JOINT COMMITTEE LEGISLATIVE BUDGET AND AUDIT December 6, 2000 1:15 P.M. MEMBERS PRESENT Representative Gail Phillips, Chair Representative Con Bunde Representative Eric Croft Representative Gary Davis (via teleconference) Representative Gene Therriault (via teleconfernece) Representative Eldon Mulder (alternate-via teleconfernece) Senator Randy Phillips, Vice Chair Senator Sean Parnell (via teleconfernece) MEMBERS ABSENT Senator Al Adams Senator Rick Halford Senator Gary Wilken Senator Drue Pearce (alternate) COMMITTEE CALENDAR th APPROVAL OF MINUTES - October 27, 2000 REVISED PROGRAM RECEIPTS EXECUTIVE SESSION AUDIT REPORTS WITNESS REGISTER PAT HARTLEY, Legislative Assistant to Representative Gail Phillips 345 W. Sterling Highway, Suite #102 B Homer, Alaska 99603 Telephone: (907) 235-2921 DAVID TEAL, Director (Testified via Teleconference) Division of Legislative Finance State Office Building, Sixth Floor Juneau, Alaska 99811 Telephone: (907) 465-3002 POSITION STATEMENT: Introduced the RPL's PAT DAVIDSON, Director Division of Legislative Audit State Office Building, Sixth Floor Juneau, Alaska 99801 Telephone: (907) 465-3830 POSITION STATEMENT: Addressed the Audit Reports YVONNE CHASE, Deputy Commissioner Early Development (Testified via Teleconference) Department of Education and Early Development th 333 W. 4 Avenue, Suite #220 Anchorage, Alaska 99501-2341 Telephone: (907) 269-4635 POSITION STATEMENT: Testified on RPL 05-1-0618 MARY STOVALL, Administrative Manager Early Development Department of Education and Early Development th 333 W. 4 Avenue, Suite #220 Anchorage, Alaska 99501-2341 Telephone: (907) 269-44512 POSITION STATEMENT: Testified on RPL 05-1-0618 NICO BUS, Budget Manager Department of Military and Veterans Affairs 400 Willoughby Ave, Suite 500 Juneau, Alaska 99811 Telephone: (907) 465-2406 POSITION STATEMENT: Testified on RPL #09-1-0036 and RPL #09-1-0037 TIM JONES, Executive Director Alaska Military Youth Academy Alaska National Guard Youth Corps Department of Military and Veterans Affairs P.O. Box 5800 Ft. Richardson, Alaska 99505-0800 Telephone: (907) 428-6067 POSITION STATEMENT: Testified on RPL #09-1-0036 and RPL #09-1-0037 RICHARD LASHER, Administrative Manager Department of Military and Veterans Affairs Alaska Military Youth Academy (AMYA) P.O. Box 5727 Ft. Richardson, Alaska 99501-0727 Telephone: (907) 384-6013 POSITION STATEMENT: Testified on RPL #09-1-0036 and RPL #09-1-0037 KENNETH BISCHOFF, Director (Testified via Teleconference) Division of Administrative Services Department of Public Safety P.O. Box 11120 Juneau, Alaska 99811-1200 Telephone: (907) 465-4336 POSITION STATEMENT: Testified on RPL #12-1-0106 KURT PARKAN, Deputy Commissioner (Testified via Teleconference) Department of Transportation and Public Facilities 3132 Channel Drive Juneau, Alaska 99801-7898 Telephone: (907) 465-6977 POSITION STATEMENT: Testified on RPL #25-1-2064 and RPL #25-1-2063 JAMES FIORENZI, Assistant Airport Manager Fairbanks Airport Department of Transportation and Public Facilities 6450 Airport Way, Suite #1 Fairbanks, Alaska 99702 Telephone: (907) 474-2505 POSITION STATEMENT: Testified on RPL #25-1-2064 and RPL #25-1-2063 ACTION NARRATIVE TAPE 00-10, Side A  CHAIR GAIL PHILLIPS called the Joint Committee on Legislative Budget and Audit meeting to order at 1:15 P.M. on December 6, 2000. Members present at the call to order were Representatives Gail Phillips, Con Bunde, Eric Croft, Gary Davis, Eldon Mulder and Gene Therriault and Senators Randy Phillips and Sean Parnell. APPROVAL OF MINUTES CHAIR PHILLIPS noted that the first order of business would be the approval of the minutes from the Legislative Budget th and Audit Committee meeting held October 27, 2000. SENATOR R. PHILLIPS MOVED to approve the minutes and asked for unanimous consent. There being NO OBJECTION, the minutes were approved and adopted. REVISED PROGRAMS (RPL's) DAVID TEAL, Director, Division of Legislative Finance, explained the RPL's before the Committee. RPL Number: 05-1-0618    Department of Education & Early Development Child Care Development Funds $5,590,473 Federal Funds  DAVID TEAL explained that the request was for additional authority to receive and expend the FY2000 Child Care Development Funds (CCDF) carry forward and to record the CCDF grant to be received during the State fiscal year 2001. SENATOR R. PHILLIPS asked if the RPL would increase the general fund match in the FY2002 budget. MR. TEAL pointed out that the more funding received from the federal government, that more money that would be matched. He did not know if the Department would be asking for more funding in that budget. YVONNE