CS for HOUSE BILL NO. 310 (FIN) am "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making supplemental appropriations; and making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska; and providing for an effective date." CS for HOUSE BILL NO. 312 (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 Hoffman took over as Chair in the meeting. Co-Chair Stedman MOVED to ADOPT Amendment Statewide #1: Department Executive Branch-wide 10,759,300General Fund 2,341,300 Federal Funds 3,894,200 Other Funds 16,994,800Total Funds EXPLANATION: This amendment adds the FY09 costs for the newly ratified Supervisory Unit agreement. The attached report shows the amounts by department. Individual component change records have been transmitted to the Legislative Finance Division, so the amounts can be added to section 1 of the operating and mental health bills. In addition, the following changes should be made to language: SCS CSHB 310(F1N) Amend section 25(a) by adding: (6) Alaska Public Employees Association, for the supervisory unit. SCS CSHB 312(F1N) Amend section 9(a) by adding: (6) Alaska Public Employees Association, for the supervisory unit. Co-Chair Hoffman OBJECTED. TIM GRUSSENDORF, STAFF, CO-CHAIR HOFFMAN, explained that Amendment Statewide #1 applies to the newly ratified Supervisory Unit agreement. There are language changes in addition to added funds. Co-Chair Hoffman noted that the amendment was brought forth by the Administration. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, Statewide Amendment #1 was adopted. 1:12:06 PM Co-Chair Stedman MOVED to ADOPT Amendment Statewide #2: DEPARTMENT: Statewide ADD: 13,862,200 General Funds 577,100 Federal Funds 3,861,400 Other Funds 18,300,700 Total Funds EXPLANATION: This amendment adds the FY09 costs associated with HB 417 and SB 297, Nonunion Public Employee Salary and Benefit. The attached report shows the amounts by department. Individual component change records have been transmitted to the Legislative Finance Division, so the amounts can be added to section 1 of the operating and mental health bills. Language amendments: SCS CSHB 310(FIN) Add a new subsection to Sec. 25 to read: (d) The appropriations made in sec. 1 of this Act relating to nonunion employee salaries and benefits are contingent upon passage and enactment into law in 2008 of a version of HB 417 or SB 297. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment adds costs associated with Nonunion Public Employee Salary and Benefits and changes language in two sections. Co-Chair Hoffman added that the amendment was at the request of the Administration. He WITHDREW his OBJECTION. There being NO OBJECTION, Statewide Amendment #2 was adopted. 1:13:05 PM Co-Chair Stedman MOVED to ADOPT Amendment Statewide #3: Department: Labor and Workforce Development Appropriation: Business Partnerships Allocation: Alaska Vocational Technical Center ADD: 90,900 General Funds 1004  7,300 Interagency Receipts 1007 98,200 Total Explanation: This amendment adds the FY09 costs for the new AVTECTA agreement. The component's change record has been transmitted to the Legislative Finance Division, so the amounts can be added to section 1 of the operating and mental health bills. In addition, the following changes should be made to language: SCS CSHB 310(FIN) Amend section 25(a) by adding: (7) Alaska Vocational Technical Center Teachers' Association, representing employees of the Alaska Vocational Technical Center. SCS CSHB 312(FIN) Amend Section 9(a) by adding: (7) Alaska Vocational Technical Center Teachers' Association, representing employees of the Alaska Vocational Technical Center. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment funds the costs of the new Alaska Vocational Technical Center Teachers' Association agreement. It also has language changes in two sections. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, Statewide Amendment #3 was adopted. 1:13:51 PM Co-Chair Stedman MOVED to ADOPT Amendment Statewide #4: Page 59, lines 19-20: Delete "partial payment of the participating teachers' retirement system employers" Insert "an additional state"    Page59,line 2l: Delete "AS 14.25.070(a)" Insert "AS 14.25.085" Page59,lines 22-24:   Delete all material. Reletter the following subsections accordingly. Page 59, lines 27 - 28: Delete "partial payment of the participating public employees' retirement system employers" Insert "an additional state" Page 59, line 28: Delete "AS 39.35.270" Insert "AS 39.35.280"   Page 59 line 29, through page 60, line 1:   Delete all material. Reletter the following subsection accordingly.   Page 76, following line 1:  Insert a new subsection to read: "(c) The appropriations made in sec. 13 of this Act are contingent on the enactment into law of FCCS SB 125, passed by the Twenty- Fifth Alaska State Legislature." 