehfeld replied that there is no target date to phase out the information system. The Department of Education intends to make the information available through a web site. Representative Kelly stressed that the program was not given a high priority from the Department of Education or the Department of Labor. Representative Davies emphasized that approximately 60,000 a year use the program. MIKE GREANY, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE provided information on statutory designated program receipts. He observed that there is a constitutional prohibition on the dedication of funds. One of the requirements for categorizing funds as statutory designated program receipts is that there is a contract in place. In addition, the contract must lead the department to produce materials that would not otherwise be produced. He observed that the department has prepared the materials. Representative Martin spoke against the use of statutory designated program receipts. Ms. Rehfeld reiterated that the proposed level of funding is not sufficient for the department to develop and offer the Career Information System in the next fiscal year. She stressed that the information will not be prepared without additional funding. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Hanley Co-Chair Therriault was absent from the vote. The MOTION FAILED (3-7). Representative Grussendorf MOVED to ADOPT Amendment DOE-10 (copy on file). Amendment DOE-10 would add $70 thousand dollars in statutory designated program receipts to the Alaska Career Information System (AKCIS). He spoke in support of the amendment. He emphasized that the system is used by schools of all levels as well as in adult education programs. Representative Davies MOVED to amend the amendment to delete "general funds" and add statutory designated program receipts. He spoke in support of the amendment to the amendment. He noted that people are willing to pay to support the program. There being NO OBJECTION, it was so ordered. A roll call vote was taken on the motion to adopt Amendment DOE-10 as amended. IN FAVOR: Davies, Grussendorf, Kohring, Moses OPPOSED: Davis, Foster, Kelly, Martin, Mulder, Hanley The MOTION FAILED (4-7). Amendment DOE-11 was not offered. DEPARTMENT OF PUBLIC SAFETY Representative Grussendorf MOVED to ADOPT Amendment PS-1 (copy on file). Representative Davis OBJECTED. Amendment PS-1 would add $312 thousand dollars for Fish and Wildlife Protection. Representative Grussendorf spoke in support of the amendment. Representative Davis noted that the amendment was a requested increment. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Kohring, Davies, Therriault OPPOSED: Foster, Kelly, Mulder, Davis, Hanley Representative Moses and Martin were absent from the vote. The MOTION FAILED (4-5). Representative Grussendorf MOVED to ADOPT Amendment PS-2 (copy on file). Representative Davis OBJECTED. Amendment PS-2 would delete an unallocated reduction of $150 thousand dollars for Fish and Wildlife Protection. Representative Davis noted that the appropriation would not fit under the department's cap. Representative Grussendorf emphasized that the U.S. Fish and Wildlife Service will be scrutinizing the state's operations. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Davies OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Therriault, Hanley Representative Moses was absent from the vote. The MOTION FAILED (2-8). Representative Grussendorf MOVED to ADOPT Amendment PS-3 (copy on file). Representative Davis OBJECTED. Amendment PS-3 would add $60.9 thousand dollars for Rural Trooper Housing. Representative Grussendorf emphasized that the lack of housing in Dutch Harbor would result in diminished vessel inspection time. Representative Davis noted that there is disagreement on the use of statutory designated program receipts to fund this appropriation. He maintained that housing would be provided from another area in the budget. KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF TRANSPORTATION provided information on the amendment. He clarified that employees would pay rent if housing were provided in Dutch Harbor. He noted that funding for housing would have to come from the department's base budget. Crews will have to be flown to and from the site if housing is not available. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Foster OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Therriault, Hanley Representative Moses was absent from the vote. The MOTION FAILED (3-7). Representative Grussendorf MOVED to ADOPT Amendment PS-4. Amendment PS-4 would give the Department of Public Safety authorization for $1,417 million dollars in interagency receipts. Co-Chair Therriault observed that the Alaska Court System has indicated that they would take any extra money to first fund Smart Start. Any remaining funding could be used to fill their priorities. He emphasized that the authorization level is beyond what they would receive. There being NO OBJECTION, it was so ordered. Representative Grussendorf MOVED to ADOPT Amendment PS-5 (copy on file). Representative Davis OBJECTED. Amendment PS-5 would add $691.3 thousand dollars to Alaska State Troopers for eight existing but unfunded state trooper recruits. Representative Davis observed that the subcommittee added $280 thousand dollars to fund 3 additional troopers. Representative Kohring spoke in support of the amendment. Co-Chair Therriault reiterated that funding was added for 3 troopers. Representative Davies stressed that even if the amendment were funded the department would be below the level of trooper support that the state experienced 4 or 5 years ago. He maintained that troopers have decreased as population has increased. He maintained that public safety is a baseline cost of government. Representative Grussendorf spoke in support of the amendment. Representative Martin suggested that the Mat-Su valley may consider providing their own police service. A roll call vote was taken on the motion. IN FAVOR: Kohring, Davies, Grussendorf OPPOSED: Davis, Foster, Kelly, Martin, Mulder, Therriault, Hanley Representative Moses was absent from the vote. The MOTION FAILED (3-7). Representative Grussendorf MOVED to ADOPT Amendment PS-6 (copy on file). Amendment PS-6 would add $428 thousand dollars for the Village Public Safety program. Representative Davis stated that the subcommittee felt that turnover problems should be addressed before additional positions are added. The Governor's request was fully funded. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Foster OPPOSED: Davis, Kelly, Kohring, Martin, Mulder, Therriault, Hanley Representative Moses was absent from the vote. The MOTION FAILED (3-7). Representative Foster observed that VPSO officers are tired of working for $11.24 dollars an hour. He stressed that an increase in pay is needed in order to bring in new recruits. Representative Davis MOVED to ADOPT Amendment PS-7 (copy on file). Amendment PS-7 would retain funding for the Alaska State Troopers Detachment in the Alaska State Troopers BRU. The subcommittee had placed it into a separate BRU. There being NO OBJECTION, it was so ordered.