Legislature(2015 - 2016)HOUSE FINANCE 519

01/28/2016 01:30 PM House FINANCE

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01:32:37 PM Start
01:33:48 PM HB255 || HB256 || HB257
01:33:52 PM Fy 17 Budget Overview: Department of Public Safety
02:34:54 PM Fy 17 Budget Overview: Department of Education and Early Development
03:30:39 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
Heard & Held
Heard & Held
+ FY17 Budget Overviews: TELECONFERENCED
- Dept. of Public Safety
- Dept. of Education & Early Development
1:33:48 PM                                                                                                                    
^FY 17 BUDGET OVERVIEW: DEPARTMENT OF PUBLIC SAFETY                                                                           
1:33:52 PM                                                                                                                    
GARY  FOLGER,  COMMISSIONER,  DEPARTMENT OF  PUBLIC  SAFETY,                                                                    
introduced  himself and  the  other  representatives in  the                                                                    
department. He  shared that  the current  year was  the 75th                                                                    
anniversary  of the  Alaska State  Troopers. He  stated that                                                                    
the  troopers were  established  in 1941.  He recalled  some                                                                    
significant events in  the state since the  inception of the                                                                    
Alaska State Troopers.  He shared that there  were some core                                                                    
values of  the troopers. He  felt that the  current troopers                                                                    
were  extremely  well  equipped,  and was  excited  for  the                                                                    
future   enhancements.   He    discussed   the   PowerPoint,                                                                    
"Department of  Public Safety Department Overview"  (copy on                                                                    
1:36:48 PM                                                                                                                    
KELLY   HOWELL,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                    
SERVICES, DEPARTMENT  OF PUBLIC  SAFETY, looked at  slide 2,                                                                    
"Organizational Chart."  She remarked  that there  were some                                                                    
slides,  which  were a  high-level  snapshot  of the  FY  17                                                                    
budget proposal, followed by the division specifics.                                                                            
Co-Chair Neuman  requested a  presentation of  the pertinent                                                                    
budget issues.                                                                                                                  
Ms.  Howell explained  slide 2.  She noted  that there  were                                                                    
five  divisions  within  the  Department  of  Public  Safety                                                                    
(DPS):  Division  of  Administrative Services;  Division  of                                                                    
Alaska  State  Troopers;   Division  of  Wildlife  Troopers;                                                                    
Statewide  Services;  and  the  Division of  Fire  and  Life                                                                    
Safety.    There    were    three   councils    that    were                                                                    
administratively housed  in the department: The  Alaska Fire                                                                    
Standards Council; The Alaska  Police Standards Council; and                                                                    
The  council on  Domestic Violence  and Sexual  Assault. She                                                                    
stated  that  the  Crime  Lab  and  Public  Safety  Training                                                                    
Academy were also overseen by the commissioner's office.                                                                        
Ms.  Howell  highlighted  slide  3,  "Department  of  Public                                                                    
     Our Mission:                                                                                                               
          To ensure public safety and enforce fish and                                                                          
          wildlife laws                                                                                                         
     Our Core Services                                                                                                          
         Law enforcement patrol and investigations                                                                              
          Rural law enforcement services                                                                                        
          Domestic violence and sexual assault programs                                                                         
          Statewide public safety programs                                                                                      
          Resource protection                                                                                                   
          Highway safety                                                                                                        
Ms. Howell discussed slide 4, "Statewide Impact":                                                                               
     DPS is Alaska's primary statewide law enforcement                                                                          
     Direct support to other agencies                                                                                           
          Investigative assistance                                                                                              
          Search and rescue                                                                                                     
         Alaska Public Safety Information Network                                                                               
          Crime lab                                                                                                             
Ms.  Howell  highlighted  slide  5,  "Department  of  Public                                                                    
Safety." The  slide was a  high level comparison  between FY                                                                    
15, FY 16,  and the governor's current  proposed budget. She                                                                    
stated that the FY 17 budget eliminated some positions.                                                                         
1:41:07 PM                                                                                                                    
Co-Chair  Neuman wondered  how  many  Alaska State  Troopers                                                                    
were  currently  employed  compared   to  ten  years  prior.                                                                    
Commissioner Folger  replied that  there were  currently 301                                                                    
positions, and  300 positions were  currently filled  in the                                                                    
Alaska State  Troopers. The Alaska Wildlife  Troopers had 94                                                                    
positions, and he believed that 92 were currently filled.                                                                       
Co-Chair Neuman  surmised that there were  approximately 400                                                                    
total positions. Commissioner Folger agreed.                                                                                    
Co-Chair Neuman  asked whether the  number of  personnel had                                                                    
increased or  decreased in the last  ten years. Commissioner                                                                    
Folger replied that,  when he joined the  department in 1981                                                                    
there were 360 State Troopers  and 120 Wildlife Troopers. He                                                                    
stated  that within  the last  ten  years there  had been  a                                                                    
slight increase in personnel, but  he agreed to provide that                                                                    
Representative   Gattis   noted   that  the   troopers   had                                                                    
previously "back filled" some  positions by the city police.                                                                    
She  wondered if  the  cities had  other  "back fills"  that                                                                    
would  compensate  for  the  overall  decrease  since  1981.                                                                    
Commissioner Folger  replied that Wasilla  Police Department                                                                    
was still  a fairly small core  area, but the rural  part of                                                                    
the  Mat-Su had  grown significantly.  He remarked  that the                                                                    
State Troopers were  barely keeping up with  the increase in                                                                    
the Mat-Su region.                                                                                                              
Representative  Gattis  noted  that  there  was  some  "back                                                                    
filling" in  certain areas. She wondered  whether the number                                                                    
of  troopers   per  capita   had  increased   or  decreased.                                                                    
Commissioner Folger replied that  the number of troopers had                                                                    
Representative   Gara  remarked   that  fish   and  wildlife                                                                    
troopers  were  important  to  the  safety  in  fishing.  He                                                                    
wondered if those troopers did  other work, besides fish and                                                                    
wildlife   patrol.   Commissioner    Folger   replied   that                                                                    
approximately  one-third  of  the   work  of  the  fish  and                                                                    
wildlife troopers  was "regular  patrol." He  furthered that                                                                    
there were  some areas of the  state in which they  were the                                                                    
only law  enforcement in the  community, so they  were fully                                                                    
engaged in all aspects of law enforcement in those areas.                                                                       
Representative Gara queried the  process to decide whether a                                                                    
trooper should  patrol a community  that could  afford their                                                                    
own  law   enforcement.  Commissioner  Folger   deferred  to                                                                    
Colonel  Cockrell.  He remarked  that  Girdwood  was a  good                                                                    
example  of whether  or not  to provide  state or  local law                                                                    
enforcement. He remarked  that there was a hope  to move the                                                                    
patrol troopers to Nikiski, because  the volume of calls was                                                                    
higher  in  Nikiski. He  remarked  that  the highway  patrol                                                                    
would remain in Girdwood.                                                                                                       
Representative Gara wondered how  many troopers were sent to                                                                    
a community that could afford its own law enforcement.                                                                          
1:46:50 PM                                                                                                                    
COLONEL  JIM COCKRELL,  DIRECTOR, DIVISION  OF ALASKA  STATE                                                                    
TROOPERS, DEPARTMENT OF PUBLIC  SAFETY, explained that there                                                                    
were  small  jurisdictions,  so the  voters  controlled  the                                                                    
boundaries. The  troopers were forced  to provide  the "back                                                                    
fill." He  stated that  the troopers  serviced approximately                                                                    
80,000 residents,  with only two troopers  and one sergeant.                                                                    
He remarked that Girdwood, Indian,  Bird, and Crow Creek was                                                                    
"battling"  with  the  Municipality  of  Anchorage,  because                                                                    
those troopers needed to  redeploy those troopers elsewhere.                                                                    