1:14:24 PM DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION, explained that the amendment was brought forth by the Commissioner of Administration. Because SB 125 was adopted, conforming changes had to be made. It removes the contingency language and references to partial payment. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, Statewide Amendment #4 was adopted. 1:15:42 PM Co-Chair Stedman MOVED to ADOPT Amendment Administrative #1: DEPARTMENT: Department of Administration APPROPRIATION: Legal & Advocacy Services  ADD NEW ALLOCATION: Therapeutic Courts Support Services ADD: $65,000 General Fund (1004) EXPLANATION: Funding will be paid as a grant to Partners for Progress. Partners for Progress is a non- profit entity supporting Therapeutic Courts. Partners for Progress has been a key to training state personnel who work in therapeutic courts and providing assistance to defendants participating in therapeutic courts and continues to be a necessary element of the program. Funding is for basic on-going costs. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment adds $65,000 in General Funds as a grant to Partners for Progress. He noted a great deal of public support for this item. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, Administration #1 was adopted. 1:16:35 PM Senator Dyson WITHDREW Amendment Administration #2. Senator Dyson requested Amendment Administration #3 be put at the end of the list. Co-Chair Hoffman agreed with the request. Co-Chair Stedman MOVED to ADOPT Amendment DCCED #1: Page 66, line 1, through page 66, line 31: Delete all material and insert: "(c) The federal funds received by the state under 42 U.S.C. 6506a(l) or former 42 U.S.C. 6508 not appropriated for grants under AS 37.05.530(d) are appropriated as follows: (1) to the principal of the Alaska permanent fund and the public school trust fund (AS 37.14.110), according to AS 37.05.530(g)(1) and 37.05.530(g)(2); and (2) to the principal of the Alaska permanent fund, the public school trust fund (AS 37.14.110), and the power cost equalization and rural electric capitalization fund (AS 42.45.100), according to AS 37.05.530(g)(3)." Reletter the following subsections accordingly. Page 75, line 27: Delete "sec. 22(u)" Insert "sec. 22(s)" Co-Chair Hoffman OBJECTED. Mr. Teal explained that the amendment affects the distribution of funds received from the federal government for NPRA purposes. This amendment deals with the money that does not go out as grants. The language follows current statutes which say that 25 percent of the total amount received goes to the permanent fund. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, Amendment DCCED #1 was adopted. 1:19:23 PM Co-Chair Stedman MOVED to ADOPT Amendment DEED #1: DEPARTMENT: Department of Education & Early Development APPROPRIATION: Head Start Grants ALLOCATION: Early Learning Coordination Funding Position ADD: Funding Source Amount General Funds $ 407.1 Explanation: Adds one position Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment adds one position to the Department of Education & Early Development related to Head Start Grants. Co-Chair Hoffman commented that there were a number of individuals that supported this item. Co-Chair Hoffman WITHDREW his objection. There being NO OBJECTION, Amendment DEED #1 was adopted. 1:20:43 PM Co-Chair Stedman MOVED to ADOPT Amendment DEC #1: Department: Department of Environmental Conservation Appropriation: Administration Allocation: Information and Administrative Services FUND CHANGE: ($38,200) Vessel Compliance (1166) $38,200 Ocean Ranger (1205) DEPARTMENT: Department of Environmental Conservation APPROPRIATION: Water ALLOCATION: Water Quality FUND CHANGE: ($4,000,000) Vessel Compliance (1166) $4,000,000 Ocean Ranger (1205) EXPLANATION: Create and use a fund source code to enable tracking of Ocean Ranger revenues and expenditures. The source of these revenues is a $4 per berth fee imposed on all large commercial passenger vessels (except state operated vessels) that operate in Alaska (AS 46,03.480(d)). Both Vessel Compliance and Ocean Ranger codes are in the "Other" fund group. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment results in a net zero request which would create and use a fund source code to track Ocean Ranger revenues and expenditures. Co-Chair Hoffman WITHDREW his objection. There being NO OBJECTION, Amendment DEC #1 was adopted. 1:21:23 PM Co-Chair Stedman MOVED to ADOPT Amendment F & G #1: Page 59, following line 16: Insert a new bill section to read:  "* Sec. 13. DEPARTMENT OF FISH AND GAME.  