SENATE COMMITTEE SUBSTITUTE FOR COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 312(FIN) "An Act making and amending 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." AND SENATE COMMITTEE SUBSTITUTE FOR COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 313(FIN) "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." Co-Chair Mulder moved to formally allow the Division of Legislative Finance and the Division of Legal and Research Services make necessary technical corrections. There being no objection, it was so ordered. DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT Chair Parnell reviewed the proposed conference committee motions for the Department of Community and Economic Development. [See motion sheets on file.] AT EASE Representative Mulder moved to adopt the items contained on the motion sheets. There being no objection, the items were ADOPTED. DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT Chair Parnell reviewed the remaining open item, Item #11, Alaska State Council on the Arts, of the proposed conference committee motion for the Department of Education and Early Development. [See motion sheets on file.] Vice-Chair Mulder moved to adopt Item #11 as reviewed by Chair Parnell and contained on the motion sheets. There being no objection, the item was ADOPTED. DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT Chair Parnell reviewed the remaining item, Item #1, State Training Employment Program, on the proposed conference committee motions for the Department of Labor and Workforce Development. [See motion sheets on file.] Vice-Chair Mulder moved to adopt Item #1 as reviewed by Chair Parnell and contained on the motion sheets. There being no objection, the item was ADOPTED. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS Chair Parnell reviewed the remaining items, Item #4, Alaska Military Youth Academy, and Item #5, Educational Benefits, of the proposed conference committee motions for the Department of Military and Veterans Affairs. [See motion sheets on file.] Vice-Chair Mulder moved to adopt Items #4 and #5 as reviewed by Chair Parnell and contained on the motion sheets. There being no objection, the items were ADOPTED. UNIVERSITY OF ALASKA Chair Parnell reviewed the proposed conference committee motions for the University of Alaska. [See motion sheets on file.] Chair Parnell commented on the increase of $8.6 million. He noted that the pending, SB 289 would add an additional $4 million university funding. He added that the issue of employee contracts is not addressed in this appropriation, but would be addressed separately Representative Therriault asked if the fiscal note for SB 289 had been changed since it was originally written. Senator Torgerson responded that the House of Representatives lowered the allocation to $1.725 Vice-Chair Mulder moved to adopt the items as reviewed by Chair Parnell and contained on the motion sheets. There being no objection, the items were ADOPTED. OFFICE OF THE GOVERNOR Co-Chair Parnell reviewed the proposed conference committee motion for the Office of the Governor. [See motion sheets on file.] Vice-Chair Mulder moved to adopt Item #1 as reviewed by Co- Chair Parnell and contained on the motion sheets. There being no objection, the item was ADOPTED. LEGISLATURE Chair Parnell reviewed the proposed conference committee motions for the Legislature. [See motion sheets on file.] Vice-Chair Mulder moved to adopt Item #1 as reviewed by Chair Parnell and contained on the motion sheets. There being no objection, the item was ADOPTED. LANGUAGE SECTION Vice-Chair Mulder moved to adopt Item #6, Section 20. Learning Opportunity Grants, of the conference committee proposed motion for the Language section. [See motion sheets on file.] Senator Adams moved to amend the language to change "ADM multiplied by $43.75" to "adjusted ADM multiplied by $27.51". He expressed his intent for fair and equitable treatment for all children in Alaska. He continued that if this amendment were adopted, he would request the House of Representatives, it it's deliberation of the FY 01 Capital Budget, adjust the K-12 Education FY 00 lapse fund appropriation by $600,000. He stated that these funds could be reappropriated to the Learning Opportunity Grants program. His reasoning was to "hold harmless" school districts that are expected to learn more. Chair Parnell requested that the motion be withdrawn. Senator Adams withdrew his motion to amend the language. Vice-Chair Mulder withdrew his motion to adopt Item #6. There being no objection to either motion, it was so ordered. Chair Parnell clarified that the language contained in "Amendment to EED #5" was originally passed in the Senate version of the bill, but was incorrectly inserted into the legislation. Vice-Chair Mulder moved to adopt the language contained in Amendment to EED #5, Section 13. Learning Opportunity Grants. [See motion sheets on file.] Senator Adams moved to amend the language to insert, "adjusted" before "average daily membership" and replace "$43.75" with "$27.51" in that same sentence. He noted this would accomplish the same goal as his proposed amendment to Item #6, and that he also intended to propose follow-up changes to the FY 01 capital budget. Senator Torgerson and Chair Parnell objected. Representative Davies spoke in favor of the amendment. He stated that many people had separated the Learning Opportunity Grants from other school operations. He stressed that the amount of funds appropriated through this grant program would actually effect the quality of education in the classrooms. He noted that in smaller school districts, the consequences of lower attendance would have a greater effect than in the larger schools. He expressed that even if the Fairbanks school district was funded at the level requested by the governor, teachers would still be laid