Legislature(2019 - 2020)ADAMS ROOM 519

04/03/2019 09:00 AM FINANCE

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Audio Topic
09:36:21 AM Start
09:36:57 AM HB39 || HB40
09:37:41 AM Amendments
05:49:45 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 2:15 pm --
+= HB 39 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 40 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
Amendments
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 39                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making appropriations  under art.  IX,                                                                    
     sec. 17(c),  Constitution of the State  of Alaska, from                                                                    
     the constitutional  budget reserve fund;  and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
HOUSE BILL NO. 40                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive   mental    health   program,   including                                                                    
     supplemental  appropriations;  and   providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:36:57 AM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  reported   the  committee  would  consider                                                                    
language  amendments first  to  give  Legislative Legal  the                                                                    
maximum amount  of time  to ensure that  all of  the wording                                                                    
was precise.  The committee would  also take up  the numbers                                                                    
section amendments.                                                                                                             
                                                                                                                                
^AMENDMENTS                                                                                                                   
                                                                                                                                
9:37:41 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilson  asked that Amendment  LS 1 be moved  to the                                                                    
bottom of the language section.                                                                                                 
                                                                                                                                
Co-Chair Foster confirmed that the  amendment would be moved                                                                    
to the bottom of the section.                                                                                                   
                                                                                                                                
Representative Sullivan-Leonard MOVED  to ADOPT Amendment LS                                                                    
2, 31-GH1905\R.41 (Bruce, 4/1/19) (copy on file):                                                                               
                                                                                                                                
     Page 57, line 6:                                                                                                           
          Delete "$309,090"                                                                                                     
          Insert "209,090"                                                                                                      
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Sullivan-Leonard   explained  the  amendment                                                                    
contained verbiage  regarding the  Alaska Court  System. She                                                                    
indicated that  10 percent  of filing  fees received  by the                                                                    
court system was  estimated at $309,090. The  request was to                                                                    
reduce the  amount by $100,000. In  researching Alaska Legal                                                                    
Services  and what  it did  across the  state for  people in                                                                    
need,  she found  that there  were other  entities including                                                                    
non-profits that could provide similar support.                                                                                 
                                                                                                                                
Co-Chair  Wilson relayed  that  Alaska  Legal Services  fell                                                                    
under  the Department  of Commerce,  Community and  Economic                                                                    
Development. Legislation  was recently passed which  gave 10                                                                    
percent  to  Alaska Legal  Services  to  ensure that  single                                                                    
mothers who  did not have  funding were provided  with help.                                                                    
She would be opposing the amendment.                                                                                            
                                                                                                                                
Representative  Sullivan-Leonard suggested  that in  current                                                                    
times when  trying to find  every possible  reduction within                                                                    
the state's  budget structure, it  was important to  look at                                                                    
areas where  the private sector  could provide  support. She                                                                    
noted several entities that could potentially help.                                                                             
                                                                                                                                
Co-Chair Wilson MAINTAINED her OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Merrick, Sullivan-Leonard, Carpenter                                                                          
OPPOSED: Knopp, LeBon, Johnston, Ortiz, Josephson,                                                                              
Foster, Wilson                                                                                                                  
                                                                                                                                
The MOTION to ADOPT Amendment LS 2 FAILED (4/7).                                                                                
                                                                                                                                
Co-Chair  Foster  acknowledged  that  Representative  Delena                                                                    
Johnson,  Representative  Sara   Vance,  and  Speaker  Bryce                                                                    
Edgmon were in the audience.                                                                                                    
                                                                                                                                
9:41:47 AM                                                                                                                    
                                                                                                                                
Representative Sullivan-Leonard WITHDREW Amendment LS 3,                                                                        
31-GH1905\R.40 (Bruce, 4/1/19) (copy on file):                                                                                  
                                                                                                                                
     Page 71, lines 15 -16:                                                                                                     
          Delete  "An  amount equal  to  10  percent of  the                                                                    
          filing fees  received by  the Alaska  Court System                                                                    
          during  the  fiscal  year ending  June  30,  2018,                                                                    
          estimated to be $309,090,"                                                                                            
                                                                                                                                
          Insert "The sum of $209,090"                                                                                          
                                                                                                                                
9:42:13 AM                                                                                                                    
                                                                                                                                
Representative Carpenter MOVED to ADOPT Amendment LS 4, 31-                                                                     
GH1905\R.35 (Bruce, 4/1/19) (copy on file):                                                                                     
                                                                                                                                
     [SEE BELOW]                                                                                                                
                                                                                                                                
Vice-Chair Ortiz OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair  Wilson  suggested taking  up  Amendment  LS 4  and                                                                    
Amendment   LS  5   together.   She   noted  that   Regional                                                                    
Educational Attendance  Areas (REAAs) were connected  to the                                                                    
state's other  school debt reimbursement. Usually  if one of                                                                    
them was reduced, both would actually be reduced.                                                                               
                                                                                                                                
Representative Carpenter MOVED to ADOPT Amendment LS 4, 31-                                                                     
GH1905\R.35 (Bruce, 4/1/19) and Amendment LS 5, 31-                                                                             
GH1905\R.39 (Bruce, 4/1/19) (copy on file):                                                                                     
                                                                                                                                
Amendment LS 4:                                                                                                                 
                                                                                                                                
     Page 57, line 28:                                                                                                          
          Delete "sec. 23(t)"                                                                                                   
          Insert "sec. 23(r)"                                                                                                   
                                                                                                                                
     Page 68, line 30, through page 69. line 4:                                                                                 
          Delete all material.                                                                                                  
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
     Page 70, line 14:                                                                                                          
          Delete "(t)"                                                                                                          
          Insert "(r)"                                                                                                          
                                                                                                                                
     Page 70, line 22:                                                                                                          
          Delete "(u)"                                                                                                          
          Insert"(s)"                                                                                                           
                                                                                                                                
     Page 77, line 10:                                                                                                          
          Delete "Sections 23(j) and (k) and 29(b) of this                                                                      
          Act take"                                                                                                             
         Insert "Section 29(b) of this Act takes"                                                                               
                                                                                                                                
Amendment LS 5:                                                                                                                 
                                                                                                                                
     Page 57, line 28:                                                                                                          
          Delete "sec. 23(t)"                                                                                                   
          Insert "sec. 23(s)"                                                                                                   
                                                                                                                                
     Page 66, lines 24-29:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Reletter the following subsection accordingly.                                                                             
                                                                                                                                
     Page 69, lines 5-7:                                                                                                        
          Delete all material.                                                                                                  
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
     Page 70, line 14:                                                                                                          
          Delete "(t)"                                                                                                          
          Insert "(s)" 18                                                                                                       
                                                                                                                                
     Page 70, line 22:                                                                                                          
          Delete "(u)"                                                                                                          
          Insert "(t)"                                                                                                          
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Carpenter explained the two amendments                                                                           
deleted forward funding of public education, the school                                                                         
bond debt reimbursement, and the REAA funding.                                                                                  
                                                                                                                                
Co-Chair Foster asked if the amendments reduced the forward                                                                     
funding by 100 percent.                                                                                                         
                                                                                                                                
Representative Carpenter responded that the amendments                                                                          
would bring the funding down to the level proposed in the                                                                       
governor's budget.                                                                                                              
                                                                                                                                
Representative Josephson  thought that the  amendments would                                                                    
inflict too  much pain in  conjunction with  the legislation                                                                    
continuing a  moratorium on school bond  debt reimbursement.                                                                    
He would be opposing the motion.                                                                                                
                                                                                                                                
Vice-Chair Ortiz  agreed that it  was important to  look for                                                                    
cost savings.  However, he argued  that the  amendment would                                                                    
be  a  cost  shift  to municipalities  rather  than  a  cost                                                                    
savings.  He suggested  the impact  would be  significant to                                                                    
all the school districts and communities throughout Alaska.                                                                     
                                                                                                                                
Co-Chair Foster recalled that the  elimination of the school                                                                    
bond debt  reimbursement program would  result in a  loss of                                                                    
$83 million and REAAs  would lose approximately $39 million.                                                                    
He   asked  if   Representative  Carpenter   intended  those                                                                    
reductions with his amendments.                                                                                                 
                                                                                                                                
Representative  Carpenter responded  affirmatively that  his                                                                    
intention  was to  bring  the numbers  back  to the  numbers                                                                    
proposed by the governor.                                                                                                       
                                                                                                                                
Co-Chair Wilson believed the amendment  not only removed the                                                                    
Undesignated  General  Funds (UGF),  it  also  took out  the                                                                    
public school  funding which removed the  entire $99 million                                                                    
allocated along with the amount associated with the REAA.                                                                       
                                                                                                                                
Co-Chair Wilson WITHDREW her OBJECTION.                                                                                         
                                                                                                                                
Vice-Chair Ortiz OBJECTED.                                                                                                      
                                                                                                                                
Representative  Carpenter provided  wrap  up advocating  for                                                                    
fiscal responsibility  and the  health of  Alaska's economy.                                                                    
He thought  a lack  of growth was  a contributing  factor to                                                                    
many   of  Alaska's   challenges.  He   suggested  that   if                                                                    
legislators were  listening closely  to the  private sector,                                                                    
business  investment in  the state  would increase  when the                                                                    
legislature  chose to  act fiscally  responsibly. Investment                                                                    
decision makers  he has had  in his office were  waiting for                                                                    
members  to   spend  within  the  state's   means  over  the                                                                    
long-term. They were waiting for  an environment where their                                                                    
investments  would not  be swallowed  up by  state spending.                                                                    
They  did not  oppose appropriate  taxation but  feared they                                                                    
would  be  an easy  target  to  finance unsustainable  state                                                                    
spending.                                                                                                                       
                                                                                                                                
Representative Carpenter continued that  in very basic terms                                                                    
fiscally responsible meant two  things. First, it meant that                                                                    
the state's spending decisions should  be limited to revenue                                                                    
the economy generated  and, the state should  have the self-                                                                    
discipline to  not spend money  it did not have.  Second, it                                                                    
meant that  the state's spending decisions  and tax policies                                                                    
should  encourage investment  in  the private  sector so  it                                                                    
could grow. He suggested  that the legislature should resist                                                                    
the urge  to add  spending to the  governor's budget,  as it                                                                    
would  be doing  the wrong  thing for  the long-term  fiscal                                                                    
health of  the state. He  asserted that using  the Permanent                                                                    
Fund Dividend  (PFD) to  grow state  revenue would  not grow                                                                    
Alaska's economy  and would  not be  sending the  message of                                                                    
fiscal  responsibility.   It  would  communicate   that  the                                                                    
legislature had no intent to take an appetite suppressant.                                                                      
                                                                                                                                
Representative Carpenter  asserted that a message  of fiscal                                                                    
responsibility was  best communicated by having  the courage                                                                    
to reduce  state spending  to match its  revenue and  to cap                                                                    
state spending  to reasonable growth.  It would  be painful,                                                                    
but he  thought the  state would learn  to spend  within its                                                                    
means. He suggested  the state's economy would  grow when it                                                                    
had less  state government  to pay  for. The  two amendments                                                                    
were  a  portion  of  the   necessary  reductions  in  state                                                                    
spending as  outlined by  Governor Dunleavy.  The amendments                                                                    
did  not pass  judgement  on  the value  of  the program  it                                                                    
referred to,  as all  of the state  programs were  valued by                                                                    
someone. The amendments spoke to  the idea of being fiscally                                                                    
responsible.  He  believed  the  state  had  to  reduce  its                                                                    
spending.                                                                                                                       
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Merrick, Sullivan-Leonard, Carpenter,                                                                         
Johnston, Wilson                                                                                                                
OPPOSED: LeBon, Ortiz, Josephson, Knopp, Foster                                                                                 
                                                                                                                                
The MOTION PASSED  (6/5). Amendment LS 4 and  Amendment LS 5                                                                    
were ADOPTED.                                                                                                                   
                                                                                                                                
9:49:07 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilson   MOVED  to  ADOPT  Amendment   LS  6,  31-                                                                    
GH1905\R.12 (Bruce, 3/30/19) (copy on file):                                                                                    
                                                                                                                                
     Page 60, lines 6-10:                                                                                                       
          Delete all material.                                                                                                  
                                                                                                                                
Representative Josephson OBJECTED for discussion.                                                                               
                                                                                                                                
Co-Chair Wilson  explained the  amendment. She  relayed that                                                                    
the  amendment removed  $1.1 million  UGF.  The funding  for                                                                    
hotshot  crews was  federally funded.  The stop  gap funding                                                                    
lapsed  each year  and  was not  needed  because of  federal                                                                    
funding.                                                                                                                        
                                                                                                                                
Representative  Josephson asked  for  verification that  the                                                                    
cut would not happen if federal funding was matched.                                                                            
                                                                                                                                
Co-Chair Wilson  clarified that it  was not  matching funds.                                                                    
The  hotshot  crews  were paid  with  federal  funding.  The                                                                    
appropriation had  been included in the  past before federal                                                                    
funding  was  provided.  She indicated  that  there  was  an                                                                    
appropriation in  another part of the  language section that                                                                    
provided federal funds for hotshot crews.                                                                                       
                                                                                                                                
Representative Josephson WITHDREW his OBJECTION.                                                                                
                                                                                                                                
Vice-Chair Ortiz OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair  Wilson reiterated  that federal  funding was  used                                                                    
for the activity which remained  in the budget. Undesignated                                                                    
general funds  were no longer  needed. She urged  members to                                                                    
support her amendment.                                                                                                          
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:   Tilton,  Merrick,  Sullivan-Leonard,  Carpenter,                                                                    
Johnston, Josephson, Knopp, LeBon, Ortiz, Foster, Wilson                                                                        
OPPOSED:    None                                                                                                                
                                                                                                                                
The MOTION PASSED (11/0). Amendment LS 6 was ADOPTED.                                                                           
                                                                                                                                
9:51:47 AM                                                                                                                    
                                                                                                                                
Co-Chair   Foster   acknowledged  Representative   Johnathan                                                                    
Kreiss-Tomkins and Representative Lance Pruitt.                                                                                 
                                                                                                                                
9:52:19 AM                                                                                                                    
                                                                                                                                
Representative  Knopp MOVED  to  ADOPT Amendment  LS 7,  31-                                                                    
GH1905\R.33 (Bruce, 4/1/19) (copy on file):                                                                                     
     [SEE BELOW]                                                                                                                
                                                                                                                                
9:52:37 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:55:19 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster called on Representative Knopp regarding                                                                        
Amendment LS 7 and Amendment LS 8.                                                                                              
                                                                                                                                
Representative Knopp WITHDREW Amendment LS 7 and Amendment                                                                      
LS 8, 31-GH1905\R.27 (Bruce, 4/1/19)(copy on file):                                                                             
                                                                                                                                