He stressed that the governor's  budget proposed losing many                                                                    
trooper   positions.  The   proposal   would  decrease   the                                                                    
personnel from  327 positions  in the  previous year  to 293                                                                    
positions.  He  felt  that  the  troopers  would  remain  in                                                                    
Girdwood, because of political  considerations. He felt that                                                                    
Girdwood could  provide its own  law enforcement.  He shared                                                                    
that DPS  offered to provide service  for approximately $1.3                                                                    
million  to $1.5  million,  but Girdwood  did  not put  that                                                                    
offer on the ballot for  consideration. He stressed that the                                                                    
winter  police in  Girdwood  did not  factor  in the  Seward                                                                    
Highway and the surrounding  communities. He stated that the                                                                    
Municipality of  Anchorage decided to set  its boundary, and                                                                    
felt that  Anchorage should be  responsible for  the highway                                                                    
and the  citizens who  live on the  highway. He  shared that                                                                    
DPS  had  offered three  Rural  Highway  Patrol Troopers  to                                                                    
patrol the Seward Highway, because  the troopers had reduced                                                                    
accidents and curbed reckless driving.  He remarked that the                                                                    
Alaska  State  Troopers  was at  critical  mass  across  the                                                                    
state.  He  shared that,  should  the  legislature chose  to                                                                    
force  the  municipalities  and rural  communities  to  take                                                                    
ownership  of the  police departments.  He  shared that  the                                                                    
Kenai Peninsula  Borough required  the troopers  to Nikiski,                                                                    
Sterling,  and other  areas. He  stressed that  the troopers                                                                    
provided  services  in  the entire  Mat-Su  Borough,  except                                                                    
Palmer and  Wasilla. He  furthered that  he felt  there were                                                                    
many   areas  in   Fairbanks  that   the  Fairbanks   Police                                                                    
Department  could handle,  however  the  troopers filled  in                                                                    
those "gaps."  He remarked that  he could not  leave minimum                                                                    
staffing, because of trooper safety.  He stressed that since                                                                    
September  2015, there  were three  attempts  at killing  an                                                                    
Alaska  State  Trooper,  which  resulted  in  the  death  of                                                                    
suspects. He stressed that the  crime issues did not go away                                                                    
based on the number of  law enforcement. He stressed that he                                                                    
was always worried about the safety of the troopers.                                                                            
Co-Chair Neuman  felt that the  questions should be  held to                                                                    
the end of the presentation.                                                                                                    
Representative  Gara  asserted  that  he did  not  want  his                                                                    
question  to  be  misperceived.  He  wondered  if  he  could                                                                    
Co-Chair Neuman  replied that Representative Gara  could not                                                                    
make a comment.                                                                                                                 
1:51:02 PM                                                                                                                    
Ms. Howell  displayed slide 6,  "FY2017 Operating  Budget By                                                                    
Fund Source." She  stated that 83 percent of  DPS budget was                                                                    
UGF; and 57 percent was for personal services.                                                                                  
Ms. Howell  addressed slide 7,  "FY2017 Operating  Budget By                                                                    
Line  Item." She  explained  that the  slide  was a  graphic                                                                    
distribution of the budget by appropriation.                                                                                    
Ms. Howell  discussed slide 8,  "FY2017 Operating  Budget By                                                                    
Appropriation -  All Fund Sources."  She stated  that Alaska                                                                    
State  Trooper   appropriation  also  included   the  Alaska                                                                    
Wildlife Troopers,  but was separated  in the  pie-chart for                                                                    
comparison  purposes.  She  noted   that  the  Alaska  State                                                                    
Troopers  was  53 percent  of  the  budget; and  the  Alaska                                                                    
Wildlife Troopers was 15 percent.                                                                                               
Ms. Howell  looked at slide  9, "FY2017 Operating  Budget By                                                                    
Appropriation -  UGF Only." The  Alaska State  Troopers made                                                                    
up the majority of the DPS budget.                                                                                              
Ms. Howell highlighted slide  10, "Public Safety Employees."                                                                    
The graph  showed the  growth of  the budgeted  positions in                                                                    
DPS since 2007 to 2017.                                                                                                         
Ms. Howell discussed slide 11, "Alaska State Troopers":                                                                         
     Bureau of Highway Patrol                                                                                                   
     Search and Rescue                                                                                                          
     Statewide Drug and Alcohol Enforcement                                                                                     
     Alaska Bureau of Investigation                                                                                             
     Prisoner Transport                                                                                                         
     Judicial Services                                                                                                          
Ms.  Howell  explained  the  mission  of  the  Alaska  State                                                                    
Troopers. The  division was comprised  of posts  assigned to                                                                    
five   geographic    detachments   that    provide   patrol;                                                                    
enforcement;  and search  and  rescue to  all  areas of  the                                                                    
state. The  central headquarters  was located  in Anchorage.                                                                    
The major  components within the Alaska  State Troopers were                                                                    
the Bureau  of Highway Patrol; Search  and Rescue; Statement                                                                    
Drug   and    Alcohol   Enforcement;   Alaska    Bureau   of                                                                    
Investigation;  Prisoner Transport;  and Judicial  Services.                                                                    
The general overview of the  budget was $99.7 million, which                                                                    
was  a  roughly  1.6  percent reduction  from  the  previous                                                                    
fiscal year.                                                                                                                    
Ms.  Howell  discussed  slide  12,  "Village  Public  Safety                                                                    
Officer Program":                                                                                                               
     $12,105.4 awarded to ten grantees                                                                                          
     72 grant-funded positions filled as of 12/31/2015                                                                          
          7 Coordinators                                                                                                        
          3 VPSO/Coordinators                                                                                                   
          62 VPSOs in 55 communities                                                                                            
Ms. Howell stated that the  VPSO program was administered by                                                                    
DPS, which  was 100 percent  UGF. The funds were  granted to                                                                    
nine regional nonprofit native  corporations and one borough                                                                    
to administer the program in  their regions. Currently there                                                                    
were  72 grant-funded  positions filled  as of  December 31,                                                                    
2015.  She  stated  that  seven   of  those  positions  were                                                                    
civilian coordinators  within the VPSO programs.  She stated                                                                    
that   three  perform   dual  duties   as   both  VPSO   and                                                                    
coordinator.  She stated  that there  were 62  VPSOs on  the                                                                    
ground in 55 communities.                                                                                                       
Ms.   Howell   highlighted   slide  13,   "Alaska   Wildlife                                                                    
     Wildlife Investigations Unit                                                                                               
     Marine Section                                                                                                             
     Aircraft Section                                                                                                           
Ms. Howell looked at slide 14, "Fire and Life Safety":                                                                          
     Training and Education Bureau                                                                                              
     Life Safety Inspections Bureau                                                                                             
     Plans Review Bureau                                                                                                        
     Office of Rural Fire Protection                                                                                            
Ms. Howell highlighted slide 15, "Statewide Services":                                                                          
     Criminal Records and Identification Bureau Alaska                                                                          
          Public Safety Information Network                                                                                     
          Alaska Automated Fingerprint ID System                                                                                
          Sex Offender and Child Kidnapper Registration                                                                         
          Concealed Handgun Permits                                                                                             
     Information Technology                                                                                                     
Ms. Howell looked at slide 16, "Administrative Services":                                                                       
     Human Resources                                                                                                            
     Grants Management                                                                                                          
     Facilities Management                                                                                                      
1:56:20 PM                                                                                                                    
Ms. Howell discussed slide 17, "Scientific Crime Detection                                                                      
