Legislature(2001 - 2002)
06/25/2002 12:40 PM House BUD
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT COMMITTEE ON LEGISLATIVE BUDGET & AUDIT
June 25, 2002
12:40 p.m.
HOUSE MEMBERS PRESENT
Representative Ken Lancaster
HOUSE MEMBERS ABSENT
Representative Hugh Fate, Vice Chair
Representative Eldon Mulder
Representative John Harris
Representative Reggie Joule
Representative Johnny Davies, alternate
Representative William Williams, alternate
SENATE MEMBERS PRESENT
Senator Gene Therriault, Chair
Senator Randy Phillips
Senator Lyman Hoffman
Senator Gary Wilken, alternate
SENATE MEMBERS ABSENT
Senator Jerry Ward
Senator Dave Donley
COMMITTEE CALENDAR
REVISED PROGRAMS (RPLs)
EXECUTIVE SESSION
AUDIT REPORTS
AUDIT REQUESTS
OTHER COMMITTEE BUSINESS
PREVIOUS ACTION
No previous action to record
WITNESS REGISTER
KAREN REHFIELD, Director
Education Support Services
Department of Education and Early Development
801 W 10th Street, Suite 200
Juneau, Alaska 99801-1894
POSITION STATEMENT: Discussed RPL Number 05-02-0845.
SUSAN SCUDDER, Executive Director
Council on Domestic Violence & Sexual Assault
Department of Public Safety
PO Box 111200
Juneau, Alaska 99811-1200
POSITION STATEMENT: Discussed RPL Number 12-03-0001.
PAT DAVIDSON, Legislative Auditor
Division of Legislative Audit
Alaska State Legislature
333 Willoughby Avenue
P.O. Box 113300
Juneau, Alaska 99811-3300
POSITION STATEMENT: Spoke on behalf of the Division of
Legislative Audit.
HEATHER BRAKES, Staff
to Senator Therriault
Joint Committee on Legislative Budget & Audit
Alaska State Legislature
Capitol Building, Room 121
Juneau, Alaska 99801
POSITION STATEMENT: Testified with regard to the education
study.
NANCY SLAGLE, Director
Division of Administrative Services
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau, Alaska 99801-7898
POSITION STATEMENT: Explained the need to change the title of
four projects.
DAVID TEAL, Legislative Fiscal Analyst
Legislative Finance Division
Alaska State Legislature
PO BOX 113200
Juneau, Alaska 99811
POSITION STATEMENT: Spoke on behalf of the Legislative Finance
Division.
ACTION NARRATIVE
TAPE 02-5, SIDE A
Number 001
CHAIR GENE THERRIAULT called the Joint Committee on Legislative
Budget & Audit to order at 12:40 p.m. Senators Therriault,
Phillips, Hoffman, and Wilken (alternate) and Representative
Lancaster were present at the call to order.
REVISED PROGRAMS (RPLs)
RPL Number: 05-02-0845
CHAIR THERRIAULT announced that the first order of business
would be the RPL for the Department of Education and Early
Development (EED) federal school renovation, IDEA [Individuals
with Disabilities Education Act] and technology grants.
KAREN REHFIELD, Director, Education Support Services, Department
of Education and Early Development, explained that the request
before the committee is related to the department's 2002 fiscal
year supplemental request that the legislature approved for $5.4
million for one-time federal school renovation funds. The
department failed to bring to [the legislature] the actual grant
award amount, which was $5,483,750. In order for the department
to actually record the entire grant amount, it is necessary to
request [the legislature's] authorization of an additional
$83,750 in federal capital authorization.
CHAIR THERRIAULT asked if during the approval of the
supplemental [budget], the department didn't know the final
amount or the initial amount specified was an estimate that was
never recorded as the actual amount through the process.
MS. REHFIELD answered that the [department] did have a
placeholder, an estimate of $5.4 million, at the beginning of
the session. The grant award was received in January and there
would've been time to submit an amendment for the entire dollar
amount. Ms. Rehfield said that not submitting an amendment for
the entire dollar amount was her oversight.
Number 0155
REPRESENTATIVE FATE moved that the committee approve RPL 05-02-
0845. There being no objection, RPL 05-02-0845 was approved.
RPL Number: 12-03-0001
CHAIR THERRIAULT announced that the next order of business would
be the RPL for the Department of Public Safety (DPS) for capital
improvements to domestic violence shelters statewide.
