SENATE BILL NO. 83 "An Act making an appropriation for management fees for the constitutional budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska); and providing for an effective date." Co-chair Pearce convened the session and announced to the committee that it was her intention to have a proposed CS drawn up by this weekend for final action next week. The committee then reviewed the following proposed amendments: Senator Sharp explained section 1 - 4 of the requested add- ins. 1. CIP Fairbanks Armory Expansion in the amount of $700,000. 2. CIP Geophysical Mapping in the amount of $650,000. 3. CIP Value Added Timber Sale, Interior in the amount of $630,000. 4. CIP Value Added Timber Sale, Southeast in the amount of $150,000. Co-chair Pearce in reference to the last three requests asked if the projects could be begun and Senator Sharp concurred. Senator Donley continued with section 5 for the Department of Corrections. This would appropriate $150,000 from the general fund to the department for a statewide automated victim notification service. Co-chair Pearce voiced her concern for interfacing regarding the computer system. Co-chair Pearce referred to section 6, a memorandum from Randy S. Welker, Legislative Auditor, dated 26 February 1997. This related to a financial analysis of the balance in the Public School Fund. Senator Adams asked if it would be determined how much would be deposited into the PSF. Co- chair Pearce said an appraisal would be needed first before that could be determined. Senator Torgerson discussed section 7 on behalf of the sponsor, Senator Leman. This was for a requested timber sale including the South Ninilchik Block and Center Plateau Block. Senator Torgerson indicated the area would still be the Kenai Peninsula. Senator Adams reviewed section 8, a supplemental request for the Unalakleet water line. This was in the amount of $360,000 to be appropriated from the general fund. If this request was not a possibility perhaps it could be considered under Village Safe Water or a third alternative, AHFC receipts. Co-chair Pearce asked if this would cover permanent repairs and Senator Adams indicated that it would. SFC members were free to see the estimates from George Wood. Section 9 was introduced by Senator Phillips. This was an appropriation of $250,000 for the Youth Corp program. Co- chair Pearce voiced support for the program but indicated that if there was going to be a matching grant from the State, they should be advised in advance what that would be. Senator Phillips concurred. Carol Carroll, Director, Division of Administrative Services, Department of Military and Veterans' Affairs was invited to join the committee. She said due to the popularity of the program there had been an increase in participants this year. Presently there were 145 students in the program. It was expected to have 98 - 105 graduate from this program. $250,000 would go a long way to help out, however, her analysis showed $362,000 in reality was needed. Co-chair Pearce asked if more federal money could be requested. Ms. Carroll indicated that federal monies were allotted based on 80 students and in the amount of $2 million. Senator Sharp asked about oversubscription even though there was insufficient funding. Ms. Carroll said apparently they were now getting students who wanted to stay in the program. Co-chair Pearce further inquired about the percentage of acceptance of those who applied and Ms. Carroll said she would have to get that information from the director. Senator Torgerson asked how many graduates were expected. Ms. Carroll said that the model was approximately 60 students would graduate; however this class was expected to graduate 105. Senator Torgerson further voiced a concern that there was something wrong with the allocation if they were spending $25,000/child. He noted everything was done on a volunteer basis. Ms. Carroll explained the costs involved, noting only that some military personnel may volunteer their time. Senator Phillips requested a break down from the Department of Military and Veterans' Affairs. Senator Adams concurred and asked about the average cost in other states. Ms. Carroll said she would provide the information to the committee by this afternoon. Co-chair Pearce referred to section 10, a legislative budget and audit request in the amount of $500,000 for a study comparing the salaries and benefits of state employees to the appropriate public and private markets in Alaska and the Pacific Northwest. Senator Adams and Senator Phillips supported this request and asked that a study regarding geographic differentials be included. Co-chair Pearce introduced section 11, a request by Senator Jerry Ward on behalf of the Department of Corrections for a new boiler and new CRC beds. Craig Johnson, staff to Senator Jerry Ward was invited to join the committee. In a discussion with Senator Donley and Co-chair Pearce he indicated that a side benefit to the new CRC beds would help take care of overcrowding, therefore being an indirect benefit to "Cleary". Co-chair Pearce noted that the House Finance did not fund this request and said it did not make sense to spend the money piecemeal. Co-chair Pearce went on to section 12, a request from the Department of Law to consider the following accounting system ratifications: 1. 13604-94 General Legal Services $500,604.50 2. 13814-94 Clean Air Act 65.10 3. 13852-94 General Services and Supply 1,036.20 4. 13993-94 AHFC - MGIC Claims 0.01 5. 13868-95 Admin - GAPPA 280.00 Section 13 was a request from the Department of Natural Resources in the amount of $150,000. Mr. Dan Spencer, Budget Analyst, Office of Management and Budget was invited to join the committee. He said this would be a general fund authorization to be included in the front section of the FY '98 operating budget bill to fund the land sale escrow account for the First National Bank of Anchorage. Senator Sharp referred to section 14 on behalf of the sponsor, Senator Lyda Green. This was a request for $43,900 for the Department of Natural Resources, Division of Forestry for the Mat-Su Harvest Access Program. This access improvement would begin at Mile 59, the Parks Highway. Senator Adams asked if the money earned from the timber sale would go to the general fund and Senator Sharp concurred. Senator Donley introduced section 15 for the Department of Health and Social Services, Family and Youth Services. This was to add an additional 30 bed facility to the McLaughlin Youth Center. Co-chair Pearce noted that the House Finance did not fund security fences at the facility. Senator Donley said that this was an Anchorage top priority matter, not a department priority. Senator Adams concurred and wanted to know why the request was for just 30 beds. Senator Donley said the 30 beds were requested by the City of Anchorage. Co-chair Pearce concluded the meeting saying that she would work on a draft CS to be presented next week. There was still some controversy regarding leasing. No further amendments would be considered unless they were extremely extraordinary and there was agreement among all members. Senator Adams informed the committee the minority would work to expedite the supplementals.