     Biological Screening                                                                                                       
     Controlled Substances                                                                                                      
     DNA / CODIS                                                                                                                
     Firearm / Toolmarks                                                                                                        
     Arson / Fire Debris                                                                                                        
     Forensic Toxicology                                                                                                        
     Latent Prints                                                                                                              
Ms. Howell addressed slide 18, "Training Academy":                                                                              
     Recruit training for state and municipal law                                                                               
     enforcement agencies and VPSO's                                                                                            
     In-service training covering refresher, update, and                                                                        
     advanced topics                                                                                                            
    Public safety training to other government agencies                                                                         
Ms. Howell highlighted slide 19, "Alaska Fire Standards                                                                         
     Establish  professional  standards   for  fire  service                                                                    
     Establish     curriculum    requirements     for    the                                                                    
     certification of training programs                                                                                         
     Govern the  procedure for certification  of individuals                                                                    
     who  satisfy  the   minimum  training  and  performance                                                                    
Ms. Howell displayed slide 20, "Alaska Police Standards                                                                         
     In cases  of misconduct by a  certified police officer,                                                                    
     make  a determination  whether certification  should be                                                                    
     Develop, monitor, and revise law enforcement training                                                                      
     Assist  academies  and  departments  with  funding  for                                                                    
     academy training                                                                                                           
     Fund specialized and advanced training for departments                                                                     
     Determine  certification  eligibility for  all  police,                                                                    
     probation,   and   correctional  officers   and   issue                                                                    
     appropriate level of certificate                                                                                           
Ms. Howell highlighted slide 21, "Council on Domestic                                                                           
Violence and Sexual Assault":                                                                                                   
     Provide safety  for Alaskans victimized or  impacted by                                                                    
     domestic violence  and sexual assault through  a system                                                                    
     of statewide crisis  intervention, prevention services,                                                                    
     and perpetrator accountability                                                                                             
Ms. Howell looked at slide 22, "FY2017 Significant                                                                              
Operating Budget Changes":                                                                                                      
     Increment Requests:                                                                                                        
          AWT Aircraft Section: $300.0 UGF                                                                                      
          Laboratory Services: $250.0 UGF                                                                                       
          Fire and Life Safety: (70.1) UGF and 1 PFT                                                                            
          Alaska State Troopers: (2,588.2) UGF, 8 PFT, and                                                                      
          6 NP                                                                                                                  
          Alaska Wildlife Troopers: (783.7) UGF and 5 PFT                                                                       
          VPSO Program: (503.8) UGF                                                                                             
          CDVSA: (340.0) UGF                                                                                                    
          Statewide Support: (445.8) UGF, 3 PFT, and 1 NP                                                                       
Ms.  Howell highlighted  slide  23,  "FY2017 Capital  Budget                                                                    
    Marine Fisheries Patrol Improvements: $1,200.0 Fed                                                                          
     Reappropriation from Two P/V Woldstad Engine Repower                                                                       
     Projects: $3,619.5 UGF                                                                                                     
          $2,269.5 for aircraft and vessel repair and                                                                           
          1,350.0 for deferred maintenance on aircraft                                                                          
Ms.  Howell  displayed  slide  24,  "Summary  of  Governor's                                                                    
Budget." She stated  that the page represented  a summary of                                                                    
the day's discussion, not including the Capital Budget.                                                                         
Ms.  Howell  discussed  slide   25,  "Department  of  Public                                                                    
Safety's  Share  of  Total  Agency  Operations."  The  slide                                                                    
showed DPS  total percent of  agency operations,  as drafted                                                                    
by the Legislative Finance Division (LFD).                                                                                      
Ms.  Howell  highlighted  slide 26,  "Department  of  Public                                                                    
Safety,  Salary Adjustment  Increases and  Personal Services                                                                    
Ms.  Howell looked  at  slides  27 and  28,  which were  the                                                                    
appropriations for GF and all funds.                                                                                            
2:04:49 PM                                                                                                                    
Representative  Gara wondered  if  there  was a  correlation                                                                    
between  the  number  of   troopers  available  and  trooper                                                                    
safety. Colonel  Cockrell replied that the  more troopers on                                                                    
shift in the  urban areas provides a  safety factor, because                                                                    
of the availability  of back up. He remarked  that more than                                                                    
one trooper on  the scene meant a less chance  of a physical                                                                    
altercation with  the suspect.  He shared  that there  was a                                                                    
recent  routine traffic  stop in  Soldotna, and  the trooper                                                                    
ended up  in a life  and death battle, which  lasted several                                                                    
minutes. He  was out of  contact for over five  minutes, and                                                                    
resulted in a fatal shooting of the suspect.                                                                                    
Representative Kawasaki noted that  the University of Alaska                                                                    
Fairbanks (UAF)  had law enforcement training,  and wondered                                                                    
if  it was  comparable  to the  Sitka  Police Academy  would                                                                    
offer. Commissioner  Folger replied that the  standards were                                                                    
different  between  the UAF  program  and  the DPS  training                                                                    
Representative Kawasaki  shared that  a helicopter  had been                                                                    
added  to  the  DPS   budget,  and  queried  the  helicopter                                                                    
disposition.  Commissioner  Folger   replied  that,  due  to                                                                    
funding, the  helicopter was pickled.  He announced  that he                                                                    
wants an operational helicopter.                                                                                                
Representative Gattis  wondered if  the travel was  paid for                                                                    
the testifiers  in the current meeting.  Commissioner Folger                                                                    
replied that  Colonel Cockrell's travel costs  were paid for                                                                    
by the department.                                                                                                              
Colonel Cockrell  shared that his  flight was  free, because                                                                    
there  were  available  tickets   that  would  have  expired                                                                    
Commissioner  Folger  shared  that  the  remaining  half  of                                                                    
Colonel  Cockrell's day  would be  spent with  Department of                                                                    
Transportation  and Public  Facilities  (DOT/PF) to  provide                                                                    
law enforcement services on the ferry system.                                                                                   
Representative Gattis  hoped that testifiers  would continue                                                                    
to be  available by  phone, rather than  spend the  money to                                                                    
meet in person.                                                                                                                 
2:09:57 PM                                                                                                                    
Representative Wilson  wondered if the repair  funds for the                                                                    
Patrol Vessel  Wolstad had  been spent.  Commissioner Folger                                                                    
replied that the money had not been spent to fix the boat.                                                                      
Representative  Wilson  wondered  what   could  be  done  to                                                                    
fulfill the demands left by the unused Wolstad ship.                                                                            
Representative Wilson  noted that  the Office  of Children's                                                                    
Services  (OCS) used  the Alaska  Public Safety  Information                                                                    
Network.  She  wondered if  the  network  could be  accessed                                                                    
remotely, because  OCS was using unofficial  databases, like                                                                    
Court  View. Commissioner  Folger  replied  that there  were                                                                    
federal  mandates,  which  restricted   the  access  to  the                                                                    
Representative  Wilson  felt  that  OCS should  be  able  to                                                                    
access the network remotely, by  use of a password protected                                                                    
Representative  Wilson wondered  if any  of the  $11 million                                                                    
for  the Council  on Domestic  Violence  and Sexual  Assault                                                                    
would be used for the troopers;  or was it only used for the                                                                    
specific victim  programs. Commissioner Folger  replied that                                                                    