Amendment LS 7:                                                                                                                 
                                                                                                                                
     Page 66, lines 24 - 25:                                                                                                    
          Delete "amount necessary for state aid for costs                                                                      
          of school construction under AS 14.11.100,                                                                            
          estimated to be $99,820,500,"                                                                                         
          Insert "sum of $49,910,250"                                                                                           
                                                                                                                                
     Page 66, lines 28 - 29:                                                                                                    
          Delete   "the   amount    necessary,   after   the                                                                    
          appropriation made in (I) of this subsection, 8                                                                       
           estimated to be $83,320,500,"                                                                                        
          Insert "$33,410,250"                                                                                                  
                                                                                                                                
     Page 69, line 5:                                                                                                           
          Delete "$39,389,000"                                                                                                  
          Insert "$19,694,500"                                                                                                  
                                                                                                                                
Amendment LS 8:                                                                                                                 
                                                                                                                                
     Page 66, lines 24-25:                                                                                                      
          Delete "amount necessary for state aid for costs                                                                      
          of school construction under 3     AS   14.11.100,                                                                    
          estimated to be $99,820,500,"                                                                                         
          Insert "sum of$74,865,375"                                                                                            
                                                                                                                                
     Page 66, lines 28 - 29:                                                                                                    
          Delete   "the   amount    necessary,   after   the                                                                    
          appropriation made in (I) of this subsection, 8                                                                       
           estimated to be $83,320,500,"                                                                                        
          Insert "$58,365,375"                                                                                                  
                                                                                                                                
     Page 69, line 5:                                                                                                           
          Delete "$39,389,000"                                                                                                  
          Insert "$29,541,750"                                                                                                  
                                                                                                                                
9:55:58 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
10:00:11 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Foster  indicated  the  committee  would  take  up                                                                    
Amendment LS 9.                                                                                                                 
                                                                                                                                
10:00:24 AM                                                                                                                   
                                                                                                                                
Representative  Ortiz MOVED  to  ADOPT Amendment  LS 9,  31-                                                                    
GH1905\R.26 (Bruce, 4/1/19) (copy on file):                                                                                     
                                                                                                                                
     Page 68, line 27:                                                                                                          
     Delete "general fund"                                                                                                      
     Insert "receipts of the Alaska Industrial Development                                                                      
     and Export Authority 4 (AS 44.88)"                                                                                         
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Ortiz explained  the amendment  would change                                                                    
the  fund source  for paying  oil  tax credits  from UGF  to                                                                    
Alaska Industrial  Development and Export  Authority (AIDEA)                                                                    
funds in  the amount  of $70 million.  The amendment  was in                                                                    
the  spirit   of  the  administration.   The  administration                                                                    
initially  proposed to  move over  $200  million from  AIDEA                                                                    
funds   to  support   similar  items.   He  asked   for  the                                                                    
committee's full support.                                                                                                       
                                                                                                                                
Co-Chair  Wilson  indicated she  had  not  heard from  AIDEA                                                                    
about  taking its  receipts. She  had  not been  comfortable                                                                    
with  the administration's  proposal of  using $200  million                                                                    
from AIDEA  previously. If the  funding was UGF,  she wanted                                                                    
to  make sure  the payment  would not  be the  last for  tax                                                                    
credits. She thought the funding source should remain UGF.                                                                      
                                                                                                                                
Representative Josephson  explained that  on March  4, 2019,                                                                    
the Bradner Report indicated that  Mr. Boutin, the Executive                                                                    
Director   of   AIDEA,   told  a   Senate   Finance   budget                                                                    
subcommittee that  his group could  handle a  large transfer                                                                    
of  funds  from  its   investment  portfolio.  The  governor                                                                    
recommended  $264   million.  The  amendment   proposed  $70                                                                    
million, 20 percent  of the amount Mr.  Boutin had indicated                                                                    
as  safe. He  thought the  evidence was  apparent and  would                                                                    
support the amendment.                                                                                                          
                                                                                                                                
Vice-Chair Johnston  appreciated the amendment  efforts, but                                                                    
thought it  went counter  to what she  was basing  her votes                                                                    
on. She  did not want  to go into  any type of  savings. She                                                                    
suggested  that if  AIDEA reported  that the  amendment fell                                                                    
within  its  mission,  she   would  support  the  amendment.                                                                    
However, she  thought the amendment would  result in dipping                                                                    
into savings. She would be opposing the amendment.                                                                              
                                                                                                                                
Representative  Carpenter  was  curious to  hear  back  from                                                                    
Alaska Industrial Development  and Export Authority (AIDEA).                                                                    
He proposed tabling the amendment.                                                                                              
                                                                                                                                
Co-Chair Wilson OBJECTED.                                                                                                       
                                                                                                                                
10:03:33 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:05:43 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Representative Carpenter MOVED to TABLE Amendment LS 9.                                                                         
                                                                                                                                
Co-Chair Wilson OBJECTED.                                                                                                       
                                                                                                                                
Vice-Chair  Ortiz asked  for a  point  of clarification.  He                                                                    
asked if  tabling the motion  would have the same  effect of                                                                    
moving it to the bottom of the order.                                                                                           
                                                                                                                                
Co-Chair Foster  responded that that  was how  he understood                                                                    
it but invited Representative Carpenter to respond.                                                                             
                                                                                                                                
Representative  Carpenter  commented,  "That's  not  what  a                                                                    
table would do."                                                                                                                
                                                                                                                                
Co-Chair  Wilson explained  that her  objection was  because                                                                    
the  representative was  asking  to table  the motion  until                                                                    
AIDEA could come  before the committee. She  did not believe                                                                    
AIDEA could  come before  the committee for  at least  a few                                                                    
days.  She  thought  time  had  been  provided  to  vet  the                                                                    
amendments  and  that  the committee  should  move  on.  She                                                                    
suggested that it could be addressed on the floor.                                                                              
                                                                                                                                
Co-Chair Wilson MAINTAINED her OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Merrick, Carpenter, Ortiz, Tilton                                                                                     
OPPOSED: Sullivan-Leonard, Johnston, Josephson, Knopp,                                                                          
LeBon, Wilson, Foster                                                                                                           
                                                                                                                                
The MOTION to TABLE Amendment LS 9 FAILED (4/7).                                                                                
                                                                                                                                
10:08:19 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:09:18 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Representative    Sullivan-Leonard   voiced    support   for                                                                    
Amendment LS  9. She had  discussed the issue with  AIDEA in                                                                    
her office. She wished the  amount was larger. She was aware                                                                    
AIDEA had proposed over $200 million  to pay for oil and gas                                                                    
tax  credits. She  thought  appropriating  $70 million  from                                                                    
AIDEA funds  was a smart move.  It allowed funds to  stay in                                                                    
UGF where they should be. She  liked the idea of using other                                                                    
avenues  to pay  the state's  obligations including  oil and                                                                    
gas tax credits.                                                                                                                
                                                                                                                                
Representative Carpenter asked to  increase the amendment to                                                                    
$200 million.                                                                                                                   
                                                                                                                                
Co-Chair  Foster  asked   if  Representative  Carpenter  was                                                                    
offering an amendment.                                                                                                          
                                                                                                                                
Representative  Carpenter MOVED  Conceptual  Amendment 1  to                                                                    
Amendment LS 9. The amendment  would increase the funds from                                                                    
$70 million to $200 million from AIDEA.                                                                                         
                                                                                                                                
Co-Chair  Wilson OBJECTED.  She  clarified  that the  amount                                                                    
would be changed to $200  million. The issue was not whether                                                                    
the state owed  the credits. The issue was  about taking the                                                                    
money  from another  savings account  rather  than UGF.  The                                                                    
saving  account  that AIDEA  had  was  for funding  projects                                                                    
which could  not get funding from  a bank. She had  not seen                                                                    
documentation  about  whether  taking $70  million  or  $200                                                                    
million from  the AIDEA fund  would hamper  future projects.                                                                    
The proposal  was something the  legislature had  never done                                                                    
before and AIDEA's Board of  Directors had not weighed in on                                                                    
the matter. She would be  opposing Conceptual Amendment 1 to                                                                    
Amendment LS 9.                                                                                                                 
                                                                                                                                
Representative  Josephson   opposed  the  motion   to  amend                                                                    
Amendment 9.  He indicated  that the  amount of  $70 million                                                                    
was  based  on  anticipated  non-participants  in  the  bond                                                                    
package. The amount  of $200 million did not  match the need                                                                    
assuming  the  bond  package was  approved  by  the  Supreme                                                                    
Court. He would be opposing the amendment.                                                                                      
                                                                                                                                
Representative Carpenter  sensed there was  confusion, which                                                                    
was  the reason  he had  wanted  to table  the amendment  in                                                                    
order  to  hear  from  AIDEA. The  concept  of  taking  $200                                                                    
million  from the  AIDEA account  was similar  to taking  $1                                                                    
billion from the Permanent Fund  Dividends going to Alaskans                                                                    
for government spending. He did not understand the concept.                                                                     
                                                                                                                                
Representative LeBon  opined that  the legislature was  on a                                                                    
slippery slope  with the  idea of  removing capital  from an                                                                    
agency like AIDEA. He could  not support $200 million or $70                                                                    
million. He  did not know  whether hearing from  AIDEA would                                                                    
change  his  mind. He  stated  the  agency was  the  state's                                                                    
investment  bank.   He  did  not  support   handcuffing  the                                                                    
agency's ability to make major investments.                                                                                     
                                                                                                                                
Representative  Knopp agreed  with Representative  Josephson                                                                    
that $70 million was the  estimated amount owed to those who                                                                    
were  non-participants of  the bonding  program. He  thought                                                                    
the question  was the funding  source. He supported  the use                                                                    
of UGF.                                                                                                                         
                                                                                                                                
10:16:15 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:18:32 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Carpenter thought  the  question before  the                                                                    
committee  was whether  the legislature  wanted to  spend $2                                                                    
million in debt to pay  the state's obligation or whether it                                                                    
wanted to take $2 million from savings.                                                                                         
                                                                                                                                
Co-Chair  Wilson  clarified that  when  the  state paid  tax                                                                    
credits  it had  to  do  with who  was  first  in line.  She                                                                    
suggested that  the $100 million  paid in the  previous year                                                                    
was not paid based on whether  someone was willing to take 5                                                                    
percent or 10  percent reduction. Rather, it had  to do with                                                                    
who was next  in line. It might have been  the intent of the                                                                    
original maker  of the  amendment to only  have it  apply to                                                                    
those  companies who  wanted 100  percent of  their funding.                                                                    
That was  not how  the program worked.  The next  company in                                                                    
line would  receive the  $70 million until  and if  the bond                                                                    
package passed. It was not  only about using savings, it was                                                                    
also  about  taking  money  from   a  corporation  that  the                                                                    
legislature put in place for  the purpose of development for                                                                    
projects  that could  not  get  lending through  traditional                                                                    
means.  She  asserted  that  Alaskans   were  tired  of  the                                                                    
legislature switching  fund sources to  appear as if  it was                                                                    
saving even though it was  not. She thought the games should                                                                    
stop. The  legislature needed to  be honest where  the money                                                                    
was  from.  She  also  emphasized the  need  for  additional                                                                    
infrastructure. She did not want  to see the savings account                                                                    
robbed.                                                                                                                         
                                                                                                                                
Representative Carpenter  provided wrap up on  his motion to                                                                    
Conceptual Amendment  1 to  Amendment LS  9. He  thought the                                                                    
state should be paying its  obligations. He relayed that $70                                                                    
million did  not cover the  states obligation costs,  only a                                                                    
portion of them. Approximately $200  million would cover the                                                                    
expense. The decision was about  whether the state went into                                                                    
debt or paid it out of savings.                                                                                                 
                                                                                                                                
Co-Chair Wilson MAINTAINED her OBJECTION.                                                                                       
                                                                                                                                
A  roll  call  vote  was   taken  on  the  motion  to  ADOPT                                                                    
Conceptual Amendment 1 to Amendment LS 9.                                                                                       
                                                                                                                                
IN FAVOR: Carpenter, Sullivan-Leonard                                                                                           
OPPOSED: Johnston,  Ortiz, Josephson, Knopp,  LeBon, Tilton,                                                                    
Merrick, Wilson, Foster                                                                                                         
                                                                                                                                
The MOTION to  ADOPT Conceptual Amendment to  Amendment LS 9                                                                    
FAILED (2/9).                                                                                                                   
                                                                                                                                
Co-Chair Foster  recognized Representative Louise  Stutes in                                                                    
the  audience. He  relayed  that Amendment  LS  9 was  under                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Wilson MAINTAINED her OBJECTION.                                                                                       
                                                                                                                                
A  roll  call  vote  was   taken  on  the  motion  to  adopt                                                                    
Amendment 9.                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Ortiz, Josephson, Tilton, Merrick,                                                                                    
Sullivan-Leonard, Carpenter                                                                                                     
OPPOSED: Johnston, Knopp, LeBon, Foster, Wilson                                                                                 
                                                                                                                                
The MOTION to ADOPT Amendment LS 9 PASSED (6/5).                                                                                
                                                                                                                                
10:23:52 AM                                                                                                                   
RECESSED                                                                                                                        
                                                                                                                                
2:26:42 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Foster indicated  that the  meeting left  off from                                                                    
the morning  having recessed.  The committee  would continue                                                                    
to take up amendments in the language section of the bill.                                                                      
                                                                                                                                
Co-Chair Wilson  MOVED to RESCIND  action on Amendment  LS 4                                                                    
and Amendment LS 5                                                                                                              
                                                                                                                                
Representative Carpenter  OBJECTED. He  thought it  was wise                                                                    
to  keep  the  amendments together.  The  action  previously                                                                    
taken  on  the amendments  sent  a  message to  the  private                                                                    
sector that the state could be fiscally responsible.                                                                            
                                                                                                                                
Co-Chair Foster clarified that Amendment  LS 4 and Amendment                                                                    
LS 5  had to do  with school debt reimbursement  and forward                                                                    
funding of education.                                                                                                           
                                                                                                                                
Representative Carpenter MAINTAINED his OBJECTION.                                                                              
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Johnston, Ortiz, Josephson, LeBon, Wilson, Foster                                                                     
OPPOSED:   Merrick,   Sullivan-Leonard,  Carpenter,   Knopp,                                                                    
Tilton                                                                                                                          
                                                                                                                                
The  MOTION  to  RESCIND  Action   on  Amendment  LS  4  and                                                                    
Amendment LS 5 PASSED (6/5).                                                                                                    
                                                                                                                                
Co-Chair  Wilson  wanted  to  take up  Amendment  LS  4  and                                                                    
Amendment LS 5 separately.                                                                                                      
                                                                                                                                
