Legislature(2003 - 2004)

04/05/2003 11:32 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 75                                                                                      
                                                                                                                                
     "An  Act making  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."                                                                         
                                                                                                                                
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 76                                                                                      
                                                                                                                                
     "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 Harris MOVED to ADOPT Amendment DPS 1:                                                                                 
                                                                                                                                
     Department of Public Safety                                                                                                
                                                                                                                              
     Appropriation: Fire Prevention                                                                                             
     Allocation:         Fire Prevention Operations                                                                             
          Change:                                                                                                               
          Page 28, lines 14-15 to read:                                                                                         
          The amount appropriated by this appropriation                                                                         
     includes up to $356,600 [$125,000] of the unexpended                                                                     
     and unobligated balance on June 30, 2003, of the                                                                           
     receipts collected under AS 18.70.080(b).                                                                                  
                                                                                                                                
          Delete:   $231,600 of General Funds                                                                                   
          Add:      $231,600 of Receipt Supported Services                                                                      
                                                                                                                                
     Appropriation: Statewide Support                                                                                           
     Allocation:         Alaska Criminal Records and                                                                            
     Identification                                                                                                             
          Change:                                                                                                               
          Page 30, lines 5-7 to read:                                                                                           
          The amount appropriated by this appropriation                                                                         
     includes up to $325,000 [$125,000] of the unexpended                                                                     
     and unobligated balance on June 30, 2003, of the                                                                           
     receipts collected by the Department of Public Safety                                                                      
     from the Alaska automated fingerprint system under AS                                                                      
     44.41.025(b).                                                                                                              
                                                                                                                                
          Delete:   $200,000 of General Funds                                                                                   
          Add:      $200,000 of Receipt Supported Services                                                                      
                                                                                                                                
     Appropriation: Fish and Wildlife Protection                                                                                
     Allocation:         Enforcement and Investigative                                                                          
     Services Unit                                                                                                              
                                                                                                                                
          Add:           $23,100 of General Funds                                                                               
                                                                                                                                
     Appropriation: Fish and Wildlife Protection                                                                                
     Allocation:         Director's Office                                                                                      
                                                                                                                                
          Add:           $6,200 of General Funds                                                                                
                                                                                                                                
     Appropriation: Fish and Wildlife Protection                                                                                
     Allocation:         Aircraft Section                                                                                       
                                                                                                                                
          Add:           $23,000 of General Funds                                                                               
                                                                                                                              
     Appropriation: Fish and Wildlife Protection                                                                                
     Allocation:         Marine Enforcement                                                                                     
                                                                                                                                
          Add:           $41,500 of General Funds                                                                               
                                                                                                                                
     Appropriation: Fire Prevention                                                                                             
     Allocation:         Fire Prevention Operations                                                                             
                                                                                                                                
          Add:           $55,000 of General Funds                                                                               
                                                                                                                                
     Appropriation: Fire Prevention                                                                                             
     Allocation:         Fire Service Training                                                                                  
                                                                                                                                
          Add:           $15,200 of General Funds                                                                               
                                                                                                                                
     Appropriation: Alaska State Troopers                                                                                       
     Allocation:         Director's Office                                                                                      
                                                                                                                                
          Add:           $26,400 of General Funds                                                                               
                                                                                                                                
     Appropriation: Alaska State Troopers                                                                                       
     Allocation:         Judicial Services - Anchorage                                                                          
                                                                                                                                
          Add:           $71,300 of General Funds                                                                               
                                                                                                                                
     Appropriation: Alaska State Troopers                                                                                       
     Allocation:         Rural Trooper Housing                                                                                  
                                                                                                                                
          Add:           $2,500 of General Funds                                                                                
                                                                                                                                
     Appropriation: Alaska State Troopers                                                                                       
     Allocation:         Narcotics Task Force                                                                                   
                                                                                                                                
          Add:           $44,100 of General Funds                                                                               
                                                                                                                                
     Appropriation: Statewide Support                                                                                           
         Allocation:          Commissioner's Office                                                                             
               Add:            $10,300 of General Funds                                                                         
                                                                                                                                
     Appropriation: Statewide Support                                                                                           
     Allocation:         Training Academy                                                                                       
                                                                                                                                
          Add:           $8,200 of General Funds                                                                                
                                                                                                                                
     Appropriation: Statewide Support                                                                                           
     Allocation:         Administrative Services                                                                                
                                                                                                                                
          Add:           $57,700 of General Funds                                                                               
                                                                                                                                
     Appropriation: Statewide Support                                                                                           
     Allocation:         Alaska Public Safety Information                                                                       
     Network                                                                                                                    
                                                                                                                                
          Add:           $17,600 of General Funds                                                                               
                                                                                                                                
     Appropriation: Statewide Support                                                                                           
     Allocation:         Laboratory Services                                                                                    
                                                                                                                                
          Add:           $29,500 of General Funds                                                                               
                                                                                                                                
Representative Croft OBJECTED  for the purpose of discussion.                                                                   
                                                                                                                                
DAVID TEAL, DIRECTOR, LEGISLATIVE  FINANCE DIVISION explained                                                                   
Amendment DPS  1. The amendment would restore  the Governor's                                                                   
original    request    OF    $431.6    thousand    to    fund                                                                   
telecommunications   and   computer   services   in   several                                                                   
allocations.  General funds from  Fire Prevention  and Alaska                                                                   
Criminal  Records  and  Identification  are  supplanted  with                                                                   
their  own excess  receipt supported  services by  increasing                                                                   
the  amount  available  for  carry-forward   in  FY04.  These                                                                   
general  funds  are  then spread  throughout  the  agency  as                                                                   
requested. No additional general fund monies would be used.                                                                     
                                                                                                                                
Representative Stoltze spoke in  support of the amendment and                                                                   
noted  that the subcommittee  was  not able  to fit the  cost                                                                   
within its budget.                                                                                                              
                                                                                                                                
Mr. Teal noted  that the he had discussed the  amendment with                                                                   
the Governor's  Office and  that they were  aware of  how the                                                                   
amendment would be funded.                                                                                                      
                                                                                                                                
Representative  Croft  questioned   what  receipts  supported                                                                   
services are being provided in Amendment PS-1.                                                                                  
                                                                                                                                
Mr.  Teal stated  that the  receipts are  split between  fire                                                                   
prevention  and  criminal  records.  Charges  for  background                                                                   
checks are used.                                                                                                                
                                                                                                                                
Representative  Croft   expressed  concern  that   there  are                                                                   
sufficient receipts in the programs  to pay for the programs.                                                                   
MR. Teal affirmed that the receipts are available.                                                                              
                                                                                                                                
WILLIAM TANDESKE,  COMMISSIONER, DEPARTMENT OF  PUBLIC SAFETY                                                                   
explained that the department  receives funds from build plan                                                                   
reviews and training.                                                                                                           
                                                                                                                                
There being NO OBJECTION, Amendment DPS 1 was adopted.                                                                          
                                                                                                                                
Representative Stoltze MOVED to ADOPT Amendment DPS 2:                                                                          
                                                                                                                                
     ADD                                                                                                                        
     Department of Public Safety                                                                                                
     Alaska State Troopers                                                                                                      
     Alaska State Trooper Detachments                                                                                           
     1108 SDPR (Statutory Designated Program Receipts) $75.0                                                                    
                                                                                                                                
Representative Joule OBJECTED  for the purpose of discussion.                                                                   
                                                                                                                                
Representative Stoltze  explained that the  Matanuska-Susitna                                                                   
Borough would  provide financial  support ($75 thousand)  for                                                                   
state trooper  presence in Palmer.  The borough  for approval                                                                   
by the  Department of Public  Safety would draft  a contract.                                                                   
The  contract  will  specify an  increase  of  state  trooper                                                                   
presence and that the additional  funding will not be used to                                                                   
supplant  general   funds  or  other  funding   for  existing                                                                   
services provided to the Mat-Su Borough.                                                                                        
                                                                                                                                
Representative Joule  questioned if the Borough  had passed a                                                                   
resolution  in  support  of  the   amendment.  Representative                                                                   
Stoltze assured him that the Borough is supportive.                                                                             
                                                                                                                                
Co-Chair Harris  summarized that the amendment  would provide                                                                   
receipt authority  from the  Mat-Su borough  to the  state to                                                                   
support  a  trooper in  their  area.  Representative  Stoltze                                                                   
clarified  that  the  funding  would  pay  for  the  overtime                                                                   
required to provide  extra enforcement in a  specific problem                                                                   
area. Commissioner Tandeske expressed support.                                                                                  
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DPS 3:                                                                            
                                                                                                                                
     DELETE:                                                                                                                    
                                                                                                                                
     Department: Public Safety                                                                                                  
     Appropriation:             Alaska State Troopers                                                                           
     Allocation: Alaska State Troopers Detachment                                                                               
                                                                                                                                
     Increment:                                                                                                                 
     $280.0                                                                                                                     
     Fund Source:                                                                                                               
     AHFC Dividend                                                                                                              
                                                                                                                                
Co-Chair Harris OBJECTED for the purpose of discussion.                                                                         
                                                                                                                                
Representative  Croft the amendment  would use AFHC  receipts                                                                   
to fill  the public safety gap.  He noted that  education and                                                                   
public  safety are priorities  and expressed  concern  that a                                                                   
shortfall  would  be  felt  in   the  village  public  safety                                                                   
officers program.                                                                                                               
                                                                                                                                
Representative  Stoltze noted  that there  was a transfer  of                                                                   
funding  from the village  public safety  officers (VPSO)  to                                                                   
support state  troopers. He observed  that $280  thousand was                                                                   
kept in the Western Alaska Law Enforcement component.                                                                           
                                                                                                                                
Representative Joule questioned  the impact in the field with                                                                   
the reduction.                                                                                                                  
                                                                                                                                
Commissioner Tandeske  observed that the affect  in the field                                                                   
is difficult  to state,  but noted that  he could  not absorb                                                                   
the  entire  amount. He  stressed  that  he is  committed  to                                                                   
making it work.                                                                                                                 
                                                                                                                                
In   response  to   a  question   by  Representative   Joule,                                                                   
Commissioner  Tandeske explained  that  VPSO contracts  would                                                                   
not be  reduced. Support  to the area  would be impacted.  He                                                                   
maintained that  the impact  would not be  felt in  the rural                                                                   
support  area  alone.  He  noted that  he  is  challenged  in                                                                   
providing  public  safety for  the  entire state.  There  are                                                                   
additional challenges in rural support in terms of travel.                                                                      
                                                                                                                                