The sum of $500,000 is appropriated from the Alaska sport fishing enterprise account within the fish and game fund (AS 16.05.100) to the Department of Fish and Game for hatchery operation." Renumber the following bill sections accordingly. Page 75, line 21: Delete "22, 27(h), and 27(i)" Insert "23, 28(h), and 28(i)" Page 75, line 27: Delete "sec. 22(u)" Insert "sec. 23(u)" Page 76, following line 1: Insert a new subsection to read: "(c) The appropriation made in sec. 13 of this Act is contingent on passage by the Twenty-Fifth Alaska State Legislature and enactment into law of a measure reappropriating: (1) the unexpended and unobligated balance, not to exceed $25,000,000, of the appropriation made in sec. 1, ch. 3, FSSLA 2005, page 55, lines 21 - 22 (Department of Fish and Game, sport fish hatcheries - $62,140,000) to the Department of Fish and Game for design and construction of the Ruth Burnett Sport Fish Hatchery in Fairbanks; and (2) the unexpended and unobligated balance, after the appropriation referred to in (1) of this subsection, of the appropriation made in sec. 1, ch. 3, FSSLA 2005, page 55, lines 21 - 22 (Department of Fish and Game, sport fish hatcheries - $62,140,000) to the Department of Fish and Game for facilities upgrades, improvements, and construction for the sport fish hatcheries in Anchorage." Page 76, line 2: Delete "30" Insert "31" Page 76, line 3: Delete "sec. 32" Insert "sec. 33" Co-Chair Hoffman OBJECTED. Mr. Grussendorf related that the amendment is a follow-up on the subcommittee's removal of $500,000 from the Alaska sport fishing enterprise account. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO further OBJECTION, Amendment F & G #1 was adopted. 1:22:08 PM Co-Chair Stedman MOVED to ADOPT Amendment F & G #2:  Department: Department of Fish and Game DELETE: The following intent language from page 13, line 24: It is the intent of the legislature to fund all of the increments and fund changes replacing the $7.2 million of lost federal funding on a one-time basis. The Department is requested to prioritize these amendments for consideration in the FY2O1O budget.         Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment deletes intent language. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, Amendment F & G #2 was adopted. AT-EASE: 1:22:51 PM RECONVENED: 1:23:24 PM Senator Dyson MOVED to ADOPT Amendment F & G #3: DEPARTMENT: Department of Fish and Game APPROPRIATION: Wildlife Conservation ALLOCATION: Hunter Education Public Shooting Ranges ADD: $676.5 Fish and Game Funds (1024) EXPLANATION: In a state where firearm ownership and interest in hunting and recreational shooting is so widespread, it is extremely important that the state have ranges that are safe and supervised for purposes of gun safety training, hunter education training and for recreation. Safety is paramount in this arena and the public expects certain protocols in regard to firearm usage. It is too important that the state not leave supervision of these ranges to municipal discretion, of which we have no control. This amendment would restore funding for 3 state shooting ranges and 2 PFTs; 6 PPTs; and 1 Temp. Co-Chair Hoffman OBJECTED. Senator Dyson explained that the amendment relates to the withdrawal of funds for the administration of three state shooting ranges. He pointed out that $5 million in federal funds would have to be returned if the ranges no longer operate. Co-Chair Hoffman MAINTAINED his OBJECTION. He thought the request was not a necessity and it would come up again. Senator Dyson opined that the legislature should make the appropriation to reimburse the federal government if the ranges are no longer in operation. Co-Chair Hoffman reported that twelve individuals testified in support of continuing the shooting ranges. Senator Olson asked where the three shooting ranges were located. Senator Dyson related that they are in Fairbanks, Anchorage, and Juneau. Co-Chair Stedman commented on equity and support for the shooting ranges in other areas of the state outside of the three major population centers. He thought a compromise could be found. 1:27:36 PM Senator Thomas noted the importance of the shooting ranges to hunter education. Senator Dyson voiced appreciation for the idea of distributing the benefits to more areas. He spoke of safety issues as they apply to rural areas. He did not want to take anything away from the current three ranges. A roll call vote was taken on the motion. IN FAVOR: Dyson OPPOSED: Olson, Thomas, Elton, Stedman, Hoffman The MOTION FAILED (1-5). 1:29:51 PM Senator Dyson MOVED to ADOPT Amendment F & G #4: Page 13, line 31, through page 14, line 4: Delete all material. Page 14, lines 25 - 29: Delete all material. Co-Chair Hoffman OBJECTED. SENATOR THOMAS WAGONER, sponsor of the amendment, explained that it removes vague intent language related to Fish and Game offices in his district. Senator Dyson said he was glad he did not know much about the amendment. He commented on the unhappy decisions related to the Cook Inlet region. 1:32:41 PM Senator Wagoner added that the decision should be made by the Board of Fish. Co-Chair Hoffman MAINTAINED his OBJECTION. A roll call vote was taken on the motion. IN FAVOR: Dyson OPPOSED: Thomas, Elton, Olson, Hoffman, Stedman The MOTION FAILED (1-5). 