a portion of those funds goes to the training of troopers.                                                                      
Representative  Wilson  wondered  if the  domestic  violence                                                                    
prevention   funding   was   used   toward   the   troopers.                                                                    
Commissioner Folger  replied that  a portion of  those funds                                                                    
were used for trooper training.                                                                                                 
2:13:57 PM                                                                                                                    
Vice-Chair  Saddler  wondered   whether  the  Alaska  Public                                                                    
Safety  Network  (APSIN)  system  contained  information  on                                                                    
uninsured  motorist.  Commissioner  Folger  replied  in  the                                                                    
Vice-Chair  Saddler queried  the number  of pilots  who were                                                                    
not on flying duty. Commissioner  Folger replied that he was                                                                    
a pilot not on flying duty.                                                                                                     
Vice-Chair Saddler  wondered if funds were  used to maintain                                                                    
currency.  Commissioner  Folger  replied that  troopers  who                                                                    
want  to  fly must  provide  a  minimum standard.  Once  the                                                                    
troopers  were  on  flight   status,  the  department  would                                                                    
provide an instrument ticket.                                                                                                   
Vice-Chair Saddler wondered whether  money was spent to keep                                                                    
the  flying  status  current  for   troopers  who  were  not                                                                    
currently  flying.   Commissioner  Folger  replied   in  the                                                                    
Vice-Chair  Saddler wondered  if  there were  twice as  many                                                                    
police  requiring  twice  as  many  representatives  on  the                                                                    
Police Standards Council. Ms.  Howell agreed to provide that                                                                    
Vice-Chair  Saddler asked  whether or  not he  had purported                                                                    
accurately.  Commissioner  Folger   replied  that  the  Fire                                                                    
Standards Council  just recently  was able  to stand  on its                                                                    
own.  He stated  that the  volunteer fire  departments could                                                                    
not easily be required to receive better training.                                                                              
Co-Chair Neuman  encouraged Vice-Chair Saddler to  work with                                                                    
the DPS subcommittee chair to explore the issue.                                                                                
Representative  Guttenberg expressed  concern regarding  the                                                                    
deadly force use by officers.  He noted that excessive force                                                                    
was increasing on the national  level. He remarked that some                                                                    
may feel  that those law enforcement  officials using deadly                                                                    
force  should not  be law  enforcement  officials. He  hoped                                                                    
that  the  highest  quality  troopers  were  recruited,  and                                                                    
stressed  that  those  troopers should  be  trained  on  the                                                                    
highest possible level. He felt  that reaching critical mass                                                                    
on the number of troopers  would result in opportunities for                                                                    
trouble.  He  wondered  if  the  state  was  currently  past                                                                    
critical  mass.  He  understood that  there  was  no  single                                                                    
standard for  law enforcement across the  state. He wondered                                                                    
if there were  enough troopers to patrol  the state, without                                                                    
endangering  the   troopers  themselves.   Colonel  Cockrell                                                                    
replied that  he does not  feel that  there are nor  will be                                                                    
enough troopers  with the budget  reductions. He  noted that                                                                    
the  troopers covered  all parts  of the  state, while  also                                                                    
covering  the search  and rescue  responsibilities. He  felt                                                                    
that the troopers  were currently at critical  mass. He felt                                                                    
that Bethel  could use  a couple  more troopers,  because of                                                                    
the high  rates of sexual  assault in the Bethel.  He shared                                                                    
that there was an attempt  to post troopers in the villages,                                                                    
to  try to  get the  troopers more  involved in  the smaller                                                                    
communities. He  stressed that there  was a cost  to provide                                                                    
the troopers to the  smaller communities, because of housing                                                                    
costs  and  trooper  positions. He  stressed  that  DPS  was                                                                    
struggling  to  keep  up  with   the  volume  of  crime.  He                                                                    
reiterated  that the  troopers could  not keep  up with  the                                                                    
volume of  crime in  the Mat-Su,  because of  the "overflow"                                                                    
from the bar closures in  Anchorage. The residents of Mat-Su                                                                    
know that  the police presence  in Anchorage is  higher than                                                                    
the  Mat-Su.   The  summertime  shootings  in   Mat-Su  were                                                                    
performed by  residents of Anchorage. He  remarked that many                                                                    
crimes in Fairbanks were moving  to the rural areas, because                                                                    
of the desire to distance from police presence.                                                                                 
2:22:38 PM                                                                                                                    
Representative  Guttenberg  remarked   that  underfunding  a                                                                    
program would have a consequence  in another agency. Colonel                                                                    
Cockrell  replied  that   decreasing  preventative  programs                                                                    
falls on the burden of law enforcement.                                                                                         
Representative  Munoz  queried  the budget  amount  for  the                                                                    
battered intervention  program. Ms.  Howell deferred  to Ms.                                                                    
LAUREE  MORTON,  EXECUTIVE  DIRECTOR,  COUNCIL  ON  DOMESTIC                                                                    
VIOLENCE AND  SEXUAL ASSAULT,  DEPARTMENT OF  PUBLIC SAFETY,                                                                    
stated  that  the  budget  was  $200,000  for  the  Battered                                                                    
Intervention Program.                                                                                                           
Representative  Munoz wondered  if the  funding was  for the                                                                    
statewide  program. Ms.  Morton replied  in the  affirmative                                                                    
and  explained  that  there were  15  approved  intervention                                                                    
programs. She stated that the  council partially funded nine                                                                    
programs:  six  in communities  and  three  in prisons.  The                                                                    
community based programs had the $200,000 budget.                                                                               
Representative  Munoz asked  if  the  reduction of  $340,000                                                                    
came  from that  program. Ms.  Morton replied  that $200,000                                                                    
was  the intervention  programs, and  $140,000 was  from the                                                                    
Victims Service Grants.                                                                                                         
2:25:21 PM                                                                                                                    
Representative  Edgmon requested  that Colonel  Cockrell sit                                                                    
at the table. He thanked  the department for their work, and                                                                    
expressed appreciation  for the presentation. He  noted that                                                                    
the Department  of Law had eliminated  the district attorney                                                                    
in Dillingham.  He queried the  impact of  that elimination.                                                                    
Colonel Cockrell replied that he  did not want to respond to                                                                    
the Department of Law's decision.  He stated that the lowest                                                                    
district  attorney  was normally  assigned  to  an area.  He                                                                    
shared that  troopers took great  pride in their  cases, and                                                                    
the resources in the district  attorney's office allowed for                                                                    
a greater number of dismissed cases.                                                                                            
Representative Edgmon  stressed that decreasing  the funding                                                                    
in the Department of Law  (LAW) would affect other agencies.                                                                    
He remarked  that without a  district attorney (DA),  it was                                                                    
difficult  to  prosecute  in the  smaller  communities  like                                                                    
Co-Chair Neuman  shared that he had  many conversations with                                                                    
DPS  about  reducing  recidivism. He  queried  that  opinion                                                                    
about  more  treatment  following arrest.  Colonel  Cockrell                                                                    
replied  that  the  state  needed  a  great  drug  treatment                                                                    
system. He stressed that treating  drug offenders might keep                                                                    
the offender out  of prison, and become  a functional member                                                                    
of the community.                                                                                                               
Co-Chair Neuman announced that over  90 percent of the cases                                                                    
in the Mat-Su were drug related.                                                                                                
2:32:39 PM                                                                                                                    
AT EASE                                                                                                                         
2:34:41 PM                                                                                                                    
^FY 17  BUDGET OVERVIEW:  DEPARTMENT OF EDUCATION  AND EARLY                                                                  
2:34:54 PM                                                                                                                    
MICHAEL  HANLEY, COMMISSIONER,  DEPARTMENT OF  EDUCATION AND                                                                    