Number 0224
SUSAN SCUDDER, Executive Director, Council on Domestic Violence
& Sexual Assault, Department of Public Safety, explained that
the RPL would allow authorization for the receipt and
expenditure of funds that have been received from the Rasmussen
Foundation as well as for matching funds that are anticipated
from both federal and private sources. Although the
[department] knew this grant was coming, the grant was
contingent upon receipt of state money through the capital
budget.
CHAIR THERRIAULT inquired as to why the amount wasn't submitted
during the regular session.
MS. SCUDDER specified that the amount that the Rasmussen
Foundation would approve wasn't known. Furthermore, [the
department] didn't know the amount that the legislature would
grant. The amount that the Rasmussen Foundation would give [the
department] was contingent upon the amount the legislature would
give.
SENATOR PHILLIPS inquired as to what the Rasmussen Foundation
is.
MS. SCUDDER clarified that this is a foundation that provides
monies to nonprofits. Recently, the Rasmussen Foundation
granted $9 million that will go to a variety of sources
throughout Alaska. The Rasmussen Foundation has been invaluable
in providing expertise regarding this particular grant.
Number 0455
REPRESENTATIVE FATE moved that the committee approve RPL 12-03-
0001. There being no objection, RPL 12-03-0001 was approved.
EXECUTIVE SESSION
REPRESENTATIVE FATE made a motion to move to executive session
for the purpose of discussing confidential audit reports under
AS 24.20.301. There being no objection, the committee went into
executive session at 12:45 p.m. The committee subsequently
returned to regular, open session.
AUDIT REPORTS
REPRESENTATIVE FATE moved that the committee release the
preliminary reports to the agencies for response. [Those
preliminary audit reports were the Department of Transportation
& Public Facilities/Southeast Region Selected Issues and the
State of Alaska Single Audit FY 01.] There being no objection,
the two preliminary audits were released for agency response.
REPRESENTATIVE FATE moved that the committee release the two
final audit reports to the public. [Those final audits were the
Department of Transportation & Public Facilities/Ted Stevens
Anchorage International Airport Terminal Improvements and the
Department of Transportation & Public Facilities/Ted Stevens
Anchorage International Airport Seismic Design Dispute.] There
being no objection, the two final audits were released.
AUDIT REQUESTS
CHAIR THERRIAULT turned to the next order of business,
Representative Joe Green's audit request.
REPRESENTATIVE FATE moved that the committee approve
Representative Green's audit request.
CHAIR THERRIAULT asked if Ms. Davidson had worked with
Representative Green regarding whether this could be done
through a diversion process.
PAT DAVIDSON, Legislative Auditor, Division of Legislative
Audit, Alaska State Legislature, confirmed that she has spoken
with Representative Green's staff who have made attempts to
resolve this with the department. However, there has been no
resolution and thus she felt that an audit is necessary at this
juncture.
CHAIR THERRIAULT asked what the PC7 planes are.
SENATOR WILKEN clarified that those are two-passenger tandem
Pilatus aircraft. These are high-speed, high-performance fire
spotting aircraft.
CHAIR THERRIAULT informed the committee that members should have
a memo that outlines where the committee is with respect to the
audits yet to be scheduled. He asked if there was objection to
adding this to the list of audits. There being no objection,
the audit was added to the list of those to schedule.
OTHER COMMITTEE BUSINESS
CHAIR THERRIAULT announced the he would now like to turn to the
Regulatory Commission of Alaska (RCA) audit. The committee
received copies of the audit.
Number 0728
MS. DAVIDSON explained that in this type of audit the process
identifies effected agencies that were under regulation. Page 2
of the report includes the list of agencies that [the auditor]
spoke with. As one reviews this list it's evident that a wide
variety of [entities] were contacted. Ms. Davidson said, "When
you're looking at a sunset audit, what you're looking at is ...
less about any particular issue as opposed to an overall
assessment of whether this agency is meeting its public
purpose." Therefore, the report is more of a consensus opinion.
On page 11, the report specifies that the dominate perception is
that, in comparison to the Alaska Public Utilities Commission
(APUC), the RCA is substantially improving its service. Ms.
Davidson said that [what the auditors] saw was an agency that
was progressing. She clarified that she didn't want to leave
everyone with the impression that everyone had positive
comments. She explained that people spoke at two levels, one
being an overall view of the RCA and the other being in regard
to the [entity's] individual docket. She specified that the
driving force behind a sunset review is whether the organization
could continue or not.