Representative  Croft summarized  that there  is $46  million                                                                   
from AHFC dividends  in the capital budget.  He observed that                                                                   
these projects have not been scrutinized.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Joule                                                                                                          
OPPOSED:  Chenault,  Foster, Hawker,  Meyer, Moses,  Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Representative Moses MOVED to ADOPT Amendment DPS 4:                                                                            
                                                                                                                                
     It is the intent of the Legislature  that the Department                                                                   
     of Public  Safety will continue  to look  for supportive                                                                   
     funding  for  the WV  Stimson  by contracting  with  the                                                                   
     western  Alaska  fishermen  and  coordinating  with  the                                                                   
     Department of  Fish and Game through the  test fisheries                                                                   
     program.                                                                                                                   
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Joule MOVED to ADOPT Amendment DOC 1:                                                                            
                                                                                                                                
     Corrections                                                                                                                
     Administrative Operations                                                                                                  
     Community Jails                                                                                                            
                                                                                                                                
     Add: GF 400.0                                                                                                              
                                                                                                                                
Representative  Joule spoke in  support of the  amendment. He                                                                   
noted that there has been an on-going  debt regarding private                                                                   
or public. He  observed that funding for community  jails has                                                                   
been stagnant.  Community jails are throughout  the state and                                                                   
serve large  areas. Contracts  are between the  community and                                                                   
the state, yet many community  jails serve more than the area                                                                   
of contract and have costs beyond their contract amount.                                                                        
                                                                                                                                
Co-Chair  Harris asked  for  more information  regarding  the                                                                   
difference between the Anchorage jail and community jails.                                                                      
                                                                                                                                
JERRY  BURNETT, DIRECTOR,  ADMINISTRATIVE SERVICES  DIVISION,                                                                   
DEPARTMENT OF  CORRECTIONS explained that the  Anchorage jail                                                                   
is operated  by the  Department of  Corrections. Funding  for                                                                   
the Anchorage  jail is  a mix  of state  and local funds.  He                                                                   
felt that the budget was equitable.                                                                                             
                                                                                                                                
Co-Chair Harris  questioned what would happen  if communities                                                                   
decided not to fund the jails.  Mr. Burnett observed that the                                                                   
Department of  Public Safety would  have to transport  people                                                                   
to a correctional facility.                                                                                                     
                                                                                                                                
Representative Joule  noted that if the community  jails were                                                                   
closed that 7,000  prisoners would have to be  transported at                                                                   
a greater cost to the state.                                                                                                    
                                                                                                                                
Co-Chair Harris  noted that he  is sympathetic to  the issue,                                                                   
and that he would continue to work on the amendment.                                                                            
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED:  Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment DOC 2:                                                                                 
                                                                                                                                
     Point MacKenzie Correctional Farm                                                                                          
     Delete 100.0 GF                                                                                                            
                                                                                                                                
Co-Chair Harris  explained that  the amendment would  reverse                                                                   
an  increment,  which  belongs  in the  capital  budget.  Mr.                                                                   
Burnett did  not object to  placing the appropriation  in the                                                                   
capital budget.  He explained that  the funding is  a mixture                                                                   
of private and public.                                                                                                          
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment DEC 1:                                                                                 
                                                                                                                                
Co-Chair Harris explained that  the amendment would add money                                                                   
into the Alaska Library and Museums.                                                                                            
                                                                                                                                
KURT   FREDRICKSON,   DEPUTY  COMMISSIONER,   DEPARTMENT   OF                                                                   
ENVIRONMENTAL  CONSERVATION   explained  that  there   are  5                                                                   
positions in  the Commissioner's Office  and that it is  a 30                                                                   
percent  reduction  in  their  general  fund  component.  The                                                                   
deputy commissioner position would probably be affected.                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DEC 2:                                                                            
                                                                                                                                
     ADD                                                                                                                        
     Agency: Dept. of Environmental Conservation                                                                                
     BRU: Environmental Health Division                                                                                         
     Component:     Laboratory Services                                                                                         
     Fund Source                   Amount                                                                                       
     1004 General Fund             $137.1                                                                                       
                                                                                                                                
 TITLE: Restore Funding for two positions: one organic                                                                          
 chemist and one inorganic chemist, at the State Chemistry                                                                      
 Laboratory.                                                                                                                    
                                                                                                                                
       Impacts of closing lab:                                                                                                  
         • 8 Jobs Lost                                                                                                          
         • Environmental studies program will have to cancel                                                                    
            classes affecting 50 students                                                                                       
         • 5 classes will have no lab/classroom                                                                                 
         • 7 Grants stopped mid-project                                                                                         
         • SE Alaska Science Fair will have no place for                                                                        
            students to do projects                                                                                             
                                                                                                                                
     The DEC lab and chemists currently perform three main                                                                      
     duties. First, they analyze tests from contaminated                                                                        
     sites, second, they audit  private labs, and third, they                                                                   
     act as a  teaching facility for both the  University and                                                                   
     high school.  Closing the lab would be  a step backwards                                                                   
     for both  science & education in Alaska.  This amendment                                                                   
     would   keep  minimum   staff   necessary  to   continue                                                                   
     education functions.                                                                                                       
                                                                                                                                
     This  lab  is important  to  the  University's  economic                                                                   
     viability and  is an integral part of both  the teaching                                                                   
     and  research  function  of  the  Environmental  Science                                                                   
     Program.   There   are    currently   approximately   50                                                                   
     environmental    science   students    at   UAS,    five                                                                   
     environmental science classes,  and grant based projects                                                                   
     in   progress   utilizing   the  lab.   The   University                                                                   
     contributes  $25,000 annually  to  use the  lab and  its                                                                   
     equipment,  valued at  $2  million dollars.  Due to  the                                                                   
     specialization of the DEC  lab, it is the only southeast                                                                   
     location  equipped  to perform  this  type of  research.                                                                   
     Without  the  lab,  the  Environmental  Science  Program                                                                   
     would  not exist,  which would force  the University  to                                                                   
     give  back  federal  research  dollars  and  reduce  the                                                                   
     amount  of  future federal  money.  This  would cut  the                                                                   
     amount of programs available  through the university and                                                                   
     is  contradictory  to  their   goals  of  expanding  the                                                                   
     program  and ensuring  that jobs  are filled within  the                                                                   
     state  rather  than  hiring   individuals  who  have  no                                                                   
     practical study in Alaska.                                                                                                 
                                                                                                                                
     Students participating  in the Southeast  Alaska Science                                                                   
     Fair  use the  lab  and rely  on  the  expertise of  the                                                                   
     chemists to  create and test their projects.  This year,                                                                   
     4 Juneau  winners qualified for the  Intel International                                                                   
     Science and Engineering Fair  in Cleveland, Ohio. Future                                                                   
     science  fair competitors from  all of Southeast  Alaska                                                                   
     will  be affected  by  the closure  due  to limited  lab                                                                   
     space in our region.                                                                                                       
                                                                                                                                
     Agency: Dept. of Environmental Conservation                                                                                
     BRU: Environmental Health Division                                                                                         
     Component: Laboratory Services                                                                                             
                                                                                                                                
     TITLE: Restore  Funding for one organic  chemist and one                                                                   
     in-organic chemist at the State Chemistry Laboratory.                                                                      
                                                                                                                                
 Talking Points:                                                                                                                
                                                                                                                                
    • 8 Positions would be lost (two retained but moved out                                                                     
       of lab).                                                                                                                 
                                                                                                                                
    • Last year the lab received $95,000 receipts from                                                                          
       services and space rental.                                                                                               
                                                                                                                                
    • Space for the DEC lab has been prepaid and will remain                                                                    
       under lease until                                                                                                        
       2006.                                                                                                                    
                                                                                                                                
 University of Alaska                                                                                                           
                                                                                                                                
    • It makes no sense to close the lab, lose the                                                                              
       equipment, and hurt  UAS when we already have  the lab                                                                   
       and the lease is prepaid.                                                                                                
                                                                                                                                
    • The DEC lab in Juneau acts as a teaching facility.                                                                        
       Undergraduates  obtaining  degrees   in  Environmental                                                                   
       Science, at  the University  of Alaska Southeast,  use                                                                   
       the lab's analytical  equipment, valued at  $2 million                                                                   
       dollars to do scientific research.                                                                                       
                                                                                                                                
    •  Currently there are seven grant funded research                                                                          
       projects in  progress at  the lab.  Grants were  given                                                                   
       with the understanding that the  University would have                                                                   
       adequate   space  and   instrumentation   to   conduct                                                                   
       research.                                                                                                                
                                                                                                                                
 High School                                                                                                                    
                                                                                                                                
    •  The science fair is growing. This year was the first                                                                     
       year  the  Science Fair  was  open  to  all  Southeast                                                                   
       Alaska  Students. To  encourage  more SE  students  to                                                                   
       participate, the Juneau high school  will be holding a                                                                   
       class for  area wide  teachers to  come to Juneau  and                                                                   
       find  out more  about  the  fair. This  will  increase                                                                   
       enrollment of other  SE students, increasing  the need                                                                   
       for a laboratory and chemists.                                                                                           
                                                                                                                                
    •  While lab personnel act as mentors for high school                                                                       
       students, they have  in the past and may  continue to,                                                                   
       take part in judging science fair  projects and may be                                                                   
       on  the  scientific  review  team  that  approves  all                                                                   
       projects prior to entry.                                                                                                 
                                                                                                                                
    •  The science fair committee is made up of volunteers.                                                                     
       Therefore,  they  would not  be  able  to  accommodate                                                                   
       students financially  to  fund the  services that  the                                                                   
       lab provides if these resources were taken away.                                                                         
                                                                                                                                
Mr. Fredrickson  spoke to the Governor's proposed  amount. He                                                                   
noted that  the state chemistry  laboratory for  the drinking                                                                   
water  program  and the  underground  storage  tank  program.                                                                   
Other duties,  such as chemical  analysis for oil  spills had                                                                   
been  done at  the laboratory.  Private  labs have  developed                                                                   
over the  years, reducing  the need  for the state  chemistry                                                                   
laboratory, which  has been working  with the  University. He                                                                   
noted  that  there  has  been   private  sector  interest  in                                                                   
expanding  into the facility.  The laboratory  is not  needed                                                                   
for  the  certification  programs  and  maintained  that  the                                                                   
laboratory  had  moved  into   areas  that  are  not  in  the                                                                   
department's mission.                                                                                                           
                                                                                                                                