EARLY DEVELOPMENT, (DEED) introduced himself.                                                                                   
HEIDI TESHNER,  DIRECTOR, ADMINISTRATIVE  SERVICES DIRECTOR,                                                                    
DEPARTMENT  OF EDUCATION  AND EARLY  DEVELOPMENT, introduced                                                                    
Commissioner  Hanley   presented  the   PowerPoint,  "Alaska                                                                    
Department  of  Education  and Early  Development,  FY  2017                                                                    
Governor's Budget Overview" (copy on file).                                                                                     
Commissioner  Hanley  looked  at  slide  2,  "Department  of                                                                    
Education  and  Early  Development Organization  Chart."  He                                                                    
remarked  that  the  State  Board  of  Education  and  Early                                                                    
Development was  at the top  of the Department  of Education                                                                    
and  Early Development  (DEED).  He noted  the five  primary                                                                    
divisions within  the department;  and the three  boards and                                                                    
commissions   that  were   mostly   autonomous  within   the                                                                    
department, but operated within the structure.                                                                                  
Commissioner  Hanley  highlighted  slide 3,  "Department  of                                                                    
Education and  Early Development Alaska State  Constitution                                                                     
Alaska Statutes":                                                                                                               
    Alaska Constitution Section 7.1 - Public Education                                                                          
     Responsibility: To  establish and maintain a  system of                                                                    
     public schools.                                                                                                            
     Key  Functions: Fund,  provide  oversight and  support,                                                                    
     set standards, assess students towards standards.                                                                          
     State Education Policy - AS 14.03.015                                                                                      
     The purpose  of education  is to  help ensure  that all                                                                    
    students will succeed in their education and work.                                                                          
     Governing Statutes - Alaska Statutes Title 14                                                                              
Commissioner  Hanley  highlighted  slide 4,  "Department  of                                                                    
Education and Early Development Mission and Core Services":                                                                     
     To  ensure   quality  standards                                                                                            
     improve academic achievement for all students.                                                                             
     Core Services                                                                                                              
     1.   Public  School   Funding  -   Ensure  funding   is                                                                    
     appropriately  distributed   to  recipients   based  on                                                                    
     legislative appropriations and by Statute.                                                                                 
     2.  Fiscal Accountability,  Compliance and  Oversight -                                                                    
     Ensure  the  department   effectively  and  efficiently                                                                    
     manages state, federal and other funds.                                                                                    
     3. School Effectiveness Programs  - Assist districts by                                                                    
     providing  programs,  technical  on                                                                                        
    delivery support, and early intervention services.                                                                          
     4.  Active Partnerships  -  Provide opportunities  for,                                                                    
     and  collaborate with  government  entities, and  other                                                                    
     public and private organizations.                                                                                          
Commissioner  Hanley  addressed   slide  5,  "Department  of                                                                    
Education and Early Development  FY2017 Governor's Budget by                                                                    
Structure." He  noted that nearly  81 percent of  the budget                                                                    
was for  Formula Programs, which  were the  school programs.                                                                    
He  remarked that  the second  largest budget  component was                                                                    
for teaching  and learning support, which  was also directly                                                                    
at schools in  the form of grants. He noted  that very small                                                                    
budget remaining for the other aspects of DEED.                                                                                 
Commissioner Hanley displayed slide 6, "Department of                                                                           
Education and Early Development Structure Overview":                                                                            
     DEED has 5 Divisions, 3 Commissions and Boards, and                                                                        
     the Office of the Commissioner.                                                                                            
     1. Division of Teaching and Learning Support                                                                               
          funding   and   compliance;  academic   standards,                                                                    
          academic  assessment   and  accountability;  state                                                                    
          system    of    support   to    increase    school                                                                    
          effectiveness; and active partnerships                                                                                
     2. Division of School Finance and Facilities                                                                               
          distributed  to Alaska  school  districts and  Mt.                                                                    
          Boarding   School  and   provides  services   that                                                                    
          promote  safe  facilities  which  support  quality                                                                    
          education programs.                                                                                                   
2:39:49 PM                                                                                                                    
Commissioner Hanley addressed slide 7, "Commissioner Hanley                                                                     
Structure Overview":                                                                                                            
     3. Division of Administrative Services                                                                                     
          and   financial,    budget,   procurement,   human                                                                    
          resources,  and   information  technology  support                                                                    
          services  to the  department divisions;  and state                                                                    
          facilities rent.                                                                                                      
     4. Division of Libraries, Archives and Museums                                                                             
          information;  collects, organizes,  preserves, and                                                                    
          makes  available   materials  that   document  the                                                                    
          history   of   the   state;   and   promotes   the                                                                    
          development  of  libraries, archives  and  museums                                                                    
Commissioner Hanley looked at slide 8, "Department of                                                                           
Education and Early Development Structure Overview":                                                                            
     5. Mt. Edgecumbe Boarding School                                                                                           
          high school for Alaskan students.                                                                                     
     6. Alaska State Council on the Arts                                                                                        
          arts   for   all   Alaskans   through   education,                                                                    
          partnerships, grants, and services.                                                                                   
Commissioner Hanley highlighted slide 9, "Department of                                                                         
Education and Early Development Structure Overview":                                                                            
     7. Professional Teaching Practices Commission                                                                              
          working  to enhance  the professional  performance                                                                    
          of all educators, and ensures  that members of the                                                                    
          teaching  profession in  Alaska are  qualified and                                                                    
          ethical educators.                                                                                                    
     8. Alaska Commission on Postsecondary Education                                                                            
          career training after high school.                                                                                    
Commissioner Hanley discussed slide 10, "Department of                                                                          
Education and Early Development Structure Overview":                                                                            
     9. Office of the Commissioner                                                                                              
          Alaska's  school   districts,  schools,  students,                                                                    
          parents,  teachers, and  department programs  that                                                                    
          increase student achievement.                                                                                         
2:43:17 PM                                                                                                                    
Commissioner  Hanley highlighted  slide  11, "Department  of                                                                    
Education and  Early Development Key  Performance Measures."                                                                    
He stressed that  the graduation rate was  a key performance                                                                    
measure. He remarked that the  trend was moving in the right                                                                    
direction, but  there was a  desire to continue  to increase                                                                    
the percentage. He noted that  the five-year graduation rate                                                                    
was  78.3 percent.  He remarked  that it  was a  higher rate                                                                    
than the  four-year rate. He  stressed that the  DEED's goal                                                                    
was a four-year graduation rate.                                                                                                
2:44:20 PM                                                                                                                    
Commissioner  Hanley  addressed  slide  12,  "Department  of                                                                    
Education and  Early Development Key  Performance Measures."                                                                    
He  remarked  that the  bar  on  the right  represented  the                                                                    
number of  students that qualify for  the Alaska Performance                                                                    
Scholarship: 3,756 students.                                                                                                    
Commissioner  Hanley  looked  at slide  13,  "Department  of                                                                    