off. At the level proposed by the legislature, he warned that more teachers would be laid off in Fairbanks with an even greater impact in smaller districts. He recommended that the legislature should do all it can to find additional ways to help school districts, which he asserted this amendment would do. Chair Parnell countered that the budget before the Committee fully funds the K-12 Education formula. In addition, he commented, the Learning Opportunity Grants inserted by the Senate, provide an increase to pay the cost of supplemental student instructional programs to improve student performance on the high school graduation examinations. He pointed out that this is a one-time appropriation. He then commented on Senator Adams's intent that the excess funds be spent on individual school districts on a per student basis. Chair Parnell stated that the grant program is structured to provide an equal dollar amount for every pupil. Senator Adams stated that he was trying to reach equity in the funding. He argued that the cost per student in rural Alaska is actually sixty cents on every dollar spent in urban areas. Representative Davies asserted that equal and equitable were two different things. A roll call was taken on the motion. IN FAVOR: Representative Davies and Senator Adams OPPOSED: Representative Therriault, Senator Torgerson, Vice-Chair Mulder and Chair Parnell The motion FAILED (2-4) The amendment to EED #5 FAILED to be adopted. There was no objection to the language of EED #5 and it was ADOPTED. Chair Parnell reviewed Item #8, Section 23. Medicaid Pro- Share as contained in the conference committee motion sheets. [See motion sheets on file.] AT EASE 4:46 PM / 4:49 PM Vice-Chair Mulder moved to adopt Item #8. Chair Parnell noted an amendment to the language. Vice-Chair Mulder moved to amend the motion to include amendment 1-LS1304\K.11. [See motion sheets on file.] Without objection Item #8 was AMENDED. Item #8 as amendment was ADOPTED without objection. Chair Parnell presented amendment 1-LS1304\K.10 to replace the original Senate language of proposed in Item #9, Section 27. Occupational Licensing, of the conference committee motion sheet. [See motion sheets on file.] Vice-Chair Mulder moved to adopt the 1-LS1304\K.10, amended language of Item #9. There being no objection, it was AMENDED and ADOPTED. AT EASE 4:52 PM / 5:00 PM Vice-Chair Mulder moved to rescind the conference committee's earlier action to adopt subsection (c) of Item #11, Section 33. Student Loan Program, of the conference committee motion sheets. There being no objection, the action was RESCINDED. Vice-Chair Mulder reviewed and moved to adopt new subsection (c) language to Item #11. [See motion sheets attached.] Without objection it was ADOPTED. Chair Parnell clarified that subsection (b) of Item #11 would be NOT OFFERED. Vice-Chair Mulder moved to adopt the language contained in Item #13, Section 42. University of Alaska of the conference committee motion sheets. [See motion sheets on file.] There being no objection, it was ADOPTED. Chair Parnell reviewed proposed intent language contained in the conference committee motion sheets that reads as follows. [See motion sheets on file.] "For agencies in which FY01 total position counts exceed the respective FY00 Management Plan total position counts, the FY01 total position count is reduced to the FY00 Management Plan level." Vice-Chair Mulder moved for adoption. The language was ADOPTED without objection. AT EASE 5:05 PM / 7:07 PM Chair Parnell pointed out that budget items contained in Category I of the conference committee material, are components in which the House of Representatives and the Senate agree to the same allocation amounts. Vice-Chair Mulder moved to adopt all items contained in Category I. There being no objection, Category I was ADOPTED. OFFICE OF THE GOVERNOR Vice-Chair Mulder moved to reopen the Governor's budget. There being no objection, it was so ordered. Vice-Chair Mulder moved to rescind action on Item #2, Human Rights Commission component, on the conference committee motion sheets. [See motion sheets on file.] There being no objection, the earlier action was RESCINDED. Vice-Chair Mulder moved to adopt the Senate appropriation. Without objection, the Senate allocation was ADOPTED. Chair Parnell reviewed amendment 1-LS1304\K.14, relating to debt retirement. [See motion sheets on file.] Vice-Chair Mulder moved to adopt the amendment. There being no objection, it was ADOPTED. AT EASE 7:10 PM / 7:18 PM FISCAL NOTES Co-Chair Parnell referred to a spreadsheet titled, Fiscal Notes, Conference Committee, 21st Legislature, 2nd Session, dated 4/27/00 6:19 PM. [Copy on file.] Vice-Chair Mulder moved to adopt the fiscal notes contained on the summary. There being no objection, it was ADOPTED. LANGUAGE SECTION Chair Parnell reviewed the amendment titled, Conference Committee (Fiscal Notes) and amended the wording to include the bill numbers, HB 312 and HB 313. [See motion sheets on file.] Vice-Chair Mulder moved to adopt the amendment as amended. There being no objection, it was ADOPTED. Mr. Teal pointed out that the conference committee had not addressed the intent language for the Division of Occupation Licensing, the Worker's Compensation program, the Occupational Safety and Health Administration and the Department of Fish and Game, Boards of Fisheries and Game. Chair Parnell stated that the decision was made to not address those issues. Chair Parnell thanked all conference committee members. He said goodbye to the retiring Senator Adams. Vice-Chair Mulder thanked Senator Adams and Chair Parnell, who was also retiring from public service, for their work in the legislature. Vice-Chair Mulder moved to adopt all items adopted, report back to each body, and close the conference committee on HB 312 and HB 313. Without objection it was so ordered.