Co-Chair  Wilson MOVED  to  ADOPT Amendment  LS  4 (copy  on                                                                    
file): [See Above].                                                                                                             
                                                                                                                                
Vice-Chair Ortiz OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair Wilson  explained the amendment even  though it was                                                                    
not  her  amendment.  The  amendment  would  affect  forward                                                                    
funding of the state's schools.                                                                                                 
                                                                                                                                
2:29:50 PM                                                                                                                    
                                                                                                                                
Representative  LeBon  asked  how forward  funding  for  the                                                                    
state's schools would be affected.                                                                                              
                                                                                                                                
Co-Chair  Wilson   explained  that   the  adoption   of  the                                                                    
amendment  would  essentially  get rid  of  forward  funding                                                                    
education.                                                                                                                      
                                                                                                                                
Representative Carpenter  commented that he  was a fan  of a                                                                    
2-year budget.  He thought forward  funding education  was a                                                                    
great  idea. It  solved some  of the  problems at  the local                                                                    
level.  However,  the  appropriation   was  not  part  of  a                                                                    
comprehensive  fiscal plan  - it  was a  piece-meal approach                                                                    
that  was  not  fiscally  responsible.  He  thought  forward                                                                    
funding  education should  be addressed  in a  comprehensive                                                                    
manner. He would be opposing the amendment.                                                                                     
                                                                                                                                
Representative  Sullivan-Leonard  asked  the  maker  of  the                                                                    
amendment  to  articulate  what  the  amount  would  be  for                                                                    
forward funding.                                                                                                                
                                                                                                                                
Co-Chair Wilson  pointed to page  68, lines 30-31.  She read                                                                    
from the bill. An exact  amount was not specified because it                                                                    
depended  upon  enrollment,  the  number  of  special  needs                                                                    
students, and the  location of schools. She  agreed that the                                                                    
legislature needed  to start  looking 2  years out  versus 1                                                                    
year out.  Teachers were hired based  on student population.                                                                    
She  suggested that  if someone  wanted to  change the  base                                                                    
student  allocation formula,  the  funding  would either  be                                                                    
higher  or  lower  depending on  any  proposed  legislation.                                                                    
Although the  bill did not provide  concrete dollar amounts,                                                                    
it communicated to  schools that the state  was flat funding                                                                    
education. It was actually funding  less, as the $20 million                                                                    
was not included.                                                                                                               
                                                                                                                                
Co-Chair  Foster  clarified  that the  amendment  would  not                                                                    
allow forward funding education in FY 21.                                                                                       
                                                                                                                                
2:32:56 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:33:13 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Ortiz  clarified that voting no  on the amendment                                                                    
meant yes to forward funding. He asked if he was correct.                                                                       
                                                                                                                                
Co-Chair Foster responded, "That's correct."                                                                                    
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Tilton, Merrick, Sullivan-Leonard, Carpenter                                                                          
OPPOSED: Johnston,  Ortiz, Josephson, Knopp,  LeBon, Foster,                                                                    
Wilson                                                                                                                          
                                                                                                                                
The MOTION to ADOPT Amendment LS 4 FAILED (4/7).                                                                                
                                                                                                                                
2:34:40 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:37:08 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Wilson MOVED  to  ADOPT Amendment  LS  5 (copy  on                                                                    
file): [See above].                                                                                                             
                                                                                                                                
Co-Chair Wilson  explained the amendment  having to  do with                                                                    
school  debt  reimbursement  which  affected  municipalities                                                                    
that had  the ability  to bond. It  would also  affect REAAs                                                                    
that did not bond and had a formula applied.                                                                                    
                                                                                                                                
Vice-Chair Ortiz OBJECTED.                                                                                                      
                                                                                                                                
Representative Knopp  MOVED to ADOPT Conceptual  Amendment 1                                                                    
to Amendment  LS 5  to insert language  from Amendment  LS 7                                                                    
which   was  previously   withdrawn.  The   amendment  would                                                                    
essentially put 50 percent back in for municipalities.                                                                          
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Vice-Chair  Ortiz   supported  Conceptual  Amendment   1  to                                                                    
Amendment LS 5.  He thought that the  original amendment was                                                                    
a   significant  and   massive   cost   shifting  to   local                                                                    
municipalities   by   the   state  not   reimbursing   local                                                                    
municipalities for their school  bond debt. He supported the                                                                    
amendment to  the amendment  because it was  less of  a cost                                                                    
shift  than the  original  amendment. He  reported that  the                                                                    
intent of the legislature  had been to assist municipalities                                                                    
with  their  school  bond  debt.   He  understood  that  the                                                                    
assistance  was subject  to appropriation.  By adopting  the                                                                    
amendment  to the  amendment, the  state  would continue  to                                                                    
assist municipalities  with their  school bond  debt, albeit                                                                    
at a 50 percent reduced level.                                                                                                  
                                                                                                                                
Co-Chair  Wilson  would  be   opposing  the  amendment.  She                                                                    
reported  that  prior to  2015,  times  were different.  The                                                                    
state  had money  and could  share  it with  municipalities.                                                                    
Each  of  the  bonds  stated  that if  the  state  chose  to                                                                    
appropriate,  municipalities could  get  a reimbursement  of                                                                    
70/30 or 60/40  depending on the project and  its scoring by                                                                    
the Department  of Education. She indicated  the legislature                                                                    
made  it well  known that  the state  might not  be able  to                                                                    
reimburse at 100 percent. Since  2015 bonding had continued.                                                                    
The Fairbanks North Star School  District had bonded because                                                                    
of a need for repairs.  Her constituents paid 100 percent of                                                                    
the school bond debt because  it was their responsibility to                                                                    
take care of their schools  for their children. Although she                                                                    
appreciated  the  amendment  to the  amendment,  times  were                                                                    
different,  and money  was short.  She  reiterated that  the                                                                    
state  made it  very clear  that assistance  was subject  to                                                                    
appropriation. Currently, municipalities  bonded rather than                                                                    
the state, taking responsibility for their debt.                                                                                
                                                                                                                                
Representative   Josephson  stated   there  had   been  good                                                                    
arguments on both  sides to the amendment  to the amendment.                                                                    
There  had  been  some  change in  his  district  after  the                                                                    
passage of  the moratorium. He  reported that a  $50 million                                                                    
bond failed.  He felt that  the state  was looking at  a 10-                                                                    
year moratorium. He  opined that adding a  full cessation of                                                                    
state contribution to  a moratorium was more  that the state                                                                    
needed to  do. He continued  to be disappointed  because the                                                                    
legislature had  not resolved the state's  fiscal situation.                                                                    
He thought  there could be  changes made to state  and local                                                                    
services  after a  full vetting  of what  the changes  would                                                                    
look  like.  Currently, the  state  had  played a  role.  He                                                                    
reported that an  average home in his  district would suffer                                                                    
a $250 tax increase rather than a $450 tax increase.                                                                            
                                                                                                                                
2:43:55 PM                                                                                                                    
                                                                                                                                
Representative Carpenter appreciated  the comments regarding                                                                    
the shifting of  burden. He was not callous  to realize that                                                                    
hardship  would  be  felt  around the  state  and  that  the                                                                    
legislature's  actions were  without feeling.  If the  state                                                                    
were to stop spending money it  did not have, there would be                                                                    
a shift of  responsibility to others who would  also have to                                                                    
be fiscally responsible.  The state was in  a different time                                                                    
and   experiencing  a   different   budget  situation.   The                                                                    
alternative  was to  take PFD  checks to  pay for  spending.                                                                    
While people might be faced with  a $250 or $500 increase in                                                                    
taxes at  the local level,  a family  of four stood  to lose                                                                    
$12,000  in  PFD checks.  It  would  take  all but  a  small                                                                    
portion  of  each  of  Alaskans'   PFD  checks  to  pay  for                                                                    
government spending at the level  the state wanted to spend.                                                                    
He believed it was disingenuous  to Alaskans to say that the                                                                    
legislature  could  not  cut   spending  so  it  would  take                                                                    
people's  PFD  checks. As  a  fiscal  conservative he  would                                                                    
rather  pay for  things at  the  local level  than he  would                                                                    
taking  investment earnings  from the  PFD to  pay for  more                                                                    
state  government. He  suggested that  the goal  was to  get                                                                    
Alaska's economy  going. He  thought the  legislature needed                                                                    
to send a  message to business leaders that  the state could                                                                    
control its spending, which  meant difficult decisions would                                                                    
have to be made.                                                                                                                
                                                                                                                                
Co-Chair Foster  clarified that  the original  amendment was                                                                    
to cut  the school bond  debt reimbursement by  100 percent.                                                                    
The amendment  to the amendment  would add back  50 percent.                                                                    
Therefore, it  would essentially be a  50 percent reduction.                                                                    
It  applied  to  both  school bond  debt  reimbursement  and                                                                    
REAAs. He asked if he was accurate.                                                                                             
                                                                                                                                
Representative  Carpenter  asked   if  Co-Chair  Foster  was                                                                    
referring to his amendment.                                                                                                     
                                                                                                                                
Co-Chair   Foster   asked  if   Representative   Carpenter's                                                                    
original  amendment applied  to both  REAAs and  school bond                                                                    
debt reimbursement.                                                                                                             
                                                                                                                                
Representative Carpenter replied, "That is correct."                                                                            
                                                                                                                                
Representative  LeBon  asked  for  a dollar  amount  on  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Co-Chair  Foster stated  it  would be  $83  million UGF  for                                                                    
school  bond debt  reimbursement plus  $16 million  from the                                                                    
Public School  Trust Fund totaling  $99 million.  The amount                                                                    
for REAAs was $39.4 million.                                                                                                    
                                                                                                                                
2:48:03 PM                                                                                                                    
                                                                                                                                
Representative  Knopp  stated  that  amount  for  REAAs  was                                                                    
originally  $39.389 million.  He  reported  that 50  percent                                                                    
equaled $19.694 million. The total  estimated debt was about                                                                    
$99.820 million. He indicated  that about $16.5 million came                                                                    
out of  the education fund  and $83.320 million came  out of                                                                    
UGF. A 50 percent reduction would equal $33.410 million.                                                                        
                                                                                                                                
Co-Chair  Foster  stated  that  Conceptual  Amendment  1  to                                                                    
Amendment LS  5 would reduce school  bond debt reimbursement                                                                    
from $99 million  to just below $50 million  and REAAs would                                                                    
be reduced  from just  under $40 million  to just  under $20                                                                    
million.                                                                                                                        
                                                                                                                                
Representative Knopp  agreed with  the co-chair that  it was                                                                    
the  legislature's  job  to  protect  Alaska's  schools  and                                                                    
children and  to protect  Alaska's communities  and economy.                                                                    
He agreed  with Representative  Carpenter that the  goal was                                                                    
to stimulate  the economy rather  than tearing it  apart. He                                                                    
advocated for a step-down program  to allow people to adjust                                                                    
which was what  the amendment did. In  2016, Governor Walker                                                                    
Also vetoed  25 percent of  the funds to  municipalities. He                                                                    
thought the  amendment to the amendment  was appropriate. He                                                                    
noted  that there  was  a  bill in  play  that extended  the                                                                    
moratorium  for school  bond debt  reimbursement. He  agreed                                                                    
with the moratorium based on  the state's current situation.                                                                    
However, he thought the program was still worthwhile.                                                                           
                                                                                                                                
2:50:32 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:00:05 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Knopp  MOVED to ADOPT Conceptual  Amendment 2                                                                    
to Amendment LS 5.                                                                                                              
                                                                                                                                
Co-Chair   Foster  asked   Representative  Knopp   to  first                                                                    
withdraw his first amendment to Amendment LS 5.                                                                                 
                                                                                                                                
Representative  Knopp  WITHDREW  Conceptual Amendment  1  to                                                                    
Amendment 5.                                                                                                                    
                                                                                                                                
Representative Knopp  MOVED to ADOPT Conceptual  Amendment 2                                                                    
to  Amendment  LS  5.  He   explained  that  the  conceptual                                                                    
amendment would  delete all language  in Amendment LS  5 and                                                                    
replace it with the language from Amendment LS 7:                                                                               
                                                                                                                                
     [See above]                                                                                                                
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Carpenter asked for clarification.                                                                               
                                                                                                                                
Co-Chair   Wilson   indicated   that  the   change   was   a                                                                    
clarification for Legislative  Legal Services. She furthered                                                                    
that Conceptual Amendment  2 to Amendment LS 5  equated to a                                                                    
50  percent reduction  for debt  reimbursement payments  for                                                                    
municipality  bonds and  a 50  percent reduction  for REAAs.                                                                    
The   amendment   was   intended   to   provide   additional                                                                    
clarification.                                                                                                                  
                                                                                                                                
Representative  Carpenter   understood  the   concept  being                                                                    
presented  but  disagreed  with  the  method  in  which  the                                                                    
committee  was going  about  implementing  it. He  continued                                                                    
that  it was  important to  keep in  mind that  adding money                                                                    
into the  budget was  not the only  way to  protect Alaska's                                                                    
communities and  schools. He believed  a change  in thinking                                                                    
was needed.  He suggested that the  state's current spending                                                                    
level was unsustainable, and using  the PFD presently, would                                                                    
resulting in doing  away with it altogether in  a few years.                                                                    
He believed that  additional taxes would be  required in the                                                                    
future  to  sustain state  spending.  He  argued that  a  50                                                                    
percent reduction  currently would still require  the use of                                                                    
PFD  funding  to  maintain  the  state's  current  level  of                                                                    
spending,  although reduced.  He thought  it kicked  the can                                                                    
down the road,  just not as hard.  Fiscal responsibility was                                                                    
about making  difficult calls  and doing  what was  right to                                                                    
set up the economy for the  future. He argued that the state                                                                    
had to do a reset. The  state was spending too much for what                                                                    
the  economy could  support. He  compared state  spending to                                                                    
living in  a large home that  a person could not  afford. He                                                                    
suggested selling the larger home  and buying a smaller one.                                                                    
He continued that  moving to a 50 percent  reduction was the                                                                    
same as taking PFDs from Alaska's children.                                                                                     
                                                                                                                                
Co-Chair Wilson MAINTAINED her OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:   Ortiz, Josephson, Knopp, Foster                                                                                     
OPPOSED:    Carpenter,  Johnston,  LeBon,  Tilton,  Merrick,                                                                    
Sullivan-Leonard, Wilson                                                                                                        
                                                                                                                                
The MOTION to  ADOPT Conceptual Amendment 2  to Amendment LS                                                                    
5 FAILED (4/7).                                                                                                                 
                                                                                                                                