1:34:20 PM Co-Chair Stedman MOVED to ADOPT Amendment GOV #1. DEPARTMENT: Office of the Governor APPROPRIATION: Executive Operations ALLOCATION: Executive Office ADD: $200,000 FUNDING SOURCE: $200.0 General Fund (1004) EXPLANATION: This funding will add a position to serve the statewide energy policy coordinator as directed by the Governor. This position will work with the Alaska Energy Authority Board of Directors and the Governor to establish long- range energy goals, strategies, plans and policies. Co-Chair Hoffman OBJECTED. Mr. Grussendorf related that the amendment adds $200,000 to the Governor's office for the new statewide energy policy coordinator. Co-Chair Hoffman noted that the Governor requested that the position work with the Alaska Energy Authority. There being NO OBJECTION, Amendment GOV #1 was adopted. 1:34:45 PM Co-Chair Olson MOVED to ADOPT Amendment HESS #1a: DEPARTMENT: Health and Social Services APPROPRIATION: Behavioral Health ALLOCATION: Services for Severely Emotionally Disturbed Youth ADD: $500.0, OTI FUNDING SOURCE: General Fund (1004) EXPLANATION: Boys & Girls Home of Alaska This funding will provide Boys & Girls Home of Alaska (BGHA) with a one-time start-up operational grant to address initial funding shortages due to lagging enrollment during the first year of operation. Construction of the BGHA facility will be completed in August 2008. Private funds generated through the non-profit company were used to build the 68,000 sq. ft. facility for children ages 6 to 18. The campus includes 4 cottage residential units at 10,000 sq. ft. each and a central facility of 28,000 sq. ft. to provide school and therapeutic services. BGHA expects to begin admitting children no later than in September 2008 and gradually increase its enrollments to 80-90 in the first year. The majority of these children will arrive after the October Department of Education and Early Development's student count period and will not qualify for educational funding in the first year. The BGH of Alaska must commit to hiring educational and therapeutic specialists by June --July 2008 in order to provide services throughout the first full year of operation. It is anticipated that the facility will not be at capacity for the first year and yet, BGHA must be adequately staffed at the onset. This grant. matched hy BGHA's private funds ofS500.000, will provide the necessary funding to assure that professional starting levcls art: adequate for the first full year upon opening. Over the past seven years the children's behavioral health system in Alaska has become increasingly reliant on institutional care -inpatient hospital and Residential Psychiatric Treatment Center (RPTC) care -especially out- of-state RPTC care, for treatment of severely emotionally disturbed youth. In the past six years, acute care admissions increased by one-third and total days of inpatient care increased by 90%. Out-of-state placements in RPTC care grew by nearly 700% and in-state RPTC care grew by 145% from FY98-FY03. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment adds $500,000 to the Boys & Girls Home of Alaska for services for emotionally disturbed youth. It is part of the Bring the Children Home initiative. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, Amendment HESS #1a was adopted. 1:35:25 PM Senator Olson MOVED to ADOPT Amendment HESS #1b: DEPARTMENT: Health and Social Services APPROPRIATION: Public Health ALLOCATION: Epidemiology ADD: $500.0 FUNDING SOURCE: General Fund (1004) EXPLANATION: Completed Alaska's Stockpiling of Antiviral Drugs In the FY07 budget, the DHSS requested $1,000,000 GF increment for Infectious Disease Control and Emergency Preparedness. These funds would be used to treat SARS and the H5N1 strain of avian influenza. The legislature approved $500,000 of the request. Also in the FY07 budget, the DHSS requested a $563,600 increment for Pandemic Influenza Preparedness AK Stockpile of Antiviral Drugs. These funds would be used to purchase H5N1 avian influenza vaccines. On November 2,2005, the US Department of Health and Human Services released the national Pandemic Influenza Plan. The plan calls for national stockpiles of antiviral medications for use in the event of a pandemic. The legislature approved the $563,600 request. In December 2007, it brought to the department's attention that the agreed upon level of vaccines had not yet been purchased. The department did not complete the purchase of those vaccines during the discount period. On February 14,2008, a letter from the Governor stated that the department has now procured the remaining 38,000 vaccines. The $563,600 funding is still in the base funding level for the division, therefore $563,600 for FY07, $563,600 for FY08 and continued $563,600 for FY09 is "earmarked" for avian influenza vaccines. The funds have been available and it appears that they have not been used entirely for their intended purpose. $500,000 GF may be better used for a different purpose within the department. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment deletes $500,00 from Public Health epidemiology and shifts to fund the item in Amendment HESS #1a. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, Amendment HESS #1b was adopted. 1:35:56 PM Senator Olson MOVED to ADOPT Amendment HESS #2: DEPARTMENT: Health and Social Services APPROPRIATION: Children's Services ALLOCATION: Children's Services Management ADD: $200.0, OTI FUNDING SOURCES: General Funds Match $151.7 (1003) Federal Receipts $48.3 (1002) EXPLANATION: Federally Mandated Child and Family Services Review Move federally mandated child and family services review (CSFR) project from Capital Budget to Operating Budget. This amendment provides one-time funding for the development and implementation of a Program Improvement Plan which will be the result of a CSFR. The purpose of a CSFR is to help states improve safety, permanency, and well-being outcomes for children and families receiving services through the child welfare system and to monitor compliance with the requirements of Title IV-B of the Social Security Act. CFSRs offer states a new way to manage their child welfare systems- with a focus on continuous improvement. Therefore, compliance standards are set for each measure at 95% to 100%. Each CFSR includes a statewide assessment and an onsite review of child and family services outcomes and program systems. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment adds $200,000 for a federally mandated program into the operating budget. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, Amendment HESS #2 was adopted. 1:36:45 PM Senator Olson MOVED to ADOPT Amendment HESS #3: DEPARTMENT: Health and Social Services APPROPRIATION: Public Health ALLOCATION: Community Health Grants ADD: $1000.0 FUNDING SOURCE: General Fund (1004) EXPLANATION: Funding for Community Health Centers This request will provide funding to Community Health Centers. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment adds $1 million in general funds for Community Health Centers. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, Amendment HESS #3 was adopted. Senator Dyson MOVED to ADOPT Amendment HESS #4: AGENCY: Department of Health and Social Services APPROPRIATION: Departmental Support Services ALLOCATION: Office of Faith Based & Community Initiatives ADD: Reinstate four component positions 1002 Fed. Rcpts: 3.0 1003 General Fund Match 212.1 1004 Gen Fund 44.2 Total 259.3 JUSTIFICATION: This amendment restores the Office of Faith Based & Community Initiatives which was eliminated by withholding funds in the current CS. The $500,000 community grant funds were moved to a new component without adequate personnel to administer the funds. This amendment continues to fund the four positions of the Office of Faith Based & Community Initiatives and returns the $500,000 grant funds to the office for administration. This amendment then deletes the proposed new component of Community Initiative Matching Grants (non-statutory grants) as being superfluous. Co-Chair Hoffman OBJECTED. Senator Dyson explained that the amendment restores funding for the Office of Faith Based & Community Initiatives. He shared successes of the Office. Co-Chair Hoffman asked if federal funds were available that had not been disseminated. Mr. Grussendorf replied that $500,000 in federal grant money had not been distributed. Co-Chair Hoffman MAINTAINED his OBJECTION. Senator Dyson commented that those monies were not for the people administering the grants, but directed for recipients in need. A roll call vote was taken on the motion. IN FAVOR: Elton, Olson OPPOSED: Dyson, Thomas, Hoffman, Stedman The MOTION to adopt Amendment HESS #4 FAILED (2-4). AT-EASE: 1:40:42 PM RECONVENED: 1:42:28 PM Co-Chair Stedman MOVED to ADOPT Amendment DNR #1: Page 61, line 2: Delete ", resource development allocation," Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that it is a technical amendment. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. 1:43:09 PM Co-Chair Stedman MOVED to ADOPT Amendment DNR #2: DEPARTMENT: Department of Natural Resources APPROPRIATION: Parks and Recreation Management ALLOCATION: Parks Management ADD: $2,020.2 Vehicle Rental Tax (1200) DELETE: $2,020.2 General Fund (1004) EXPLANATION: This amendment simplifies tracking of Vehicle Rental Tax (VRT) receipts by eliminating amounts used in DNR. Use of VRT receipts in DNR Parks Management brings total FY09 appropriations of VRT Receipts to $8,018,600- the available balance of Vehicle Rental Taxes for FY09. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment is a fund source change from general funds to the vehicle rental tax. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. 1:43:56 PM Co-Chair Stedman MOVED to ADOPT Amendment DNR #3: DEPARTMENT: Department of Natural Resources APPROPRIATION: Resource Development ALLOCATION: Oil and Gas Development DELETE: $1,318,100. FUNDING SOURCE: General Funds (1004) EXPLANATION: These funds are included in the Office of the Governor's Branch-wide Oil and Gas Development component so do not need to be duplicated Within DNR. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment deletes duplicated general funds. Co-Chair Hoffman WITHDREW his OBJECTION. Senator Dyson asked for comments by OMB. KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, clarified that it was a duplication of funds. There being NO OBJECTION, it was so ordered. 1:45:10 PM Co-Chair Stedman MOVED to ADOPT Amendment DPS #1: DEPARTMENT: Department of Public Safety APPROPRIATION: Council on Domestic Violence and Sexual Assault ALLOCATION: Council on Domestic Violence and Sexual Assault ADD: $100,000 General Fund (1004) EXPLANATION: This request adds back the $100,000 General Fund reduction in the Senate Subcommittee and restores CDVSA back To its FY08 base budget amount. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment adds back funds to the Council on Domestic Violence and Sexual Assault. Co-Chair Hoffman noted that this appropriation was the most popular topic during public testimony. He WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. 1:46:08 PM Senator Dyson MOVED to combine and adopt the remaining DPS amendments together. Department of Public Safety Amendment #2: DEPARTMENT: Department of Public Safety APPROPRIATION: Alaska State Troopers ALLOCATION: Detachments ADD: $518,900. FUNDING SOURCE: General Fund (1004) EXPLANATION:  This amendment restores funding to cover the known cost increases for the existing vehicle fleet of the Alaska State Troopers and Alaska Wildlife Troopers. The Senate Finance Subcommittee included funding for only 50% of the budget increments for these costs. This amendment covers the reductions made to three components: Detachments $439,800 Alaska Wildlife Troopers 72,700 Alaska Bureau of Alcohol & Drug Enforcement 6,400 If this funding is not restored, the department will have two choices: 1) Continue to operate all vehicles as needed in order to provide the originally budgeted level of law enforcement services but seek a supplemental appropriation next year, or 2) take action that will to reduce enforcement / protection efforts such as turning in vehicles or holding positions vacant to cover these costs. Department of Public Safety Amendment #3: DEPARTMENT: Department of Public Safety APPROPRIATION: Alaska State Troopers ALLOCATION: Alaska Bureau of Judicial Services ADD: $156,300. Funding Source: General Fund (1004) EXPLANATION: This amendment restores funding to fully cover the cost of implementing the prisoner transportation settlement with the Municipality of Anchorage. The Governor's budget included $656,300 to fund this program, which is being implemented during the current fiscal year. Four of the six new court services officers have already been hired and the two other positions are expected to be filled by July 1. The Senate Finance Subcommittee reduced funding by $156,300 and directed the department to contract out this function. However, this proposal by the subcommittee is simply unworkable for the upcoming fiscal year. Prior to contracting out this services, the department would need to develop a plan for delivery of services in this manner while ensuring public safety and maintaining the effectiveness and efficiency of these services. Additionally, the bargaining unit agreement with the Public Safety Employees Association (PSEA) sets out in Article 32 a specific process for evaluating the feasibility of, and conditions for, contracting out work that would normally be performed by PSEA members. If this funding is not restored, the department will have three choices: 1) Continue to fill all positions in order to provide the services needed to comply with this legal settlement, but seek a supplemental appropriation next year; or 2) take action that will risk failure to adhere to the settlement which would likely lead to further litigation; or 3) reallocate other resources to this function, which will reduce other court security, prisoner transport, and law enforcement services. Department of Public Safety #4: DEPARTMENT: Department of Public Safety APPROPRIATION: Alaska State Troopers ALLOCATION: Alaska Bureau of Judicial Services ADD: $227,500. FUNDING SOURCE: General Fund (1004) EXPLANATION: This amendment provides funding to fully cover the increasing cost of "routine" prisoner transportation, including extraditions and other transport by commercial or department aircraft. These costs have been increasing for years, and the department has been covering the cost primarily from savings from vacant positions.  