CHASE, Deputy Commissioner of Early Development, Department of Education and Early Development, clarified the amount of the required match. MARY STOVALL, Administrative Manager, Early Development, Department of Education and Early Development, explained that there are two types of match for that fund. Maintenance of effort would be a one to one match, whereas, the other would be calculated and not a one to one as the maintenance of effort was. SENATOR R. PHILLIPS questioned how much money would be increased to the general fund. MARY STOVALL replied that the requested increase would require $437 thousand general fund dollars for FY2002. REPRESENTATIVE CROFT pointed out that the amount would be an increase in federal authority and that enough exists to cover the cost for this year. He added, next year, there would be more required to leverage the federal funds. REPRESENTATIVE MULDER asked where this year's match came from. YVONNE CHASE advised that it was general funds, currently existing in the Department's budget. REPRESENTATIVE THERRIAULT questioned why the current year match would not be available in the next fiscal year. He asked the "time sensitivity" of the request. YVONNE CHASE explained that these were one-time State general fund monies and that they would not all be available next fiscal year. It is anticipated that there will be a small increase in the federal budget. She added that the new federal fiscal year starts at a different time than the State fiscal year, thus, bringing the request to the Committee at this time. REPRESENTATIVE THERRIAULT asked if the legislation could wait until the full Legislature was back in session. YVONNE CHASE explained that the Department would not have the funds needed to move forward and that part of the funding has resulted from an increase written into the budget. The additional portion brings the Division up to the level of expenditure based on the funds available from the past year in the federal budget. With the transfer, clean-up issues resulted and the Division then got caught into a lapsing situation with the Department not having the funding, which resulted in the Division not having the authority to put it in the budget. DAVID TEAL advised that the Department has a different way in which they record their money. That it is an internal policy. The Department does this through issuing grants. They have chosen not to record the money until the entire amount of the grant is awarded. Other Departments record the money as it occurs and then their funding is handled by appropriation. He acknowledged that he did not understand why the Department of Education records their money in a different manner. Mr. Teal pointed out that Karen Rehfeld was not present to explain the process. REPRESENTATIVE CROFT asked which programs the allocation would fund. YVONNE CHASE reported that the funding would go to the Child Care Subsidy program, which would go to childcare providers based on the eligibility of each family. Funds from the program are used for the childcare grant program out of the federal money. Also, funds are used for the licensing functions of the facilities. By not approving the request, the State will not be able to post the federal money. Any expenditure from October until the Legislature meets to approve it, would be held from the grantees. REPRESENTATIVE CROFT summarized the purpose of the request. He stressed that there would be no general fund impact. He MOVED to approve RPL #05-1-0618. REPRESENTATIVE BUNDE OBJECTED. He stated that the full Finance Committees would benefit from these discussions. A roll call vote was taken on the MOTION. IN FAVOR: Representatives G. Davis, Therriault, Croft, Chair Phillips OPPOSED: Representative Bunde Senator R. Phillips Representative Mulder and Senators Parnell, Wilken, Adams, Halford and Pearce were not present for the vote. The MOTION FAILED (4-2). RPL Number: 09-1-0036  Department of Military and Veterans Affairs Cook Inlet Tribal Council - Youth Opportunities $83,000.00 SDPR/Operating DAVID TEAL advised that the purpose of the request was that the Cook Inlet Tribal Council (CITC), Inc. wants to contract with the Alaska Military Youth Academy (AMYA) to serve Native American Youth who are from eligible communities and are recruited to attend AMYA. The effort is part of a five- year U.S. Department of Labor Youth Opportunity Grant. The funding would support a counselor working at AMYA, provide for travel of the eligible students and provide for the clothing, equipment, supplies, services and allowances for each eligible student enrolled at AMYA from designated CITC villages. He noted that the Finance