3:04:45 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  returned to Amendment  LS 5.  He reiterated                                                                    
that   the  amendment   would   reduce   school  bond   debt                                                                    
reimbursement and REAA funds by 100 percent.                                                                                    
                                                                                                                                
Representative   LeBon  asked   about   the  dollar   amount                                                                    
reflected  in the  fiscal note.  He thought  the amount  was                                                                    
approximately $122 million.                                                                                                     
                                                                                                                                
Co-Chair   Foster   replied  affirmatively.   He   corrected                                                                    
himself. He indicated the amount  was $99 million plus $39.4                                                                    
million. He conveyed the figure  of between $138 million and                                                                    
$139 million.                                                                                                                   
                                                                                                                                
Vice-Chair Ortiz  was opposed to the  amendment. He reminded                                                                    
the body  of the  constitution. It specified  that it  was a                                                                    
requirement for  the state  to adequately  provide education                                                                    
for Alaska's youth between the ages  of 5 through 18. He did                                                                    
not  think anyone  could argue  that  providing an  adequate                                                                    
education included providing  adequate facilities to receive                                                                    
that  education. He  agreed with  Representative Carpenter's                                                                    
comments about  prioritizing state spending.  However, there                                                                    
was not a  constitutional mandate to deliver a  full PFD. He                                                                    
would be voting no on the amendment.                                                                                            
                                                                                                                                
3:06:50 PM                                                                                                                    
                                                                                                                                
Representative Knopp  mentioned that he did  not support the                                                                    
amendment. He  preferred a step-down approach  to fixing the                                                                    
state's  spending habits.  He reported  that the  impacts of                                                                    
the amendment equated to a  $42 million annual tax burden to                                                                    
the Municipality of Anchorage,  $19 million to his community                                                                    
municipality,   and  about   $18  million   to  the   Mat-Su                                                                    
Municipality. He noted additional  impacts to REAAs in terms                                                                    
of construction  and maintenance.  He thought  the reduction                                                                    
was  regressive.  One of  the  reasons  for the  legislature                                                                    
holding community meetings  was to inform the  public of the                                                                    
potential  impacts of  the actions  being considered  by the                                                                    
legislature. He thought  the reduction would be  a large hit                                                                    
in  2  years  from 25  percent  in  FY  16  to what  it  was                                                                    
presently.                                                                                                                      
                                                                                                                                
Co-Chair  Foster relayed  that initially  the amendment  was                                                                    
offered  by  Representative   Carpenter.  However,  Co-Chair                                                                    
Wilson moved  it and  would normally  have time  for wrap-up                                                                    
comments. He  invited Representative  Carpenter to  make any                                                                    
comments.                                                                                                                       
                                                                                                                                
Representative  Carpenter  spoke  to   the  fact  there  was                                                                    
nothing  pleasant about  making  cuts to  budgets that  were                                                                    
going  to  affect Alaska's  schools  or  any other  programs                                                                    
people  counted   on.  The  state  was   in  an  unfortunate                                                                    
situation. It  had encountered years of  spending that could                                                                    
no longer  be sustained.  He thought legislators  were being                                                                    
presented with  a once-in-a-lifetime  opportunity to  do the                                                                    
right thing  - resetting the state  all the way down  to the                                                                    
local  level.   He  suggested  that  if   legislators  truly                                                                    
believed  oil revenue  in Alaska  was a  declining resource,                                                                    
legislators ought  to be having  the conversation as  to how                                                                    
to live  on less.  Legislators had  been attempting  to step                                                                    
down  its spending  for  several years,  and  the state  was                                                                    
currently  at the  point where  it was  out of  reserves. He                                                                    
opined that businesses did not  have the security of a state                                                                    
spending cap. He  compared the situation to  trees not dying                                                                    
because  of  pruning.  Economies  did  not  die  because  of                                                                    
pruning  either: Economies  died  because  of spending  more                                                                    
resources than were available. He  asserted that pruning was                                                                    
the  only thing  that would  afford the  state's economy  to                                                                    
grow.                                                                                                                           
                                                                                                                                
Co-Chair  Wilson reminded  members the  amendment was  about                                                                    
bond reimbursement.  She cautioned that decisions  had to be                                                                    
made and everything had a consequence.                                                                                          
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN    FAVOR:    Carpenter,   Johnston,    LeBon,    Merrick,                                                                    
Sullivan-Leonard, Tilton, Wilson                                                                                                
OPPOSED: Josephson, Knopp, Ortiz, Foster                                                                                        
                                                                                                                                
The MOTION to ADOPT Amendment LS 5 PASSED (7/4).                                                                                
                                                                                                                                
Co-Chair Wilson  requested that members keep  their comments                                                                    
limited to the amendments being considered.                                                                                     
                                                                                                                                
Co-Chair Foster agreed with Co-Chair Wilson's comments.                                                                         
                                                                                                                                
3:12:45 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  MOVED  to  ADOPT   Amendment  LS  10,  31-                                                                    
GH1905\R.3 (Bruce, 3/29/19) (copy on file):                                                                                     
                                                                                                                                
     Page 72, lines 7 - 9:                                                                                                      
          Delete all material and insert:                                                                                       
                                                                                                                                
          "(f) After  the appropriation  made in  sec. 23(i)                                                                    
          of this  Act, the remaining balance  of the amount                                                                    
          calculated under AS  42.45.085(d), estimated to be                                                                    
          $454,000,  is  appropriated  from the  power  cost                                                                    
          equalization endowment fund  (AS 42.45.070) to the                                                                    
          renewable energy grant fund (AS 42.45.045)."                                                                          
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Co-Chair  Foster explained  the  amendment  was a  technical                                                                    
amendment that  modified a drafting  error for  the language                                                                    
added  in  the  committee substitute  appropriating  funding                                                                    
from  the Power  Cost  Equalization (PCE)  Endowment to  the                                                                    
Renewable Energy  Grant Fund. He  referred to  Section 24(f)                                                                    
which inadvertently  appropriated the entire balance  of the                                                                    
PCE Endowment  after appropriations for the  PCE Program and                                                                    
the Community  Assistance Funding payments had  been made to                                                                    
the  Renewable Energy  Grant Fund.  The amendment  corrected                                                                    
the   language  and   allocated   available  PCE   Endowment                                                                    
earnings,  not  the  entire  balance  of  the  fund  to  the                                                                    
Renewable   Energy  Grant   Fund   per  statutory   formula.                                                                    
Effectively,  if the  language was  not corrected  renewable                                                                    
energy  grants  would  have  had  close  to  $1  billion  in                                                                    
funding.  The entire  endowment  should not  be directed  to                                                                    
that  purpose.  He  reiterated  that  the  amendment  was  a                                                                    
technical fix.                                                                                                                  
                                                                                                                                
Co-Chair Wilson WITHDREW her OBJECTION.                                                                                         
                                                                                                                                
There being NO OBJECTION, Amendment LS 10 was adopted.                                                                          
                                                                                                                                
3:14:35 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilson  MOVED  to  ADOPT   Amendment  LS  11,  31-                                                                    
GH1905\R.15 (Bruce, 3/30/19) (copy on file):                                                                                    
                                                                                                                                
     Page 74, line 6, through page 75, line 11:                                                                                 
          Delete all material and insert:                                                                                       
                                                                                                                                
          "*Sec.   26.   MONETARY    TERMS   OF   COLLECTIVE                                                                    
          BARGAINING AGREEMENTS. The  monetary terms for the                                                                    
          fiscal year ending  June 30, 2020, of  each of the                                                                    
          collective  bargaining agreements  listed in  this                                                                    
          section  are rejected  under  AS 23.40.215  unless                                                                    
          separate  legislation  is  enacted  that  contains                                                                    
          explicit language approving  the monetary terms of                                                                    
          that agreement.  Money appropriated  in sec.  I of                                                                    
          this  Act  may  not   be  used  to  implement  the                                                                    
          monetary  terms for  the fiscal  year ending  June                                                                    
          30,  2020, of  any  of  the collective  bargaining                                                                    
          agreements listed in  this section unless separate                                                                    
          legislation  is  enacted  that  contains  explicit                                                                    
          language  approving  the  monetary  terms  of  the                                                                    
          collective  bargaining   agreement.  This  section                                                                    
          applies  to the  collective bargaining  agreements                                                                    
          negotiated  between the  state  and the  following                                                                    
          bargaining organizations:                                                                                             
                                                                                                                                
            (1) Alaska State  Employees Association, for the                                                                    
            general government unit;                                                                                            
            (2)  Teachers'  Education   Association  of  Mt.                                                                    
            Edgecumbe,  representing  the  teachers  of  Mt.                                                                    
            Edgecumbe High School;                                                                                              
            (3)    Confidential    Employees    Association,                                                                    
            representing the confidential unit;                                                                                 
            (4) Public Safety Employees Association,                                                                            
            representing  the regularly  commissioned public                                                                    
            safety officers' unit;                                                                                              
            (5)  Public Employees Local  71, for  the labor,                                                                    
            trades, and crafts unit;                                                                                            
            (6)  Alaska  Public Employees  Association,  for                                                                    
            the supervisory unit;                                                                                               
            (7)     Alaska       Correctional       Officers                                                                    
            Association,   representing   the   correctional                                                                    
            officers' unit;                                                                                                     
            (8)  Fairbanks  Firefighters Union,  IAFF  Local                                                                    
            1324;                                                                                                               
            (9)     United  Academic -  Adjuncts -  American                                                                    
            Association  of University  Professors, American                                                                    
            Federation of Teachers;                                                                                             
            (10)    United Academics  - American Association                                                                    
            of  University  Professors, American  Federation                                                                    
            of Teachers."                                                                                                       
                                                                                                                                
Vice-Chair Ortiz OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair   Wilson  was   offering  the   amendment  out   of                                                                    
frustration with not  being able to obtain  information in a                                                                    
timely  fashion.  She  noted  that  the  state  would  renew                                                                    
contracts.  However,  contracts  had  been  renewed  without                                                                    
looking at  each of  them individually.  She had  heard that                                                                    
$58  million was  being added  to the  budget due  to budget                                                                    
increases. In looking  at things closely, she  found that in                                                                    
some  instances there  were contracts  with  a zero  percent                                                                    
increase and others  with an increase of up  to 7.5 percent.                                                                    
She indicated  justification had  not been provided  for and                                                                    
increase  or  a  lack  of  an  increase.  For  example,  the                                                                    
teachers of  Mt. Edgecumbe had  a 3 percent  increase, while                                                                    
the  Department  of  Corrections  had  an  increase  of  4.5                                                                    
percent. The Department of Public  Safety had an increase of                                                                    
7.5 percent  after an increase  from the previous  year. She                                                                    
thought  it might  be time  to  start truly  looking at  the                                                                    
contracts.  She noted  the importance  of  looking at  items                                                                    
such as  health insurance  benefits and  paid time  off. She                                                                    
believed it  was time for  the legislature to  start looking                                                                    
more  closely  at  the contracts,  as  they  were  typically                                                                    
3-year contracts. She  reiterated that it was  not until she                                                                    
had released  her amendment that  she had a response  to her                                                                    
query from the department.                                                                                                      
                                                                                                                                
Co-Chair Wilson  WITHDREW Amendment LS 11.  She wanted equal                                                                    
treatment for all employees.                                                                                                    
                                                                                                                                
3:17:15 PM                                                                                                                    
                                                                                                                                
Representative Tilton  MOVED to  ADOPT Amendment LS  12, 31-                                                                    
GH1905\R.34 (Bruce, 4/1/19) (copy on file):                                                                                     
                                                                                                                                
     Page 75, lines 19 - 20:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Page 75, line 21:                                                                                                          
          Delete "4,600,000"                                                                                                    
          Insert "$4,600,000"                                                                                                   
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Tilton   explained  that  while   the  state                                                                    
spending money  on fisheries  was important  to communities,                                                                    
it was  also important  for local  communities to  look into                                                                    
their finances, budgets, programs,  and services. She argued                                                                    
that the  state could not  be everything to  everyone. There                                                                    
were  a handful  of communities  that were  benefitting from                                                                    
the  dollars  reflected  in   the  amendment.  However,  she                                                                    
believed  the  dollars should  come  back  to the  state  to                                                                    
benefit  all   Alaskans  rather  than  a   select  few.  The                                                                    
resources belonged to all of Alaska.                                                                                            
                                                                                                                                
Co-Chair  Wilson opposed  the  amendment  because there  was                                                                    
legislation in  play that,  if passed,  would make  the same                                                                    
reductions.  Although  it  was appropriate  to  address  the                                                                    
amendment  as  part  of the  operating  budget,  she  wanted                                                                    
members to  know there was a  bill that would be  before the                                                                    
committee  that would  allow for  additional vetting  of the                                                                    
funds. She opposed the amendment.                                                                                               
                                                                                                                                
Representative Josephson  was opposed to the  amendment that                                                                    
he thought created a game  of "whack-a-mole." He thought the                                                                    
amendment  was  a  problem shifter  rather  than  a  problem                                                                    
solver. He  did not  know much  about the  fisheries landing                                                                    
tax  or  business  tax. He  assumed  that  past  legislators                                                                    
decided it was  the right thing to do based  on impact and a                                                                    
public share of revenue. He  suggested it was someone else's                                                                    
revenue.                                                                                                                        
                                                                                                                                
Representative  Tilton provided  wrap  up.  She argued  that                                                                    
although  the   dollars  had  gone  to   communities  for  a                                                                    
significant period, the state had  done many things in which                                                                    
it had  shared with communities.  She suggested it  was time                                                                    
for  communities at  the local  level to  look at  what they                                                                    
needed to  do to  reduce their own  budget. She  thought the                                                                    
money  should be  spread  across Alaska,  as  the money  was                                                                    
generated from a state resource.                                                                                                
                                                                                                                                
Co-Chair Wilson MAINTAINED her OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Merrick, Sullivan-Leonard, Tilton, Carpenter                                                                          
OPPOSED: Josephson,  Johnston, Knopp, LeBon,  Ortiz, Wilson,                                                                    
Foster                                                                                                                          
                                                                                                                                
The MOTION to ADOPT Amendment LS 12 FAILED (4/7).                                                                               
                                                                                                                                
3:21:20 PM                                                                                                                    
                                                                                                                                
Representative   Knopp  WITHDREW   Amendment   LS  13,   31-                                                                    
GH1905\R.28 (Bruce, 4/1/19) (copy on file):                                                                                     
                                                                                                                                
     Page 76, line 27:                                                                                                          
          Delete all material and insert:                                                                                       
                                                                                                                                
          "*Sec. 30. Section 4, ch. 6, SLA 2018, and sec.                                                                       
          27(c), ch. 9, SLA 2018, are repealed."                                                                                
                                                                                                                                