A roll call vote  was taken on the motion to  ADOPT Amendment                                                                   
DEC 2.                                                                                                                          
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED:  Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment DLWD 1:                                                                                
                                                                                                                                
     DEPARTMENT:    LABOR & WORKFORCE DEVELOPMENT                                                                               
                                                                                                                                
     Appropriation: Office of the Commissioner                                                                                  
     Allocation:    Commissioner's Office                                                                                       
                                                                                                                                
     Delete:   100,000 OF                                                                                                       
                                                                                                                                
     Appropriation: Vocational Rehabilitation                                                                                   
     Allocation:    Independent Living Rehabilitation                                                                           
                                                                                                                                
     Add: 200,000 OF                                                                                                            
                                                                                                                                
     DEPARTMENT OF FISH AND GAME                                                                                                
     Appropriation: Administration and Support                                                                                  
     Allocation:    Commissioner's Office                                                                                       
                                                                                                                                
     Delete:   100,000 OF                                                                                                       
                                                                                                                                
     Explanation:                                                                                                               
     This  amendment removes  a total  of $200,000  ($100,000                                                                   
     from  each  of the  Commissioner's  Offices  in DFG  and                                                                   
     Labor) and  replaces a portion of the general  funds cut                                                                   
     by    the   Governor   in    the   Independent    Living                                                                   
     Rehabilitation Program.                                                                                                    
                                                                                                                                
Co-Chair Harris  explained that the amendment  would add $200                                                                   
for the Independent  Living Rehabilitation Program  by taking                                                                   
$100 from  the commissioner's  offices  of the Department  of                                                                   
Fish  and Game  and  the Department  of  Labor and  Workforce                                                                   
Development.                                                                                                                    
                                                                                                                                
Representative  Croft questioned  the cost  of fully  funding                                                                   
the Independent Living Rehabilitation Program.                                                                                  
                                                                                                                                
GREG  O'CLARAY, COMMISSIONER,  DEPARTMENT OF  LABOR spoke  to                                                                   
the amendment. He summarized that  the funding level would be                                                                   
near of just above the original  request of $618 thousand. He                                                                   
observed   that   there   are    three   positions   in   the                                                                   
commissioner's office  and that they are sufficient  funds to                                                                   
take the cut.                                                                                                                   
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
     Department of Labor & Workforce Development                                                                                
     Vocational Rehabilitation                                                                                                  
     Independent Living Rehabilitation                                                                                          
                                                                                                                                
     Increment:     $35.5 SGF                                                                                                   
                                                                                                                                
Representative  Croft spoke in  support of fully  funding the                                                                   
component. Co-Chair  Harris noted  his intent to  continue to                                                                   
work to do so.                                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED:  Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Joule MOVED to ADOPT Amendment DLWD 3:                                                                           
                                                                                                                                
     Business Partnerships                                                                                                      
     Kotzebue Tech Center Operations Grant:                                                                                     
     300.0 GF                                                                                                                   
                                                                                                                                
Representative Joule  spoke in support of the  amendment. The                                                                   
amendment would  restore funding  for The Kotzebue  Technical                                                                   
Center.  He  stressed   the  importance  of   the  Center  in                                                                   
providing qualified  workers and vocational  education, which                                                                   
he felt was inadequately funded.                                                                                                
                                                                                                                                
Vice-Chair Meyer  observed that  the component's  funding was                                                                   
discussed and concluded that the funds were not needed.                                                                         
                                                                                                                                
TAPE HFC 03 - 51, Side B                                                                                                      
                                                                                                                                
Representative   Joule  observed   that   the  Governor   has                                                                   
emphasized   resource  development   in   rural  Alaska   and                                                                   
developing   human  resources.   He  observed  that   further                                                                   
reductions   in  state  support   would  jeopardize   private                                                                   
support.                                                                                                                        
                                                                                                                                
Commissioner  O'Cleary  noted  that  the  Kotzebue  Technical                                                                   
Center is  one of  the major learning  centers and  that they                                                                   
are pursuing federal funding for its support.                                                                                   
                                                                                                                                
Representative  Joule  noted  that  while the  Center  is  in                                                                   
Kotzebue is a statewide postsecondary institution and                                                                           
                                                                                                                                
Co-Chair Harris  promised to continue  working to  fully fund                                                                   
the component.                                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Foster, Joule, Moses                                                                                           
OPPOSED: Chenault, Hawker, Meyer, Stoltze, Williams, Harris                                                                     
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment DEED 1:                                                                                
                                                                                                                                
     K-12 Support                                                                                                               
     Foundation Formula Program                                                                                                 
     $1,340,900                                                                                                                 
                                                                                                                                
Co-Chair Harris observed that there was a double decrement                                                                      
and that the amendment would restore to the correct amount.                                                                     
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment DEED 2:                                                                                
                                                                                                                                
     Alaska Library and Museums                                                                                                 
     ADD 23,200 ILTF                                                                                                            
                                                                                                                                
Co-Chair  Harris  observed  that the  component  was  heavily                                                                   
commented  on during  public testimony.  The amendment  would                                                                   
provide  one-time funds  for the  Sheldon  Jackson Museum  in                                                                   
Sitka.                                                                                                                          
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DEED 3:                                                                           
                                                                                                                                
     Page 1, line 1, after "appropriations", insert:                                                                            
                        "and reappropriations"                                                                                  
     ADD:                                                                                                                       
                                                                                                                                
     University of Alaska                                                                                                       
     Budget Reductions/Additions -System wide                                                                                   
     Budget Reductions/ Additions -System wide                                                                                  
                                                                                                                                
     $6,728,800 reappropriation of the unexpected and                                                                           
     unobligated funds described under Section 1, Chapter                                                                       
     94, SLA 2002, page 11, lines 17 & 18.                                                                                      
                                                                                                                                
     $3,575,200 unappropriated AHFC dividend                                                                                    
                                                                                                                                
     Explanation:       The Governor recommended a $10.3                                                                        
     million  dollar increase  in  the UA  budget this  year-                                                                   
     sufficient to  maintain the momentum and  meet the basic                                                                   
     fixed costs because he sees  the University as essential                                                                   
     to the economic growth and vitality of the state. This                                                                     
     amendment seeks to restore the University budget to the                                                                    
     Governor's level                                                                                                           
                                                                                                                                
     Budget Impact: Net $0 GF                                                                                                   
                                                                                                                                
Representative  Croft spoke in  support of the  amendment. He                                                                   
noted  that  the  amendment  would  not  restore  the  entire                                                                   
amount needed  to fund the Alyeska Central  School [Alyeska].                                                                   
He maintained  that the cost would  be a net zero,  since the                                                                   
students   would   otherwise    participate   through   other                                                                   
programs.  He  observed  that  the  program,  which  predates                                                                   
statehood,  is  successful.   He  observed  that  specialized                                                                   
teachers  provide  needed  services. He  maintained  that  no                                                                   
other  options  are  better  than what  is  provided  by  the                                                                   
Alyeska  program.   He  spoke  in  further   support  of  the                                                                   
amendment.                                                                                                                      
                                                                                                                                
Co-Chair Harris  clarified that students would  appear in the                                                                   
foundation formula at 80 percent.                                                                                               
                                                                                                                                
KAREN  REHFELD, ACTING  COMMISSIONER,  DIVISION OF  EDUCATION                                                                   
SUPPORT   SERVICES,  DEPARTMENT   OF   EDUCATION  AND   EARLY                                                                   
DEVELOPMENT  explained that  the  amendment anticipates  that                                                                   
legislation  (HB 174) would  pass, which would  eliminate the                                                                   
summer school  component and  retain the regular  school. The                                                                   
cost  of  the   summer  school  component,   which  would  be                                                                   
eliminated,  is  projected  at $1.170.4  million.  The  total                                                                   
cost of the program is a little more than $5 million.                                                                           
                                                                                                                                
Vice-Chair  Meyer   noted  that  the  subcommittee   did  not                                                                   
address the issue.  He noted that the legislation  would have                                                                   
additional   consideration    and   recommended    that   the                                                                   
subcommittee's recommendation be retained.                                                                                      
                                                                                                                                
Representative Joule  suggested that the funding  be retained                                                                   
in  the budget  while  the legislation  runs  its course.  He                                                                   
noted that he  Alaska Central School is accredited.  He noted                                                                   
the compelling public testimony is support of the program.                                                                      
                                                                                                                                
In response  to a  question by  Co-Chair Harris, Ms.  Rehfeld                                                                   
noted   that  other   programs   have  received   conditional                                                                   
accreditation.   Co-Chair  Harris   observed  that   students                                                                   
attending conditional  accreditation would be  able to submit                                                                   
their  degrees to colleges.  Ms. Rehfeld  observed that  many                                                                   
school districts  provide summer school. Alyeska  is the only                                                                   
school allowed  to receive state  funding for  summer school.                                                                   
She  observed  that  the  department  determined  that  other                                                                   
programs could  provide the  services. She observed  that the                                                                   
department's  proposed  elimination  of  the  program  is  in                                                                   
response to the  request to find areas where  services can be                                                                   
provided   through  a  different   model.  She   stated  that                                                                   
students  that currently served  through the Alyeska  Central                                                                   
School  can  continue  to  receive   services  through  other                                                                   
programs.  She acknowledged  that Alyeska  is unique  and has                                                                   
more  contact  with certified  teachers  and  is more  "hands                                                                   
on",  however, there  are other statewide  programs  that are                                                                   
interested  in trying to  tailor their  programs to  meet the                                                                   
needs of these students.                                                                                                        
                                                                                                                                
Representative  Croft summarized  that the  funding has  been                                                                   
zeroed  out prior  to  the adoption  of  the legislation.  He                                                                   
questioned  why  parents  and  students that  have  found  an                                                                   
affective  model for  their  children should  be forced  into                                                                   
other  programs.  He pointed  out  that the  legislature  has                                                                   
emphasized standards.                                                                                                           
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED: Chenault,     Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DEED 4:                                                                           
                                                                                                                                