Committees have not considered the subject. The item is not incorporated into the AMYA component budget. There would be no impact to the general fund and no risk involved. CHAIR GAIL PHILLIPS clarified that the Finance Committees had considered only the Cook Inlet Tribal Council grant proposal and not the entire issue of the AMYA. DAVID TEAL agreed. SENATOR R. PHILLIPS recommended the following RPL #09-1-0037 be considered also at the same time with the RPL #09-1-0036. CHAIR GAIL PHILLIPS agreed. RPL Number: 09-0037  Department of Military and Veterans Affairs Municipality of Anchorage-Workforce Investment Act Grant $127,400 SDPR/Operating    DAVID TEAL spoke to the request. He noted that the program was a continuation of the Job Training Partnership Act (JTPA) under a new Congressional law, Workforce Investment Act (WIA), Out-of-School Youth Programs. Grant funds are through the Municipality of Anchorage, Department of Community Planning and Development. The AMYA would be providing job-skills training, resume writing, interview skill, vocational assessment, placement counseling and assistance to "at risk" youth enrolled in the program. Grant funding would permit the expansion of other services and provide new services in education/vocational counseling and increase the rate in placement of students into the workforce. SENATOR R. PHILLIPS questioned the practical effect of these types of programs. NICO BUS, Budget Manager, Department of Military and Veterans Affairs, spoke to the effect of the two RPL's and noted that both projects would help to pay for expenses in related to the programs. SENATOR R. PHILLIPS understood that the program had been fully funded. He assumed that there would be extra kids taken and asked the impact of that action. TIM JONES, Executive Direction, Alaska Military Youth Academy, Alaska National Guard Youth Corps, Department of Military and Veterans Affairs, noted that the lst RPL deals with the Cook Inlet Tribal Council. He stated that the biggest impact on that program is that there currently is a full time Native drug and alcohol counselor that works on staff but is not paid by the State of Alaska, however, paid through this grant. Over the years, there may be more students from the targeted village areas, and would receive priority for admission. Mr. Jones continued, the funding in Municipality of Anchorage money was meant to replace services received from the JTPA program. That money would be used in lieu of services so that they can continue. He noted that there are 104 students in Phase II, the residential phase. There are 175 students in the non-residential phase. Approximately 85 cases are being processed. The target goal number has always been 100 per class, two classes per year. There has never been enough funding to meet that target. REPRESENTATIVE THERRIAULT asked if there had been a request placed last year by the Municipality of Anchorage for the funding. NICO BUS responded that there had been a budget amendment for a JTPA program. The total grant was for $300 thousand dollars. REPRESENTATIVE BUNDE pointed out that 50% of the Cook Inlet Tribal Council grant would be used to cover overhead associated costs, whereas, the grant from the Municipality of Anchorage would only use $1,000 dollars for those costs. He asked why the difference. NICO BUS explained that $16,000 dollars would be used for travel for the accountant to go to the villages to recruit students. The amount received would be based on the number of students. REPRESENTATIVE CROFT inquired if the funds were reserved for Native students living in the village area. TIM JONES stated that the funds were strictly designated for Native students. REPRESENTATIVE BUNDE inquired about the timing issues associated with recruitment. TIM JONES explained that AMYA recruits up to the time of the week prior to filling of the class. He indicated that at present time, there are 85 applications on file and none have yet been accepted. He added that there is presently no money in the budget for out-reach and recruiting. NICO BUS added that the contract with the Cook Inlet Tribal Council runs October through March. The next class begins th March 8. By the time the fast track supplemental occurs, the next class would have already been started. SENATOR R. PHILLIPS asked about the status of non-Native kids. CHAIR GAIL PHILLIPS advised that the enrollment for the program was for children from all over Alaska. Only funding from the Cook Inlet grant would be for Native kids only. RICHARD LASHER, Administrative Manager, Alaska Military Youth Academy (AMYA), Department of Military and Veterans Affairs, stated