MS. DAVIDSON informed the committee that [there were enough
comments] regarding the public advocacy section that she
determined that its role wasn't sufficiently defined. The
section was new to RCA and needed some care; that is, when
utilities came in, the utilities needed to know how the public
advocacy section would work. Furthermore, there was
disappointment with the new Management Information System (MIS).
Ms. Davidson reiterated that in a sunset review, [auditors]
review the consensus which builds the conclusion rather than
following any particular case.
Number 1107
CHAIR THERRIAULT, drawing from the testimony on the RCA in the
Senate Judiciary Standing Committee, related that most of the
witnesses testified that although the RCA has some problems, it
should be extended. He noted that the findings of the audit
report specify some necessary changes. He asked if there was
anything that didn't rise to the level of the auditor making a
finding or recommendation.
MS. DAVIDSON clarified that this review [considered] the utility
standpoint as well as the public standpoint. With regard to how
the RCA is responding to complaints, Ms. Davidson said that she
wished other departments handled complaints as well as the RCA.
To the extent that there were concerns regarding individual
cases, those are areas that the audit probably wouldn't review.
Therefore, any concerns with regard to individual cases wouldn't
have come to the auditor's attention. Ms. Davidson pointed out
that those who do receive a ruling from the RCA can appeal it.
Whenever there are complaints about decision-making, one of the
areas reviewed is whether there is a process in place in statute
that allows appeal and whether that process is being utilized.
When reviewing the appeals that had gone to court, the court
upheld the RCA's decision three out of four times.
Number 1509
REPRESENTATIVE LANCASTER asked if the conversations that Ms.
Davidson had with those [entities] listed on page 2 of the audit
report would be available if requested.
MS. DAVIDSON specified that the work papers are, by law,
confidential. However, the [entities contacted] are free to do
what they like.
CHAIR THERRIAULT asked if, during the appointments with these
entities, it was explained to the entities that they were free
to say what they wanted and that it would only be between the
entity and the auditor. Furthermore, were these entities
informed that their statements wouldn't be conveyed to the RCA
or the legislature.
MS. DAVIDSON answered that she wasn't sure that would've been
explained. "To the degree that ... either they asked or we
could see that there was a concern about that, it would be
discussed," she explained.
Number 1646
SENATOR HOFFMAN asked if any consideration was given to how the
majority of other states with regulatory commissions operate.
For example, there has been the suggestion that the commissioner
[of the RCA] should have a four-year seat rather than a six-year
seat.
MS. DAVIDSON replied no, and specified that the focus was on
existing statutes.
SENATOR PHILLIPS inquired as to who selects the chair of the
RCA.
SENATOR WILKEN related his belief that the committee elects the
chair.
REPRESENTATIVE LANCASTER returned to the issue of the
confidential conversations between the auditor and the listed
entities. He related his understanding that the committee would
have to assume that the auditor used the information obtained
during the confidential conversations internally to produce the
results. Therefore, he surmised that requests for specifics of
conversations wouldn't be filled.
MS. DAVIDSON replied yes. She indicated that she could specify
that so many entities were positive on a certain matter and so
many were negative. She reiterated the report's finding that
the dominate perspective was that the current RCA is doing a
better job than the APUC.
SENATOR WILKEN noted that he listened to the [recent] four days
of testimony [in the Senate Judiciary Standing Committee]. One
of the points he gleaned from that testimony was the need for
the RCA to have a manager to manage the business of the RCA
without being responsible for cases at the same time. He asked
if that came to light during the audit.
MS. DAVIDSON said that although there were concerns with regard
to [the lack of a manager for the RCA], there was no
[expression] that it was an eminent need. Usually if there is a
real problem with such an organizational structure, it will show
up relatively early.
CHAIR THERRIAULT related that Senator Taylor didn't want any of
his comments to be construed to mean that the audit had been
done in a poor fashion.
Number 2014
CHAIR THERRIAULT turned attention to the report of the current
status of the Federal Child and Family Youth Services audit.
MS. DAVIDSON explained that with regard to the state's self
assessment meeting federal standards, the state isn't doing very
well. [The report] includes a description of the elements and
the actual thresholds at which the federal programs specify
versus what Alaska is experiencing. She informed the committee
that this week a team is speaking with various stakeholders
around the state. A total of 50 cases are being reviewed in
depth. At the end of the review, the team expects to issue a
report later this summer. That report and the evaluation will
be provided to committee members.