     Increment:                                                                                                                 
     ADD: $500.0 AIDEA DIVIDENDS                                                                                                
     Education & Early Development                                                                                              
     K-12 Support                                                                                                               
     Community Schools                                                                                                          
                                                                                                                                
     Explanation:   This  increment  will restore  funds  for                                                                   
     the  Community   Schools  programs.  Community   schools                                                                   
     statewide  use this  small amount  of money to  leverage                                                                   
     matching  funds  that  in  FY02  were in  excess  of  $7                                                                   
     million in  small grants, volunteer and  in-kind donated                                                                   
     services.  Community  Schools offer  essential  services                                                                   
     such  as Adult Basic  Education,  student prep  work for                                                                   
     benchmark  tests, and supervised  after school  programs                                                                   
     for  children of  working parents.  This program  serves                                                                   
     thousands of adults and children statewide each year.                                                                      
                                                                                                                                
     Increment:                                                                                                                 
     Education & Early Development                                                                                              
     K-12 Support                                                                                                               
     Foundation Program                                                                                                         
         $ 16,261.158 AIDEA                                                                                                     
                                                                                                                                
     (This is to  be reflected in the language  section as an                                                                   
     adjusted ADM grant.)                                                                                                       
                                                                                                                                
     Explanation:   This  would put $80 per student  into the                                                                   
     foundation  formula section  of the  budget as  adjusted                                                                   
     average daily membership.                                                                                                  
                                                                                                                                
     Budget Impact: Net: $0 GF,                                                                                                 
     $13,261,658 unappropriated AIDEA dividend                                                                                  
                                                                                                                                
Representative  Croft spoke in  support of the  amendment and                                                                   
observed  that legislation  would  allow  an ADIEA  dividend.                                                                   
The  amount would  make a  grant, which is  identical  to the                                                                   
amount  contained in  SB  1. He  pointed  out that  education                                                                   
funding has not taken inflation into consideration.                                                                             
                                                                                                                                
Co-Chair  Harris questioned  if the  $500 thousand  reduction                                                                   
was at  the request  of the  Governor. Ms. Rehfeld  explained                                                                   
that legislation  would address the issue. She  noted that HB                                                                   
165  would  eliminate  funding  for  community  schools.  She                                                                   
maintained  that  it  is  not   the  Department's  intent  to                                                                   
eliminate  the  community   school  program.  The  Department                                                                   
recognizes  the  importance  of the  program.  The  statutory                                                                   
entitlement  to the program  is $3.5  million, which  has not                                                                   
been  fully funded.  She observed  that  the amendment  would                                                                   
not  come  close  to  supporting   the  entire  program.  The                                                                   
Department's proposal is to eliminate the program.                                                                              
                                                                                                                                
Co-Chair  Harris stated  that he would  oppose the  amendment                                                                   
since there are bills that would address the issue.                                                                             
                                                                                                                                
Vice-Chair   Meyer   stated   that  the   emphasis   of   the                                                                   
subcommittee  was   on  pupil  transportation   and  learning                                                                   
opportunity  grants.  The Subcommittee  concluded  that  user                                                                   
fees  could support  the community school  program.  He noted                                                                   
that  one  alternative was  to  place  the program  into  the                                                                   
foundation formula.                                                                                                             
                                                                                                                                
Representative Joule  the Community School Program  was begun                                                                   
in order to  draw communities into the life  of its children.                                                                   
He observed  that 50  of 53 school  districts have  programs.                                                                   
Community   schools   offer    over   20,000   programs   and                                                                   
activities: over  342,000 activity hours were  logged, 64,000                                                                   
kids served,  and 390,000 adults  served. He maintained  that                                                                   
it is  "spark plug"  funding; the  program generates  a whole                                                                   
community  engine.  There  are  a variety  of  good,  healthy                                                                   
activities for communities.                                                                                                     
                                                                                                                                
A roll call vote was taken on the motion to ADOPT Amendment                                                                     
DEED 4.                                                                                                                         
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED: Chenault,     Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment DOR 1:                                                                                 
                                                                                                                                
     Department of Revenue                                                                                                      
                                                                                                                                
     Page 31, line 21                                                                                                           
                                                                                                                                
     Delete:   -1,300,000                                                                                                       
     Add:      -150,000                                                                                                         
                                                                                                                                
     Page 31, line 27                                                                                                           
     Delete:   1,300,000                                                                                                        
     Add:      150,000                                                                                                          
                                                                                                                                
     Explanation:                                                                                                               
                                                                                                                                
     This   amendment   replaces   a  $1.3   million   dollar                                                                   
     unallocated general fund  reduction with a $150 thousand                                                                   
     unallocated general  fund reduction and  reduces funding                                                                   
     for  the Alaska  Natural  Gas Development  Authority  to                                                                   
     $150,000.                                                                                                                  
                                                                                                                                
Co-Chair  Harris explained  that the  amendment would  delete                                                                   
the $1.3  million dollar  unallocated general fund  reduction                                                                   
with a $150  thousand unallocated general fund  reduction and                                                                   
reduces  funding  for  the  Alaska  Natural  Gas  Development                                                                   
Authority to $150 thousand.                                                                                                     
                                                                                                                                
Representative   Croft  spoke   against  the  amendment.   He                                                                   
acknowledged  the need to restore  funding to  the Department                                                                   
of  Revenue.   He  expressed  his  strong  belief   that  the                                                                   
proposal  was  not  appropriate  based on  merit  and  public                                                                   
testimony.                                                                                                                      
                                                                                                                                
Co-Chair Harris  observed that he presenting the  will of his                                                                   
caucus.                                                                                                                         
                                                                                                                                
A roll call  vote was taken on the motion  to ADOPT Amendment                                                                   
DOR 1.                                                                                                                          
                                                                                                                                
IN FAVOR: Chenault, Foster, Hawker,  Meyer, Stoltze, Williams                                                                   
OPPOSED:  Croft, Joule, Harris, Moses                                                                                           
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION PASSED 6-4.                                                                                                          
                                                                                                                                
Co-Chair Harris MOVED Amendment ADF&G 1:                                                                                        
                                                                                                                                
     Department of Fish and Game                                                                                                
     Administration and Support                                                                                                 
     Boards of Fisheries and Game                                                                                               
                                                                                                                                
     Delete:   56.4 General Funds                                                                                               
     Add:  56.4 Federal Funds                                                                                                   
                                                                                                                                
     Administration and Support                                                                                                 
     Advisory Committees                                                                                                        
                                                                                                                                
     Delete:   56.4 General Funds                                                                                               
     Add:  56.4 Federal Funds                                                                                                   
                                                                                                                                
                                                                                                                                
     Explanation: Technical Amendment transferring funds between                                                                
     components.                                                                                                                
                                                                                                                                
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE                                                                              
SERVICES, DEPARTMENT OF FISH AND GAME explained that the                                                                        
amendment would correct a technical error.                                                                                      
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Joule MOVED to ADOPT Amendment ADF&G 2:                                                                          
                                                                                                                                
     AGY. Department of Fish & Game                                                                                             
     BRU. Subsistence                                                                                                           
     COM. Subsistence                                                                                                           
     ADD:            $200,000 GF                                                                                              
                                                                                                                                
Representative  Joule  observed   that  the  amendment  would                                                                   
restore adequate  funding by offsetting the  20% reduction in                                                                   
AIDEA  contributions. Without  funding restoration,  regional                                                                   
subsistence harvest  and use updates  will be reduced  from a                                                                   
five-year to a  seven-year frequency. He emphasized  that the                                                                   
Boards  of  Fish and  Game,  who  rely on  accurate,  current                                                                   
information to  implement subsistence  priority laws,  and to                                                                   
make allocation  and regulatory  decisions among  users, also                                                                   
use the information.                                                                                                            
                                                                                                                                
Mr.  Brooks noted  that  the department  took  a  cut in  the                                                                   
subsistence  component  but believes  that  the can  maintain                                                                   
core  functions.  He  acknowledged  that  services  would  be                                                                   
slowed.                                                                                                                         
                                                                                                                                
Co-Chair Harris  questioned the affect of  federal management                                                                   
on the operations of the Division  of Subsistence. Mr. Brooks                                                                   
noted  that  he Department  is  working  with the  state  and                                                                   
federal boards.                                                                                                                 
                                                                                                                                
Representative  Joule  observed  that  if  the  reduction  is                                                                   
maintained  that  the  Division  would  have  suffered  a  50                                                                   
percent cut.                                                                                                                    
                                                                                                                                
TAPE HFC 03 - 52, Side A                                                                                                      
                                                                                                                                
Representative  Joule continued  to argue  in support  of the                                                                   
amendment.                                                                                                                      
                                                                                                                                
Mr.  Brooks noted  that  the  federal Office  of  Subsistence                                                                   
Management obtains  some of the  fieldwork and pays  for some                                                                   
provided  by the  state  of Alaska.  Data  is  used by  state                                                                   
boards and used  to make comments to the  federal government.                                                                   
Mr. Brooks noted surveys are cycled  through. Where there are                                                                   
issues the Department will try to do more frequent surveys.                                                                     
                                                                                                                                
Representative  Croft  observed that  federal  boards have  a                                                                   
stronger mandate for subsistence  and questioned if sport and                                                                   
commercial   uses  would   be   adversely  affected   without                                                                   
sufficient data.                                                                                                                
                                                                                                                                
Mr. Brooks  maintained that the state  is not in threat  of a                                                                   
loss of  data. The  state of Alaska  recognizes the  priority                                                                   
for  subsistence.   The  Division  of  Commercial   Fisheries                                                                   
manages the subsistence fisheries harvesting.                                                                                   
                                                                                                                                
Representative  Croft felt that  the middle ground  was being                                                                   
lost  and  felt that  a  disservice  was  being made  in  not                                                                   
restoring the appropriation.                                                                                                    
                                                                                                                                
Representative  Joule  spoke  in support  of  the  amendment.                                                                   
Rural communities are happy with federal management.                                                                            
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Foster, Joule, Moses                                                                                           
OPPOSED: Chenault, Hawker, Stoltze, Williams, Harris                                                                            
                                                                                                                                
Representatives  Whitaker  and  Meyer were  absent  from  the                                                                   
vote.                                                                                                                           
                                                                                                                                
The MOTION FAILED (4-5).                                                                                                        
                                                                                                                                
