HOUSE FINANCE COMMITTEE March 6, 2000 2:10 P.M. TAPE HFC 00 - 57, Side 1 TAPE HFC 00 - 57, Side 2 TAPE HFC 00 - 58, Side 1 TAPE HFC 00 - 58, Side 2 TAPE HFC 00 - 59, Side 1 CALL TO ORDER Co-Chair Mulder called the House Finance Committee meeting to order at 2:10 p.m. PRESENT Co-Chair Mulder Co-Chair Therriault Representative Foster Vice Chair Bunde Representative Grussendorf Representative Austerman Representative Moses Representative J. Davies Representative Phillips Representative G. Davis Representative Williams ALSO PRESENT Representative Reggie Joule; Dwayne Peeples, Director, Administrative Services, Department of Corrections; Karen Rehfeld, Director, Division of Education Support Services, Department of Education and Early Development; Kenneth Bischoff, Director, Division of Administrative Services, Department of Transportation; Trisha Gentle, Executive Director, Council on Domestic Violence and Sexual Assault. SUMMARY HB 312 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©, Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date. Amendments were heard for the following departments: Department of Corrections Department of Administration Department of Education and Early Development Department of Public Safety HB 312 was HELD in Committee for further consideration. HB 313 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. HB 313 was HEARD and HELD in Committee for further consideration. HOUSE BILL NO. 312 "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."   DEPARTMENT OF CORRECTIONS Representative Grussendorf MOVED to ADOPT Amendment Corr-3: Administration and Operations BRU Inmate Health Care Component $500.0 GENERAL FUND Co-Chair Mulder OBJECTED. These General Funds support both state permanent full- time positions and contract positions that provide a full array of medical, mental health, and dental support to the Department's Institutions, and contract Community Residential Centers. The Department admits approximately 30,000 offenders annually into its institutions and the daily population of prisoners numbers approximately 4,300. The Department is required to provide medical, dental, and mental health services as necessary to ensure the continued health of the prisoners. During the last few years, additional financial resources, via supplemental and revised programs, has been appropriated by the legislature to provide necessary and critical services. The Department is in the process of reviewing medical health services to contain costs and increase efficiencies. The proposed budget reductions will significantly impact the operations health care services and will result in an elimination of nursing staff and other services, which may threaten prisoner health and safety. If the Department is not able to safely provide services that meet this budget reduction level, it may request future supplemental support to continue adequate health care to Alaska's state prisoners. Representative Grussendorf spoke in support of Amendment Corr-4. He emphasized that a lack of funds could result in litigation. He stressed that early treatment can reduce costs. Co-Chair Mulder responded that personal services were studied in the components. There are 100 people within personal services administrating health in the institutions. There are $7.3 million dollars in state funds and $5.5 million dollars in contracts for medical services. He stressed that $500 thousand dollars can be reduced without affecting services. Representative Grussendorf noted that the reduction would result in a reduction to the 24-hour nursing staff. Representative J. Davies acknowledged the size of the component but questioned how the number spent compares to health care in other facilities. DWAYNE PEEPLES, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS provided information on the amendment. He observed that the department is in the process of reviewing its health care system with the intent to reduce costs without affecting services. The department has concerns about the level of cuts. He stressed that the department is population driven. Reductions in out-of-state prisoners have put more pressure on institutions. If the efficiencies are not realized and the population continues to grow the department might need a supplemental. A roll call vote was taken on the motion to ADOPT Amendment Corr-3. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). Representative Grussendorf MOVED to ADOPT Amendment Corr-4: Community Residential Centers Existing Community Residential Centers Component $550.0 GENERAL FUND Co-Chair Mulder OBJECTED. The Department currently has 718 community residential center beds under contract with 10 providers throughout the state. The average cost is approximately $60 per CRC bed. The Department will have to reduce the in-state CRC beds under contract from 718 to approximately 693 or 25 fewer beds for FY2001. Such a reduction could seriously impact the Department's ability to keep the institution counts at their emergency caps in order to assure better public protection. If the prisoner population increases beyond the department's ability to safely house offenders in institutional "hard beds" and the remaining 693 CRC "soft beds", this may result in the need to request supplemental funding later in the fiscal year. Representative Grussendorf spoke in support of the amendment. He emphasized that the reduction in soft beds would result in greater costs. Co-Chair Mulder explained that the appropriation is a $600 thousand dollar increase over FY00 actuals. He did not think that the prison population has increased greatly. He noted that $450 thousand dollars were approved for electronic monitoring slots. Representative Grussendorf observed that 30,000 people are going into the system. He maintained that the state would be better off having the 28 beds that are in question. Representative J. Davies questioned the statewide impact. Co-Chair Mulder responded that the Bethel cultural programs were fully funded. Anchorage would be the major community impacted. Electronic monoriting will be fully functional in Anchorage. Mr. Peeples pointed out that the receipts are collected from prisoners. These beds help alleviate pressure. Representative J. Davies spoke in support of the amendment. He concluded that a request for a supplemental could arise. Co-Chair Mulder noted that the model was built on a steady population. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). DEPARTMENT OF ADMINISTRATION Representative G. Davis MOVED to ADOPT Amendment Admin-1: DELETE Department of Administration Longevity Bonus Grants BRU Longevity Bonus Grants Component $2,844.5 Representative Grussendorf OBJECTED. Representative G. Davis spoke in support of the amendment. He stressed that the amendment would reduce the Longevity Bonus Grant by one month's payment. He observed that other services go to assist needy seniors. He explained that his intent was for less needy seniors to assist more needy seniors. He observed that there is legislation pending to make the program needs based and expressed his support. Representative Grussendorf expressed concern that money taken from the bonus program would result in an additional burden on the supplemental. He noted that there are problems with addressing issues through the supplemental. He stated that he would be hesitant to support the amendment without passage of the legislation. Representative J. Davies echoed comments by Representative Grussendorf and noted that the program is not currently needs based. Seniors that rely on the money would be adversely affected. He stated that he would probably support needs based legislation. He pointed out the program has been in place and felt that the current commitment should be met. The program has been discussed annually. Co-Chair Therriault agreed that the amendment would take the funds away in an "artful manner". He stressed that there are seniors that do not need the funds. He agreed that the issue should be addressed within legislation. Representative Phillips spoke against the amendment. She felt that more seniors need the bonus than do not. Many Alaskans could not live in Alaska without their checks. Vice Chair Bunde pointed out that there is a difference between wants and needs. He maintained that the current system is based on wants. He questioned the average age of recipients. Representative G. Davis spoke in support of the amendment. He conceded that the intent of the amendment was to draw focus to the issue. He WITHDREW Amendment DOA-1. Vice Chair Bunde MOVED to ADOPT Amendment Admin-2: Add: Department of Administration Public Communications Services Public Broadcasting Radio $200. GF Delete: Department of Public Safety Council on Domestic Violence and Sexual Assault Council on Domestic Violence and Sexual Assault $200,000 General Funds Add: Department of Public Safety Council on Domestic Violence and Sexual Assault Council on Domestic Violence and Sexual Assault $535,000 I/A (TANF from H&SS) Representative J. Davies OBJECTED. Amendment DOA-2 restores the Council on Domestic Violence and Sexual Assault (CDVSA) to the FY 00 level by using available TANF funds. The amendment also restores $200,000 dollars in state general funds to support government-funded radio. Vice Chair Bunde spoke in support of the amendment. He recalled the large response during the statewide teleconference in support of public radio and the Council on Domestic Violence and Sexual Assault. Co-Chair Mulder observed that the amendment would restore CDVSA. Representative Grussendorf expressed concern that the TANF funds might not be available. Co-Chair Therriault explained that the funds are available. He observed that review of other states show that CDVSA would be an appropriate use of TANF funds. Representative Grussendorf questioned if CDVSA would be short funded with the amendment. Co-Chair Mulder stated that the amendment would leave CDVSA at the FY00 level. Representative J. Davies questioned if the FY00 level is sufficient to meet the FY01 demand. Representative G. Davis recalled testimony in support of increased needs for domestic violence and sexual assault programs. Co-Chair Mulder explained that CDVSA spends little of their funds on prevention. The majority goes to treatment. He spoke in support of increased spending for prevention programs. Representative J. Davies observed that shelter personnel spend a lot of their time seeking grants for prevention. He stated that he would not categorize shelters as treatment. He spoke in support of providing added resources for prevention. Co-Chair Mulder observed that the state of Alaska spends twice as much on domestic violence and sexual assault as other states. He questioned if the need is double. Representative J. Davies pointed out that if the trend is increasing and it is funded at last year's level that the need at this time is not being covered. He stressed how extreme the need is to have a shelter open 24 hours a day. Representative G. Davis noted that he would support the amendment. He acknowledged that a shortfall remains in the Public Communications Services component but felt that they could live within that budget. Representative Grussendorf echoed concerns with the use of TANF funds. He questioned if the component could use the felon funds if TANF funds are not realized. Co-Chair Mulder acknowledged that the funding source would be a consideration in the following years. Vice Chair Bunde noted that Alaska's population did not grow last year. He commented that there are some traditions in Alaska that the state can do without. Co-Chair Therriault reiterated that the TANF funds are available this year. He stressed that other states have used TANF funds for domestic violence service and head start programs. He assured members that he is working with the Legislative Finance Division to assure that the funds are not over committed. He maintained that federal government block grants to the state have worked well. (TAPE CHANGE, HFC 00 57, Side 2)  Representative J. Davies noted that the State of Alaska is number one in regards to rape cases and high in regards to domestic violence cases in the nation. ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND BUDGET, OFFICE OF THE GOVERNOR spoke in support of the amendment. She observed that the Department of Health and Social Services is trying to determine the appropriate use of TANF funds. The Governor is in support of increasing the funds for the Council on Domestic Violence. She noted that more information would be available on the next day regarding the use of the funds. Representative J. Davies MOVED an amendment to Amendment ADMIN-2, which would add $130 thousand dollars to the Public Communications Services, Public Broadcasting. He noted that the amendment to the amendment would restore full funding. He observed that there was a great deal of input from the public regarding the importance of public radio. He observed that many elements within the budget are important and emphasized that the state should support the service. He observed that technological efficiencies have resulted in savings but maintained that the component could not take further reductions without losing stations. He pointed out the importance of public radio to connect the state. Representative Grussendorf stressed the importance of public radio. Sitka serves other communities that rely on public radio for weather, local news and emergencies. Public radio is more than just entertainment. Representative Austerman echoed comments by Representative Grussendorf, but explained that he would vote against the amendment due to the need to pay for essential services in Alaska. He stressed that without the use of Permanent Funds that there need to be reductions. He felt that the component could make up the difference. A roll call vote was taken on the motion to amend Amendment Replacement DOA-2. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). There being NO OBJECTION, Amendment DOA-2 was adopted. . Representative G. Davis MOVED to ADOPT Amendment DOA-2A: Add: Senior Services BRU Protection, Community Services, and Administration Component $15.0 MHTAAR Representative G. Davis explained that Mental Health Trust Board approved the funding at its February meeting. It would allow the Commission on Aging to extend outreach to rural areas of Alaska. It will additionally assess service needs of rural trust beneficiaries. Co-Chair Mulder observed that the Board was unanimous in its support. There being NO OBJECTION, it was so ordered. Vice Chair Bunde MOVED to ADOPT Amendment Admin-3: Department of Administration Public Communications Services Public Broadcasting Radio $330. GF Add $330.0 GF to restore funding for public radio grants to FY00 level. Representative G. Davis OBJECTED. Representative Moses MOVED to amend Amendment DOA-3: Department of Administration Public Communications Services Public Broadcasting Radio $130. GF There being NO OBJECTION, the amendment was amended. Representative Moses spoke in support of the amendment. He stressed the importance of public radio in rural areas. Representative G. Davis stated that his intention is to take reductions from urban areas. Vice Chair Bunde responded that urban areas could not be shut down without affecting rural areas. Representative Grussendorf pointed out that urban areas service other smaller communities without other radio stations or newspapers. Vice Chair Bunde observed that public radio stations encourage lobbying with state funds. He noted that public radio is well supported in his district. Co-Chair Mulder observed that the Committee heard testimony that only 1 of 10 provide financial support public radio in Sitka. Representative Grussendorf pointed out that mayors around Southeast have named public radio as their top concern. Representative J. Davies pointed out that urban areas are hubs to provide support to urban areas. He added that school board and assembly meetings are broadcast in Fairbanks. Meetings with legislative members are broadcast. He maintained that commercial stations couldn't provide the same services. Co-Chair Therriault spoke against the amendment. He questioned the support for public radio in smaller communities. He observed that the state of Alaska is putting additional money in every resident's pocket through the dividend. Vice Chair Bunde stated that he listens to public radio. He MOVED to Amend Amendment-DOA-3, by changing the funding source to municipal assistance. Representative Grussendorf noted that the Juneau and Sitka Assembly meetings are broadcast on public radio. Representative G. Davis OBJECTED. A roll call vote was taken on the motion to amend Amendment DOA-3. IN FAVOR: Williams, Bunde, Davies OPPOSED: Austerman, Bunde, Davis, Foster, Grussendorf, Phillips, Therriault, Mulder The MOTION FAILED (3-8). Representative Moses stated that the service is more important than the legislative information offices. He observed that of the 232 people that testified before the Committee on 3/4/00 that no one spoke in support of cutting the budget. Representative Phillips observed that public radio is well supported in her district. Co-Chair Mulder noted that his constituents still request that the budget be cut. Vice Chair Bunde echoed comments by Co-Chair Mulder. A roll call vote was taken on the motion to adopt Amendment DOA-3 as amended. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). Representative J. Davies MOVED to ADOPT Amendment Admin-4: Public Communications Services Public Broadcasting Satellite Infrastructure Component Add $100.0 GF to avoid ARCS going off the air for 6 weeks to two months. Representative G. Davis OBJECTED. Representative J. Davies spoke in support of the amendment. He stated that the intent of the reduction was to stimulate university receipts. He explained that the cut was made last year, but has not been realized. It was not addressed in the supplemental. Funds were not added in to the FY00 base. Representative J. Davies noted that the university already pays $100 thousand dollars. There was an intention by the other body to require additional funding from the university. A roll call vote was taken on the motion to adopt Amendment DOA-4. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). (TAPE CHANGE, HFC 00 - 58, SIDE 1)  Representative J. Davies MOVED to ADOPT Amendment Admin-5: Public Communications Services BRU Satellite Infrastructure Component Add $50.0 statutory designated program receipts. Co-Chair Mulder observed that Dan Spencer, Department of Administration indicated that contractual arrangements might be available. The amendment would allow a contractual arrangement. There being NO OBJECTION, it was so ordered. Representative Moses MOVED to ADOPT Amendment Admin-6 as amended: Public Communications Services BRU ADD $200.5 GF spread through the following components in the amounts listed to restore 5% reduction and additional $200.0 reduction to radio. Public Broadcasting Commission Component 2.8 Public Broadcasting Radio 130.0 Public Broadcasting TV 39.7 Satellite Infrastructure $28.0 Representative G. Davis OBJECTED. Representative Moses stressed the importance of public radio in rural areas. It is a life and death issue. Representative Phillips clarified that the previous amendment added funds to the satellite infrastructure component. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Mulder Co-Chair Therriault was absent from the vote. The MOTION FAILED (3-7). Representative Grussendorf MOVED to ADOPT Amendment Admin- 7: Leases Component Add $1043.6 GENERAL FUND Representative G. Davis OBJECTED. Representative Grussendorf spoke in support of the amendment. He stressed that the leasing component is under funded and that a supplemental would be required. Representative G. Davis spoke against the amendment. The leasing component was funded at the FY 00 level. He pointed out that there is an attempt to get contractual support from other departments. He acknowledged that there might be a supplemental. He pointed out that leasing costs have come in under projected amounts in the past years. Co-Chair Mulder noted that $33.5 million dollars a year are spent on leasing. He acknowledged that there has been a strategy to encourage the department to keep leasing costs down through short funding. He noted that it would be a challenge. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder Representative Moses was absent from the vote. The MOTION FAILED (2-8). Representative J. Davies MOVED to ADOPT Amendment Admin-8: Longevity Bonus Grants Component Add $1,755.5 GF Representative G. Davis OBJECTED. Representative J. Davies spoke in support. He observed that the component is short funded and that a supplemental would be needed. Co-Chair Therriault pointed out that a month of checks would be $4,600 dollars. He argued that the appropriation would be sufficient if there were a drop off in enrollment. Representative J. Davies pointed out that checks cannot be issued if the full amount is not available. Representative G. Davis observed that projections from previous years have varied. He acknowledged that there could be a supplemental request. Representative Phillips spoke in support of legislation allowing pro-ration of the bonus. Co-Chair Mulder stated that he would endorse pro-ration legislation. Representative Austerman pointed out that the supplemental is part of the budget process. He maintained that the supplemental is an appropriate way of handling unknowns. Co-Chair Therriault observed that there are variables in projecting funding. He stated that he would prefer not to over-fund the request. He felt that the required amount would be less than the request. Representative J. Davies stated that the problem with under-funding is that it causes concerns amongst the recipients. He preferred to risk over-funding the component. Representative Grussendorf expressed concern that a cap has been proposed on the amount available through a supplemental. He observed that the legislature is building in the need for a supplemental, but expressed concern that if there is a cap on the supplemental that programs would have to be prioritized. Representative Williams recalled similar arguments in FY00. He spoke in support of saving money where possible. He stressed that seniors can be reassured through the efforts of legislators, speaking to seniors in their districts. Vice Chair Bunde stated that he would prefer to underfeed the request. Representative J. Davies stressed that there is no savings if there is a supplemental. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). Representative Grussendorf MOVED to ADOPT Amendment Admin- 9: Legal and Advocacy Services BRU Office of Public Advocacy Component Add $335.8 GF for Child in Need of Aid Caseload Increase. Representative G. Davis OBJECTED. Representative Grussendorf spoke in support of the amendment. He observed that HB 375 would shorten the time that an abused child is held by the court. Caseload has increased 37 percent. The per lawyer caseload has increased from 75 to 200 cases each. He questioned how the abused child could be fast tracked when the caseload ratio is high. He pointed out that money is being put into enforcement and incarceration, but stressed the need for representation. Co-Chair Mulder pointed out that the budget was increased by 11 percent and stressed that the subcommittee has been committed to the component. Representative Grussendorf acknowledged the work by the subcommittee, but added that more money is needed. Representative G. Davis observed that the request is an increment and that increments are hard to fund. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). Representative J. Davies MOVED to ADOPT Amendment Admin-10: Legal and Advocacy Services BRU Office of Public Advocacy Component Add $355.0 GF/MH for Public Guardian Caseload Reduction. Representative G. Davis OBJECTED. Representative J. Davies spoke in support of the amendment. He observed that the services go to persons that are disabled. He maintained that the quality of service has deteriorated. The Office of Public Advocacy also provides training for private advocates. He observed that caseload should be at 50 per guardian and is now at 93. Co-Chair Therriault stated that he would like to find funding for the request and noted that if the longevity bonus program was needs based there would be additional funds for programs such as this. Representative J. Davies spoke in support of the amendment. Representative G. Davis acknowledged the need and stressed that the state of Alaska needs to support the function of the Office of Public Advocacy. Discussion ensued regarding pressure by the public to cut the budget, the responsibility of representatives to make decisions, the September 14, 1999 vote on a long-range fiscal plan and the need to pursue another fiscal plan. Representative J. Davies stressed that there were good reasons why some Alaskan voters did not support the plan proposed in the September 14, 1999 advisory vote.   (TAPE CHANGE, HFC 00 - 58, SIDE 2)  Discussion continued regarding the need for a long-range fiscal plan. Representative J. Davies asked how people in good conscious could say no to helping individuals with Alzheimer's disease when we live in a state that has more money than any other state in the Union. Representative Moses commented that it is not appropriate to tax those without an income the same as those that are very wealthy. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). There was no Amendment Admin-11. Representative Grussendorf MOVED to ADOPT Amendment Admin- 12: Legal and Advocacy Services BRU Public Defender Agency Component Add $755.2 GENERAL FUND Representative G. Davis OBJECTED. Representative Grussendorf spoke in support. The public defender must take assigned cases. The caseload has increased 43 percent. Attorneys work approximately 21 hours a week of uncompensated time. Continuances are necessary due to the heavy workload, which further slows the process. Prosecuting attorneys have access to state resources. Public Defenders often meet their clients for the first time when they go to court. He observed that new legislation has increased workload. Representative G. Davis noted that the Public Defender Agency received an appropriation in the FY00 supplemental. He acknowledged the need and that the caseload would not be reduced. Representative Grussendorf reiterated that new legislation continues to increase the caseload. Representative G. Davis acknowledged that new legislation increases the demand for the services of the Alaska Public Defenders Agency and the Office of Public Advocacy. Representative J. Davies stressed that resources are pushed thin. The law requires that a defense be provided. He expressed concern that the state of Alaska could find itself behind a class action lawsuit. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Davis, Phillips, Williams, Therriault, Mulder Representatives Foster and Bunde were absent from the vote. The MOTION FAILED (3-6). Representative J. Davies MOVED to ADOPT Amendment Admin-13: Alaska Longevity Programs Management BRU Pioneers Homes Component ADD $100.0 in fee support/Pioneer's Home Recpts (1118) Representative G. Davis OBJECTED. Representative J. Davies spoke in support of the amendment. The appropriation would be used to replace worn beds in the homes. He observed that 80 percent of the beds are 20 to 35 years old. The average age of resident is 80 years old. At this rate it would take 6 years to replace the beds and 75 beds would be replaced each year. Representative G. Davis spoke against. He noted that all but $100 thousand dollars of the increment was funded. He expressed hope that the fee support bill would be enacted and that more funds would be available. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault Co-Chair Mulder was absent from the vote. The MOTION FAILED (3-7). Representative J. Davies MOVED to ADOPT Amendment Admin-14: Page 2, line 15: Senior Services $3,974,300 ($2,481,300GF and $1,493,100 Other Funds) Page 2, line 18: Home and Community Based Care $3,391. Representative G. Davis OBJECTED. Representative J. Davies explained that the amendment restores a $349,900 GF/MH reduction for statewide services for Alaskans with Alzheimer's disease and related disorders. The appropriation would provide services for patients and their families and caregivers. The appropriation would help keep people in their homes. Representative G. Davis maintained that the Mental Health Trust is addressing the issue. He stressed that private services are being increased each year. Assistance is also available from the Alzheimer's Association. Representative J. Davies agreed that a lot is being done, but questioned how much of the need is not being met. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder Representative Moses was absent from the vote. The MOTION FAILED (2-8). Representative J. Davies MOVED to ADOPT Amendment Admin-15: Centralized Administrative Services BRU Component: Retirement & Benefits ADD $345.5 in Benefits Systems Receipts Representative G. Davis observed that the funding source would not be the General Fund. He did not object. There being NO OBJECTION, it was so ordered. DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT Co-Chair Mulder MOVED to ADOPT Amendment DEED-1: Delete Early Development Head Start Grants $75. GF Add Early Development Head Start Grants $75. I/A (TANF) Add Commissions and Boards Alaska State Council on the Arts $75. GF Co-Chair Mulder explained that federal funds could be used for Head Start Grants. This allows movement of general funds to restore 75,000 to the Arts Council. There being NO OBJECTION, it was so ordered. Co-Chair Mulder MOVED to ADOPT Amendment DEED-1A: Alaska Postsecondary Education Commission WWAMI Medical Education $1,444,200 Postsecondary Recpts Co-Chair Mulder explained that the request is funded in the language section, Section 31(b). This change was made at the request of the Commission so that net surplus funds would be used and there would be no net impact on the student loan program. There being NO OBJECTION, it was so ordered. Co-Chair Mulder MOVED to ADOPT Amendment DEED-2: Page 8, line 8: Delete '678,213,600' Insert "685,765,900" Delete "649,007,000" Insert "656,559,300" Page 8, line 9: Delete "669,887,400" Insert "677,439,700" Co-Chair Mulder OBJECTED. Representative J. Davies observed that Amendment DEED-2 increases the allocation for the quality school initiative to $7,552,300 dollars GF. He pointed out that the first benchmark and exit exam tests would be given in the next week. Co-Chair Mulder responded that there would need to be a statutory change to increase the funding. There is legislation to make the change. He suggested that the money would be available if the legislation is enacted. Representative J. Davies argued that the appropriation could be made without enacting legislation. He noted that it would be a one-time appropriation. He questioned what would happen to children in the third grade that do not meet the benchmark requirements. He stressed that measures must be taken to assure that they are not deficient in the next test. Vice Chair Bunde suggested that there needs to be time to assess the situation before more money is added. Representative J. Davies noted that the average teacher puts $800 dollars of their money into supplies every year. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). Amendment DEED-3 was WITHDRAWN. Representative J. Davies MOVED to ADOPT Amendment DEED-4: Alaska Postsecondary Education Commission BRU WWAMI Medical Education component Switch $1,444.2 Corp Receipts to GF Co-Chair Mulder OBJECTED. Co-Chair Mulder explained that the WWAMI and WITCHIE programs were funded with corporate receipts. Representative J. Davies spoke in support of Amendment DEED-4. He noted that the amendment would change the funding source to general funds and maintained that the receipts would be more appropriately used for the Alaska Scholars' Program. Co-Chair Mulder responded that the Scholars' Program has been funded through the foundation formula. He suggested that the use of corporate receipts is appropriate and would help stabilize the programs. Vice Chair Bunde noted that corporate receipts come from the interest earned on student loans. This amount is the excess, which is not needed to run the program. Students are being asked to subsidize other students. He felt that the money should be used to reduce loan levels. He stressed that the program was not implemented to make money for the state. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Foster, Williams, Mulder Co-Chair Therriault and Representatives Davis and Phillips were absent from the vote. The MOTION FAILED (3-5). Representative J. Davies MOVED to ADOPT Amendment DEED-5: Page 8; line 15, in both places: Delete "39,775,100" Insert "44,855,000" Increases the appropriation for Pupil Transportation by $5,079,900 GF. Representative J. Davies spoke in support. Representative J. Davies stressed that the Fairbanks School District was a hard negotiator. The contracts have to be approved by the Department of Education and Early Development. The department could have sent the contracts back for further negotiation. There is a lack of competition. He maintained that the cost would come from student education. Co-Chair Mulder noted that the component was funded at the FY00 level. Representative J. Davies pointed out that the supplemental request was not incorporated into the FY00 amount. Representative Phillips observed that there has not been an increase in pupil enrollment or road miles in several years. Representative Austerman pointed out that bus services have increased. School districts can redraw boundaries. Representative Grussendorf noted that the cost of fuel has influenced costs. He pointed out that if there are five empty seats available the bus is still going to run the same routes. Representative Phillips replied that the state should have been reimbursed for low fuel prices. Representative J. Davies observed that contracts are negotiated. The questioned is what drives costs up. He agreed that fuel costs are driving contract costs higher. School districts do not have rebate clauses in their contracts. He reiterated that the Department of Education and Early Development reviews contracts. There are conditional lane miles. Fairbanks added a new school that added a new set of bus routes. Vice Chair Bunde observed that the Anchorage School District maintains its own buses. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Mulder Co-Chair Therriault and Representative Williams were absent from the vote. The MOTION FAILED (3-6). Representative Grussendorf MOVED to ADOPT Amendment DEED-6: Page 8, line 28: Delete "62,843,200" Insert "68,251,600" Delete "8,019,500" Insert "13,427,900" Page 8, line 30: Delete "26,071,500" Insert "31,479,900" KAREN REHFELD, DIRECTOR, DIVISION OF EDUCATION SUPPORT SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT explained that the amendment would increases allocation for childcare assistance and licensing by $5,408,400 GF. Co-Chair Mulder explained that the intention of the subcommittee was to continue daycare for welfare to work parents. People would continue to receive assistance during the transition from welfare to work. He noted that the amendment would address the waiting list of low-income recipients that have not gone through welfare to work. He observed that the subcommittee has discussed a step down for recipients. There was a $700.0 thousand dollar increase over FY00. Representative J. Davies pointed out that three people do the licensing for the state of Alaska. Co-Chair Mulder explained that only three positions were transferred. The subcommittee recommended that the three positions that were transferred be RSA back into Foster Care to maintain efficiency. The Department of Education and Early Development had not taken a position. Ms. McConnell pointed out that it is not an issue of splitting licensing. She observed that services were inadequate before the split. Foster care licensing must be taken care of first. The current level of resources cannot provide adequate care. It is not a matter of efficiency. The most life threatening situations must be taken care of first. There was a $1.5 million dollar supplemental. The $700 thousand dollars approved by the subcommittee does not equal the FY00 level with the supplemental. Representative J. Davies estimated that 440 children would have to be removed. There is a wait list of over 1,000. Co-Chair Mulder stressed that the subcommittee is sympathetic but could not ascertain how many kids would transition from Pass I to Pass II. Co-Chair Mulder noted that the state has made a major commitment to childcare. Representative J. Davies questioned what would happen to families that come off the program. Ms. McConnell clarified that out of $4.5 million dollars, $1.8 million is for the wait list. An additional $1.2 million dollars would be needed for Pass II. The goal of the Administration is to continue the welfare to work support and not take anyone off. Co-Chair Therriault felt that there might be another way to deal with the need. Representative J. Davies WITHDREW Amendment DEED-6. Representative Grussendorf MOVED to ADOPT Amendment DEED-7: Page 8, line 28: Delete "62,843,200" Insert "64,843,200" Delete "8,019,500" Insert "10,019,500" Delete "6,029,200" Insert "8,029,200" Increases allocation for Head Start Grants by $2,000,000 GF. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). Representative Grussendorf MOVED to ADOPT Amendment DEED-8 K-12 Support BRU Youth in Detention Component Add $300.0 GF Representative Grussendorf spoke in support of the amendment. Co-Chair Mulder explained that the component could be reduced without the amendment. Representative Grussendorf asked about the number of beds. Co-Chair Mulder believed that they were on-line at this time. Additional beds were funded, but there are more juveniles waiting to fill those beds than there are beds available. The Subcommittee recommended forestalling opening of those beds at this time. Representative Grussendorf asked if there would not be bed space available for FY01. Ms. Rehfeld stated that when the budget was created some funds were recommended for the expansion and for new residential beds at Ketchikan, Matsu and potentially Kenai. In response to a question by Representative J. Davies, Ms. Rehfeld stated that the Department of Education and Early Development is not currently providing services for Adult correction facilities. The Subcommittee did allow a portion of the increment. Co-Chair Mulder replied that the HESS subcommittee were not allowing for the Ketchikan, Matsu and MacLaughlin expansion to come on line. Inmate programs currently provide an opportunity to get a GED. They tried to "marry the DEED and HESS budgets. JANET CLARKE, DIRECTOR, DIVISON OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES explained that the overcrowding is occurring at the Johnson and MacLaughlin youth facilities. She stressed that additional funds are needed. Co-Chair Mulder pointed out that a $300 thousand dollar increment was provided to serve those kids. Co-Chair Therriault added that funding was included for utilities and maintenance. There have been a variety of timing issues. He emphasized that there is no money for opening additional beds. Representative Grussendorf asked about the extra $300 thousand dollars, which was put in by the Subcommittee. Representative Grussendorf WITHDREW DEED-8. (TAPE CHANGE, HFC 00-59, SIDE 1).  