CS FOR SENATE BILL NO. 281(FIN) am "An Act relating to missions and measures to be applied to certain expenditures by the executive branch of state government and the University of Alaska from the state operating budget for the fiscal year ending June 30, 2001; and providing for an effective date." SENATOR SEAN PARNELL testified in support of the legislation. He noted that House Finance Committee staff and agency personnel worked with the Senate on the legislation. He stressed the importance of the legislation and noted that the legislature appropriates funding to state agencies and expects them to follow through on expenditures in a way that is never clearly defined. Missions and Measures were developed for each agency. He gave examples of the missions and measures: Alaska Vocational Technical Center. (a) The mission of the Alaska Vocational Technical Center is to provide market-driven vocational and technical training to state residents. (b) The legislature intends to measure the success of the center in achieving its mission by considering; (1) The percentage of graduates who are employed in their areas of training; (2) The wage increase for graduates; (3) The percentage of students who complete long- term training programs; (4) The percentage of students living in student housing compared to student- housing capacity; and (5) For each long-term program, the number of students enrolled in the program compared to the number applying to the program. Division of Juvenile Justice. (a) The mission of the Juvenile Justice is to protect and restore communities and victims while holding juvenile offenders accountable for correcting their behavior. (b) The legislature intends to measure the success of the division in achieving its mission by considering: (1) The percentage of juvenile offenders that re- offend; (2) The percentage of juvenile offenders in long- term treatment who improve their grade point average during their time at the facility; (3) The percentage of juvenile offender court- ordered restitution and community service that is paid or performed; and (4) The number of escapes from juvenile justice institutions. Senator Parnell stressed that the bill will only be as effective as the follow-up and accountability that the legislature gives it in upcoming years. He stressed that the legislature needs to work with agencies to determine if they have met their mission and if not, why not. The legislature can then respond to issues of management or inadequate funding. The mission and measure bill is separate from the actual budget bill. He spoke in support of combining missions and measures, and the actual budget into one piece of legislation. He noted that the state of Texas combines its missions and measures and appropriations into one document. The public can locate the mission and outcomes with each appropriation item. He encouraged Alaska to take the next step to integrate missions and measures into one booklet with the operating and capital budgets. Senator Parnell suggested deletion of the Senate language for the Division of Banking, Securities, and Corporations on page 7, line 28: "protect shareholders in corporations". He pointed out that it is a broad and big statement and that there is no statutory direction to protect shareholders in corporations in such a broad-brush way. This language was added on the floor of the Senate. Representative J. Davies questioned if the purpose of the measures is to actually measure outcomes, not to measure what is produced. Senator Parnell agreed and gave examples of the intention. In the Department of Public Safety the intent is to measure how safe the roads are. In the Department of Transportation and Public Facilities the intent is to measure if the roads are adequately maintained to citizen standards. The intent is not to measure the number of lane-miles that are maintained; the measure is how well they are maintained. He stressed that as a result, the public would have a more readable and understandable budget. Representative Phillips questioned if there was much difference between the House and Senate language. Senator Parnell explained that the work was divided between the House and Senate. The House language was incorporated along with the Senate language into a bill. There were amendments in the Senate Finance Committee and on the Senate floor. He stated that the only significant change was to the mission and measures of the University of Alaska. VINCE USERA, SENIOR SECURITIES ADMINISTRATOR, DIVISION OF BANKING, SECURITIES, AND CORPORATIONS, DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT provided information on the legislation. He stressed that the measure for Division of Banking, Securities, and Corporations on page 7, line 28 (see above) is so broad as to be impossible to comply with and that it would cover any person that owns a share in any corporation. Representative Phillips agreed with comments by Mr. Usera. She stated that an audit by the Legislative Budget and Audit Committee found that the legislature had no statues in place to implement the measure. JACK FARGNOLI, SENIOR ANALYST, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR testified in support of the legislation. He stressed that the governor would look forward to a more comprehensive process for more public involvement. He spoke in support of greater public participation. He emphasized that as the measures become the focus of a more comprehensive discussion that the role of the commissioners and the governor's cabinet would be interpreted more broadly in terms of the statutory responsibility of the departments. He added that use of a standardized approach for administrative services of functions is problematic and emphasized that the departments are inherently different and that future discussion regarding the differences would be fruitful. Representative Phillips MOVED to delete language on page 7, line 8, subsection (3): protect shareholders in corporations. There being NO OBJECTION, it was so ordered. Representative J. Davies MOVED to ADOPT the House language for the university and to delete the Senate version. He maintained that the Senate language was "weak tea". WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY OF ALASKA provided information on the amendment to the legislation. She acknowledged that the House worked extensively with the Board of Regents on the university's missions and measures, but noted that the Senate language picked up the key measures. There isn't any inconsistency between the House and Senate language. The primary difference is that the Senate did not include all of the language adopted by the House. She stated that the primary issues were addressed and that the university would support either version. (Tape failure occurred at this point.) Senator Parnell noted that Senate changes were the result of discussions that concluded that many of the measures were not true measures. He gave the following examples: The new or expanded degree programs in teacher education, health careers, process technology, transportation and logistics, information technology, seafood processing, and other high demand job areas; The increase in research grants in arctic biology, climate change, resource development, fisheries and ocean science, logistics, geosciences, and atmospheric sciences; Senator Parnell emphasized that the intent was to not focus on the income or new programs but on the outcomes. Ms. Redman observed that the House Subcommittee wished to direct were the university would spend their efforts in relationship to research. The intent was to increase research in some areas such as arctic research. Representative J. Davies agreed and explained that a problem with research is that the most important research does not payoff for a long period of time. Therefore, it is difficult to measure the outcome. He acknowledged the need to measure results, but emphasized the difficulty of measuring a research enterprise with results based orientation. He observed that the House included a measure of "the number of annual citations and references per research faculty member." He maintained that research, cooperative extension and public service is left out of the Senate version. He observed that much of the language in the House version was derived from language recommended by the Board of Regents and refined by the House Subcommittee with their help. He felt that the Senate language was vague. Senator Parnell observed that the measure of the number of University of Alaska graduates, by community of origin and by community of current employment, who are new teachers, new principals, and new superintendents does not measure the quality of the teachers. Co-Chair Mulder expressed appreciation for the brevity of the Senate version. He suggested that the proper balance could be derived from combining the Senate and House language. He felt that House items 8 - 10 were worth considering. Representative J. Davies stated that it is appropriate to have a mix of measures with productivity to measure the quality of the program in meeting a state need. He stressed the need to produce teachers that can be employed in rural Alaska. Representative Phillips agreed that an ideal statement could be derived from a combination of the House and Senate language. She felt that the Senate version was incomplete and emphasized the need for measures regarding vocational education. Representative J. Davies noted that a typical mission of a university doesn't include a community college. Alaska is unique and it is important to roll in the vocational mission to highlight the uniqueness of Alaska's system. Co-Chair Therriault referred CSSB 281 (FIN)am to a subcommittee consisting of: chair Phillips and members Bunde, and Davies. Senator Parnell pointed out that the Senate version included measures relating to research: (8) the number and amount of research grants in Alaska-specific areas of inquiry; (8) the occurrences of applied research benefiting Alaska's economy; (8) the average number of hours faculty members spend on classroom instruction, student advising, research, and other activities. Representative J. Davies stressed that they are not in the mission statement. CSSB 281 (FIN)am was heard and HELD in a subcommittee consisting of: chair Phillips and members Bunde, and Davies.