CHAIR THERRIAULT requested that Ms. Brakes update the committee
with regard to the contractor on the education study.
Number 2229
HEATHER BRAKES, Staff to Senator Therriault, Joint Committee on
Legislative Budget & Audit, Alaska State Legislature, informed
the committee that the oversight committee held a teleconference
with the contractors right before the regular session adjourned.
The contractors were having some trouble receiving responses to
their surveys from some of the school districts. Therefore, BUD
was working with some of the Senators from those districts in
order to help contact the school districts and encourage them to
respond. There was also a working group that was trying to get
the surveys returned. She recalled that the working group's
effort resulted in about 80 percent [response rate].
CHAIR THERRIAULT asked if that [response rate increased] after
he gave Senators information regarding the importance of the
school districts' response to the survey.
MS. BRAKES replied yes, and specified that the timeframe was
about the third week of May. All the surveys needed to be
returned by the end of May. The hope is that [the oversight]
committee will be able to meet with BUD in mid to late summer.
CHAIR THERRIAULT pointed out that this year there was an
appropriation for the veterans study. Therefore, when the
legislation is signed into law that RFP process will begin.
Number 2426
SENATOR WILKEN asked if there is any indication that there will
be school districts that won't respond.
MS. BRAKES answered yes. She said that she would be in contact
with the [oversight committee] this week and provide the
committee with information as to whether there are still school
districts that haven't responded.
CHAIR THERRIAULT suggested that now that school is over perhaps
the lists should be distributed to Representatives and Senators
again in an effort to garner responses.
CHAIR THERRIAULT informed the committee that there were a couple
of appropriations that have problems. He related his belief
that perhaps the best path would be to meet with the Co-Chairs
of the House Finance Committee and the Senate Finance Committee,
the President of the Senate, and Speaker of the House of
Representatives in order to find a way in which to [resolve
this].
Number 2532
NANCY SLAGLE, Director, Division of Administrative Services,
Department of Transportation & Public Facilities, explained that
in the governor's capital budget [the division] submitted an
amendment that changed the dollar amount and title of four
projects. What actually was placed in the system was the change
in dollar amounts, but not the change in titles. Therefore, it
creates some problems because some of the titles are more
restrictive than necessary. The first of these projects will be
put out for bid in November and thus this has to be taken care
before the next legislative session. In an attempt to find a
resolution to this problem, Ms. Slagle found a couple of old
appropriations that may allow the addition of federal authority
such that the two most critical issues can be addressed. The
other two projects could probably be resolved the next
legislative session, she said.
CHAIR THERRIAULT noted that he is working with [the Division of
Legal and Research Services] in regard to the authority the
[committee] has. He related his understanding that [the
committee] can add to an appropriation. However, he viewed some
of these as basically changing the line item.
DAVID TEAL, Legislative Fiscal Analyst, Legislative Finance
Division, Alaska State Legislature, specified that two of the
budget requests can be fixed by going back to past projects.
MS. SLAGLE informed the committee that there were four projects,
of which two were airport projects, and two were highway
projects.
CHAIR THERRIAULT related his understanding that the line item in
the budget isn't correct. That is, the miles with respect to
the location of the project isn't correct, although the dollar
amount is correct.
MR. TEAL expressed his belief that the Nondalton and Scammon Bay
projects can be attached to existing capital projects.
MS. SLAGLE specified that the Nondalton and Hatcher Pass
projects are projects that require sooner correction than the
other matters.
MR. TEAL explained that both will be handled with existing
projects. However, he imagined that there would be two RPLs at
the next BUD meeting. The other two can wait, per the agencies.
CHAIR THERRIAULT noted his reluctance to merely change line
items because he wasn't sure the committee has that power.
Number 2943
SENATOR HOFFMAN inquired as to the problem with the Nondalton
language.
MS. SLAGLE clarified that the current language says the
appropriation is for resurfacing, but the money is actually
necessary for work on the snow removal equipment building and
the airport layout plan, which is quite different. She
explained that it seems that this matter will be resolved by
coming forward with an RPL that would be added to a statewide
minor airport improvement appropriation.
ADJOURNMENT
There being no further business before the committee, the Joint
Committee on Legislative Budget and Audit meeting was adjourned
at 1:51 p.m.
| Document Name | Date/Time | Subjects |
|---|