that the grant would allow counselors to go out and recruit potential applicants and then they would be screened. In response to Senator Phillip's concern, he explained that the grant does target a specific group, allowing for a counselor to go out and recruit within that group. Additionally, the funding would provide for reimbursement for amenities. SENATOR R. PHILLIPS emphasized that the program was basically federally funded and that the State could not discriminate against the non-Native students. TIM JONES commented that the services would be provided to all students and the program would not be reimbursed for someone other than specified in the grant. He emphasized that services would be provided to non-Native students. REPRESENTATIVE BUNDE MOVED to approve RPL #09-1-0036. There being NO OBJECTION, the RPL was approved. CHAIR GAIL PHILLIPS MOVED to approve RPL #09-1-0037. REPRESENTATIVE BUNDE OBJECTED for a point of clarification. He asked about the timing issue and if the funds would be spent for the current class. NICO BUS explained that a class would be started in March and that for staffing commitments, an understanding of what is available is needed. REPRESENATATIVE BUNDE WITHDREW his objection. There being NO further OBJECTION, RPL #09-1-0037 was approved. (Tape Change, LBA 00-10, Side 2).  RPL Number: 12-1-0106    Department of Public Safety th Violence Against Women Act - 6 Year $427,000 Federal Grants DAVID TEAL explained that the request would enable the Council on Domestic Violence and Sexual Assault (CDVSA) to allocate FY2001 funding to those projects funded by the th Violence Against Women S*T*O*P Formula Grants, 6 Year. The Act was originally authorized in 1994 and was to provide five years funding to all the states. The Act was put forward for reauthorization to Congress in 1999, however, it was not authorized until October 2000. Due to the delay, an additional year of funding was added to the original Act. The sixth year of funding allowed states to maintain the on- going projects funded by the grant while waiting for reauthorization. The states were notified in August that there would be some support provided for the continuation of on-going projects. The amount of the grant and the actual award were not distributed until September 2000. He pointed out that the request indicates $375,000 dollars, however, working with the Department, the number should be revised to indicate $427,000 dollars. KENNETH BISCHOFF, Director, Division of Administrative Services, Department of Public Safety, offered to answer any questions of the Committee. SEANTOR R. PHILLIPS foresaw an increase to the State's general fund budget. KEN BISCHOFF stated that these are all federal funds. There is no match requirement and there will be no State impact. DAVID TEAL noted that the reason that the request is going to the budget process is that the program has been authorized for an additional five years. This request is the first of those five years. REPRESENTATIVE BUNDE suggested that the entire Finance Committees would benefit from the discussion regarding the proposal. He asked why this timing was critical. KEN BISCHOFF explained the issue is that Congress appropriated funds for which it has not passed an authorization bill. The authorization had expired and they appropriated a sixth year of funding unexpectedly. The Council has programs in place, particularly with the Department of Law, that have been in place for approximately five years. To maintain continuity in those programs, the Department is seeking concurrence with the Legislative Budget and Audit Committee (LBA) to receive and expend the allocation to keep the programs in place. REPRESENTATIVE CROFT pointed out the supportive testimony received from the Legislative Finance Division. He emphasized that the women being assisted would be able to get out of abusive relationships and that this would be federal money being for a good purpose. REPRESENTATIVE BUNDE noted that his questions did not relate to the funding of the program, but instead, the timing of the request. He reiterated his question if this timing was critical for immediate funding. REPRESENTATIVE CROFT emphasized that it is time critical as indicated by the Legislative Finance Division. SENATOR R. PHILLIPS MOVED to approve RPL #12-1-0106 with the amended amount of $427,000 dollars. There being NO OBJECTION, it was approved. RPL Number: 25-1-2063    Department of Transportation and Public Facilities-CIP Fairbanks International Airport Maintenance Facility $905,000 SDPR/Capital    and  RPL Number: 25-1-2064  Department of Transportation and Public Facilities-CIP Fairbanks