The Senate Finance Subcommittee reduced by 50% an increment to fully fund these costs; this amendment restores that reduction. If this funding is not restored, the department will have two choices: 1) Continue to provide all necessary prisoner transportation services but seek a supplemental appropriation next year; or 2) reallocate other resources to this function, which will certainly require holding positions vacant to make funding available for prisoner transportation costs. Department of Public Safety Amendment #5 DEPARTMENT: Department of Public Safety APPROPRIATION: Alaska State Troopers ALLOCATION: Detachments ADD: $966,800. FUNDING SOURCE: General Fund (1004) EXPLANATION: This amendment restores funding to cover the full cost of dispatch services contracts ($420,300) and trooper moves ($425,000) when transferring between duty posts. Costs for these services have continued to rise. For the past several years, these cost increases have been covered from funds available due to vacant positions. However, the department currently expects that improved recruiting efforts will enable filling all vacant trooper positions during the course of FY2009, so vacancy saving will not be sufficient to cover these other costs. This amendment also restores $121,500 of funding for projected personal services costs of existing positions. The Governor's budget proposed transferring this amount from the Alaska Bureau of Judicial Services to the Detachments component (primarily patrol services) to help cover expected personnel costs. This transfer between allocations within the Alaska State Troopers appropriation was deleted only in the receiving component, thus reducing total personal services funding. If this funding is not restored, the department will have two choices: 1) Continue to plan on filling all positions in order to provide the originally budget level of law enforcement services but seek a supplemental appropriation next year, or 2) take action that will to reduce enforcement / protection efforts such as holding positions vacant. Department of Public Safety Amendment #6 DEPARTMENT: Department of Public Safety APPROPRIATION: Alaska State Troopers ALLOCATION: Alaska Wildlife Troopers ADD: $130,000. FUNDING SOURCE: General Fund (1004) EXPLANATION: This amendment restores full year funding for five Alaska Wildlife Troopers (AWT) added in the FY 2008 budget but funded by the legislature for less than 12 months. If this funding is not restored, the department will have two choices: 1) Continue to plan on filling all positions in order to provide the originally budgeted level of wildlife protection services but seek a supplemental appropriation next year, or 2) take action that will reduce enforcement/protection efforts such as holding positions vacant. AT-EASE 1:46:33 PM RECONVENED: 1:47:00 PM Co-Chair Hoffman agreed to allow Senator Dyson's motion to group DPS Amendments 2-6 together. He OBJECTED for discussion purposes. Senator Dyson emphasized the importance of the Alaska State Troopers and the dangers they face. He related that he was happy to see that all of the vacancies planned to be filled. The amendments restore funding for the Troopers. Co-Chair Hoffman MAINTAINED his OBJECTION. A roll call vote was taken on the motion. IN FAVOR: Dyson OPPOSED: Elton, Olson, Thomas, Stedman, Hoffman The MOTION to adopt Amendments 2-6 DPS FAILED (1-5). 1:49:53 PM Senator Olson MOVED to ADOPT Amendment DOT #1: DEPARTMENT: Transportation and Public Facilities APPROPRIATION: Marine Highway Systems ALLOCATION: Marine Vessel Operations DELETE: $2,297.6 general funds (1004); $1950.0 Alaska Marine Highway Funds (1076) EXPLANATION: This amendment deletes $4,247.6, Thereby eliminating 12.6 weeks of Service for the Kennicott during the Tustemena CIP lay-up. Co-Chair Hoffman OBJECTED. Mr. Grussendorf explained that the amendment deletes funds for the Kennicott during lay-up. Co-Chair Stedman stated support for the amendment; however, he emphasized his continued support for the Alaska Marine Highway. Co-Chair Hoffman MAINTAINED his OBJECTION. A roll call vote was taken on the motion. IN FAVOR: Olson, Thomas, Dyson, Elton, Stedman, Hoffman OPPOSED: None The MOTION PASSED (6-0). 1:53:00 PM Co-Chair Stedman MOVED to ADOPT Amendment UNIV #1: DEPARTMENT: University of Alaska APPROPRIATION: Budget Reductions/Additions ALLOCATION: System Reductions/Additions TRANSFER OUT: $8,609,000 ($3,372,200 OF (1004); $3,267,900 Fed Rcpts (1002); $860,400 State Interagency Rcpts; $401,000 CIP Rcpts; and $707,500 University Interagency Rcpts) DEPARTMENT: University of Alaska APPROPRIATION: Various Appropriations ALLOCATION: Various Allocations TRANSFER IN: $8,609,000 ($3,372,200 GF (1004); $3,267,900 Fed Rcpts (1002); $860,400 State Interagency Rcpts; $401,000 CIP Rcpts; and $707,500 University Interagency Rcpts) EXPLANATION: This amendment reflects a redistribution of previously unallocated funds from the Budget Reductions/Additions appropriation into the appropriation structure as proposed by the Senate Finance Subcommittee for the University. This action involves the following group transactions: (a)Spread decrement for a portion of the GF request for Library, Information Technology and Other Operations (-$128.9 GF); (b) Spread OF portion for non-represented salary increases using the University's new Grid System ($3,201.1 OF); (c) Transfer out funding for Distance Education Support to a new allocation Systemwide Education & Outreach ($300.0 GF); (d) Spread non-GF originally recorded in Systemwide Reductions/Additions to various appropriations ($5,236.8 non-GF) The two Legislative Finance reports present this amendment in detail: (1) Allocation Summary, and (2) Transaction 1-Way Comparison. Co-Chair Hoffman OBJECTED. Co-Chair Stedman explained that the amendment reflects a redistribution of previously unallocated funds from the Budget Reductions/Additions appropriation into the appropriation structure as proposed by the Senate Finance Subcommittee for the University. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. 1:53:49 PM Co-Chair Stedman MOVED to ADOPT UNIV #2: Department: University of Alaska ADD INTENT: It is the intent of the legislature that the University of Alaska submit a report by the last day of each calendar quarter to the Legislative Budget & Audit Committee which describes in detail the movement of funds and positions between allocations as well as reimbursable services agreements between University appropriations. EXPLANATION:  With the separation of University funding into several appropriations, the Legislature understands that some programs span throughout the system. The Legislature would like to track the interaction of these programs and have an understanding of any problems that may be encountered due to the divided structure. Co-Chair Hoffman OBJECTED. Co-Chair Stedman explained that the amendment adds a Letter of Intent. With separation of University funding into several appropriations, the legislature understands that some programs span throughout the system. The legislature would like to track the interaction of these programs and have an understanding of potential problems. It gives Legislative Budget and Audit the chance to interface with the University. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. 1:55:28 PM Senator Elton MOVED to ADOPT COURTS #1: DEPARTMENT: Alaska Courts System APPROPRIATION: Alaska Court System ALLOCATION: Appellate Courts ADD: $25,000. FUNDING SOURCE: General Funds EXPLANATION: This amendment adds $25.0 to the subcommittee transaction $75.0 for "Additional Costs Related to the Supreme Court Justice Appointment in Fairbanks." The amended amount will be $100.0, which is $19.9 and one PFT below the Court System's request. Co-Chair Hoffman OBJECTED. Senator Elton explained that the amendment adds $25,000 in general funds to the Alaska Court System and allows some latitude that it needs with the addition of the new Supreme Court Justice. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. 1:56:03 PM Senator Olson MOVED to ADOPT HESS #5: DEPARTMENT: Department of Health and Social Services APPROPRIATION: Senior and Disabilities Services ALLOCATION: Senior/Disabilities Medicaid ADD: 278,500 General Funds 290,200 Federal Funds EXPALANATION: Increase the assisted living home reimbursement rate to 6% rather than the 4% originally recommended by the department. Other similar assisted living home reimbursements have been increased 6% annually (e.g. private hospitals, state managed assisted living beds). Co-Chair Hoffman OBJECTED for discussion purposes. Senator Olson explained that the amendment increases the assisted living reimbursement rate to 6 percent, up from 5 percent. There has not been a rate increase since 2002. Co-Chair Hoffman WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. AT-EASE: 1:57:12 PM RECONVENED: 1:57:44 PM Co-Chair Hoffman turned again to HESS #3. Mr. Grussendorf explained that the appropriation should read "Public Health" and the allocation should read "Community Health Grants". There being NO OBJECTION, it was so ordered. Senator Dyson WITHDREW Amendment ADMIN #3. Co-Chair Hoffman MOVED to give Legislative Legal Services and Legislative Finance the authority to make technical and conforming changes as they are preparing the bill for Floor action. There being NO OBJECTION, it was so ordered. Senator Dyson commented on the integrity of the budgetary process. Co-Chair Hoffman added that there was open debate on all amendments. 2:00:55 PM Co-Chair Stedman MOVED to REPORT CSHB 310(FIN)am out of Committee, as amended, with individual recommendations. There being NO OBJECTION, it was so ordered. SCS CSHB 310(FIN) was REPORTED out of Committee with a "do pass" recommendation. AT-EASE: 2:01:15 PM RECONVENED: 2:01:44 PM Mr. Grussendorf reported that in HB 312, the first project was removed by the House. The Senate pulled everything out of the bill except for that first item. The whole bill is now in conference committee. 2:02:25 PM Co-Chair Stedman MOVED to REPORT CSHB 312(FIN) out of Committee, as amended, with individual recommendations. There being NO OBJECTION, it was so ordered. SCS CSHB 312(FIN) was REPORTED out of Committee with a "do pass" recommendation. Co-Chair Hoffman thanked the Committee and their staff for all their hard work on the budgets.