Co-Chair  Foster  MOVED  to  ADOPT   Amendment  LS  14,  31-                                                                    
GH1905\R.1 (Bruce, 3/28/19) (copy on file):                                                                                     
                                                                                                                                
     Page 77, line 3, following "RETROACTIVITY.":                                                                               
          Insert "(a)"                                                                                                          
                                                                                                                                
     Page 77, following line 7:                                                                                                 
          Insert a new subsection to read:                                                                                      
          "(b) If  secs. 11(b), 15,  30, and 31 of  this Act                                                                    
          take effect after June 30,  2019, secs. 11(b), 15,                                                                    
          30, and  31 of  this Act  are retroactive  to June                                                                    
          30, 2019."                                                                                                            
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Co-Chair  Foster explained  the  amendment  was a  technical                                                                    
fix. It was  based on a recommendation  by Legislative Legal                                                                    
Services that  ensured that  if the  bill took  effect after                                                                    
June 30,  2019 the listed  sections would be  retroactive to                                                                    
June  30,  2019.  He  relayed  that  the  sections  included                                                                    
Section  11(b),  the  lapsed state  extension  for  the  Mt.                                                                    
Edgecumbe  Aquatic  Center;  Section 15,  the  appropriation                                                                    
from  the BP  corrosion case  to  the Department  of Law  to                                                                    
protect the North  Pole area; Section 30, the  repeal of the                                                                    
$19.5 million for the curriculum  study funding; and Section                                                                    
31,  the lapsed  extension for  $27 million  to be  used for                                                                    
debt service on the oil  and gas tax credit bonding program.                                                                    
If the language  was not added and the budget  were to pass,                                                                    
the BP corrosion funds would  not move over to Department of                                                                    
Law  and  would have  to  be  moved  over after  the  budget                                                                    
passed. The  curriculum study funding  would go  into effect                                                                    
on July  1, 2019  and would  need to  be pulled  back later.                                                                    
Also, the  Mt. Edgecumbe  Pool would  lose its  lapsed funds                                                                    
and would receive the funds  on July 15, 2019. He reiterated                                                                    
the recommendations came from Legislative Legal Services.                                                                       
                                                                                                                                
Co-Chair  Wilson  WITHDREW  her OBJECTION.  There  being  NO                                                                    
OBJECTION, Amendment LS 14 was ADOPTED.                                                                                         
                                                                                                                                
3:23:22 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  MOVED  to  ADOPT   Amendment  LS  15,  31-                                                                    
GH1905\S.1 (Bruce, 3/28/19) (copy on file):                                                                                     
                                                                                                                                
     Page 13, line 22, following "unit":                                                                                        
          Insert":                                                                                                              
            (7) Alaska Correctional Officers Association,                                                                       
            representing the correctional officers unit"                                                                        
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Co-Chair  Foster explained  the amendment  would add  Alaska                                                                    
Correctional  Officers Association  language  to the  mental                                                                    
health  bill. Changes  to the  salary and  benefits language                                                                    
were  inadvertently omitted  from  the  mental health  bill,                                                                    
HB 40.  The  amendment  added the  language  to  the  mental                                                                    
health  bill.  Normally,   all  bargaining  agreements  were                                                                    
included in  both the operating  and mental  health budgets.                                                                    
Legislative  Legal Services  advised  the Legislative  Legal                                                                    
Division that  by including  the language  in both  bills it                                                                    
ensured  that  if  there  was  any  cross-over  between  the                                                                    
budgets,   there  would   be   no   conflicts  in   funding.                                                                    
Corrections officers  and parole officers could  be directly                                                                    
connected to the mental health  budget and use mental health                                                                    
funds. It was another clean-up amendment.                                                                                       
                                                                                                                                
Co-Chair Wilson WITHDREW her OBJECTION.                                                                                         
                                                                                                                                
There  being  NO  further OBJECTION,  Amendment  LS  15  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
3:24:51 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilson   MOVED  to  ADOPT  Amendment   LS  1,  31-                                                                    
GH1905\R.11 (Bruce, 3/30/19) (copy on file):                                                                                    
                                                                                                                                
     Page 57, line 10:                                                                                                          
          Delete "(a)" 3                                                                                                        
                                                                                                                                
     Page 57, lines 16-21:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Page 77, line 9:                                                                                                           
          Delete "ll(b),"                                                                                                       
                                                                                                                                
3:25:16 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:29:13 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Wilson  explained the amendment related  to the Mt.                                                                    
Edgecumbe pool,  a pool that  had been completed.  There was                                                                    
money in the budget to enable  the facility to collect a fee                                                                    
for use of the pool.  Presently, the money had been utilized                                                                    
to complete the pool at Mt. Edgecumbe.                                                                                          
                                                                                                                                
Vice-Chair  Ortiz was  opposed to  the amendment.  The money                                                                    
would be  used for ongoing  maintenance. He stressed  that a                                                                    
large percentage  of people attending Mt.  Edgecumbe arrived                                                                    
not knowing how  to swim; being able to swim  was a valuable                                                                    
skill. The  pool was built  in the spirit of  supporting the                                                                    
overall educational program Mt. Edgecumbe offered.                                                                              
                                                                                                                                
Representative  LeBon  asked  for  the fiscal  note  on  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Co-Chair Wilson  stated it would  be whatever was  left over                                                                    
from the $400,000  appropriated on June 30,  2018. The funds                                                                    
were funds that were lapsing.  The funds would lapse back to                                                                    
the municipal capital project matching  grant fund for other                                                                    
grants for other schools with needs.                                                                                            
                                                                                                                                
Co-Chair  Wilson provided  wrap up.  She clarified  that the                                                                    
pool  was operational,  and  children  were swimming.  There                                                                    
were  pools in  her  district that  were  maintained by  the                                                                    
municipalities and  with dollars provided by  the state. The                                                                    
funds were given  to complete the building of  the pool. The                                                                    
pool was built  because many children living  in rural areas                                                                    
could  not  swim which  resulted  in  deaths. She  indicated                                                                    
there was an amendment that  would be introduced which would                                                                    
authorize use of a general fund  program to take care of the                                                                    
operations and maintenance of the  facility. She argued that                                                                    
all schools had  to go through the same  process for funding                                                                    
whether through  the Base Student Allocation  (BSA) or other                                                                    
grants.                                                                                                                         
                                                                                                                                
3:33:03 PM                                                                                                                    
AT EASE                                                                                                                         
3:34:50 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Wilson  requested to  roll  the  amendment to  the                                                                    
bottom of the  numbers section based on  new information she                                                                    
had received.                                                                                                                   
                                                                                                                                
Co-Chair Foster indicated that Amendment LS 1 would be                                                                          
rolled down the list. The committee would look at the                                                                           
numbers section of the amendments.                                                                                              
                                                                                                                                
3:35:43 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:38:53 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Carpenter MOVED to ADOPT Amendment DOA 1,                                                                        
DOA 2, and DOA 3(copy on file):                                                                                                 
                                                                                                                                
H DOA 1                                                                                                                         
                                                                                                                                
     Public Communications Services                                                                                             
     Public Broadcasting Commission                                                                                             
                                                                                                                                
     H DOA 1 - Eliminate state grant to the                                                                                     
     Alaska Public Broadcasting Commission                                                                                      
     Reduce State Grant to the Alaska Public Broadcasting                                                                       
     Commission                                                                                                                 
                                                                                                                                
H DOA 2                                                                                                                         
                                                                                                                                
     Public Communications Services                                                                                             
     Public Broadcasting - Radio                                                                                                
                                                                                                                                
     H DOA 2 - Eliminate state grant for Alaska                                                                                 
     Public Broadcasting - Radio                                                                                                
     Offered by Representative Carpenter                                                                                        
     Reduce State Grant for Alaska Public Broadcasting:                                                                         
     Radio                                                                                                                      
                                                                                                                                
H DOA 3                                                                                                                         
                                                                                                                                
     Public Communications Services                                                                                             
     Public Broadcasting - T.V.                                                                                                 
                                                                                                                                
     H DOA 3 - Eliminate state grant for Alaska                                                                                 
     Public Broadcasting - Television                                                                                           
     Offered by Representative Carpenter                                                                                        
     Reduce State Grant for Alaska Public Broadcasting:                                                                         
     Television                                                                                                                 
                                                                                                                                
Co-Chair   Wilson   and   Vice-Chair  Ortiz   OBJECTED   for                                                                    
discussion.                                                                                                                     
                                                                                                                                
Representative   Carpenter  reviewed   the  amendments.   He                                                                    
stressed  that the  state  did not  have  enough money.  The                                                                    
amendments  did  not pass  judgement  on  the services.  The                                                                    
budget needed to be reduced.                                                                                                    
                                                                                                                                
Vice-Chair Ortiz noted that while  public radio might not be                                                                    
a  necessity in  urban  communities it  was  a necessity  in                                                                    
rural communities. He spoke  about emergency broadcasting on                                                                    
public  radio.  It  seemed  to him  the  ability  to  notify                                                                    
Alaskan  residents  of  emergencies   was  a  necessity.  He                                                                    
opposed the amendment.                                                                                                          
                                                                                                                                
3:41:41 PM                                                                                                                    
                                                                                                                                
Representative Sullivan-Leonard supported  the amendment. It                                                                    
was  her  understanding that  areas  across  the state  were                                                                    
looking   at   ways   to  use   the   private   sector   for                                                                    
communication. She stated the budget needed to be reduced.                                                                      
                                                                                                                                
Representative   Tilton  stated   the  amendments   did  not                                                                    
eliminate  the  public   broadcasting  funding.  They  would                                                                    
remove  the  state  grant  portion  of  their  funding.  She                                                                    
thought they could get funding from other sources.                                                                              
                                                                                                                                
Co-Chair Foster  reviewed the impact  of the amendments  - a                                                                    
total of  $2.7 million. He  asked if  it was the  full state                                                                    
UGF.                                                                                                                            
                                                                                                                                
Representative Carpenter replied it was the full amount.                                                                        
                                                                                                                                
Representative   Josephson   opposed  the   amendment.   The                                                                    
amendments constituted  a cut  of 3/1600  of the  deficit or                                                                    
.002 percent.  He believed every dollar  was meaningful, and                                                                    
the money was meaningful to communities.                                                                                        
                                                                                                                                
3:43:54 PM                                                                                                                    
                                                                                                                                
Representative   Carpenter   provided   wrap   up   on   the                                                                    
amendments. He  agreed that state  funding was not  the only                                                                    
way to  fund essential  rural communication. He  stated that                                                                    
reducing  state spending  would increase  the likelihood  of                                                                    
businesses investing in communities.                                                                                            
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Merrick,    Sullivan-Leonard,   Tilton,    Wilson,                                                                    
Carpenter                                                                                                                       
OPPOSED: Johnston, Knopp, LeBon, Ortiz, Josephson, Foster                                                                       
                                                                                                                                
The  MOTION to  ADOPT  Amendments  H DOA  1,  H  DOA 2,  and                                                                    
H DOA 3 FAILED (5/6).                                                                                                           
                                                                                                                                
Co-Chair Wilson  MOVED to ADOPT  Amendment H DOA 4  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     Public Communications Services                                                                                             
     Satellite Infrastructure                                                                                                   
                                                                                                                                
     H DOA 4 - Satellite Infrastructure Reduction                                                                               
     Offered by Representative Wilson Reduce State Grant                                                                        
     for Satellite Services.                                                                                                    
                                                                                                                                
Representative Josephson OBJECTED for discussion.                                                                               
                                                                                                                                
Co-Chair  Wilson  reported  going   through  the  budget  to                                                                    
determine   the  constitutional   requirements  around   the                                                                    
budget. She  did not  know why the  state was  giving public                                                                    
money for the particular grant.                                                                                                 
                                                                                                                                
Co-Chair  Foster clarified  the  amendment  was a  satellite                                                                    
infrastructure reduction  of $879,500 of which  $779,500 was                                                                    
UGF.                                                                                                                            
                                                                                                                                
Vice-Chair  Johnston   stated  that   the  issue   had  been                                                                    
addressed  during the  subcommittee  process. She  explained                                                                    
that while a  small portion went to  the public broadcasting                                                                    
system, most was tied to  the state's emergency services for                                                                    
natural disasters. The two could  not be separated which was                                                                    
the reason for the amount.                                                                                                      
                                                                                                                                
Co-Chair Wilson WITHDREW Amendment H DOA 4.                                                                                     
                                                                                                                                
3:47:31 PM                                                                                                                    
                                                                                                                                
Representative  Tilton  MOVED to  ADOPT  Amendment  H DOA  5                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Alaska Oil and Gas Conservation Commission                                                                                 
     Alaska Oil and Gas Conservation Commission                                                                                 
                                                                                                                                
     H DOA 5 - Executive branch 50% travel reduction.                                                                           
     Offered by Representative Tilton                                                                                           
     Restores  the executive  travel  reduction included  in                                                                    
     the FY20GovAmd budget.                                                                                                     
                                                                                                                                
Vice-Chair Johnston OBJECTED for discussion.                                                                                    
                                                                                                                                
Representative Tilton  reviewed the amendment  pertaining to                                                                    
the governor's  proposed 50 percent travel  reduction across                                                                    
departments.  Upon  talking  with  the  administration,  she                                                                    
found  the   various  agency   reductions  in   travel  were                                                                    
discretionary  travel   dollars  and  did  not   impair  the                                                                    
function of the agencies.                                                                                                       
                                                                                                                                
Vice-Chair  Johnston  reported  that   the  items  had  been                                                                    
discussed in  subcommittee. She  read something  received by                                                                    
the commission:                                                                                                                 
                                                                                                                                
     "The  proposed  50  percent  reduction  to  our  travel                                                                    
     budget  would  have  a  huge  negative  impact  on  our                                                                    
     ability to do our job.  Approximately 95 percent of our                                                                    
     travel budget  is for our  inspectors to travel  to the                                                                    
     North Slope  and Cook Inlet to  perform their essential                                                                    
     functions: To ensure that  blowout preventers and other                                                                    
     well safety systems work properly  to ensure that wells                                                                    
     passed mechanical integrity tests  to ensure that wells                                                                    
     are properly plugged. This travel  is actually paid for                                                                    
     with the receipts from the commission."                                                                                    
                                                                                                                                
Co-Chair Johnston  reported that  the statement  was written                                                                    
by  the chair  of  the commission.  She  reiterated that  it                                                                    
would impact the commission's ability to do its job.                                                                            
                                                                                                                                
Co-Chair  Wilson  surmised  the   agency  would  still  have                                                                    
$10,000 per  month to travel  in Alaska. She thought  it was                                                                    
sufficient.                                                                                                                     
                                                                                                                                
