HOUSE FINANCE COMMITTEE April 28, 1994 8:35 a.m. TAPE HFC 94-144, Side 1, #000 - end. TAPE HFC 94-144, Side 2, #000 - 241. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 8:35 a.m. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf ALSO PRESENT Representative Jerry Mackie; Jim Gasper, Attorney, Public Safety Employees Association, Anchorage. SUMMARY INFORMATION HB 457 "An Act making appropriations to satisfy the monetary terms of certain collective bargaining agreements for certain public safety employees under an arbitrator's decision; and providing for an effective date." HB 457 was reported out of Committee with individual recommendation. SB 312 "An Act relating to school construction grants; and providing for an effective date." HCS CSSB 312 (FIN) was reported out of Committee with individual recommendation and with two zero fiscal notes by the Department of Education. SENATE BILL NO. 312 "An Act relating to school construction grants; and providing for an effective date." REPRESENTATIVE JERRY MACKIE spoke in support of CSSB 312 (HES) am. He noted that under current law the Department of Education must accept or reject the total school 1 construction project. A project can only be rejected if found to not be "in the best interests of the state." He observed that CSSB 312 (HES) am would allow the Department of Education to modify or revise the scope of submitted projects to assure that schools are adequately sized for the community to be served. In addition, CSSB 312 (HES) am would allow the Department of Education to require that school construction projects be phased in. Representative Mackie noted that the bill was amended in the Senate. The first amendment allows a school term to begin and end on dates fixed by the governing body of a school district, as long as the term is equivalent to not less than 180 days. The second amendment would create four pilot projects for special education services. He asserted that the legislation will allow more, smaller and efficient schools to be built. Representative Brown provided members with AMENDMENT 1 (copy on file). She explained that the amendment would expand pilot projects to allow inclusion of intensive students. The amendment would increase the number of pilot programs from four to six. DUANE GUILEY, FINANCE DIRECTOR, DEPARTMENT OF EDUCATION expressed concern with the inclusion of intensive students. He noted that intensive students already have an individualized education program. He noted that the purpose of the pilot is to reduce the number of students identified as special education students in order to prevent labels being attached to students. He emphasized that early intervention can prevent students from receiving the label of a resource room student. He stressed that the addition of "intensive" students would make it more difficult to evaluate application and to provide measurable gains. He noted that the department supports the expansion to eight pilot programs. He added that if the amendment is adopted the department would write strict guidelines determining when intensive students would be included. Representative Brown MOVED to ADOPT AMENDMENT 1. Co-Chair MacLean MOVED to DIVIDE the question. There being NO OBJECTION, it was so ordered. The amendment was divided into two parts. Amendment 1A would delete "four" and insert "eight" on page 3, line 31. Amendment 1B would insert "or intensive" on page 3, line 17. Co-Chair MacLean MOVED to ADOPT AMENDMENT 1A. There being NO OBJECTION, it was so ordered. Representative Brown MOVED to ADOPT AMENDMENT 1B. She emphasized that the bill states that "the project is 2 designed to demonstrate appropriate alternative methods to meet the educational needs of (A) students who would otherwise receive resource and self-contained services and generate funding at those levels." She stressed that the issue is how funding is distributed under the foundation formula. The amendment would allow funding to follow a severely disabled child if they participate in the pilot project. Representative Grussendorf spoke in support of "mainstreaming" intensive students. Representative Brown observed that the amendment would allow students that must have an aide with them at all times to spend 1 or 2 hours in classes with other levels of students. A roll call vote was taken on the motion to adopt AMENDMENT 1B. IN FAVOR: Parnell, Brown, Foster, Hanley, Martin, Larson OPPOSED: Therriault, Grussendorf, Navarre, MacLean Representative Hoffman was absent from the vote. The MOTION PASSED (6-4). In response to a question by Representative Hanley, Mr. Guiley discussed sections 2 and 3. He noted that section 2 will sunset after June 1, 1994. Section 3 will extend the sunset date on the provision to allow school districts to adopt a school term of less than 180 days if the commissioner approves the use of up to 10 in-service days or a plan to provide the educational equivalent of a 180 day term. Members discussed the provisions