Legislature(1993 - 1994)
01/27/1993 01:30 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
HB 55 FY 94 OPERATING BUDGET & LOAN PROGRAMS DEPARTMENT OF MILITARY AND VETERANS AFFAIRS MAJOR GENERAL HUGH L. COX, ADJUTANT GENERAL, COMMISSIONER, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, provided the Committee with a handout addressing the Department of Military and Veterans Affairs (DMVA) proposed budget. [Attachment #1 -on file]. He pointed out that the Alaska Statutes list responsibilities of the Department. * To provide trained and equipped military units to respond to federal or state emergencies. * To develop emergency response plans and assist individuals and local governments to respond to and recover from disasters - Division of Emergency Services. * To expand and improve the status of Alaska veterans and coordinate veterans programs and issues - Division of Veterans Affairs. Commissioner Cox told the Committee that the key challenges facing the Department are associated with philosophical factors. A major element of the DMVA general fund budget is the maintenance of National Guard facilities. The Division of Emergency Services is challenged to sustain its current level of public protection, disaster relief assistance, and emergency response services in the face of recent budget reductions. The Division of Veterans Affairs is faced with a growing and aging population of Alaskan veterans, who will be needing increased assistance in order to receive their federal entitlement. The Department has established a priority budget setting process: * A key feature has been to keep the State's contribution to the Alaska National Guard approximately the same level as it was in FY 93. * Any reduction in the level of State funded support would jeopardize the very existence of some Alaska National Guard units spread throughout the State in 109 communities. 2 * Any reductions to the DMVA's budget, therefore, need to come from other department BRU's. General Cox continued page by page discussion of document Co-Chair MacLean questioned the increase to the Hazardous Substance Release Fund from the 470 Fund. Commissioner Cox explained the increase to the 470 Fund would establish response depots, appropriately equipped so that first responders to all hazardous materials be contained. Co-Chair MacLean asked if the State should contract for maintenance to the facilities. JEFF MORRISON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, stated that janitorial and custodial services are contracted out although the Army Guard has a program for preventive maintenance funding that it is more efficient and cost effective to operate. Co-Chair MacLean asked how much has been spent on the Disaster Relief Fund to date. Mr. Morrison stated that from the $2.9 million dollars, $1.3 million dollars has been obligated for disasters in this fiscal year. The current balance in that fund is $1.6 million dollars. Co-Chair MacLean asked if DMVA plans to ask for a supplemental appropriation. Commissioner Cox stated it would depend on what happens this winter given the heavy snowfall. Representative Brown questioned if the response depots should be modified. Commissioner Cox agreed they should and that the State should not duplicate any equipment in those most vulnerable areas. Representative Foster questioned the proposal which would terminate the death gratuity. Major General Cox replied that the major thrust of the Department is to reach out to rural Alaska. Veterans in rural Alaska do not receive those services, so the increase in the Veterans Service Officer's program effect them. Representative Foster asked if the program would generate more federal money. Commissioner Cox replied that the return to the Alaskan veterans will be in education benefits. Co-Chair Larson agreed that the veteran services should be increased and expressed concern with the termination of the death gratuity. He asked if there would be federal benefits to compensate for any lost State benefits. Commissioner Cox replied that the veterans who are entitled to federal benefits receive a burial allowance and the number of veterans who receive this is twenty percent. 3 Representative Therriault noted his concern with the emergency response depots. He questioned if the Department of Environmental Conservation (DEC) also has responsibility for the depots. Major General Cox stated that the amounts in the FY 94 budget have been negotiated with DEC. Representative Larson noted the DMVA subcommittee would consist of Chair Representative Foster and with members Representative Kott, Representative Mulder, Representative Willis and Representative Hoffman. (Tape Change, HFC 93 - 11, Side 2). DEPARTMENT OF HEALTH AND SOCIAL SERVICES THEODORE A. MALA, MD, MPH, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, provided the Committee with handouts. [Attachments #2 - #4 - on file]. He noted that the Department of Health and Social Services (DHSS) is one of the largest departments in the state. The proposed budget for FY 94 including the federal match is $756 million dollars. General funds total $429 million dollars. Commissioner Mala provided an overview of Attachment #3. The Division of Public Assistance (DPA) is responsible for the Administration of the following programs: * Aid to Families with Dependent Children (AFDC) * Food Stamps * Medicaid * General Relief Assistance * General Relief Medical * Energy Assistance * Adult Public Assistance * Alaska Work Program * Permanent Fund Dividend Hold Harmless * Alaska Longevity Bonus Hold Harmless If the programs do not continue to be tied to federal standards, the State will suffer heavy fines. Representative Brown asked if there would be a supplemental request for foster care for the current year. Commissioner Mala stated that foster care is very expensive and the rates of reimbursement vary according to need. JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that the Department will be seeking a supplemental for FY 93 for a number of circumstances. 