Representative Knopp  commented that the agency  would still                                                                    
have   $120,000  for   travel,   and  there   were  only   3                                                                    
commissioners. He wondered  if some of the  monies were used                                                                    
for staff travel as well as commissioner travel.                                                                                
                                                                                                                                
Representative Tilton provided wrap  up. She had not checked                                                                    
to see if the travel budget  was for staff, but she had been                                                                    
assured that it was  for discretionary travel. She suggested                                                                    
that a  budget of $10,000  per month for 3  commissioners to                                                                    
travel  within Alaska  allowed for  a significant  amount of                                                                    
travel.                                                                                                                         
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Merrick,   Sullivan-Leonard,  Tilton,   Carpenter,                                                                    
Wilson                                                                                                                          
OPPOSED: Knopp, LeBon, Ortiz, Josephson, Johnston, Foster                                                                       
The MOTION to ADOPT H DOA 5 FAILED (5/6).                                                                                       
                                                                                                                                
3:51:43 PM                                                                                                                    
                                                                                                                                
Representative  Tilton  MOVED to  ADOPT  Amendment  H DOA  6                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Legal and Advocacy Services                                                                                                
     Office of Public Advocacy                                                                                                  
                                                                                                                                
     H DOA 6 - 50 percent Executive branch travel                                                                               
     reduction.                                                                                                                 
     Offered by Representative Tilton                                                                                           
     Restores the executive travel reduction in the                                                                             
     FY20GovAmd budget.                                                                                                         
                                                                                                                                
Representative Josephson OBJECTED for discussion.                                                                               
                                                                                                                                
Representative Tilton reviewed the  amendment related to the                                                                    
50  percent travel  reduction to  departments. She  had been                                                                    
informed  that  the  reductions   across  agencies  was  for                                                                    
discretionary  travel. The  reduction would  not impact  the                                                                    
core mission of the agency.                                                                                                     
                                                                                                                                
Representative Josephson  stated that  the Office  of Public                                                                    
Advocacy  had conflict  counsel  which  required travel  for                                                                    
criminal trials, for example.                                                                                                   
                                                                                                                                
Vice-Chair Johnston  stated the issue had  been addressed by                                                                    
the subcommittee.  All of  the travel  exceptions to  the 50                                                                    
percent were because they would  interfere with the agency's                                                                    
ability to fulfill its responsibilities.                                                                                        
                                                                                                                                
Co-Chair  Wilson  asked  who  fell  under  executive  branch                                                                    
travel versus  public advocacy  in the  following amendment.                                                                    
She did not  want to hinder public  advocates from traveling                                                                    
to help their clients.                                                                                                          
                                                                                                                                
Representative  Tilton explained  that  the amendment  dealt                                                                    
with executive  branch travel  which she  had been  told was                                                                    
discretionary and would not affect  the core missions of the                                                                    
agency.                                                                                                                         
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: LeBon,    Merrick,    Sullivan-Leonard,    Tilton,                                                                    
Carpenter, Wilson                                                                                                               
OPPOSED: Ortiz, Josephson, Johnston, Knopp, Foster                                                                              
                                                                                                                                
The MOTION to ADOPT Amendment H DOA 6 PASSED (6/5).                                                                             
                                                                                                                                
3:54:42 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  MOVED to  ADOPT Amendment H  DOA 7                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Legal and Advocacy Services                                                                                                
     Office of Public Advocacy                                                                                                  
                                                                                                                                
     H DOA 7 - Public Advocacy 50 percent Travel Reduction                                                                      
     Offered by Representative Carpenter                                                                                        
     Office of Public Advocacy Executive Branch 50 percent                                                                      
     travel reduction.                                                                                                          
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
3:54:54 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:56:12 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Carpenter WITHDREW Amendment H DOA 7.                                                                            
                                                                                                                                
Representative  Tilton  MOVED to  ADOPT  Amendment  H DOA  8                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Legal and Advocacy Services                                                                                                
     Public Defender Agency                                                                                                     
                                                                                                                                
     H DOA 8 - 50 percent reduction of executive                                                                                
     branch travel                                                                                                              
     Offered by Representative Tilton                                                                                           
     Restores the 50 percent reduction in executive travel                                                                      
     from the FY20GovAmd.                                                                                                       
                                                                                                                                
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Tilton explained  that  the amendment,  like                                                                    
the others  related to travel,  was a reduction to  what she                                                                    
had been  told was  for discretionary travel.  The reduction                                                                    
would not  affect the core  mission or the  primary function                                                                    
of the agency.                                                                                                                  
                                                                                                                                
Co-Chair  Wilson  spoke  to her  objection.  She  wanted  to                                                                    
clarify that  the reduction  would prevent  public defenders                                                                    
being able to  see their clients. She  wondered if Amendment                                                                    
H DOA 8 and H DOA 9 were duplicates.                                                                                            
                                                                                                                                
Vice-Chair  Johnston  reported   that  in  the  subcommittee                                                                    
process  it  was brought  to  light  that the  reduction  to                                                                    
travel would be harmful to the agency.                                                                                          
                                                                                                                                
Representative LeBon asked if she  was only speaking about H                                                                    
DOA 8 or Amendment H DOA 8 and Amendment H DOA 9.                                                                               
                                                                                                                                
Representative Tilton  clarified that  H DOA 8  and H  DOA 9                                                                    
were  duplicates. She  guessed Amendment  H DOA  9 would  be                                                                    
withdrawn.                                                                                                                      
                                                                                                                                
Representative  Carpenter  intended  to  withdraw  Amendment                                                                    
H DOA 9.                                                                                                                        
                                                                                                                                
Representative Tilton  stated that the Office  of Management                                                                    
and  Budget had  made it  clear that  the agency  could work                                                                    
with the available dollars.                                                                                                     
                                                                                                                                
Co-Chair Wilson MAINTAINED her OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Merrick,   Sullivan-Leonard,  Tilton,   Carpenter,                                                                    
LeBon                                                                                                                           
OPPOSED: Ortiz, Josephson, Johnston, Knopp, Wilson, Foster                                                                      
                                                                                                                                
The MOTION to ADOPT Amendment H DOA 8 FAILED (5/6).                                                                             
                                                                                                                                
Representative Carpenter  WITHDREW Amendment  H DOA  9 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     Legal and Advocacy Services                                                                                                
     Public Defender Agency                                                                                                     
                                                                                                                                
     H DOA 9 - Public Defender Agency 50 percent travel                                                                         
     reduction                                                                                                                  
     Offered by Representative Carpenter                                                                                        
     Office of Public Defender 50 percent Travel Budget                                                                         
     Reduction.                                                                                                                 
                                                                                                                                
4:00:02 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:00:15 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Johnston MOVED to ADOPT  Amendment H DOA 10 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     Legal and Advocacy Services                                                                                                
     Public Defender Agency                                                                                                     
                                                                                                                                
     The Legal and Advocacy Services appropriation consists                                                                     
     of the Office of Public Advocacy (OPA) and the Public                                                                      
     Defender  Agency (PDA).  Both entities  collect general                                                                    
     fund program  receipts from  court fees  issued against                                                                    
     individuals represented by OPA  and PDA, mainly through                                                                    
     the garnishment of PFDs. The  Office of Public Advocacy                                                                    
     also   collects  program   receipts  from   individuals                                                                    
     receiving   public   guardian  services.   The   FY2020                                                                    
     Governor Amended operating  budget contains $1,949.9 in                                                                    
     general  fund program  receipt  authority  for OPA  and                                                                    
     $478.2 for PDA.                                                                                                            
                                                                                                                                
     PDA  has  been   reallocating  appellate  resources  to                                                                    
     address  substantial  criminal  caseload  increases  in                                                                    
     FY2019.  As a  result,  appellate  production has  been                                                                    
     insufficient  to  keep  up   with  case  openings.  The                                                                    
     backlog has risen from 36  cases not yet assigned to an                                                                    
     attorney to  approximately 80 cases and  is expected to                                                                    
     increase  to  approximately  120 cases.  The  increased                                                                    
     general fund program receipt authority  will be used to                                                                    
     curb appellate backlog growth.                                                                                             
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Vice-Chair  Johnston reviewed  the amendment.  The amendment                                                                    
would increase  the public  defender's receipt  authority by                                                                    
$100,000  in designated  general funds  (DGF). She  reported                                                                    
that  the   money  came  from  court   fees  issued  against                                                                    
individuals  represented  by  the Public  Defender's  Office                                                                    
mostly through  garnishments of offenders' PFDs.  The Public                                                                    
Defender's  Office  had  already over-collected  for  FY  19                                                                    
which  could amount  to about  3/4 positions  or be  used to                                                                    
address the backlog of appellate cases.                                                                                         
                                                                                                                                
Co-Chair Wilson WITHDREW her OBJECTION.                                                                                         
                                                                                                                                
There being NO OBJECTION, Amendment H DOA 10 was ADOPTED.                                                                       
                                                                                                                                
4:01:17 PM                                                                                                                    
                                                                                                                                
Representative  Sullivan-Leonard  MOVED to  ADOPT  Amendment                                                                    
H CED 1 (copy on file):                                                                                                         
                                                                                                                                
     Community and Regional Affairs                                                                                             
     Serve Alaska                                                                                                               
                                                                                                                                
     H CED 1 - Eliminate Serve Alaska                                                                                           
     Offered by Representative Sullivan-Leonard                                                                                 
     A private non-profit can administer the grants that                                                                        
     Serve Alaska does.                                                                                                         
                                                                                                                                
Vice-Chair Ortiz OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative   Sullivan-Leonard  reviewed   the  amendment                                                                    
related to a  grant for Serve Alaska, which was  part of the                                                                    
AmeriCorps  system.  She thought  the  grant  fund could  be                                                                    
better  served  in the  private  sector.  She believed  many                                                                    
nonprofits would help  the AmeriCorps system to  do its work                                                                    
across Alaska as opposed to a State of Alaska grant.                                                                            
                                                                                                                                
Vice-Chair Johnston  was struggling  because her  oldest son                                                                    
had been  on the AmeriCorps  board. She declared  a conflict                                                                    
of interest.                                                                                                                    
                                                                                                                                
Representative  Josephson  strongly opposed  the  amendment.                                                                    
The amendment  indicated it  was a 10  to 1  federal receipt                                                                    
via  a general  fund match.  He  thought it  was a  generous                                                                    
match. He thought the program should be retained.                                                                               
                                                                                                                                
4:03:25 PM                                                                                                                    
                                                                                                                                
Co-Chair Wilson  had asked for more  information about Serve                                                                    
Alaska. She had  not received a good explanation  of why the                                                                    
state  had to  have the  program. It  was her  understanding                                                                    
that   if  a   municipality  or   borough  sought   economic                                                                    
development they could take on  a federal matching grant for                                                                    
funding for AmeriCorps.  She surmised the state  took on the                                                                    
program  when it  had money.  She also  understood that  the                                                                    
program   could    continue   through    municipalities   or                                                                    
potentially through  the private sector without  the state's                                                                    
involvement.                                                                                                                    
                                                                                                                                
Representative  Tilton reported  that  the  State of  Alaska                                                                    
contributed $220,000 in matching  funds for the program. She                                                                    
argued   that  the   state  was   in  a   deficit  situation                                                                    
scrutinizing every dollars. She  indicated the program could                                                                    
be  better served  at the  local level  and would  encourage                                                                    
volunteerism.                                                                                                                   
                                                                                                                                
Vice-Chair Ortiz  explained that  the committee  was looking                                                                    
at a  decrement of over $2  million. In order to  receive $2                                                                    
million from  the federal government,  there was  $22,000 of                                                                    
general  fund monies  and  $192,000 UGF.  He  asked for  the                                                                    
source of UGF.                                                                                                                  
                                                                                                                                
4:06:17 PM                                                                                                                    
                                                                                                                                
Co-Chair Wilson responded, "general funds."                                                                                     
                                                                                                                                
Vice-Chair Ortiz understood.                                                                                                    
                                                                                                                                
Co-Chair Wilson clarified  that the funds were  all UGF. The                                                                    
reason they were  split out was to show  the federal receipt                                                                    
match.  The state  pitched in  another $22,700  voluntarily,                                                                    
not because  it was  required. She  noted the  match funding                                                                    
could  come from  municipalities  or  local businesses.  The                                                                    
state was currently choosing to take on the program.                                                                            
                                                                                                                                
Representative   LeBon   asked    which   communities   were                                                                    
benefitting from the program.                                                                                                   
                                                                                                                                
Representative  Sullivan-Leonard  answered  that  AmeriCorps                                                                    
worked  all   across  Alaska  in   Southcentral,  Southwest,                                                                    
Southeast,  and  in  the Interior.  The  group  assisted  in                                                                    
putting  in gardens  and helped  with  park projects  within                                                                    
municipalities.                                                                                                                 
                                                                                                                                
Representative LeBon  thought if the state  was shifting the                                                                    
responsibility of  maintaining the  program to  the boroughs                                                                    
and  municipalities,  it  might  be   a  good  idea  to  put                                                                    
communities on  notice that the  following year  the funding                                                                    
could be cut.                                                                                                                   
                                                                                                                                
Vice-Chair  Johnston  agreed with  Representative  Sullivan-                                                                    
Leonard  in   terms  of   communities.  She   recalled  that                                                                    
AmeriCorps also worked on state parks.                                                                                          
                                                                                                                                
4:09:05 PM                                                                                                                    
                                                                                                                                
Representative  Carpenter argued  that  spend  money on  the                                                                    
AmeriCorps  program   versus  spending  money   on  Alaska's                                                                    
schools did not make sense. He did not support the program.                                                                     
                                                                                                                                
Representative  Sullivan-Leonard  provided  wrap up  on  the                                                                    
amendment.  The  discussion  had been  ongoing  for  several                                                                    
years. She  observed that legislators could  continue to put                                                                    
it off, but  just because a federal grant  could be obtained                                                                    
did not mean the state should  spend its money to do so. She                                                                    
mentioned  nonprofit  groups such  as  the  United Way  that                                                                    
might be able  to take on the project. She  was trying to be                                                                    
prudent and look  for areas of reduction.  She asked members                                                                    
for their support of the amendment.                                                                                             
                                                                                                                                
Representative  Carpenter clarified  that  he supported  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Sullivan-Leonard,  Tilton,   Carpenter,  Johnston,                                                                    
Knopp, Merrick, Wilson                                                                                                          
OPPOSED: Ortiz, Josephson, LeBon, Foster                                                                                        
                                                                                                                                
The MOTION to ADOPT H CED 1 PASSED (7/4).                                                                                       
                                                                                                                                
4:11:35 PM                                                                                                                    
                                                                                                                                
Representative  Knopp  MOVED to  ADOPT  Amendment  H DOC  1,                                                                    
H DOC 3, H DOC 4, H DOC 6 (copy on file):                                                                                       
                                                                                                                                