of section 3. Representative Navarre noted that the provision in current law was adopted to allow rural villages to pursue cultural and religious activities. Co-Chair MacLean MOVED to report HCS CSSB 312 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HCS CSSB 312 (FIN) was reported out of Committee with individual recommendation and with two zero fiscal notes by the Department of Education. HOUSE BILL NO. 457 "An Act making appropriations to satisfy the monetary terms of certain collective bargaining agreements for certain public safety employees under an arbitrator's 3 decision; and providing for an effective date." TERRY CRAMER, LEGAL COUNSEL, DIVISION OF LEGAL SERVICES explained that if the legislature failed to pass HB 457 but did pass an operating budget that funded the salaries at some level for public safety employees, the action on salary would constitute approval of the monetary terms of the arbitrated agreement. In order to disapprove the terms of collective bargaining, the legislature would need to adopt language to the effect of, "failure of the legislature to make a special appropriation to fund the collective bargaining contract, constitutes disapproval of the monetary terms. The legislature cannot disapprove the contract through its inaction. Co-Chair Larson summarized that adoption of the Department of Public Safety's budget contained in HB 370 would constitute an action that would put the terms of the arbitrator into effect. Ms. Cramer agreed that the action would obligate the state to pay at the negotiated level. Ms. Cramer clarified that the legislature cannot selectively approve of terms in the collective bargaining contract. The legislature must approve or disapprove of the total contract. JIM GASPER, ATTORNEY, PUBLIC SAFETY EMPLOYEES ASSOCIATION spoke in support of HB 457. He noted that AS 23.40.215 requires that the legislature make a determination within 60 days. He emphasized that the Alaska Supreme Court has ruled that the ultimate arbitrator's award is final and binding. He maintained that the findings are binding on the executive branch. He stressed that there are no opportunities to renegotiate the basic terms of the agreement. He noted that once the arbitrator's ruling has been given there is no authority to resubmit the ruling for reconsideration. He accentuated that the legislature can only approve or disapprove of the monetary terms of the agreement. Representative Martin asserted that the legislature's constitutional power of appropriation is being challenged. Mr. Gasper discussed court rulings regarding the terms of contractual relationship created under collective bargaining and the legislature's constitutional right of appropriation. He concluded that the contractual relationship created under collective bargaining does not infringe on the legislature's appropriation ability. Representative Hanley stressed that approval is an advisory expression of legislative intent and that disapproval may result in renegotiation. He observed that the legislature 4 must approve or disapprove of the contract. He emphasized that it is not appropriate to do nothing. Representative Hanley MOVED to report HB 457 out of Committee with individual recommendations. Representative Martin expressed concern regarding the legislature's ability to control funding. (Tape Change, HFC 94-144, Side 2) Co-Chair Larson emphasized that appropriation bills are handled at the end of the legislative session. He maintained that it is not the legislature's responsibility to negotiate contracts. He observed that the legislature has been faced with hard decisions regarding reductions in the Department of Public Safety's operating budget. He expressed concern that proponents of the legislation were abusive to committee staff. Co-Chair MacLean expressed concern with the monetary terms of the bargaining agreement. Representative Martin noted that other public employees have not received cost of living increases. Representative Navarre observed that collective bargaining and binding arbitration statutes have not been revisited in a long time. He stressed that statutes provide that the legislative appropriation approval is the final aspect of the collective bargaining process. He expressed concern with reductions to the Department of Public Safety's operating budget. He noted that arbitrators have consistently ruled in favor of the employees. He stated that as part of the collective bargaining process, and with the financial situation in the state, the legislature must say "no" at some point. Representative Navarre OBJECTED to the motion to move HB 457 from Committee. A roll call vote was taken on the motion. IN FAVOR: Brown, Hanley, Martin, Parnell, Grussendorf MacLean, Larson OPPOSED: Therriault, Navarre Representatives Hoffman and Foster were absent from the vote. The MOTION PASSED (7-2). HB 457 was reported out of Committee with individual recommendation. 5 ADJOURNMENT The meeting adjourned at 9:40 a.m. 6