Education and Early Development FY2017 Governor's Budget":                                                                      
     DEED will  employ 344 Alaskans in fulltime,  part                                                                          
     and  seasonal  positions  in  7  locations,  with  main                                                                    
     offices in Juneau, and  regional offices throughout the                                                                    
Commissioner  Hanley  discussed  slide  14,  "Department  of                                                                    
Education and  Early Development FY2017  Governor's Budget."                                                                    
He  restated that  the  largest portion  of  the budget  was                                                                    
public  school funding.  The second  largest budget  portion                                                                    
was the fiscal accountability,  compliance, and oversight at                                                                    
14 percent. He shared that  there was federal funding within                                                                    
that component, such as child  nutrition services. There was                                                                    
also title money within that component.                                                                                         
Commissioner  Hanley highlighted  slide  15, "Department  of                                                                    
Education and  Early Development FY2017  Governor's Budget."                                                                    
He noted  the breakdown of funding  between formula programs                                                                    
and  agency  operations.  He  noted   that  the  DGF  agency                                                                    
operations was  approximately $62 million. He  remarked that                                                                    
68  percent of  the  agency was  federally  funded, and  the                                                                    
money was filtered directly to schools.                                                                                         
2:49:33 PM                                                                                                                    
Commissioner  Hanley  looked  at slide  16,  "Department  of                                                                    
Education  and  Early  Development  Operating  Overview  All                                                                    
Funds."  He remarked  that  95 percent  of  the funding  was                                                                    
distributed  in  grants,  which   was  formula  funding.  He                                                                    
furthered that  3 percent  were other  lines such  as travel                                                                    
and  contractual obligations.  He stated  that 2  percent of                                                                    
the budget was personnel.                                                                                                       
Commissioner Hanley displayed slide 17, "Department of                                                                          
Education and Early Development FY2017 Governor's Budget                                                                        
     $12.5 Million                                                                                                              
     •  $50  Base  Student Allocation  (BSA)  increase  from                                                                    
     $5,880 to $5,930; fund source change from UGF to                                                                           
     Public School Trust Fund (DGF)                                                                                             
     School Finance and Facilities                                                                                              
     •  $66.0 UGF  reduction  to remove  remaining  one                                                                         
     funding from the Education Bill (Ch 15 SLA                                                                                 
     2014, HB278) for the prototypical design study                                                                             
     Student and School Achievement                                                                                             
     •  $525.0  DGF  reduction  to remove  funding  for  the                                                                    
     College and Career Readiness Assessments (CCRA)                                                                            
     •  $31.2  DGF increase  to  the  authorization for  the                                                                    
     Alaska Technical and Vocational Education Program                                                                          
     (TVEP) funding                                                                                                             
     • $25.0 UGF reduction to  remove funding for the Alaska                                                                    
     Resource Education Grant (formerly  known as the Alaska                                                                    
     Mineral and Energy Resource Education Fund or AMEREF)                                                                      
     Alaska Native Science and Engineering Program (ANSEP)                                                                      
     • $385.2 UGF reduction to base grant                                                                                       
Commissioner Hanley addressed slide 18, "Department of                                                                          
Education and Early Development FY2017 Governor's Budget                                                                        
Highlights (con't)":                                                                                                            
     Child Nutrition                                                                                                            
     • $11,000.0  increase in  federal receipt  authority to                                                                    
     receive additional  USDA grant  funds due  to increases                                                                    
     in child nutrition programs.                                                                                               
     Early Learning Coordination                                                                                                
     •  $320.0  UGF reduction  to  remove  funding for  Best                                                                    
     • $500.0  UGF reduction  to remove funding  for Parents                                                                    
     As Teachers                                                                                                                
     •  $2,000.0   UGF  reduction  to  remove   funding  for                                                                    
     Alaska State Council on the Arts                                                                                           
     •  $800.0 SDPR  (Other)  increase  in authorization  to                                                                    
     accept  a  multi                                                                                                           
     State Facilities Rent                                                                                                      
     • $200.0 UGF  reduction to remove one                                                                                      
     dual occupancy rent                                                                                                        
     Library Operations                                                                                                         
     • $672.7  UGF reduction to reduce  Broadband Assistance                                                                    
     Grants to school districts                                                                                                 
Commissioner Hanley looked at slide 19, "Department of                                                                          
Education and Early Development FY2017 Governor's Budget                                                                        
Highlights (con't)":                                                                                                            
     Museum Operations                                                                                                          
     • $136.5  GF/Prgm (DGF)  increase in  receipt authority                                                                    
     to collect and spend additional gate receipts for                                                                          
     the  new  Kashevaroff  State  Libraries,  Archives  and                                                                    
     Museum Facility                                                                                                            
     Alaska Commission  on Postsecondary  Education, Program                                                                    
     Administration and Operations                                                                                              
     • $1,109.4  federal receipt authorization  reduction to                                                                    
     remove funding for the College Access                                                                                      
     Challenge Grant                                                                                                            
     •   $12,518.0    I/A   Rcpts   (Other)    increase   in                                                                    
     authorization to  accurately reflect  component funding                                                                    
     from the Alaska Student Loan Corporation                                                                                   
     •  $720.0 SDPR  (Other)  increase  in authorization  in                                                                    
     order   to  accept   external   grants  for   outreach,                                                                    
     research, and reporting programs and services                                                                              
     • $0.0  net change for  a funding source  adjustment to                                                                    
     accurately  reflect  institutional authorization  fees;                                                                    
     $50.0 DGF/($50.0)                                                                                                          
     Other Unallocated Appropriation                                                                                            
     • $329.8 UGF reduction to remove FY2016 salary                                                                             
2:56:07 PM                                                                                                                    
Ms.  Teshner looked  at slide  20, "Department  of Education                                                                    
and  Early  Development  FY2017 Governor's  Budget  by  Core                                                                    
Service." She stated that between  the FY 16 Management Plan                                                                    
the FY 17 Adjusted Base  there was an $11.2 million increase                                                                    
in  all  funds.  She  noted  the comparison  to  the  FY  17                                                                    
Adjusted  Base  and the  FY  17  Governor's proposal,  which                                                                    
showed an overall $20 million  increase. She stated that the                                                                    
details  of   the  increases  would  be   addressed  in  the                                                                    
following slides.                                                                                                               
Ms.  Teshner discussed  slide 21,  "Department of  Education                                                                    
and Early  Development FY2017 Governor's Budget."  The slide                                                                    
showed  a  comparison  between  the  FY  15  through  FY  17                                                                    
management  plans  and   the  current  governor's  proposal,                                                                    
between the formula and non-formula  programs. She noted the                                                                    
overall decrease  of 4 percent  in all funds. She  noted the                                                                    
UGF comparison with an overall  increase of 8.3 percent with                                                                    
a  35.1 decrease  to the  agency  operations in  non-formula                                                                    
Ms. Teshner  highlighted slide 22, "Department  of Education                                                                    
and Early  Development FY2017 Governor's Budget                                                                                 
The slide  showed a different comparison  format between the                                                                    
FY  16   Management  Plan  through  Adjusted   Base  to  the                                                                    
governor's increments and decrements.                                                                                           
Ms.  Teshner addressed  slide 23,  "Department of  Education                                                                    