H DOC 1                                                                                                                         
                                                                                                                                
     Population Management                                                                                                      
     Institution Director's Office                                                                                              
                                                                                                                                
     H DOC 1 - Reverse Unallocated Reduction                                                                                    
     in Institution Director's Office                                                                                           
     Offered by Representative Knopp                                                                                            
     Seeking  to   reverse  the  action  of   House  Finance                                                                    
     Subcommittee which  placed an unallocated  reduction in                                                                    
     the Institution  Director's Office to  decrease funding                                                                    
     for institutions  as inmates  are transitioned  onto EM                                                                    
     and into CRCs.                                                                                                             
                                                                                                                                
H DOC 3                                                                                                                         
                                                                                                                                
     Electronic Monitoring                                                                                                      
     Electronic Monitoring                                                                                                      
                                                                                                                                
     H DOC 3 - Remove Additional Funding                                                                                        
     Provided to Electronic Monitoring                                                                                          
     Offered by Representative Knopp                                                                                            
     Reverse  House Finance  Subcommittee action  that added                                                                    
     funding   to   Electronic   Monitoring  in   order   to                                                                    
     accommodate  decrements  to Population  Management  for                                                                    
     institutions.                                                                                                              
                                                                                                                                
H DOC 4                                                                                                                         
                                                                                                                                
     Community Residential Centers                                                                                              
     Community Residential Centers                                                                                              
                                                                                                                                
     H DOC 4 - Remove Additional Funding                                                                                        
     Provided to Community Residential Centers                                                                                  
     Offered by Representative Knopp                                                                                            
     Reverse  House Finance  Subcommittee action  that added                                                                    
     funding to  Community Residential  Centers in  order to                                                                    
     accommodate  decrements  to Population  Management  for                                                                    
     institutions.                                                                                                              
                                                                                                                                
H DOC 6                                                                                                                         
                                                                                                                                
     Replace CSHB 39  Ver. R Structure (see  below) with the                                                                    
     following structure:                                                                                                       
                                                                                                                                
          APPROPRIATION: Population Management                                                                                  
          ALLOCATION:    Electronic Monitoring                                                                                  
                                                                                                                                
          APPROPRIATION: Population Management                                                                                  
         ALLOCATION: Community Residential Centers                                                                              
                                                                                                                                
          APPROPRIATION: Population Management                                                                                  
          ALLOCATION: Pre-Trial Services                                                                                        
                                                                                                                                
     House CSHB39 Version R Structure:                                                                                          
                                                                                                                                
          APPROPRIATION: Electronic Monitoring                                                                                  
          ALLOCATION: Electronic Monitoring                                                                                     
                                                                                                                                
          APPROPRIATION: Community Residential Centers                                                                          
         ALLOCATION: Community Residential Centers                                                                              
                                                                                                                                
          APPROPRIATION: Pre-Trial Services                                                                                     
          ALLOCATION: Pre-Trial Services                                                                                        
                                                                                                                                
     EXPLANATION:   Move   appropriations   for   Electronic                                                                    
     Monitoring,  Community  Residential Centers,  and  Pre-                                                                    
     Trial   Services   into   the   Population   Management                                                                    
     appropriation.  This action  will return  all three  of                                                                    
     these   programs   to  allocations   under   Population                                                                    
     Management.                                                                                                                
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Knopp  reviewed the amendments.  He explained                                                                    
that in  the budget subcommittee process  for the Department                                                                    
of  Corrections  (DOC) $37  million  had  been removed  from                                                                    
population management. Funds  from population management had                                                                    
also  been  reallocated   to  appropriations  for  community                                                                    
regional centers  and electronic monitoring. He  argued that                                                                    
the  changes took  away the  ability for  the department  to                                                                    
manage the prison population. He  continued that there was a                                                                    
process  for community  centers  and electronic  monitoring,                                                                    
and not everyone qualified. By  removing the funds, it would                                                                    
tie DOC's hand in managing  its population. He surmised that                                                                    
it  would result  in  closures of  facilities  with a  large                                                                    
reduction.  Moving  the  amount  from an  allocation  to  an                                                                    
appropriation  also   tied  the  hands  of   the  department                                                                    
removing  flexibility.  He  reiterated  that  the  amendment                                                                    
reversed  the   change  and  restored  flexibility   to  the                                                                    
department.                                                                                                                     
                                                                                                                                
Co-Chair  Wilson  stated  the   amendments  would  ship  500                                                                    
inmates  out of  state  and  result in  the  closure of  the                                                                    
Wildwood   Correctional   Center.   She  came   across   the                                                                    
information  at a  meeting with  OMB. She  explained to  OMB                                                                    
that if the legislature's  numbers were incorrect, she would                                                                    
be happy  to revise them.  She emphasized the  importance of                                                                    
ensuring that  individuals left the  prison system  and went                                                                    
into a  safe environment.  She reported that  typically when                                                                    
inmates were shipped  out of state they came  back to Alaska                                                                    
worse off than when they  left. The Office of Management and                                                                    
Budget responded  with the continued recommendation  to ship                                                                    
500 inmates out of state.  They had not provided information                                                                    
on what prisoners  should be sent out of state  or any other                                                                    
significant information.                                                                                                        
                                                                                                                                
Co-Chair Wilson  indicated that using  electronic monitoring                                                                    
and community residential centers  would close many prisons.                                                                    
However, shipping 500  inmates out of state  would not close                                                                    
many  prisons.   She  reported   that  the   contracts  with                                                                    
community residential centers  were rewritten to incorporate                                                                    
additional  safety  and  treatment.  She  reported  that  $3                                                                    
million was added for community  residential centers so that                                                                    
treatment  could be  utilized in  the centers.  She surmised                                                                    
that  inmates were  reoffending as  a  result of  a lack  of                                                                    
treatment availability.                                                                                                         
                                                                                                                                
Co-Chair Wilson reported  that presently, Alaska's community                                                                    
residential   centers   provided  evidence-based   cognitive                                                                    
behavioral treatment targeting  criminal thinking, substance                                                                    
abuse, anger  management, and other individual  needs. These                                                                    
things  did   not  happen  in  Alaska's   institutions.  She                                                                    
continued   that  community   residential  centers   engaged                                                                    
residents  in   a  multitude  of  pro-social   and  positive                                                                    
activities  that tied  them back  to  communities and  their                                                                    
families so they could have  a support network upon release.                                                                    
She observed  that these  things did  not occur  in Alaska's                                                                    
institutions.                                                                                                                   
                                                                                                                                
Co-Chair  Wilson  noted   that  the  current  classification                                                                    
system  that  determined  eligibility   for  referral  to  a                                                                    
community  residential center  could be  expanded to  better                                                                    
determine  true risk  and need  so that  the residents  that                                                                    
were  placed   there  were  more  likely   to  benefit  from                                                                    
available programing.  She pointed out that  the state could                                                                    
put  electronic  monitoring   on  individuals  in  community                                                                    
residential  centers  and  make them  better  citizens  than                                                                    
leaving  them  in  institutions  at  $168  per  bed  without                                                                    
treatment.   She  underscored   the  unacceptable   rate  of                                                                    
recidivism in Alaska  of 67 percent. She  stressed the crime                                                                    
in the state.                                                                                                                   
                                                                                                                                
4:17:38 PM                                                                                                                    
                                                                                                                                
Co-Chair Wilson continued to speak  to her opposition to the                                                                    
amendments. At the  end of the day she wanted  to see people                                                                    
punished  for their  crimes. She  asked  if the  legislature                                                                    
wanted  to  ensure  that individuals  with  alcohol,  mental                                                                    
health,  and  drug  problems were  treated  prior  to  being                                                                    
released  on the  street. The  amendment  would continue  to                                                                    
operate status  quo. She remarked  that Wildwood was  a good                                                                    
facility.                                                                                                                       
                                                                                                                                
4:19:03 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:01:53 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Wilson asked  to move Amendments H DOC 1,  H DOC 3,                                                                    
H DOC 4, and H DOC 6 to the bottom of list.                                                                                     
                                                                                                                                
Co-Chair Foster asked  the maker of the amendment  if he was                                                                    
okay with moving the items down on the list.                                                                                    
                                                                                                                                
Representative Knopp agreed.                                                                                                    
                                                                                                                                
Representative  Sullivan-Leonard  asked  if   H  DOC  2  was                                                                    
applicable.                                                                                                                     
                                                                                                                                
Co-Chair Wilson  clarified that  H DOA 2  would be  taken up                                                                    
separately.                                                                                                                     
                                                                                                                                
Co-Chair  Foster reported  that the  meeting would  go until                                                                    
5:45 p.m.  He wanted to  finish the remainder  of amendments                                                                    
in the following day.                                                                                                           
                                                                                                                                
Representative Josephson  requested that Amendment H  DOC 2,                                                                    
Amendment H  DOC 5, and  Amendment H DOC  7 be moved  to the                                                                    
end of the amendment stack for consideration.                                                                                   
                                                                                                                                
Co-Chair Wilson objected to the idea.                                                                                           
                                                                                                                                
5:03:56 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:05:22 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Josephson MOVED to ADOPT Amendment H DOC 2.                                                                      
                                                                                                                                
     Population Management                                                                                                      
     Institution Director's Office                                                                                              
                                                                                                                                
     H DOC  2 - Intent  to comply with  relevant regulations                                                                    
     and statutes  with regard to inmate  transfer into CRCs                                                                    
     and EM                                                                                                                     
     Offered by Representative Josephson                                                                                        
                                                                                                                                
     Wordage:                                                                                                                   
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department of Corrections ensure that                                                                                      
     each   prisoner  transfer   from   institutions  to   a                                                                    
     community  residential  center  is done  in  compliance                                                                    
     with   standards  for   placement  in   a  correctional                                                                    
     restitution center under 22 AAC 05.352                                                                                     
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Commissioner of Corrections and the                                                                                        
     Department  of  Corrections  comply with  AS  33.30.065                                                                    
     when  designating  a  prisoner   to  serve  a  term  of                                                                    
     imprisonment  or  period  of  temporary  commitment  by                                                                    
     electronic monitoring.                                                                                                     
                                                                                                                                
     Explanation:                                                                                                               
     This  language   ensures  the  relevant   statutes  and                                                                    
     regulations that  determine how prisoners are  moved to                                                                    
     EM and CRCs are followed when prisoners are                                                                                
     transferred out of institutions.                                                                                           
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Josephson  clarified that  he had not  sat on                                                                    
the DOC subcommittee. However, he  learned that the co-chair                                                                    
had a  plan to save the  state some money by  moving inmates                                                                    
into  community  residential   centers  and  the  electronic                                                                    
monitoring  program. He  was concerned  that the  department                                                                    
had  not   forgotten  that  under   Title  22   of  Alaska's                                                                    
regulations and Title 33 of  the Alaska Statutes they had to                                                                    
follow law. He  wanted to assuage any  public concerns about                                                                    
risk  to  the public.  He  elaborated  that the  public  had                                                                    
expressed concerns about people  going to halfway houses and                                                                    
people leaving,  vehicles being stolen, and  crime spiraling                                                                    
out  of   control.  He  reminded   DOC  that   although  the                                                                    
legislature might want to expedite  the programs, it did not                                                                    
want  to at  the expense  of  the public.  He reported  that                                                                    
there were  detailed rules in  place about who  was eligible                                                                    
and  what hoops  they  had  to go  through.  He noted  other                                                                    
considerations   including  prospects   for  rehabilitation,                                                                    
availability  of  program  and facility  space,  nature  and                                                                    
circumstance  of  offences,  and   the  needs  of  prisoners                                                                    
determined by a classification committee.                                                                                       
                                                                                                                                
Co-Chair  Wilson thanked  Representative  Josephson for  the                                                                    
amendment.  She stated  that not  everyone  knew that  there                                                                    
were regulations and  statutes that bound the  state. It was                                                                    
never   the  intent   of  the   committee  to   simply  move                                                                    
individuals  to the  community residential  centers for  the                                                                    
purpose of  population management.  The guidelines  had been                                                                    
established to  ensure the public  was not placed  in harm's                                                                    
way. She further  explained ultimately the goal  was to help                                                                    
an  individual  to  be  a  productive  citizen  after  their                                                                    
release. She  hoped the language in  the amendment clarified                                                                    
that it was not the  legislature's intent to let just anyone                                                                    
out. She  wanted to ensure  that places available  in Alaska                                                                    
for  treatment were  being fully  utilized.  She thought  it                                                                    
would be  a wake-up call when  all of a sudden  500 Alaskans                                                                    
were  shipped out  to another  state. She  noted individuals                                                                    
only  being  a  number.  She   liked  the  language  in  the                                                                    
amendment, as  it was stringent regarding  eligibility to be                                                                    
a  resident in  a CRC  or  a participant  in the  electronic                                                                    
monitoring program.                                                                                                             
                                                                                                                                
Co-Chair Wilson WITHDREW her OBJECTION.                                                                                         
                                                                                                                                
Representative Carpenter OBJECTED for discussion.                                                                               
                                                                                                                                
Representative Carpenter supported  the amendment. He stated                                                                    
the  prison  system  was  broken   and  it  was  up  to  the                                                                    
legislature to fix  it. He did not know it  was necessary to                                                                    
remind  DOC what  its responsibilities  were. He  thought it                                                                    
was important to understand the  problem and he did not want                                                                    
to make  it bigger. He did  not want to repeat  mistakes and                                                                    
wanted  effective  reformation.  He   stressed  it  was  not                                                                    
possible  to force  someone  to reform.  He  thought it  was                                                                    
appropriate that  the legislature  remind itself  to operate                                                                    
within the law.                                                                                                                 
                                                                                                                                
Representative Carpenter WITHDREW his OBJECTION.                                                                                
                                                                                                                                
There being  NO OBJECTION,  it was  so ordered.  Amendment H                                                                    
DOA 2 was ADOPTED.                                                                                                              
                                                                                                                                
Co-Chair  Wilson  asked  to  move  Amendment  H  DOC  5  and                                                                    
Amendment H DOC 7 to the bottom of the list.                                                                                    
                                                                                                                                
Representative Josephson Agreed.                                                                                                
                                                                                                                                
Co-Chair Foster clarified that Amendment  H DOC 1, Amendment                                                                    
H DOC  3, Amendment H  DOC 4,  Amendment H DOC  6, Amendment                                                                    
H DOC 5, and  Amendment H DOC 7 were moved  to the bottom of                                                                    
the amendment pile. They would  be taken up in the following                                                                    
day.                                                                                                                            
                                                                                                                                
5:13:08 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  MOVED to  ADOPT Amendment H  DOE 1                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Education Support and Administrative Services                                                                              
     Executive Administration                                                                                                   
                                                                                                                                