Representative  Croft  asked that  the  Amendment  DCED 1  be                                                                   
divided  into  Amendment  DCED  1  and  1A.  Co-Chair  Harris                                                                   
concurred.                                                                                                                      
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment DCED 1:                                                                                
                                                                                                                                
     Department of Community and Economic Development                                                                           
     Alaska Science and Technology Foundation                                                                                   
     Delete:                                                                                                                    
     10,518,600 Alaska Science and Technology Endowment                                                                         
     Income                                                                                                                     
     90,000 statutory designated program receipts                                                                               
                                                                                                                                
Co-Chair Harris  observed that the amendment  would eliminate                                                                   
funding  for the operating  functions  of the Alaska  Science                                                                   
and Technology Foundation (ASTF).                                                                                               
                                                                                                                                
Representative   Croft  spoke   against  the  amendment.   He                                                                   
stressed  that  Alaska's  future   resides  in  the  programs                                                                   
supported by ASTF. He stressed  that the nature of investment                                                                   
capital  is  that   not  every  venture  is   successful.  He                                                                   
maintained that ASTF has hit some  big developments that have                                                                   
helped   the   state  and   emphasized   that   technological                                                                   
innovation is vital to Alaska's  future. He acknowledged that                                                                   
investment priorities might need to be redirected.                                                                              
                                                                                                                                
TOM LAWSON, DIRECTOR, ADMINISTRATIVE  SERVICES, DEPARTMENT OF                                                                   
COMMUNITY AND  ECONOMIC DEVELOPMENT observed that  the Alaska                                                                   
Science  and  Technology  Foundation   has  appropriated  126                                                                   
million dollars:  $63 million to  grants. He noted  that some                                                                   
portion of  some grants  is repaid.  Under $500 thousand  has                                                                   
been repaid.                                                                                                                    
                                                                                                                                
Co-Chair  Harris  summarized  that  $500  thousand  had  been                                                                   
repaid on approximately $20 million in loans.                                                                                   
                                                                                                                                
Mr.  Lawson noted  that ASTF  has granted  $126 million:  $63                                                                   
million to various  grants. Most of the grants  have a clause                                                                   
for  repayment upon  commercialization. He  noted that  under                                                                   
$500 thousand  of the grant amount  has been repaid.  A third                                                                   
of the $63 million was in loans.                                                                                                
                                                                                                                                
Co-Chair   Williams   recalled   that,   according   to   the                                                                   
Legislative  Budget  and Audit  Committee,  the  pay back  on                                                                   
loans was  only $260 thousand.  The University  also received                                                                   
some  funding from  ASTF. He  did  not feel  that, under  the                                                                   
proposed  $900  million  budget  deficient,  that  the  state                                                                   
should make investments,  which only return $260  thousand on                                                                   
$60 million.                                                                                                                    
                                                                                                                                
Mr. Lawson  noted that  of $63 million,  $25 million  went to                                                                   
technical projects,  $10 million into knowledge  projects, $8                                                                   
million in partnerships, $5 million  for Internet service for                                                                   
K-12, $2  went to science grants  for K-12 teachers,  and $13                                                                   
million  for operations  of ASTF.  The rest  has gone to  the                                                                   
University,  the  Kodiak  Launch   Complex,  and  the  Alaska                                                                   
Aerospace Development Corporation for operations.                                                                               
                                                                                                                                
Representative  Croft  pointed  out  that  no  other  venture                                                                   
capital firm is  directed to pay teachers to  wire schools or                                                                   
fund the University.  The earnings have been  spent on worthy                                                                   
policy goals.  Some of  the funds have  been used  to provide                                                                   
jobs that counter balance the fisheries decline.                                                                                
                                                                                                                                
Co-Chair  Harris  clarified  that  $43  million  of  the  $62                                                                   
million  went  to  grants,  which  he did  not  used  in  the                                                                   
comparison.  He observed  that $20 million  went to  projects                                                                   
that were to be repaid when they were successful.                                                                               
                                                                                                                                
Representative Croft spoke against the amendment.                                                                               
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
DCED 1.                                                                                                                         
                                                                                                                                
IN FAVOR: Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
OPPOSED: Croft, Joule, Moses                                                                                                    
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION PASSED (7-3).                                                                                                        
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment DCED 1A.                                                                               
                                                                                                                                
     (d)  The balance  of the Alaska  science and  technology                                                                   
     endowment  (AS 37.17.020)  on June  30, 2003,  including                                                                   
     unobligated  and unencumbered  earnings, is  appropriate                                                                   
     to the general fund.                                                                                                       
                                                                                                                                
Representative   Croft  OBJECTED.   He  questioned   why  the                                                                   
endowment should be  eliminated. He also asked why,  if it is                                                                   
eliminated, part  of the appropriation is not  being spent to                                                                   
fund education  properly. He pointed  out that  the endowment                                                                   
would  be  put   into  the  Constitutional   Budget  Reserve,                                                                   
allowing a  simple majority to  make the decisions  regarding                                                                   
its use.                                                                                                                        
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
DCED 1A.                                                                                                                        
                                                                                                                                
IN FAVOR: Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
OPPOSED: Croft, Joule, Moses                                                                                                    
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION PASSED (7-3).                                                                                                        
                                                                                                                                
Representative Moses MOVED to ADOPT Amendment DCED 2:                                                                           
                                                                                                                                
     ADD:                                                                                                                       
     Community & Economic Development                                                                                           
     Power Cost Equalization                                                                                                    
     Power Cost Equalization                                                                                                    
                                                                                                                                
     $4,300.0 AHFC Dividends                                                                                                    
                                                                                                                                
Fund source: Power Cost Equalization Electrification Fund.                                                                      
                                                                                                                                
Representative  Moses spoke in  support of the  amendment and                                                                   
observed that funding would come from AHFC dividends                                                                            
                                                                                                                                
Co-Chair  Harris observed  that PCE  has been  funded at  $12                                                                   
million. Full funding is $15.6  million. He questioned if the                                                                   
amendment would bring funding to $20 million.                                                                                   
                                                                                                                                
Mr. Teal  explained that the  amendment would  capitalize the                                                                   
endowment at $20 million dollars. He explained that only                                                                        
$12.2 million is available at the current time.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Foster, Joule, Moses                                                                                           
OPPOSED: Chenault, Hawker, Meyer, Stoltze, Williams, Harris                                                                     
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT DCED 3:                                                                                     
                                                                                                                                
     Safe Communities and Revenue Sharing Programs                                                                              
                                                                                                                                
     Page 57, line 1                                                                                                            
                                                                                                                                
     Replace   subsections  a  and   b  with  the   following                                                                   
     language:                                                                                                                  
                                                                                                                                
          (a) The sum of $4,193,900 is appropriated from                                                                        
     the  international  trade  and  business  endowment  (AS                                                                   
     37.17.440) to  the Department of Community  and Economic                                                                   
     Development   for   distribution    through   the   Safe                                                                   
     Communities Program                                                                                                        
     (AS 44.33.119-.125).                                                                                                       
          (b) After the appropriation made by (a) of this                                                                       
     section,  the balance  of  the international  trade  and                                                                   
     business  endowment  (AS 34.17.440)  on  June 30,  2003,                                                                   
     including any unobligated  and unemcumbered earnings, is                                                                   
     appropriated   to  the  Department   of  Community   and                                                                   
     Economic Development for  distribution through the State                                                                   
     Revenue Sharing Program (AS 29.60.010-.310).                                                                               
                                                                                                                                
     Page 57, following line 9                                                                                                  
                                                                                                                                
     Add the following new subsection:                                                                                          
                                                                                                                                
          (d) The sum of $2,500,000 is appropriated from                                                                        
     the state  land disposal  income fund (AS  38.04.022) to                                                                   
     the  Department of  Community  and Economic  Development                                                                   
     for  distribution  through  the  State  Revenue  Sharing                                                                   
     Program (AS                                                                                                                
     29.60.010-.310).                                                                                                           
                                                                                                                                
     Explanation:                                                                                                               
                                                                                                                                
     This  amendment  (1)  restores   funding  for  the  Safe                                                                   
     Communities Program  to the FY03 level and  (2) restores                                                                   
     approximately $2.7 million  (of a $3.2 million reduction                                                                   
     from  FY03   funding  level)  to  the   Revenue  Sharing                                                                   
     program.  Both   are  accomplished  without   additional                                                                   
     general fund expenditures.                                                                                                 
                                                                                                                                
Representative  Croft   maintained  that  grants   not  state                                                                   
bureaucracy  has  been reduced  in  the proposed  budget.  He                                                                   
maintained  that the pain  has been  passed to the  municipal                                                                   
level.  The  amendment  would  restore  revenue  sharing  and                                                                   
municipal assistance.                                                                                                           
                                                                                                                                
Representative  Joule spoke in  support of the  amendment. He                                                                   
noted  rising  insurance  costs,  increased  PERS,  and  debt                                                                   
reimbursement. Costs are being  shifted to local communities.                                                                   
There has been  a $40 million cut to municipalities  over ten                                                                   
years.                                                                                                                          
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED:  Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment DHSS 1:                                                                                
                                                                                                                                
     Human Services Community Matching Grant                                                                                    
     Insert 1.3 million                                                                                                         
     Delete 850,000 thousand                                                                                                    
                                                                                                                                
Co-Chair  Harris  observed  that  the  amendment  is  at  the                                                                   
request of the Governor.                                                                                                        
                                                                                                                                
JANET CLARKE, DIRECTOR, DIVISION  OF ADMINISTRATIVE SERVICES,                                                                   
DEPARTMENT OF HEALTH AND SOCIAL  SERVICES spoke in support of                                                                   
the amendment.  In response to  a question by  Representative                                                                   
Croft, Ms.  Clarke noted that the  FY 02 level for  the Human                                                                   
Services Community Matching Grant was $1.716.9 million.                                                                         
                                                                                                                                
Representative  Croft observed that  the grants have  been at                                                                   
the $1.7 million  level for the past six or  seven years. The                                                                   
amendment would  result in 25  percent reduction. He  did not                                                                   
object to the  increase, but felt that the  overall reduction                                                                   
would hurt agencies.                                                                                                            
                                                                                                                                
Representative  Stoltze  observed  that  Subcommittee  Chair;                                                                   
Representative Hawker restored a portion of the funding.                                                                        
                                                                                                                                