International Airport Equipment Purchase    $1,065,000 SDPR/Capital    CHAIR G. PHILLIPS requested Mr. Teal to address both RPL #25-1-2063 and RPL #25-1-2064 at the same time. DAVE TEAL explained that the two requests were similar in that both of them request statutory designated program receipts for airport capital projects in Fairbanks. He noted that before discussing the merits of the projects, the Committee should determine if they want to discuss the projects at all. He stipulated the issues: · There was a Legislative Budget and Audit Task Force formed in 1996. That task force recommended that the authority to expend revenue generated from the "head tax" in place in most major airports should be made by the entire Alaska Legislature; and that · The source of funds may be inappropriate and may have no legal authority to increase authorization for the project. Mr. Teal pointed out that Representative Bunde had been the Chair of that Committee. Mr. Teal noted that the Committee could increase authorization of federal receipts and statutory designated program receipts. The passenger facility charges (PFC's) are the funds from that issuance and are restricted by the federal foundation. They can be used only for airport capital projects. The PFC's are not federal project receipts; the Federal Aviation Administration (FAA) noted that this money is clearly State money. The Department of Transportation and Public Facilities has requested use of the statutory designated program receipts. He commented that the position of the Legislative Finance Division is that fund source is an inappropriate classification of the funds. An October 1996 RPL prompted that task force. That RPL requested authority to expend international airport revenue funds, which are State funds derived from the Permanent Fund Dividends (PFD). He suggested that could be the proper funding source for the proposed request and that classification would make the RPL ineligible for LBA's consideration. REPRESENTATIVE BUNDE commented that the task force provided a very clear recommendation where LBA's authority lies in regard to that concern. He proposed that through the PFC programs, all Alaska airports should benefit. REPRESENTATIVE CROFT questioned if the Committee had the active authority to delegate the statutory designated program receipts. The argument is that this is a collection by an airport that is to be used and limited to capital construction purposes. He asked where the definition would deviate from that of statutory designated program receipts. DAVID TEAL stated that the problem was that this money was not provided in a clear fashion. The money comes from the passengers and the passengers do not have a contract with the State which indicates authority of how to use it. REPRESENTATIVE CROFT disagreed with that reasoning. He believed that the money had been collected with the intent to be used for capital projects. DAVID TEAL stated that the statutory definition of the receipts indicates that the funds must be restricted by the terms of a gift/grant contract. The question becomes, does the State have a contract between the air carriers, the airport and the passengers. He suggested that it could be argued that there is an implied contract because the FAA has a process of approving these capitol projects and the PFC's cannot be spent on just anything not approved by the FAA. Therefore, by merely collecting them, implies some sort of consent. He agreed that the definition could be "stretched" and that had happened in the past. REPRESENTATIVE CROFT understood that the airports were State owned. The airports make decisions on what projects they want approved and then get them funded through the FAA. DAVID TEAL agreed. He noted that the passenger fees could be collected only for certain projects. In theory, when the FAA approves a specified amount for a specific project and it is done, there would be no more fees. The FAA imposes restrictions and simply "allows" the air carriers to be the collectors. REPRESENTATIVE CROFT pointed out that the Legislature does not have any specific power in determining what the airport projects will be. He suggested that the airports have a type of independent power and questioned if they should be the independent agency contracting with the Legislature. DAVID TEAL commented that the Division did not use that approach as the Department of Transportation and Public Facilities owns the airport. REPRESENTATIVE THERRIAULT interjected that the Legislature does have the power to determine in this circumstance. The airport goes to the FAA to get approval and the Legislature must authorize that