Legislature(2003 - 2004)

02/19/2004 12:45 PM House BUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
        JOINT COMMITTEE ON LEGISLATIVE BUDGET AND AUDIT                                                                       
                       February 19, 2004                                                                                        
                           12:45 p.m.                                                                                         
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ralph Samuels, Chair                                                                                             
Representative Mike Chenault                                                                                                    
Representative Mike Hawker                                                                                                      
Representative Beth Kerttula                                                                                                    
                                                                                                                                
Senator Gene Therriault, Vice Chair                                                                                             
Senator Ben Stevens                                                                                                             
Senator Con Bunde                                                                                                               
Senator Gary Wilken                                                                                                             
Senator Lyman Hoffman (via teleconference)                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Vic Kohring                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
APPROVAL OF MINUTES                                                                                                             
EXECUTIVE SESSION                                                                                                               
AUDIT REQUESTS                                                                                                                  
OTHER COMMITTEE BUSINESS                                                                                                        
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
PAT DAVIDSON, Legislative Auditor                                                                                               
Division of Legislative Audit                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information on Representative Paul                                                                
Seaton's audit request regarding Alaska Marine Highway System                                                                   
procurement.                                                                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 04-3, SIDE A                                                                                                             
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  RALPH SAMUELS  called the  Joint Committee  on Legislative                                                             
Budget and Audit meeting to  order at 12:45 p.m.  Representatives                                                               
Samuels,  Chenault,  Hawker,  and   Kerttula,  and  Senators  Ben                                                               
Stevens, Wilken,  and Hoffman  (via teleconference)  were present                                                               
at the call  to order.  Senators Therriault and  Bunde arrived as                                                               
the meeting was in progress.                                                                                                    
                                                                                                                                
^APPROVAL OF MINUTES                                                                                                          
                                                                                                                                
Number 0026                                                                                                                     
                                                                                                                                
REPRESENTATIVE HAWKER  made a  motion to  approve the  minutes of                                                               
January  15,  2004,  and  February  3,  2004.    There  being  no                                                               
objection, the  minutes from  the meetings  of January  15, 2004,                                                               
and February 3, 2004, were approved.                                                                                            
                                                                                                                                
CHAIR SAMUELS noted the arrival of Senator Therriault.                                                                          
                                                                                                                                
^EXECUTIVE SESSION                                                                                                            
                                                                                                                              
Number 0053                                                                                                                     
                                                                                                                              
REPRESENTATIVE HAWKER 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.                                                                                                 
                                                                                                                                
CHAIR SAMUELS  brought the committee  back to order at  1:13 p.m.                                                               
[Senator Bunde had arrived during executive session.]                                                                           
                                                                                                                                
^AUDIT REQUESTS                                                                                                               
                                                                                                                              
Number 0124                                                                                                                     
                                                                                                                                
SENATOR THERRIAULT  made a  motion for the  final audits  for the                                                               
Department of  Education and Early Childhood  Development, Sunset                                                               
Review   (05-20026-04)  and   the  Department   of  Environmental                                                               
Conservation, Village Safe Water  Program, Selected Projects (18-                                                               
30028-04)  to be  released to  the  public for  response.   There                                                               
being no objection, it was so ordered.                                                                                          
                                                                                                                              
Number 0146                                                                                                                     
                                                                                                                              
PAT  DAVIDSON,  Legislative   Auditor,  Division  of  Legislative                                                               
Audit, Alaska State Legislature,  presented an audit request from                                                               
Representative  Paul  Seaton   regarding  Alaska  Marine  Highway                                                               
System procurement.   Ms. Davidson said this request  asks for an                                                               
audit of the Department of  Transportation and Public Facilities,                                                               
Alaska Marine  Highway System's compliance with  procurement laws                                                               
and regulations for vessel repair and maintenance contracts.                                                                    
                                                                                                                                
CHAIR SAMUELS asked if there was any discussion.                                                                                
                                                                                                                                
Number 0207                                                                                                                     
                                                                                                                                
SENATOR THERRIAULT  made a motion  for the Alaska  Marine Highway                                                               
System procurement audit to be  approved by the committee.  There                                                               
being no objection, it was so ordered.                                                                                          
                                                                                                                              