Representative Hawker  explained $850 thousands  was restored                                                                   
in  the  Subcommittee,  which  was  two-thirds  of  the  FY03                                                                   
funding level. He spoke in support of the amendment.                                                                            
                                                                                                                                
Representative Chenault WITHDREW Amendment DHSS 2.                                                                              
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment DHSS 3:                                                                           
                                                                                                                                
     Department of Health and  Social Services Human Services                                                                   
     Community Matching Grant                                                                                                   
                                                                                                                                
     Page 21, lines 24-30                                                                                                       
                                                                                                                                
     Delete Intent:                                                                                                             
                                                                                                                                
     "It  is the  intent of  the legislature  that the  Human                                                                   
     Services  Community  Matching   Grant  funding  will  be                                                                   
     phased out  in equal reductions  over a period  of three                                                                   
     years.   This   phased  reduction   is   to   facilitate                                                                   
     development of  Faith Based and other  community focused                                                                   
     initiatives  to supplant  dependency  upon direct  State                                                                   
     funding.  Faith   Based  and  other   community  focused                                                                   
     initiatives  are  most appropriate  to  direct  specific                                                                   
     resources to  particular community needs,  complimenting                                                                   
     the  concentration  of State  resources  on core  public                                                                   
     health and social services needs."                                                                                         
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Joule MOVED to ADOPT Amendment DHSS 4:                                                                           
                                                                                                                                
     Agency:   Department of Health  and Social Services                                                                        
     BRU: Seniors and Disability Services                                                                                       
     Component:Community  Developmental  Disabilities  Grants                                                                   
          Add: $1,794.7 GFIMH for underutilized and                                                                             
          nonhabilitive grants Fund Source: AHFC Dividend                                                                       
                                                                                                                                
     Agency:   Department of Health  and Social Services                                                                        
     Component:Human Services Community Matching Grant                                                                          
     Add: $428.4                                                                                                                
          Fund Source: AHFC Dividend                                                                                            
                                                                                                                                
     Agency:   Department of Health  and Social Services                                                                        
     BRU: Behavioral Health                                                                                                     
     Component:Services to the  Chronically Mentally ill                                                                        
          Add: $466.5                                                                                                           
          Fund Source: AHFC Dividend                                                                                            
                                                                                                                                
     Agency:   Department of Health  and Social Services                                                                        
     BRU: Behavioral Health                                                                                                     
     Component:Behavioral Health Grants Add: $683.4                                                                             
     Fund Source: AHFC Dividend                                                                                                 
                                                                                                                                
     Agency:   Department of Health  and Social Services                                                                        
     BRU: Children's Services                                                                                                   
     Component:Children's Trust Program                                                                                         
     Add: $75.5                                                                                                                 
     Fund Source: AHFC Dividend                                                                                                 
                                                                                                                                
     Agency:   Department of Health  and Social Services                                                                        
     BRU: Behavioral Health                                                                                                     
     Component:Services for Seriously Emotionally Disturbed                                                                     
          Youths Add: $100.2                                                                                                    
          Fund Source: AHFC Dividend                                                                                            
                                                                                                                                
    Agency:    Department of Health and Social Services                                                                         
     BRU: Public Assistance                                                                                                     
     Component: Public   Assistance    Administration/Healthy                                                                   
           Families Add: $1,083.4                                                                                               
           Fund Source: AHFC Dividend                                                                                           
                                                                                                                                
    Agency:    Department of Health and Social Services                                                                         
     BRU: Children's Services                                                                                                   
     Component: Family Preservation/Family Support Grants                                                                       
     Add: $270.6                                                                                                                
     Fund Source: AHFC Dividend                                                                                                 
                                                                                                                                
Representative  Joule spoke in  support of the  amendment. He                                                                   
pointed  out  that  the  Department   of  Health  and  Social                                                                   
Services  budget  is  the largest  in  state  government.  He                                                                   
observed that most of the subcommittee  work was done without                                                                   
impact statements.  The amendment  would allow recipients  of                                                                   
the services  would be given time  to find other  funding. He                                                                   
maintained  that the  service  help strengthen  and  preserve                                                                   
families.                                                                                                                       
                                                                                                                              
TAPE HFC 03 - 52, Side B                                                                                                      
                                                                                                                                
Representative Joule noted that  a child is abused every hour                                                                   
and  stressed the  importance of  the amendment.  A child  is                                                                   
abused about every hour in Alaska.                                                                                              
                                                                                                                                
Co-Chair Harris  observed that the  fund source would  be the                                                                   
Alaska Housing Finance Corporation dividend.                                                                                    
                                                                                                                                
Representative  Croft noted  that  the total  amount for  the                                                                   
component  would be  $4.474 with  the deletion  of the  human                                                                   
services   grants,  which   was   funded   in  the   previous                                                                   
amendments.                                                                                                                     
                                                                                                                                
Representative  Hawker noted  that every  dollar is  a direct                                                                   
affect to members  of the society. He observed that  it was a                                                                   
difficult   decision  but   that  state   revenues  are   not                                                                   
sufficient.  He stressed that  the intent  is to protect  the                                                                   
most  essential services  and emphasized  that the  explosive                                                                   
growth of the  Medicaid budget made it difficult  to continue                                                                   
funding other programs.                                                                                                         
                                                                                                                                
Although the programs have great  merit Representative Hawker                                                                   
was not certain that they were  essential. He observed that a                                                                   
significant amount  of mental health component  was restored.                                                                   
Advocacy grants  were not funded.  He emphasized that  he was                                                                   
careful  not  to  advocate  for   any  particular  agency  or                                                                   
advocacy. Service delivery models  have been changed and some                                                                   
of  the  services  would  be  provided  by  other  means.  He                                                                   
expressed  support  for  the Governor's  proposal  and  spoke                                                                   
against the amendment.                                                                                                          
                                                                                                                                
Representative   Croft   spoke   to  the   Southeast   Alaska                                                                   
Independent  Living (SAIL)  grants.  He  noted that  advocacy                                                                   
could  mean  education  for severally  disabled  persons.  He                                                                   
continued to speak in favor of the amendment.                                                                                   
                                                                                                                                
Representative  Joule spoke to  the SAIL grants.  He observed                                                                   
that  some  of  the  persons  on  the  waitlist  are  working                                                                   
multiple jobs.                                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED:  Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment DHSS 5:                                                                                
                                                                                                                                
     Administrative Services Commissioner's Office                                                                              
     Delete                                                                                                                     
     $33,500 General Funds/Match                                                                                                
     $73,000 Federal Funds                                                                                                      
                                                                                                                                
     ADD                                                                                                                        
     Alaska Library and Museums Library Operations                                                                              
     $30,000GF                                                                                                                  
                                                                                                                                
     Explanation: This amendment removes a total of $100,500                                                                    
     of funds from DH&SS Commissioner's Office and places                                                                       
     $30,000 of general funds in the Library Operations                                                                         
     component in DEED for the SLED program.                                                                                    
                                                                                                                                
Co-Chair Harris explained that  the amendment would save some                                                                   
general funds.                                                                                                                  
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment UNIV 1:                                                                           
                                                                                                                                
     Page 1, line 1, after "appropriations",                                                                                    
     Insert: "and reappropriations"                                                                                             
                                                                                                                                
     ADD:                                                                                                                       
                                                                                                                                
     Increment:                                                                                                                 
     University of Alaska                                                                                                       
     Budget Reductions/ Additions -System wide                                                                                  
                                                                                                                                
          $6,728,800 reappropriation of the unexpected and                                                                      
          unobligated funds described under Section 1,                                                                          
          Chapter 94, SLA 2002, page 11, lines 17 & 18.                                                                         
                                                                                                                                
          $3,575,200 unappropriated AHFC dividend                                                                               
                                                                                                                                
     Explanation:                                                                                                               
     The   Governor  recommended   a  $10.3  million   dollar                                                                   
     increase  in  the UA  budget  this year-  sufficient  to                                                                   
     maintain  the momentum  and meet  the basic fixed  costs                                                                   
     because  he  sees the  University  as essential  to  the                                                                   
     economic  growth   and  vitality  of  the   state.  This                                                                   
     amendment seeks to restore  the University budget to the                                                                   
     Governor's level                                                                                                           
                                                                                                                                
     Budget Impact: Net $0 GF                                                                                                 
                                                                                                                                
Representative Croft read from the Governor's impact                                                                            
statement and spoke in support of the amendment.                                                                                
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Joule, Harris, Moses                                                                                           
OPPOSED: Chenault, Foster, Hawker, Meyer, Stoltze, Williams                                                                     
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment LEG 1:                                                                            
                                                                                                                                
     Legislature                                                                                                                
     Legislative Operating Budget                                                                                               
                                                                                                                                
     Delete:   12.OGF                                                                                                           
                                                                                                                                
     Legislative Ethics                                                                                                         
     Select Committee on Ethics                                                                                                 
                                                                                                                                
     Add:           12.0 GF                                                                                                     
                                                                                                                                
     A  reduction of 12.0 was made in subcommittee  to travel                                                                   
     to  cover office space  rental. The Ethics  Committee is                                                                   
     located   at  the   Anchorage  Legislative   Information                                                                   
     Office  building.  Increase  cost  in  Anchorage  office                                                                   
     space   for  the  Legislature   was  provided   with  an                                                                   
     increment   of  70.0  in  the  Legislature's   operating                                                                   
     budget.  A reduction in the Ethics budget  is not needed                                                                   
     to cover office space.                                                                                                     
Representative Croft spoke in  support of the legislation. He                                                                   
pointed out  that statute states  that the Ethic's  Committee                                                                   
should be allowed office space,  which has been traditionally                                                                   
given.  The  cost  would be  deducted  from  their  operating                                                                   
budget.  He  observed,  "it  could   be  misconstrued  as  us                                                                   
disciplining  the Ethic's  Committee,  for them  disciplining                                                                   
us."                                                                                                                            
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED:  Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment GOV 1:                                                                            
                                                                                                                                
     Office of the Governor                                                                                                   
     Executive Operations Executive Office                                                                                      
                                                                                                                                
     Decrement:`$167.1 GF                                                                                                       
                                                                                                                                
     Department of Labor & Workforce Development                                                                              
     Business Partnerships Adult Basic Education                                                                                
                                                                                                                                