4 Representative Navarre suggested that the problems with foster care has originated from the foster parents experience of not receiving substantial or correct information regarding their foster child. Representative Navarre asked if the funds placed into the capital budget last year for computer coordination were used for that purpose. Commissioner Mala replied that the computers were ordered and then sat in boxes for a long period of time until the Department of Administration was notified. Ms. Clarke added that compliance with the Information Management Program was required and delayed action until September, 1992. Representative Navarre asked if the purchased computers would be placed into the outlying areas. DEBORAH WING, DIRECTOR, FAMILY AND YOUTH SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that some of the computers were slated for the rural areas and they are beginning to receive computers at this time. The delay was caused by a price fluctuation in computer costs. No computers will be issued to the larger regions where Ms. Wing felt there is a greater need. Representative Navarre asked if the Information Management System could result in a reduction of paper work. He pointed out his concern that too much time is spent on paper work and not enough on client services. Commissioner Mala echoed Representative Navarre's concern. There is currently a "paper work reduction committee" working on systems to reduce the amount of paper work. Representative Navarre recommended that more computers be purchased in order that state currently working for the Department can become more proficient in their work. Co-Chair Larson asked if the passage of HB 65 would relate to the proposed budget. Ms. Clarke stated it would. Co-Chair Larson inquired if any of the federal mandated programs would provide the Department relief. Commissioner Mala noted that the Department is studying the programs and then proposing a set of waivers for Public Assistance. Co-Chair Larson noted that the DHSS subcommittee would be Chaired by Representative Hanley and with members Representative Toohey, Representative Gary Davis, Representative Nordlund and Representative Brice. (Tape Change HFC 93 - 12, Side 1). DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS 5 EDGAR BLATCHFORD, COMMISSIONER, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA), provided the Committee with a handout. [Attachment #5 - on file]. Commissioner Blatchford noted that DCRA is the smallest Department in the State and the Department which has taken the biggest cut in personnel and budget in the past two years. The functions of DCRA is to bring government to the people and to be more efficient in the delivery of the services. Commissioner Blatchford pointed out that DCRA is a small Department with three divisions: The Municipal and Regional Assistance Division; the Division of Administrative Services; and the Division of Community and Rural Development. REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, stated the Department has been targeted with a $5 million dollar reduction. The total general funds available for reduction were $113 million dollars. He added that seventy- three percent of all funds in the Department are for municipal assistance and revenue sharing. Eighteen percent are for child care and Project Head Start. In order to arrive at a $5 million dollar reduction, the Homeowners Property Tax Exemption Program will be eliminated and made a local option. Organizational grants will be deleted and transferred to capital requests. There is a proposed reduction of $100 thousand dollars to Alaska Legal Services. An additional $500 thousand dollars will be taken from the Day Care Assistance Program. Mr. Henderson added there will be a small increase to program delivery and administration. Mr. Henderson discussed the trnasfer of organizational grants to the capital budget. Co-Chair Larson inquired which areas would be affected by the fund switch. Mr. Henderson stated in FY 94, there would have been $200 thousand dollars budgeted for an organizational grant for second year funding for Yakutat. There are no funds included for those not yet incorporated boroughs. A list will be provided to the Committee. Representative Foster questioned if there were financial outreach services to increase recovery. Mr. Henderson replied there are local government specialists in the regional field offices which work directly with the communities in areas such as tax information, providing accounting services and budgeting services. 6 Representative Foster asked if there would be new boundaries established within the Commission. BRUCE GERAGHTY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, stated there would be four annexations approved by the local Boundary Commission: Hoonah, Haines, Cordova and Palmer. Representative Foster asked for further information on the road planning component of DCRA's budget proposal. Commissioner Blatchford stated that DCRA is an advocacy agency which seizes initiatives. Mr. Geraghty explained the initiatives of the Department are to coordinate the State revenues through a delivery system to rural Alaska. Representative Parnell inquired about the impact of the proposed reduction to Alaska Legal Services. Commissioner Blatchford stated there would be no impact to DCRA only to Alaska Legal Services. Co-Chair Larson asked if local governments would have the option to reduce senior citizen funding to zero. Mr. Geraghty stated that concern would be addressed in HB 66. Co-Chair Larson inquired if the large reduction to municipal assistance and revenue sharing would be compensated for in the budget. Commissioner Blatchford replied that DCRA does make recommendations to the Governor and OMB on municipal assistance and revenue sharing and currently there is discussion ongoing which could minimize the impact. Representative Brown referenced the Day Care Assistance reduction. She pointed out the shortform shows a reduction of $989 thousand dollars and asked for further information. Mr. Henderson responded the larger amount included the $390 thousand dollar reduction taken in FY 93. He pointed out there are currently less children enrolled in the program than there were in FY 93. The Department is trying to access what has driven the costs up. Day care assistance rates have risen fifteen percent. Representative Foster thanked Commissioner Blatchford on the Department's work on the Community Development Quota Program (CDQ). MICHAEL CUSHING, RESEARCH ANALYST, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, stated that a program is being implemented to deal with fish taxes. This program will include implementation of HB 456, passed two years ago, sharing fifty percent of the taxes back with the municipalities. The new program will take the taxes 7 collected outside the municipalities and share fifty percent of it back to communities around the State who can demonstrate an impact from the fishing industry. Half of those taxes are estimated to total $1.5 million dollars. Co-Chair Larson noted that the Community and Regional Affairs Subcommittee would be Chaired by Representative MacLean with members Representative Olberg, Representative Williams, Representative Bettye Davis and Representative Brice. Commissioner Blatchford asked to provide the Committee with a short explanation of the CDQ Program. He noted that a $300 thousand dollar investment by the State in the past year, returned $20 million dollars to the communities in Western Alaska. JOHN WALSH, DEPUTY DIRECTOR, COMMUNITY RURAL DEVELOPMENT, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, provided a basic overview of the CDQ Program. The fish is pollack and represents the largest bio-mass per specie of the ground fish resource in the Bering Sea. It is a Seattle based fishery. The profit sharing arrangements are multiple to the village corporations. An agreed upon value per ton can be brought back to a region for a fishery development project.
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