DEPARTMENT OF PUBLIC SAFETY Amendment DPS-1 was WITHDRAWN. Representative G. Davis MOVED to ADOPT Amendment DPS-2: Delete Violent Crimes Compensation BRU Violent Crimes Compensation Component $300. PFDF Representative G. Davis explained that the amendment corrects an inadvertent error. There being NO OBJECTION, it was so ordered. Representative Grussendorf noted that the Council on Domestic Violence and Sexual Assault FY00 appropriation was $100 thousand dollars short. Representative Grussendorf MOVED to ADOPT Amendment DPS-3 as amended by the sponsor: Add: Council on Domestic Violence and Sexual Assault Council on Domestic Violence and Sexual Assault 100.0 KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF TRANSPORTATION acknowledged that the Council's FY99 budget was $100 thousand dollars greater than FY00. TRISHA GENTLE, EXECUTIVE DIRECTOR, COUNCIL ON DOMESTIC VIOLENCE AND SEXUAL ASSUALT explained that the Council's grant line was reduced by $100 thousand dollars in FY00. Ms. Gentle explained that the grants line contained a $120 thousand dollar federal grant. Ms. McConnell explained that the misunderstanding occurred in the other body. She stressed that there was a clear effort by Senator Parnell to correct the problem. Co-Chair Therriault referred to the component summary for the Council. Ms. McConnell explained that there was an increase in other funds. The intent was to keep state support steady. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Williams, Therriault, Mulder The MOTION FAILED (3-8). Representative Grussendorf MOVED to ADOPT Amendment DPS-4: Village Public Safety Officers Component: Page 24, line 31: Delete "7,548,000" Insert "8,148,000" Delete "7,498,000" Insert "8,098,000" Page 24, line 33: Delete "5,523,500" Insert "6,123,500" Amendment DPS-4 would increase the allocation for Village Public Safety Officer program contracts by $600,000 dollars GF. REPRESENTATIVE REGGIE JOULE spoke in support of the amendment. He stressed that the amendment would help retain officers. Vice Chair Bunde questioned if more funding would solve the problem. Representative Joule responded that there needs to be more support from trooper response and higher salaries. Representative G. Davis pointed out that village public safety officers were given a raise a couple of years ago. He acknowledged that the raise helped reduce turnover. He observed that VPSO's are paid through non-profit organizations. The indirect cost rate can be as high as 20 percent. He noted that there is incentive to go to direct costs. He acknowledged that the program would benefit from an additional increase, but stated that "it was not in the cards" for the current budget. Representative Joule responded that it is not often that VPSO's move into trooper positions due to a lack of tiered training. He stressed the importance of encouraging VPSO officers to advance. A roll call vote was taken on the motion. IN FAVOR: Davies, Grussendorf, Moses, Foster, Austerman OPPOSED: Bunde, Davis, Phillips, Williams, Therriault, Mulder The MOTION FAILED (5-6). Representative Grussendorf MOVED to ADOPT Amendment DPS-5. Representative G. Davis OBJECTED. Representative Grussendorf observed that the first part of the amendment, which would provide funding for FEMA code adoption, could be contained in the capital budget. Representative G. Davis confirmed. Representative Grussendorf MOVED to Amend Amendment DPS-5 by striking the addition on line 16, page 24. There being NO OBJECTION, it was so ordered. Representative Grussendorf MOVED to ADOPT Amendment DPS-5 as amended. Page 24, line 17 Fire Prevention Operations Component: Add $40 GFPR Representative Grussendorf explained that the amendment would allow yearly school inspections. He observed that there are a lot of modular and temporary classrooms. Representative G. Davis did not think a yearly inspection was a necessary expense. Schools are inspected on a two- year cycle. He felt that two-year inspections were sufficient. Representative Grussendorf maintained that the state would be liable if inspections are reduced from one to two years. Representative J. Davies stressed that the inspections are an insurance policy. He observed that there is a tendency to defer fire code related expenses. He maintained that the request would result in savings through the reduction of fires. A roll call vote was taken on the motion. IN FAVOR: Moses, Williams, Davies, Grussendorf OPPOSED: Austerman, Bunde, Davis, Foster, Phillips, Therriault, Mulder The MOTION FAILED (4-7). Co-Chair Mulder questioned the use of a plane transferred to the Southeast region and RSA amounts from the Office of the Governor. Ms. Bischoff explained that the Fish and Wildlife Division relocated a plane to Southeast Alaska for use by the Alaska State Troopers and the Office of the Governor. The RSA with the Office of the Governor was $165 thousand dollars in FY00. Co-Chair Mulder questioned the cost of enforcement versus the RSA cost. Co-Chair Therriault questioned if the RSA was included in travel costs. Ms. McConnell confirmed that it was included in travel as a RSA. Co-Chair Therriault questioned if all trips were listed. Ms. McConnell thought that each trip was accounted for individually. She noted that there was no allocation of purpose for trips and that trips had multiple purposes. In response to a question by Vice Chair Bunde, Mr. Bischoff discussed the use of aircraft for enforcement. Aircraft are used for high sea fisheries control, emergency response and prisoner transfer. The airport in questioned was a surplus plane that was acquired by Senator Stevens. Ms. McConnell pointed out that there are costs associated with commercial air transportation. HB 312 and HB 313 were HELD in Committee for further consideration. Adjournment The meeting adjourned at 6:55 p.m.