     Increment: $167.1 GF                                                                                                       
                                                                                                                                
                                                                                                                                
     Explanation:   These funds represent a 5.9% reduction                                                                      
     of Adult Basic Ed GF. This amendment would restore GF                                                                      
     to the FY03 Conference Committee amount of $1,739.5.                                                                       
                                                                                                                                
     There was no testimony or discussion in the L&C                                                                            
     Subcommittee regarding Adult Basic Ed, but recipients                                                                      
     of services have provided the following information:                                                                       
                                                                                                                                
   1.     English  is taught through  the Anchorage  Literacy                                                                   
          Project to people who are living and working in                                                                       
          Alaska but who do not speak English as a first                                                                        
          language.                                                                                                             
                                                                                                                                
     2.   Adult Basic Education tutors help with important                                                                      
          life  skills: how  to  make doctor's  appointments,                                                                   
          learning  to   drive,  how  to  work   with  school                                                                   
          districts  so  children   of  recipients  get  good                                                                   
          educations.                                                                                                           
                                                                                                                                
      3. Adult Basic Education students get help working                                                                        
          toward a GED or high school diploma.                                                                                  
                                                                                                                                
     4.   American culture and history is taught to                                                                             
          immigrants through the Anchorage Literacy Project.                                                                    
                                                                                                                                
     Adult Basic Education provides important learning                                                                          
     opportunities for life skills necessary to ensure that                                                                     
     program recipients and their families remain self-                                                                         
    supporting and independent of other state services.                                                                         
                                                                                                                                
Representative Croft spoke in  support of Amendment GOV 1. He                                                                   
observed that he would leave the reduction to the Governor.                                                                     
                                                                                                                                
Co-Chair Harris stated that he  would not support the funding                                                                   
source.                                                                                                                         
                                                                                                                                
Representative  Joule  pointed   out  that  the  high  school                                                                   
qualifying exit exam  would be in place in the  next year and                                                                   
suggested  that  it  may  place a  greater  demand  on  adult                                                                   
education.                                                                                                                      
                                                                                                                                
Representative  Croft defended the  funding source  and spoke                                                                   
in support of the amendment. He  maintained that the Governor                                                                   
could find $167 thousand in his budget for adult education.                                                                     
                                                                                                                                
Amendments GOV 2 and 3 were WITHDRAWN.                                                                                          
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment GOV 4:                                                                            
                                                                                                                                
     Decrement:                                                                                                                 
     $2000.00 GF                                                                                                                
     Office of the Governor                                                                                                     
     State Wide Unallocated Reduction                                                                                           
     State Wide Unallocated Reduction                                                                                           
                                                                                                                                
     Explanation:   This takes the $2 million cut to the                                                                        
     Office of the Governor - Statewide Unallocated                                                                             
     Reduction and makes it $4 million.                                                                                         
                                                                                                                                
Co-Chair Harris  OBJECTED. He spoke in support  of controlled                                                                   
reductions    as   opposed    to   unallocated    reductions.                                                                   
Representative Stoltze agreed.                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED:  Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment GOV 5:                                                                            
                                                                                                                                
     Office of the Governor                                                                                                     
     Statewide Unallocated Reduction                                                                                            
     Statewide Unallocated Reduction                                                                                            
                                                                                                                                
     Decrement: $16,761,158 OF                                                                                                  
                                                                                                                                
     Insert:                                                                                                                    
                                                                                                                                
     Page 2, line 7, insert a new paragraph to read:                                                                            
                                                                                                                                
        "It is the intent of the legislature for                                                                            
     unallocated  general fund  cuts to  be taken across  the                                                               
     board  to  reduce  state  bureaucracy  through  cuts  to                                                                 
     travel, upper  and mid level  management, and  to reduce                                                                 
     the  overall size  and cost  of  state government.  This                                                               
     intent  applies  to  all  general   fund  appropriations                                                                 
     covered in this section."                                                                                                
                                                                                                                                
     Renumber accordingly.                                                                                                      
                                                                                                                                
     Explanation:   This  amendment  is designed  to  express                                                                   
     legislative  intent of  cutting the  "bloat" from  state                                                                   
     government.                                                                                                                
                                                                                                                                
     ADD:                                                                                                                       
                                                                                                                                
     Increment:                                                                                                                 
          $500.0 GF                                                                                                             
     Education & Early Development                                                                                              
     K-12 Support                                                                                                               
     Community Schools                                                                                                          
                                                                                                                                
     Explanation:   This  increment  will restore  funds  for                                                                   
     the  Community   Schools  programs.  Community   schools                                                                   
     statewide  use this  small amount  of money to  leverage                                                                   
     matching  funds  that  in  FY02  were in  excess  of  $7                                                                   
     million in  small grants, volunteer and  in-kind donated                                                                   
     services.  Community  Schools offer  essential  services                                                                   
     such  as Adult Basic  Education,  student prep  work for                                                                   
     benchmark  tests, and supervised  after school  programs                                                                   
     for  children of  working parents.  This program  serves                                                                   
     thousands of adults and children statewide each year.                                                                      
                                                                                                                                
     Education & Early Development                                                                                              
     K-12 Support                                                                                                               
     Foundation Program                                                                                                         
     Increment:                                                                                                                 
          $ 16,261.158 GF                                                                                                       
      (This is to be reflected in the language  section as an                                                                   
     adjusted ADM grant.)                                                                                                       
                                                                                                                                
     Explanation:   This  would put $80 per student  into the                                                                   
     foundation  formula section  of the  budget as  adjusted                                                                   
     average daily membership.                                                                                                  
                                                                                                                                
     Budget Impact: Net $0                                                                                                      
                                                                                                                                
Representative  Croft spoke in  support of the  amendment and                                                                   
emphasized  the need to  single education  out as the  number                                                                   
one priority.  He observed  that it is  not the ideal  way to                                                                   
cut  the  budget   or  fund  schools,  but   emphasized  that                                                                   
inflation has eaten away at school programs.                                                                                    
                                                                                                                                
Co-Chair  Harris stressed  that the appropriate  way  to fund                                                                   
education would be through pending legislation.                                                                                 
                                                                                                                                
Representative  Hawker  maintained  that  the  commitment  to                                                                   
education  has   been  made   through  restorations   in  the                                                                   
Department of Education and Early Development budget.                                                                           
                                                                                                                                
Representative Croft asserted  that drastic cuts to education                                                                   
were  modified.  He  pointed out  to  public  testimony  from                                                                   
around  the state  that indicated  that  teachers were  being                                                                   
cut.                                                                                                                            
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Chenault, Croft, Joule, Moses                                                                                         
OPPOSED: Foster, Hawker, Meyer, Stoltze, Williams, Harris                                                                       
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment LANG 1:                                                                                
                                                                                                                                
     Page 60, following line 6:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "*  Sec. 27.   SALARY AND  BENEFIT ADJUSTMENTS.   (a)                                                               
     The   operating  budget   appropriations  made   to  the                                                                   
     University  of Alaska  in  sec. 1  of  this Act  include                                                                   
     amounts   for  salary   and   benefit  adjustments   for                                                                   
     university   employees  who   are  not   members  of   a                                                                   
     collective  bargaining  unit  and for  implementing  the                                                                   
     monetary  terms of the  following collective  bargaining                                                                   
     agreements with  entities representing employees  of the                                                                   
     University of Alaska:                                                                                                      
               (1)  Alaska Higher Education Crafts and                                                                          
     Trades Employees;                                                                                                          
               (2)  Alaska Community Colleges' Federation of                                                                    
     Teachers;                                                                                                                  
               (3)  United Academics;                                                                                           
              (4)  United Academics-Adjuncts.                                                                                   
          (b)  The operating budget appropriations made in                                                                      
     sec. 1 of this Act include  $11,935,700 to implement the                                                                   
     monetary  terms  for  the fiscal  year  ending  June 30,                                                                   
     2004,   of    the   following   collective    bargaining                                                                   
     agreements:                                                                                                                
               (1)  Alaska Public  Employees Association, for                                                                   
     the Confidential Unit;                                                                                                     
               (2)  Alaska Public  Employees Association, for                                                                   
     the Supervisory Unit;                                                                                                      
               (3)   Alaska State Employees  Association, for                                                                   
     the General Government Unit;                                                                                               
               (4)     Alaska  Vocational   Technical  Center                                                                   
     Teachers'  Association,  representing  teachers  at  the                                                                   
     Alaska Vocational Technical Center;                                                                                        
               (5)      Alyeska  Central   School   Education                                                                   
     Association,   representing  teachers  at   the  Alyeska                                                                   
     Central School;                                                                                                            
               (6)   Inlandboatmen's  Union  of the  Pacific,                                                                   
     representing the unlicensed marine unit;                                                                                   
               (7)    Public  Employees  Local  71,  for  the                                                                   
     Labor, Trades and Crafts Unit;                                                                                             
               (8)  Public Safety  Employees Association, for                                                                   
     the Correctional Officers Unit;                                                                                            
               (9)    Public  Safety  Employees  Association,                                                                   
     representing state  troopers and other  commissioned law                                                                   
     enforcement personnel;                                                                                                     
               (10)   Teachers' Education Association  of Mt.                                                                   
     Edgecumbe.                                                                                                                 
          (c)  If a collective bargaining agreement listed                                                                      
     in  (b)  of   this  section  is  not  ratified   by  the                                                                   
     membership  of  the  respective   collecting  bargaining                                                                   
     unit,  the  appropriations made  by  this  Act that  are                                                                   
     applicable   to   that  collective   bargaining   unit's                                                                   
     agreement are reduced proportionately  by the amount for                                                                   
     that   collective   bargaining    agreement,   and   the                                                                   
     corresponding   funding  source   amounts  are   reduced                                                                   
     accordingly."                                                                                                              
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 64, lines 30 - 31:                                                                                                    
          Delete "29(c), 29(i), 29(j), 29(k), 29(l), 29(m),                                                                     
     29(n), 29(o), and 30"                                                                                                      
          Insert "30(c), 30(i), 30(j), 30(k), 30(l), 30(m),                                                                     
     30(n), 30(o), and 31"                                                                                                      
                                                                                                                                
Mr.  Teal  explained  that  the   amendment  addresses  labor                                                                   
contract agreements  and clarified  that subsection  (a) does                                                                   
not appropriate  funds. Subsection  (b) notes that  section 1                                                                   
contains the appropriation.                                                                                                     
                                                                                                                                