     H DOE 1 - Dyslexia Task Force Funding Reduction                                                                            
     Offered by Representative Carpenter                                                                                        
     This would eliminate funding for the implementation of                                                                     
     Dyslexia Task Force recommendations.                                                                                       
                                                                                                                                
Vice-Chair Ortiz OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Carpenter  reviewed the amendment.  He argued                                                                    
that  the   reductions  reflected  in  the   amendment  were                                                                    
necessary to elevate the state's  fiscal standing. The funds                                                                    
had been  added by  the House Finance  Subcommittee recently                                                                    
and were  funds that were  supposed to be spent  towards the                                                                    
implementation  and recommendations  in  the  report by  the                                                                    
Alaska  Taskforce on  Reading Efficiency  and Dyslexia.  The                                                                    
report  was received  on  the House  Floor  in the  previous                                                                    
week.  The recommendations  did  not impact  the ability  to                                                                    
approve or  disapprove the amendment,  as the  committee had                                                                    
not had  an opportunity  to discuss the  recommendations. He                                                                    
understood   that  reading   and  combating   dyslexia  were                                                                    
essential.  However, he  believed there  were other  ways to                                                                    
address the issues than spend $4.9 million.                                                                                     
                                                                                                                                
Vice-Chair Ortiz clarified it was $400,000.                                                                                     
                                                                                                                                
Representative Carpenter  commented that $400,000  was still                                                                    
a large number.                                                                                                                 
                                                                                                                                
Representative  Sullivan-Leonard  supported  the  amendment.                                                                    
She reported  she had been  on the dyslexia  taskforce along                                                                    
with Representative  Drummond. The  discussion had  not been                                                                    
about  adding  a  funding  source   to  solve  the  dyslexia                                                                    
problem. She understood there were  other methods to work on                                                                    
the problem. She  did not think $400,000  was necessary. She                                                                    
stated that the issue started at home.                                                                                          
                                                                                                                                
5:16:28 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz  objected to the  amendment. He  agreed the                                                                    
money  had been  added during  the subcommittee  process. He                                                                    
explained the addition of the funds  was a result of a major                                                                    
reduction of $19.5  million to education based  on a program                                                                    
designed to  implement a curriculum  project. He  had argued                                                                    
for the  reduction because reductions  needed to be  made. A                                                                    
member of the body had  commented that there was no question                                                                    
that if  investments were  made to  early education  and the                                                                    
ability  to read,  a  tenfold savings  would  result in  the                                                                    
future of  a child's education  process. He felt  good about                                                                    
the addition  of funds because  they were an  investment for                                                                    
young children to read and  overcome dyslexia. He thought it                                                                    
was necessary to  look at the issue from  the perspective of                                                                    
the long-term costs  of not making the  investment early. He                                                                    
thought that everyone needed to  recognize the importance of                                                                    
investing in  people's education and their  ability to read.                                                                    
It would bring savings in the  future. He was opposed to the                                                                    
amendment.                                                                                                                      
                                                                                                                                
5:19:42 PM                                                                                                                    
                                                                                                                                
Co-Chair Wilson  surmised that  dyslexia fell  under special                                                                    
education needs.  The state paid  13 times the  base student                                                                    
allocation  for  special  needs children.  She  believed  in                                                                    
taking care of children with  dyslexia. She did not know how                                                                    
the  $400,000 would  be spent  differently than  other money                                                                    
that went  towards special needs. She  clarified that voting                                                                    
in favor of the amendment did  not mean a legislator did not                                                                    
care about kids.                                                                                                                
                                                                                                                                
Vice-Chair Ortiz responded  that part of the  money would go                                                                    
towards  identifying  at-risk  students  and  children  with                                                                    
dyslexia and training teachers to  identify the problem. The                                                                    
money  went hand-in-hand  with  the  Education Challenge,  a                                                                    
result  of  the  current commissioner's  efforts  under  the                                                                    
prior  and   current  administrations.  The  goal   was  for                                                                    
children to read by the  third grade. He reiterated that the                                                                    
funds would help ensure that  teachers had tools to identify                                                                    
and address children with dyslexia.                                                                                             
                                                                                                                                
Representative Carpenter provided wrap  up on the amendment.                                                                    
He pointed  out the fallacy  that the only way  to encourage                                                                    
students to  read was  to spend  state money.  He understood                                                                    
the addition of  the funding was well  intended. However, he                                                                    
suggested if  he was  a teacher  he would  check out  a book                                                                    
from  the  library  to  help   with  the  identification  of                                                                    
dyslexia. He would  not need state funding,  rather he would                                                                    
need to care. He reemphasized  the need for cutting costs to                                                                    
the state budget.                                                                                                               
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN  FAVOR:  Sullivan-Leonard, Tilton,  Carpenter,  Johnston,                                                                    
Knopp, LeBon, Merrick, Wilson, Foster                                                                                           
OPPOSED: Josephson, Ortiz                                                                                                       
                                                                                                                                
The MOTION to ADOPT Amendment H DOE 1 PASSED (9/2).                                                                             
                                                                                                                                
5:24:54 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  MOVED to  ADOPT Amendment H  DOE 2                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Education Support and Administrative Services                                                                              
     Student and School Achievement                                                                                             
                                                                                                                                
     H DOE 2 - Reduce Kindergarten-3rd Grade Literacy                                                                           
     Project                                                                                                                    
     Offered by Representative Carpenter                                                                                        
     The amount of funding is in excess of statutory                                                                            
     requirements.                                                                                                              
                                                                                                                                
Vice-Chair Ortiz OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative  Carpenter reviewed  the amendment  to reduce                                                                    
the  kindergarten-3rd   grade  literacy  project   by  about                                                                    
$320,000.  The request  was part  of the  governor's amended                                                                    
budget.  He  conveyed  that  there  were  funds  that  would                                                                    
provide for pre and  post screening assessments for students                                                                    
in kindergarten  through 3rd grade.  He noted  that mirrored                                                                    
funding the  Department of  Education and  Early Development                                                                    
(DEED) received  in the 2014  budget but was removed  by the                                                                    
legislature   in  the   2016  budget.   He  continued   that                                                                    
approximately  40,000   students  were  in   grades  between                                                                    
kindergarten and  3rd grade at  an average cost of  about $8                                                                    
per student. He  reported that there were a  number of bills                                                                    
before  the legislature  that would  help  to address  early                                                                    
literacy issues. He thought the  state could do a better job                                                                    
at cost analysis and implementation.                                                                                            
                                                                                                                                
Vice-Chair Ortiz spoke to his  objection. He was speaking in                                                                    
favor   of   the  request   made   by   the  governor.   The                                                                    
administration  requested the  $320,000  increment into  the                                                                    
budget. The literacy project would  provide for pre and post                                                                    
screening  assessments  for   students  in  kindergarten-3rd                                                                    
grade. The screening assessments  would provide schools with                                                                    
early  identification  of  students   who  showed  signs  of                                                                    
deficits in  early literacy. Early identification  needed to                                                                    
be intentional and systematic across  the state in an effort                                                                    
to  maintain   integrity  of  the   data.  He   agreed  with                                                                    
Representative  Carpenter  that  there  were  probably  many                                                                    
places in the  state where screening took  place without the                                                                    
$320,000, but  there were other  locations where it  did not                                                                    
take place.  The state needed to  provide adequate education                                                                    
for all of its children.                                                                                                        
                                                                                                                                
Vice-Chair Ortiz  continued that the data  gathered from the                                                                    
assessments  could be  used locally  by teachers,  students,                                                                    
and  parents  to intervene  as  needed.  The data  would  be                                                                    
entered  into  the  department-hosted statewide  system  and                                                                    
would  be  available  to  other   teachers  and  schools  as                                                                    
students   moved   from   one   school   to   another.   The                                                                    
appropriation  mirrored funding  the department  received in                                                                    
the FY 14  budget but was removed by the  legislature in the                                                                    
FY 16  budget. There  were approximately 40,000  students in                                                                    
kindergarten-3rd grade at  an average cost of  $8 per child.                                                                    
Alaska could  do more pre  and post screenings  for children                                                                    
statewide.  He   reiterated  that  it  also   augmented  the                                                                    
Education Challenge and the goals of reading by 3rd grade.                                                                      
                                                                                                                                
Representative  Josephson asked  whether  it was  Vice-Chair                                                                    
Ortiz's  belief  that the  governor  had  sought the  funds.                                                                    
Vice-Chair Ortiz replied in the affirmative.                                                                                    
                                                                                                                                
Co-Chair Wilson  reported that although the  program was not                                                                    
new,   it   had  stopped   in   2016.   She  remarked   that                                                                    
kindergarteners  from  across  the state  went  through  the                                                                    
screening  process  in  order  to  enter  kindergarten.  She                                                                    
wondered  if  school  districts   were  mandated  to  screen                                                                    
students.  She asked  if the  screening being  discussed was                                                                    
different  from the  ones already  being  performed by  most                                                                    
kindergartens.                                                                                                                  
                                                                                                                                
Representative Carpenter provided wrap  up on the amendment.                                                                    
He  hoped that  currently in  Alaska's school  teachers were                                                                    
able to  assess whether,  by the end  of the  year, students                                                                    
were able to  read and communicating with  parents about any                                                                    
needed correctional  measures. He suggested  that additional                                                                    
money was not needed for a  job that should already be being                                                                    
done.                                                                                                                           
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN  FAVOR:   Tilton,  Carpenter,  Johnston,   Knopp,  LeBon,                                                                    
Merrick, Sullivan-Leonard, Wilson, Foster                                                                                       
OPPOSED: Josephson, Ortiz                                                                                                       
                                                                                                                                
The MOTION to ADOPT Amendment H DOE 2 PASSED (9/2).                                                                             
                                                                                                                                
5:31:29 PM                                                                                                                    
                                                                                                                                
Vice-Chair Johnston MOVED  to ADOPT Amendment H  DOE 3 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     Education Support and Administrative Services                                                                              
     Early Learning Coordination                                                                                                
                                                                                                                                
     H DOE 3 - Fund Parents as Teachers at FY 19 level                                                                          
     Offered by Representative Johnston This returns                                                                            
     funding to FY 19 level.                                                                                                    
                                                                                                                                
Vice-Chair Ortiz OBJECTED for discussion.                                                                                       
                                                                                                                                
Vice-Chair  Johnston  reviewed   the  amendment  that  would                                                                    
return the Parents  as Teachers funding to the  FY 19 level.                                                                    
She argued that although it  was a worthy program, the state                                                                    
could not afford additional funding presently.                                                                                  
                                                                                                                                
Vice-Chair  Ortiz  rebutted  Co-Chair  Johnston's  statement                                                                    
that the state  could not afford to make  the investment. He                                                                    
suggested that  the amendment  was essentially  stating that                                                                    
the legislature  would rather put  the state's money  into a                                                                    
PFD than investing in Alaskan children's education.                                                                             
                                                                                                                                
5:32:26 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:34:06 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Carpenter MOVED  Conceptual  Amendment 1  to                                                                    
Amendment  H  DOE  3.  He   proposed  adding  $1,994,700  to                                                                    
$237,000 for a total of $2,231,700.                                                                                             
                                                                                                                                
Representative Josephson OBJECTED for discussion.                                                                               
                                                                                                                                
Co-Chair Foster thought  that by adding the  amount it would                                                                    
match Amendment H DOA 4.                                                                                                        
                                                                                                                                
Representative Carpenter agreed.                                                                                                
                                                                                                                                
Representative  Sullivan-Leonard  thought they  should  vote                                                                    
against Amendment H DOE 3 and support Amendment H DOE 4.                                                                        
                                                                                                                                
Representative  Carpenter replied  that  it was  one way  to                                                                    
look at it.                                                                                                                     
                                                                                                                                
Representative  Sullivan-Leonard suggested  that the  makers                                                                    
of both amendments should talk.                                                                                                 
                                                                                                                                
Co-Chair Foster clarified that H  DOE 3 in its original from                                                                    
would remove the increase of  $237,000 that was added in the                                                                    
subcommittee  process. He  believed Vice-Chair  Johnston was                                                                    
wanting to  remove the increment  leaving the  funding flat.                                                                    
In  his   amendment,  Amendment  H  DOE   4,  Representative                                                                    
Carpenter  was seeking  to  eliminate  Parents as  Teachers,                                                                    
Best Beginnings, and Pre-K grants.                                                                                              
                                                                                                                                
Representative  Merrick asked  if the  committee would  have                                                                    
the ability to vote on Amendment  H DOE 4 if Amendment H DOE                                                                    
3 were to pass.                                                                                                                 
                                                                                                                                
5:37:14 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:45:31 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Carpenter WITHDREW  Conceptual Amendment 1 to                                                                    
Amendment H DOE 3.                                                                                                              
                                                                                                                                
Representative Josephson  understood the effort to  hold the                                                                    
budget  line to  address revenue  concerns. He  referenced a                                                                    
statement by Vice-Chair  Ortiz that there might  be a repeal                                                                    
of $19.5 million  in education funds. The  cuts would exceed                                                                    
$100 million or  more. He thought the program  worked and he                                                                    
associated  his  comments  with  those  made  by  Vice-Chair                                                                    
Ortiz.                                                                                                                          
                                                                                                                                
Representative  Carpenter  pointed  out  they  were  talking                                                                    
about $237,000 spent on 50  families. He thought there was a                                                                    
disparity in how the funds were being distributed.                                                                              
                                                                                                                                
Vice-Chair Johnston  provided wrap up on  the amendment. She                                                                    
somewhat  echoed comments  by Representative  Carpenter. She                                                                    
acknowledged the worthiness of the  program but saw that the                                                                    
funding was not  spread statewide as much as  she thought it                                                                    
should. She suggested flat funding.                                                                                             
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN  FAVOR:  Carpenter,   Johnston,  Knopp,  LeBon,  Merrick,                                                                    
Sullivan-Leonard, Tilton, Wilson, Foster                                                                                        
OPPOSED: Josephson, Ortiz                                                                                                       
                                                                                                                                
The MOTION to ADOPT Amendment H DOE 3 PASSED (9/2).                                                                             
                                                                                                                                
Co-Chair Foster reviewed the meeting for the following day.                                                                     
                                                                                                                                
HB  39  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  40  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB 39 Amendments LanguagevR..pdf HFIN 4/3/2019 9:00:00 AM
HB 39
HB 39 Amendments Numbers vR..pdf HFIN 4/3/2019 9:00:00 AM
HB 39
HB 39 Am. Actions Amendments 1-9 Language.pdf HFIN 4/3/2019 9:00:00 AM
HB 39
HB 39 Am Actions 4.3 PM mtg.pdf HFIN 4/3/2019 9:00:00 AM
HB 39