and  Early  Development  Budget  Compared  to  All  Agencies                                                                    
     The  department's  non-formula  GF budget  grew  almost                                                                    
     $11.3 million (28 percent) between  FY 07 and the FY 17                                                                    
     governor's request - an average  annual growth rate for                                                                    
     that period of 2.5 percent.                                                                                                
     The department's total non-formula FY 17 GF budget                                                                         
     equals $155 per resident worker.                                                                                           
Ms. Teshner looked at slide 24, "DEED Formula and Non-                                                                          
Formula Funding":                                                                                                               
     The  department's  total  GF   budget  grew  over  $330                                                                    
     million  (28  percent) between  FY  07  and the  FY  17                                                                    
     governor's request - an average  annual growth rate for                                                                    
     that period of 2.8 percent.                                                                                                
     The  department's total  FY 17  GF  budget request  for                                                                    
     DEED  formula and  non-formula  programs equals  $4,048                                                                    
     per resident worker.                                                                                                       
Commissioner Hanley pointed out that in FY 07 the non-                                                                          
formula funding was 28.5 percent of the overall budget.                                                                         
Ms.   Teshner  highlighted   slide  25,   "DEED  Non-Formula                                                                    
Personal Services Costs and Salary Adjustment Increases":                                                                       
     Note: The  FY 16 amount  is understated by  $10 million                                                                    
     due to a  structure change in the  Alaska Commission on                                                                    
     Postsecondary Education.                                                                                                   
Ms. Teshner  discussed slide  26, "Commissioner  Hanley Non-                                                                    
Formula   Budget   Comparisons."   The  slide   showed   the                                                                    
comparison of DGF and UGF funding by component.                                                                                 
Commissioner Hanley pointed out that  the green line was the                                                                    
Teaching  and Learning  Support.  Those increases  reflected                                                                    
when active partnerships were initiated.                                                                                        
3:00:04 PM                                                                                                                    
Co-Chair  Neuman  wondered  if   the  Alaska  Commission  of                                                                    
Postsecondary  Education  (ACPE)   was  all  federal  money.                                                                    
Commissioner  Hanley replied  that  the  funding was  mostly                                                                    
receipts from student loans.                                                                                                    
Co-Chair Neuman  asked for further information.  Ms. Teshner                                                                    
replied that                                                                                                                    
Co-Chair  Neuman  surmised that  the  funding  was from  the                                                                    
interest from  student loans. Ms. Teshner  replied that ACPE                                                                    
funding  consisted primarily  of  other funds,  such as  the                                                                    
Student Loan Corporation receipts.  The receipts funding $14                                                                    
million  of their  $21 million  budget.  She explained  that                                                                    
only $900,000 of  the ACPE budget was  federal receipts, and                                                                    
$5.8 million was DGF.                                                                                                           
Co-Chair Neuman wondered if the  interest from student loans                                                                    
was  used  as  the  funding.  Ms.  Teshner  replied  in  the                                                                    
Co-Chair Neuman  asked whether the  money could  be directed                                                                    
elsewhere or if it was  statutorily directed at the state or                                                                    
federal level. Commissioner Hanley deferred to Ms. Barrans.                                                                     
Co-Chair  Neuman asked  that  Representative Gattis  examine                                                                    
that issue in the DEED subcommittee.                                                                                            
Representative Gattis  stated that  she intended  to explore                                                                    
the issue in the DEED subcommittee.                                                                                             
Representative   Guttenberg  looked   at   slide  8,   which                                                                    
referenced the Alaska  State Council on the  Arts, and noted                                                                    
the grants. He  felt that Alaska was almost  unable to match                                                                    
federal grant funding. He was  worried that the budget would                                                                    
be less than  what was required for  federal matching funds.                                                                    
Ms. Teshner  replied that  the federal  match for  the state                                                                    
was one-to-one match.                                                                                                           
3:03:54 PM                                                                                                                    
Representative Guttenberg  wondered if  DEED was  "giving up                                                                    
on the federal match." Ms. Teshner replied in the negative.                                                                     
Representative Guttenberg  asked if the state  was above the                                                                    
matching level. Ms. Teshner replied in the affirmative.                                                                         
Representative  Guttenberg remarked  on the  bandwidth goal.                                                                    
He  remarked  that many  communities  did  not receive  that                                                                    
level of bandwidth.  He shared that his  community was lucky                                                                    
to receive even a small  amount of bandwidth. He wondered if                                                                    
the  state had  given  up  on its  goal  of  10 megabits  of                                                                    
bandwidth. Commissioner  Hanley replied that the  $5 million                                                                    
goal of  achieving 10 megabits,  was put in place  two years                                                                    
prior. He stressed that prior to  two years ago there was no                                                                    
state   money   toward   broadband.   He   appreciated   the                                                                    
recognition  of   a  quality  of  life   related  to  higher                                                                    
bandwidth.  He remarked  that there  were fiscal  decisions,                                                                    
but  stressed  that  it  was  still a  goal  to  achieve  10                                                                    
Representative  Guttenberg   observed  that  there   was  no                                                                    
discount for  broadband in the rural  communities. He shared                                                                    
that there  was a recent  attempt to allow  village councils                                                                    
and tribal entities  to expand the broadband  in schools. He                                                                    
queried  the status  of  that  attempt. Commissioner  Hanley                                                                    
replied that  DEED was not  a part of that  conversation. He                                                                    
remarked  that DEED  was a  consumer of  broadband like  the                                                                    
Representative  Munoz shared  that  she had  recently had  a                                                                    
conversations  with  Alan  Dick.  She shared  that  she  had                                                                    
expressed  concern about  the new  standards leaving  behind                                                                    
some students who were not  college bound. She remarked that                                                                    
the language  of the standards was  difficult to understand.                                                                    
She  wondered whether  the department  had  an intention  to                                                                    
make  the  standards   easier  to  understand.  Commissioner                                                                    
Hanley replied that the standards  were meant to ensure that                                                                    
the students were  ready for the next step  in education. He                                                                    
explained that there were some  math standards language that                                                                    
would be difficult to understand  for everyone. He felt that                                                                    
the need  for the documents  for parents was  necessary, and                                                                    
would  be  much  broader  than  the  standard  outlined  for                                                                    
3:09:58 PM                                                                                                                    
Representative  Munoz   felt  that  the   elementary  school                                                                    
standard   language  made   it  difficult   for  anyone   to                                                                    
understand those standards. Commissioner Hanley agreed.                                                                         
Representative Gara looked at slide  24, and wondered if the                                                                    
increases  in DEED  funding may  be because  of the  finding                                                                    
that  the  rural  districts were  underfunded.  Commissioner                                                                    
Hanley replied  that the finding  was the state  was meeting                                                                    
the    "constitutional   floor"    of   responsibility    of                                                                    
establishing  and providing  for an  education. He  remarked                                                                    
that  there was  no  finding that  showed underfunding,  but                                                                    
there was a recognition that more funding was necessary.                                                                        
Representative  Gara  clarified  that  the  legislature  had                                                                    
passed a new  formula that provided a  new cost differential                                                                    
for urban  and rural  school funding.  He remarked  that the                                                                    
new  formula  recognized  the  miscalculation  of  the  cost                                                                    
differential  for   rural  schools,  so  for   every  dollar                                                                    
Anchorage  gets,   a  larger  amount   would  go   to  rural                                                                    
districts. He  also noted the increase  in special education                                                                    
funding, because  the school districts were  not given those                                                                    
costs. He  noted that  the legislature  passed that  bill in                                                                    
approximately  2005.  He  wondered if  that  formula  change                                                                    