project. He noted that the projects have been authorized and the funding provided for them was inadequate and that the Department would like to increase the authorization and switch the funding source. He asked if the recommendations of the task force were specifically about going through the normal legislative process. He suggested by if these projects must wait for that process, the new fund source would not take place until June or July 2001, which would create a "time" crunch. REPRESENTATIVE BUNDE responded that the main concern of the task force was if there should be PFC's at all. He reiterated that the LBA Committee does not have the authority to change the funding source. REPRESENTATIVE CROFT asked if the decision made by the LBA Committee affects whether PFC's are collected. KURT PARKAN, Deputy Commissioner, Department of Transportation and Public Facilities, explained that the PFC authorization was given to the Department by the FAA to begin collection in October 2000. Currently, the Department is collecting those funds. If authorization to spend those funds for a particular project is not granted, there will be a two-year period of time for taking action on a capitol project. If no action is taken on a project within that period of time, the FAA can take that money from the PFC's and make a corresponding reduction to the settlement funds. The effect would be the loss of federal funds as an offset to the PFC's. CHAIR GAIL PHILLIPS asked if there had been discussion regarding reimbursement of the PFC funds to the individual ticket holders reducing the amount of federal appropriations. KURT PARKAN replied that was not an option from the viewpoint of the FAA. Instead, it is part of the Congressional authorization for PFC's. REPRESENTATIVE THERRIAULT suggested that repaying a $3 dollar check to all the ticket holders that paid would be a difficult task. The federal law was written so that there would be a dollar for dollar decrement in the normal airport funds if the projects had not been followed through with. The fund cannot be built up and then spent any way the Legislature wants. In fact, if it is not spent the way it was stipulated to be, there is a dollar for dollar deduct and penalty. REPRESENTATIVE BUNDE reiterated that LBA does not have the legal authority to designate these funds. CHAIR GAIL PHILLIPS requested that Representative Bunde put that in the form of a motion for the Committee to vote upon. REPRESENTATIVE BUNDE MOVED that the LBA Committee forward the question of the PFC's to the Legislature for the next session. REPRESENTATIVE CROFT OBJECTED for the purpose of a question. He believed that the outcome would be that PFC's continue everywhere that they currently are in place and that the money would be collected for possible use later. KURT PARKAN responded that the money would be collected and held until the State reached that period of time that the trigger takes place. Then there would be deductions for the federal entitlement. He provided a history of how the State got to the place that they are today. The initial application was submitted to the FAA in June 1999. After the 1999 Legislative session, there was a resolution by the House Transportation Committee requesting that the Department apply for PFC's. In June, the application was made and in October 2000, the FAA said that the State could have the PFC but would not allow the exemptions that were requested. The exemptions were not allowed under the FAA regulations because Congressional action had not taken place yet on the reauthorization of the AIP program to place them. The following year in Congress, the exemptions passed and there were concerns about them being in place. The collections began in October and because the FAA had originally given the State authorization for the PFC's in October 1999, that was the date that the two year clock began to tick for going to grant on a project. CHAIR GAIL PHILLIPS inquired if the exemption included concerns regarding the size of the aircraft or the number of seats. She asked if the concerns were specifically rural versus municipalities. KURT PARKAN clarified that the Department requested an exemption for those communities that are not connected to the road system. In addition to that, there was a request to exempt aircraft with sixty or less seats. He clarified that addressed the problem with the Kenai run. Congress placed an exclusion for the sixty seats or less aircraft, making it mandatory. The exemption was approved and made optional. He advised that both now are in place. REPRESENTATIVE CROFT inquired if the Department planned to buy the snow blower, sand