HOUSE BILL NO. 375                                                                                                            
                                                                                                                                
     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; and providing for an effective date.                                                                               
                                                                                                                                
Co-Chair  Williams MOVED  to ADOPT  work draft  #23-GH2040\H,                                                                   
Utermohle, 1/20/04, as the version  of the legislation before                                                                   
the Committee.  There being NO OBJECTION, it was adopted.                                                                       
                                                                                                                                
Representative  Croft inquired  the  major numerical  changes                                                                   
made between the two documents.                                                                                                 
                                                                                                                                
DAVID   TEAL,   DIRECTOR,   LEGISLATIVE   FINANCE   DIVISION,                                                                   
explained  that  there  are  a number  of  differences.    He                                                                   
referenced the  Agency Summary indicating the  number changes                                                                   
in the bill in the last column,  i.e., Department of Health &                                                                   
Social  Services indicates  a  deduction  of $335.0  thousand                                                                   
dollars and the  Department of Labor &  Workforce Development                                                                   
lists  a reduction  of  $465.8 thousand  dollars.   (Copy  on                                                                   
File).                                                                                                                          
                                                                                                                                
Mr. Teal pointed  out that both of those  reductions resulted                                                                   
from intent language.   Discussion followed between  Mr. Teal                                                                   
and Representative Croft regarding that language.                                                                               
                                                                                                                                
Representative Croft questioned  the independent living phase                                                                   
out.  Mr. Teal  replied that there had been  a transition and                                                                   
that last  year, there  was a one-time  source of  money used                                                                   
with the intention that it would  be a one-year hold harmless                                                                   
transition  period.   In the current  budget, the  Governor's                                                                   
bill made a fund change to general  funds for that component.                                                                   
It was removed because it was  intended to be one-time money.                                                                   
                                                                                                                                
Representative  Croft stressed  that  the Independent  Living                                                                   
component was  one of the most "heart-warming"  and important                                                                   
needs of  group testimony brought  forward during  the budget                                                                   
process.   The  proposed  cut would  be  significant to  that                                                                   
component.  Also,  cuts to the Community Matching  Grant will                                                                   
have tremendous consequences.                                                                                                   
                                                                                                                                
Co-Chair Harris noted that these  are topics for subcommittee                                                                   
discussions  and then  they  will be  addressed  by the  full                                                                   
House Finance Committee.                                                                                                        
                                                                                                                                
HB 375 was HELD in Committee for further consideration.