We have concluded the House Finance Subcommittee level hearings on the FY 2001 Operating budget.

You can find all the subcommittee recommendations at: http://www.legfin.state.ak.us/HSubCloseout.html

Just like last year, I chaired the review team for three of the Administration's budgets this year. They were the Department of Community and Economic Development (DCED) - a merger of the Department of Commerce and Economic Development with the Department of Community and Regional Affairs; the Department of Labor and Workforce Development (DOL); and the University of Alaska. We were tasked from the Finance Committee chairmen to come up with $3.9 million in cuts from two of the three departments. This was a lot harder than it might sound. The overall aim that the Majority members of the legislature are attempting to achieve is a $30.0 million dollar reduction from last year's general fund appropriation.

Programs were reviewed and input was added from the Department, the industry affected, and from members who served on the part of the budget that I was most unfamiliar with (Department of Commerce). The recommendations stemming from the programs in the former Department of Commerce included funding the new Alaska Trade Industry Alliance contract at a level established during last year's budget hearings. This group will have to provide an increasing match to the $4.8 million dollar grant. The former Division of Tourism will turn over most of it's marketing programs to this group probably early this summer. The budget for the Office of International Trade and Marketing was reduced as subcommittee members agreed with recommendations brought out by the Privatization Committee that many of these functions could be continued through private industry groups and other existing programs.

Our subcommittee reviewing the University of Alaska met several times to develop and refine Missions and Measures that will produce meaningful results that can show quantifiably what a dollar invested in our University system is paying back. Last year my subcommittee endorsed fully funding the Board of Regent's request for an addition of $16.9 million to help the downward spiral of a decade of flat funding. This year we offered a "Sense of the Committee" statement to the same effect.

I believe that the University is in need of a fiscal investment. I'm convinced that it would be worthwhile and that under the leadership of Mark Hamilton the new University President, the University of Alaska will fill an important gap in the economic development of our greatest asset - we the people. We are in a position to educate our own to fill the jobs of the future. We do not need to import the talent in the future, we can be it.

All departments were thoroughly reviewed on two levels. During the first weeks of session we were working on the Missions and Measures and we produced a bill that will be heard in the House and Senate, SB 281. You can access the text of this bill by going to: http://www.legis.state.ak.us/PDF/21/SB0281A.PDF For those of you without internet access, but still curious feel free to contact Lorna at the Legislative Information Office. The other review level was budgetary. Hearings have been taking place on the House side for the past five weeks. The Senate is currently going through the process themselves and will come up with their budget reduction recommendations. A conference committee will convene at the close of the process and decide those outstanding items that are disimilar.

The $1.5 million reduction of general funds to the Department of Labor concluded in passage of a recommendation to eliminate the premium tax for Workers' Compensation insurance and replace it with a new fee for all companies based on a percentage of their particular workers' compensation claims. The fees would be accounted for separately and deposited into a worker safety and compensation account. The subcommittee reduced the general-purpose funds by $1.0 million leaving a total budget for this component, which is currently funded primarily with general funds, of $1,442.0. HB 378 would create designated program receipts that would provide for a four-year phase-in of the fees to minimize the impact on the self-insured employers who currently pay no premium tax. The new system would also spread costs among more employers, and those employers currently paying the premium tax would see a decrease in their payments.

Public testimony on the operating budget will be Saturday - March 4, 2000. Call the LIO for a time schedule. These meetings will also be available on Gavel to Gavel. Check for the appropriate channel to view this by calling GCI.

Visitors

I've had quite a few visitors to my office since I last wrote. Those in Juneau to testify and attend various meetings were: Barbara Zimmerman, Sue Jeffrey, University of Alaska Board Regent Dan Ogg, David Boschee, Lorna Steelman, Jake Ketscher, Mike Dolph, Bob Himes, Superintendent of Schools Betty Walters, KIBSD Board President Pat Jacobson, Dave Jones, Mike Martin, Kent Helligso, Ginny Sargent, Juanita and Jerry Richards, Suzanne and Tom Ellis, Gabrielle Ledoux, Bob Hatcher, Walter Sapp and former Alaska Senator Fred Zharoff. Katrina Stone has also been by the office several times. She is the daughter of my long time aide Cliff Stone.

Remember-my door is always open!