accounted  for some  of  the  increase. Commissioner  Hanley                                                                    
replied in the affirmative, and deferred to Ms. Nudelman.                                                                       
3:13:03 PM                                                                                                                    
ELIZABETH   NUDELMAN,   DIRECTOR,    SCHOOL   FINANCES   AND                                                                    
FACILITIES, DEPARTMENT  OF EDUCATION AND  EARLY DEVELOPMENT,                                                                    
explained  that  there were  changes  in  the public  school                                                                    
funding  formula. She  noted that  the  two primary  changes                                                                    
included  changing   the  geographic  cost   factors  across                                                                    
Alaska.  Those were  implemented  over  a five-year  period,                                                                    
which  was included  in  the chart.  She  remarked that  the                                                                    
second larger  change was the  intensive funding,  which was                                                                    
implemented over three years.                                                                                                   
Representative  Gara  noted  the  increase  in  FY  15,  and                                                                    
wondered if that was due  to the former legislation Mr. Butt                                                                    
138. Ms. Teshner replied in the affirmative.                                                                                    
Representative Gara  noted that throughout the  1990s the K-                                                                    
12  formula  was  basically   "flat  funded."  Ms.  Nudelman                                                                    
replied that there  were not strong increases  in funding in                                                                    
the 1990s,  which she  could remember.  She stated  that she                                                                    
did not have precise details.                                                                                                   
Representative  Gara  shared that  he  may  have some  Pre-K                                                                    
questions later in the meeting.                                                                                                 
Representative Wilson  remarked that  she was  interested in                                                                    
Alaska Native  Science and  Engineering Program  (ANSEP) and                                                                    
Mt. Edgecumbe adjustments. She noted  that Mt. Edgecumbe had                                                                    
a  very high  graduation  rate. She  wondered  if the  State                                                                    
Board of Education examined the  idea of the recommendations                                                                    
for Mt.  Edgecumbe Commissioner Hanley  replied that  he was                                                                    
only  recently  informed  of   the  recent  legislation.  He                                                                    
stressed that  he liked  the quality of  both ANSEP  and Mt.                                                                    
Edgecumbe. He  did not want to  lose one over the  other. He                                                                    
did  not  have  enough  knowledge  of  the  intricacies.  He                                                                    
stressed that Mt. Edgecumbe reached  out to a broad spectrum                                                                    
of students across rural Alaska.  He felt that only focusing                                                                    
on  math and  science would  lose  an entire  outreach to  a                                                                    
group  of  students.  He  shared that  the  State  Board  of                                                                    
Education was not aware of that proposal.                                                                                       
Representative Wilson  felt that the  state did not  need to                                                                    
currently own  a school. She  requested information  about a                                                                    
possible increase from  10 to 25 students to  form a school.                                                                    
She queried  the reasoning of  why that adjustment  would be                                                                    
detrimental  to  schools.   Commissioner  Hanley  agreed  to                                                                    
provide that information.                                                                                                       
3:18:27 PM                                                                                                                    
Representative Wilson  noted that  the highest  growing area                                                                    
of funding was  for teaching and learning.  She wondered why                                                                    
school districts  were not covering  the needs  of teachers,                                                                    
and   why  DEED   did  not   pursue  cost-neutral   avenues.                                                                    
Commissioner Hanley replied that  those concerns seemed like                                                                    
two  different questions.  He felt  that the  districts were                                                                    
doing  their  best. He  stressed  that  DEED should  provide                                                                    
resources without mandates.                                                                                                     
Representative  Wilson understood  that  DEED was  providing                                                                    
training,  but the  formula program  was  the greatest  cost                                                                    
driver. She remarked that any  other industry required a fee                                                                    
for those  services. She  wondered why there  was no  fee to                                                                    
make  those  programs   cost  neutral.  Commissioner  Hanley                                                                    
replied that there  was an evaluation about a  fee for those                                                                    
programs. He remarked that DEED  was trying to find the most                                                                    
effective and efficient way to  help the schools educate the                                                                    
children. He stated that the  smaller districts were in need                                                                    
of the most support, because of the new federal changes.                                                                        
Representative  Wilson remarked  that she  was the  chair of                                                                    
the University;  and the Department  of Labor  and Workforce                                                                    
Development budget. She hoped to  put more of the money into                                                                    
the DEED budget.                                                                                                                
Representative Gattis  felt that education was  funded at an                                                                    
extremely high  rate. She remarked that  money for education                                                                    
had been  allocated outside of  the budget. She  shared that                                                                    
Mt.  Edgecumbe  did  not  only   have  students  from  rural                                                                    
communities. She  announced that Mt. Edgecumbe  had students                                                                    
from Anchorage  and Mat-Su. She remarked  that students from                                                                    
Sitka  also  attended Mt.  Edgecumbe.  She  shared that  Mt.                                                                    
Edgecumbe had  different criteria for its  incoming students                                                                    
than  the other  boarding schools,  which may  contribute to                                                                    
its higher graduation rate.                                                                                                     
3:23:41 PM                                                                                                                    
Vice-Chair Saddler  remarked that some people  feel that the                                                                    
legislature had  been "slashing education funding  for years                                                                    
upon  years." He  wondered  why some  might  feel that  way.                                                                    
Commissioner Hanley  replied that he would  have a difficult                                                                    
time finding  proof of  reduced funding.  He shared  that it                                                                    
felt like funding was cut,  because of increased contractual                                                                    
and  inflationary costs  of  school  districts. He  remarked                                                                    
that  it was  easy  to point  to the  cuts  coming from  the                                                                    
Representative Pruitt felt that  the budget for DEED formula                                                                    
in 2017  should be $1.1  billion if there was  an adjustment                                                                    
for  inflation.  He remarked  that  the  budget was  in  the                                                                    
formula was  $1.3 billion. He stressed  that the legislature                                                                    
was  currently far  above  the  inflationary adjustment.  He                                                                    
queried the number of new  students from 2007 to 1017, which                                                                    
allowed  for  the  increase  above  inflation.  Commissioner                                                                    
Hanley replied  that he  did not know  the student  count in                                                                    
2007, but the  student enrollment was fairly  stable in over                                                                    
the five to seven years at 130,000 students.                                                                                    
Representative  Pruitt  restated  that there  was  a  stable                                                                    
number  of   students,  but  the  budget   had  doubled  the                                                                    
inflationary impact.                                                                                                            
Representative Gara  requested a  per student  comparison of                                                                    
funding versus inflation. He stressed  that there was a cost                                                                    
differential study and the special education study.                                                                             
Representative Gara looked at slide  21, and remarked on the                                                                    
$75 million decrease  in the FY 15 Management  Plan from the                                                                    
Governor's proposal.  Ms. Teshner replied that  the decrease                                                                    
was represented  by the reduction from  the one-time funding                                                                    
for FY  15 through  FY 17.  She also  noted the  fund source                                                                    
change between UGF and DGF in FY 17.                                                                                            
Co-Chair   Neuman  stressed   that  the   DEED  budget   was                                                                    
important. He  remarked that  the education  funding formula                                                                    
had  been changed  over  time. He  wondered  if the  formula                                                                    
should be changed again.                                                                                                        
Co-Chair Thompson discussed the following day's agenda.                                                                         
HB  255  was  HEARD  and   HELD  in  committee  for  further                                                                    
HB  256  was  HEARD  and   HELD  in  committee  for  further                                                                    
HB 257 was HEARD and HELD in committee for further                                                                              

Document Name Date/Time Subjects
FY17 DEED HFC Budget Overview 1-28-16.pdf HFIN 1/28/2016 1:30:00 PM
DPS H FIN Dept Overview 012816.pdf HFIN 1/28/2016 1:30:00 PM
DPS Response to 012816 H FIN Committee Questions.pdf HFIN 1/28/2016 1:30:00 PM