^OTHER COMMITTEE BUSINESS                                                                                                     
                                                                                                                              
Number 0224                                                                                                                     
                                                                                                                                
SENATOR   WILKEN  said   it  was   his  understanding   that  the                                                               
administration was putting together a  central travel office.  He                                                               
said he  sees this as the  State of Alaska stealing  from private                                                               
industry,  and said  he  had  asked for  an  audit  last fall  to                                                               
determine if this  was in the best interest of  Alaska.  He asked                                                               
Ms. Davidson for the status of this audit.                                                                                      
                                                                                                                                
MS. DAVIDSON replied [the Division  of Legislative Audit] had not                                                               
initiated  that audit,  but  said  one of  her  staff members  is                                                               
attending a  finance officers' meeting  today to  get information                                                               
about  the  central  travel  office.   She  said  her  office  is                                                               
monitoring  the  issue,  but  has  not started  an  audit.    She                                                               
explained it  would probably be  another four months  before that                                                               
audit was begun.                                                                                                                
                                                                                                                                
Number 0348                                                                                                                     
                                                                                                                                
SENATOR  WILKEN stated  he probably  shouldn't be  so "black  and                                                               
white," but  he has seen no  evidence to show the  benefit of the                                                               
state's becoming its own travel agency.                                                                                         
                                                                                                                                
SENATOR  WILKEN  mentioned  the   [Alaska  School  District  Cost                                                               
Study], and asked for a report on its progress.                                                                                 
                                                                                                                                
Number 0404                                                                                                                     
                                                                                                                                
CHAIR  SAMUELS said  after  the peer  review  was released,  [Ms.                                                               
Davidson], David  Teal, and [Representative Samuels's]  staff got                                                               
together  with  Dr.  Tuck,  the ISER  [Institute  of  Social  and                                                               
Economic  Research]  professor  who presented  the  peer  review.                                                               
They asked  [Dr. Tuck] how long  it would take to  implement "his                                                               
fixes,"  how long  the information  in  [American Institutes  for                                                               
Research] was valid,  and how much it would cost  to complete the                                                               
project.   Chair Samuels said by  the next meeting he  would have                                                               
the information and a proposal for the committee to look at.                                                                    
                                                                                                                                
CHAIR  SAMUELS  continued  to  say   that  Dr.  Tuck  stated  the                                                               
information cannot  be obtained by  the end of this  session, and                                                               
[the committee] will need to decide how to proceed.                                                                             
                                                                                                                                
Number 0549                                                                                                                     
                                                                                                                                
SENATOR WILKEN said  his understanding was that  there were three                                                               
issues  [to be  dealt with  from the  ISER report]:   the  energy                                                               
issue, the  teacher salary  component, and  "the leveling  of the                                                               
ups and  downs of some  sort of grouping."   He wondered  if [the                                                               
committee] had talked to AIR since the last meeting.                                                                            
                                                                                                                                
CHAIR  SAMUELS  replied that  he  had  never  talked to  AIR  and                                                               
wondered, in the  peer review, how much interaction  AIR had with                                                               
Dr. Tuck.                                                                                                                       
                                                                                                                                
Number 0624                                                                                                                     
                                                                                                                                
MS. DAVIDSON replied  that it was clear that Dr.  Tuck had talked                                                               
to [AIR].                                                                                                                       
                                                                                                                                
SENATOR WILKEN  inquired if [the  committee] would be  asking Dr.                                                               
Tuck to talk to AIR, so he's not "reinventing the wheel."                                                                       
                                                                                                                                
Number 0643                                                                                                                     
                                                                                                                                
CHAIR SAMUELS  responded that  Dr. Tuck  would be  moving forward                                                               
with information from  AIR or from [Association  of Alaska School                                                               
Boards] or from wherever he needs to go to get information.                                                                     
                                                                                                                                
REPRESENTATIVE WILKEN  said he  hoped this  could be  done sooner                                                               
than  a month  from  now, but  said  he'd leave  it  up to  Chair                                                               
Samuels.                                                                                                                        
                                                                                                                                
CHAIR SAMUELS reiterated  that he'd speak with Dr.  Tuck and work                                                               
with Ms. Davidson.                                                                                                              
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
Number 0719                                                                                                                     
                                                                                                                                
There being no  further business before the  committee, the Joint                                                               
Committee on  Legislative Budget and Audit  meeting was adjourned                                                               
at 1:20 p.m.                                                                                                                    

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