trucks and the rescue truck for this winter's operations. JAMES FIORENZI, Assistant Airport Manager, Fairbanks Airport, Department of Transportation and Public Facilities, stated that there are sand trucks on order. He did not believe that those trucks would be available for this winter's operation. He added that these are all replacement pieces of equipment. REPRESENTATIVE THERRIAULT pointed out that the way the motion had been phrased would only allow the consideration to be carried forward to consideration by the Legislature. He did not know what that would mean. Representative Therriault reiterated his concern with the wording of the motion. CHAIR GAIL PHILLIPS interjected that the main concern was whether the LBA Committee has authority to make the determination at this time. She stated that had been the purpose of the motion. REPRESENTATIVE BUNDE noted for the record that he does not want to preclude further discussion of the issue by the LBA Committee; however, he strongly would recommend that since the concern is a taxing issue that the entire Legislature should consider it. He believed that there would be a broad base of support. REPRESENTATIVE CROFT stated that the appropriate way to deal with the concern would be to move it, thus, providing the approval or rejection. That would be the cleanest way to address the concern. He reiterated his objection to the motion as moved. REPRESENTATIVE BUNDE spoke to the original motion. He noted that the intent of the motion was to bring the issue to the Legislature. REPRESENTATIVE THERRIAULT asked if Representative Bunde could amend the motion or restate it as a "regular" motion that could be passed or failed. REPRESENTATIVE BUNDE WITHDREW his MOTION. REPRESENTATIVE THERRIAULT MOVED to approve RPL #2-1-2063. SENATOR R. PHILLIPS OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Representatives G. Davis, Therriault OPPOSED: Representatives Bunde, Croft & Chair Phillips Senator R. Phillips Representative Mulder and Senators Parnell, Wilken, Adams, Halford and Pearce were not present for the vote. The MOTION FAILED (2-4). REPRESENTATIVE THERRIAULT MOVED to approve RPL #25-1-2064. SENATOR R. PHILLIPS OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Representatives G. Davis, Therriault, Croft OPPOSED: Representatives Bunde, Chair Phillips Senator R. Phillips Representative Mulder and Senators Parnell, Wilken, Adams, Halford and Pearce were not present for the vote. The MOTION FAILED (3-3). CHAIR GAIL PHILLIPS indicated that with failing both motions, it was understood that the request would go forward either to the Legislative Finance Committees or back to the LBA Committee.   RPL Number: 25-1-3308  Department of Transportation and Public Facilities Sitka Airport Extended Hours of Operation $54,500 SDPR/Operating DAVID TEAL stated that the Legislative Finance Division had no concerns with the proposed request for funding. REPRESENTATIVE BUNDE MOVED to approve RPL #25-1-3308. There being NO OBJECTION, it was approved. EXECUTIVE SESSION SENATOR R. PHILLIPS made a motion, in accordance with Title 24 and 44, to move to Executive Session for the purpose of discussing audit reports, which are held confidential by law. There being NO OBJECTION, the Committee went into Executive Session at 2:30 P.M. The Committee resumed Open Session at 2:55 P.M. (Tape Change, LBA 00-11, Side A - Tape malfunction)  AUDIT REPORTS SENATOR R. PHILLIPS MOVED that the final audits on the agenda be released to the public: · DOR/AHFC-Spruce Park Housing · DOR/AHFC-Housing Assistance Loan Fund · DCED/Board of Public Accountancy · DCED/Board of State Physical Therapy & Occupational Therapy Board · DCED/Board of Barbers and Hairdressers · DCED/Board of Registration for Architects & Engineers, and Land Surveyors · DOC/Alaska Correctional Industries · DEC/Board of Storage Tank Assistance · DNR/For Fiscal Year Ended June 30, 2000 · DOTPF/Alaska Marine Highway System Fund Schedule of Unrestricted Revenues There being NO OBJECTION, the final audits were released to their respective Departments for public view. SENATOR R. PHILLIPS MOVED that the following preliminary audits be released for agency response: · DOR/Child Support Enforcement Division · DHSS/Divisions of Medical Assistance & Mental Health & Developmental Disabilities · DCED/Board of Dental Examiners · DFG/Natural Resources, Office of the Governor, Division of Governmental Coordination Mari culture Development and Aquatic Farm Act There being NO OBJECTION, the preliminary audits were released to the respective agencies for further work. ADJOURNMENT REPRESENATIVE BUNDE MOVED to adjourn the meeting at 2:58 P.M.