WENDY REDMAN, VICE PRESIDENT,  STATEWIDE PROGRAMS, UNIVERSITY                                                                   
OF ALASKA,  summarized that the  amendment would  approve the                                                                   
additional  $7 million  in contracts  compensation  increases                                                                   
without additional funding. The  University would be directed                                                                   
to use existing resources. She  questioned if the state would                                                                   
be  allocated additional  funding  for similar  increases  in                                                                   
contract negotiations.                                                                                                          
                                                                                                                                
Co-Chair Harris  clarified that the second  section allocates                                                                   
$11.9 million to cover the increase  in contract negotiations                                                                   
for state employees.                                                                                                            
                                                                                                                                
Ms. Redman  questioned why the  contracts increases  would be                                                                   
approved  for  the state  but  not the  University.  Co-Chair                                                                   
Harris explained  that the reasoning was that  the University                                                                   
could raise additional funds.                                                                                                   
                                                                                                                                
Ms.  Redman  stressed  the  affects   of  flat  funding.  She                                                                   
maintained  that students  and  teachers would  be lost.  Fix                                                                   
costs are real. The university  cannot absorb the reductions.                                                                   
Costs  will result  in reductions.  Major program  reductions                                                                   
would  occur. There  is  no way  to pay  for  $10 million  in                                                                   
additional costs.                                                                                                               
                                                                                                                                
Representative Croft  MOVED to AMEND Amendment LANG  1 to add                                                                   
to  (a)  on line  4:  $6.9  million dollars  for  salary  and                                                                   
benefits to pay for fixed costs [to the University].                                                                            
                                                                                                                                
Mr.  Teal   pointed  out  that   the  language  is   not  the                                                                   
appropriation.  The language refers  to the appropriation  in                                                                   
section  1. The  increase  would  also need  to  be added  to                                                                   
section 1.                                                                                                                      
                                                                                                                                
Co-Chair Harris observed that  the amendment to the amendment                                                                   
would pertain to section 1.                                                                                                     
                                                                                                                                
Representative Croft spoke in support of the amendment.                                                                         
                                                                                                                                
In  response  to  a question  by  Representative  Joule,  Ms.                                                                   
Redman  clarified that  the University  has been directed  to                                                                   
pay  the  contracts without  funding.  Once  the  legislature                                                                   
directed the University  to pay the costs and  the University                                                                   
did not.  The courts  upheld the  University's position.  The                                                                   
second time  the legislature directed  the University  to pay                                                                   
the costs  without additional  funds the increases  they were                                                                   
directed that the costs were included in their budget.                                                                          
                                                                                                                                
Ms. Redmond indicated  that programs would have to  be cut to                                                                   
fund the addition. Employees would be impacted.                                                                                 
                                                                                                                                
Co-Chair Harris questioned if  the University has the ability                                                                   
to raise  funding from means  other than tuition.  Ms. Redman                                                                   
noted  that  donations  are  usually   directed  to  specific                                                                   
programs.  The land  trust  is fully  utilized.  There is  no                                                                   
ability  to  generate  funding other  than  tuition.  Tuition                                                                   
covers 30 percent. The total salary cost is $13 million.                                                                        
                                                                                                                                
TAPE HFC 03 - 53, Side A                                                                                                      
                                                                                                                                
A  roll call  vote  was  taken on  the  motion  to amend  the                                                                   
amendment.                                                                                                                      
                                                                                                                                
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED:  Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
There being NO OBJECTION, Amendment LANG 1 was adopted.                                                                         
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment LANG 2:                                                                                
                                                                                                                                
     Delete: general fund                                                                                                       
     Add:      Alaska debt retirement fund (AS 37.15.011)                                                                       
                                                                                                                                
     Page 57, line 5                                                                                                            
                                                                                                                                
     Delete: general fund                                                                                                       
                                                                                                                                
     Add:      Alaska debt retirement fund (AS 37.15.011)                                                                       
                                                                                                                                
     Page 60, line 30                                                                                                           
               Delete:40,877,900                                                                                                
               Add: 33,995,900                                                                                                  
                                                                                                                                
     Explanation:                                                                                                               
                                                                                                                                
     This  amendment  affects the  source  of  money used  to                                                                   
     capitalize the Alaska debt  retirement fund; it replaces                                                                   
     general  funds with  $2.5  million surplus  cash in  the                                                                   
     state land  disposal income fund and the  entire balance                                                                   
     of  the  International  Trade   and  Business  Endowment                                                                   
     (estimated to be $4.3 82 million).                                                                                         
                                                                                                                                
Co-Chair Harris spoke  in support of the amendment.  He noted                                                                   
that funds  would be used  to capitalize the  Dept Retirement                                                                   
Funds.                                                                                                                          
                                                                                                                                
Representative  Croft noted  that the  amendment reduces  the                                                                   
general fund appropriation,  but that the total  general fund                                                                   
draw is  not reduced. The funds  would be transferred  to the                                                                   
Constitutional Budget Reserve.                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Chenault,  Foster, Hawker,  Meyer, Moses,  Stoltze,                                                                   
          Williams, Harris                                                                                                      
OPPOSED: Croft, Joule                                                                                                           
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION PASSED (8-2).                                                                                                        
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment LANG 3:                                                                                
                                                                                                                                
     Amendment   LANG  2   would   substitute,  "state   bond                                                                   
     committee" for the Division  of Finance and the Treasury                                                                   
     Division throughout the bill.                                                                                              
                                                                                                                                
     The  Department  of Administration  acts  as the  fiscal                                                                   
     agent  for  the  state  bond   committee,  however,  the                                                                   
     Department has  established an accounting  structure for                                                                   
     the state bond committee  and prefers that the committee                                                                   
     be named in the appropriations  bill. This amendment has                                                                   
     no fiscal impact.                                                                                                          
                                                                                                                                
Co-Chair Harris explained that Amendment LANG 3 was a                                                                           
technical amendment.                                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Joule MOVED to ADOPT Amendment LANG 4:                                                                           
                                                                                                                                
     School Debt Reimbursement                                                                                                  
                                                                                                                                
     Page 60, line 30                                                                                                           
      Delete: 40,877,900                                                                                                        
     Add: 47,480,300                                                                                                            
                                                                                                                                
     Page 61, line 12                                                                                                           
     Delete: 59,421,700                                                                                                         
     Add: 66,024,100                                                                                                            
                                                                                                                                
     Page 61, line 15                                                                                                           
     Delete: 30,821,700                                                                                                         
     Add: 37,424,100                                                                                                            
                                                                                                                                
     Fund Source:                                                                                                               
     ABFC Dividend                                                                                                              
                                                                                                                                
     Explanation:                                                                                                               
     This   amendment  adds   $6,602,400  GF   to  the   debt                                                                   
     retirement fund.  The additional funds  are appropriated                                                                   
     to  the Department  of Education  and Early  Development                                                                   
     for school debt reimbursement.                                                                                             
                                                                                                                                
     The  amendment  funds  the   school  debt  reimbursement                                                                   
     program  at the 70%  level approved  by the  legislature                                                                   
     last  year.  The  Governor's  bill  and  this  committee                                                                   
     substitute  reduce the  funding  level by  10%, so  that                                                                   
     state reimbursement  of municipal school debt  is 63% of                                                                   
     municipal costs.                                                                                                           
                                                                                                                                
Co-Chair Harris OBJECTED.                                                                                                       
                                                                                                                                
Representative  Joule spoke in  support of the  amendment. He                                                                   
stressed that  local communities would  have to come  up with                                                                   
the additional 10  percent and emphasized that  the burden is                                                                   
being shifted.                                                                                                                  
                                                                                                                                
Co-Chair Harris questioned if  the amendment would fully fund                                                                   
the component. Representative Joule thought that it would.                                                                      
                                                                                                                                
Representative  Joule spoke in  support of the  amendment and                                                                   
noted that  many communities  are already  at their  cap [for                                                                   
local contribution to education].                                                                                               
                                                                                                                                
Co-Chair  Harris observed  that the Committee  would  work to                                                                   
find funding for  the component, but that he  would object at                                                                   
the moment.                                                                                                                     
                                                                                                                                
Representative Ethan  Berkowitz observed that  the importance                                                                   
of the keeping  the commitment to education.  Co-Chair Harris                                                                   
noted that the  commitment was subject to  appropriation, but                                                                   
observed the moral commitment.                                                                                                  
                                                                                                                                
Co-Chair Harris  noted that many  members would like  to fund                                                                   
the  amendment and  noted that  they would  continue to  find                                                                   
funding.                                                                                                                        
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
LANG 4.                                                                                                                         
                                                                                                                                
IN FAVOR: Croft, Joule, Moses                                                                                                   
OPPOSED:  Chenault,    Foster,   Hawker,   Meyer,    Stoltze,                                                                   
          Williams, Harris                                                                                                      
                                                                                                                                
Representative Whitaker was absent from the vote.                                                                               
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Co-Chair  Williams  MOVED to  report  CSHB  75 (FIN)  out  of                                                                   
Committee. There being NO OBJECTION, it was so ordered.                                                                         
                                                                                                                                
Co-Chair Williams  observed the need to bring  spending under                                                                   
control and  live within the  state's means. He  stressed the                                                                   
need for a fiscal  plan and observed that the  cuts will need                                                                   
to be  made without additional  revenues. The  Constitutional                                                                   
Budget Reserve  is estimated  to run out  in 2006.  He looked                                                                   
forward to  working with the  Governor and resource  industry                                                                   
to  create a  healthy private  sector, and  an effective  and                                                                   
efficient state government.                                                                                                     
                                                                                                                                
Representative Joule  observed that the budget is  a long way                                                                   
from being over  and that the legislature had  several pieces                                                                   
of legislation  that would affect  the budget.  He maintained                                                                   
that budget  reductions do not  reflect the work  of missions                                                                   
and measures.                                                                                                                   
                                                                                                                                
Co-Chair  Harris  acknowledged   that  the  process  was  not                                                                   
finished  and   that  it  is   not  perfect.  He   noted  the                                                                   
cooperation of minority members.                                                                                                
                                                                                                                                
Co-Chair Williams MOVED to report CSHB 76 (FIN) out of                                                                          
Committee. There being NO OBJECTION, it was so ordered.                                                                         
                                                                                                                                
CSSSHB 75 (FIN) and CSSSHB 76 (FIN) were REPORTED out of                                                                        
Committee with a "do pass" recommendation.                                                                                      

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