Legislature(2005 - 2006)Anch LIO Conf Rm

11/04/2005 01:00 PM House LEGISLATIVE BUDGET & AUDIT

Audio Topic
01:12:27 PM Start
01:14:29 PM Approval of Minutes
01:14:35 PM Revised Program - Legislative (rpls)
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
--teleconference--
RPLs, Audits, Approval of Minutes,
Other Committee Business
Anchorage LIO, Room 220
                    ALASKA STATE LEGISLATURE                                                                                  
             LEGISLATIVE BUDGET AND AUDIT COMMITTEE                                                                           
                       Anchorage, Alaska                                                                                        
                        November 4, 2005                                                                                        
                           1:12 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Gene Therriault, Chair                                                                                                  
Representative Ralph Samuels, Vice Chair                                                                                        
Senator Bert Stedman                                                                                                            
Senator Ben Stevens                                                                                                             
Senator Lyman Hoffman                                                                                                           
Representative Mike Hawker                                                                                                      
Representative Pete Kott                                                                                                        
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyda Green                                                                                                              
Representative Mike Chenault                                                                                                    
Senator Gary Wilken                                                                                                             
Representative Reggie Joule                                                                                                     
Representative Kevin Meyer                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
APPROVAL OF MINUTES                                                                                                             
REVISED PROGRAM - LEGISLATIVE (RPLs)                                                                                            
EXECUTIVE SESSION                                                                                                               
OTHER COMMITTEE BUSINESS                                                                                                        
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DIANE BARRANS, Executive Director                                                                                               
Postsecondary Education Commission                                                                                              
Department of Education and Early Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information on RPL 05-06-6017.                                                                    
                                                                                                                                
LAURA BAKER, Budget Chief                                                                                                       
Finance and Management Services                                                                                                 
Department of Health and Social Services                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information on RPL 06-06-0168.                                                                    
                                                                                                                                
DAVID TEAL, Legislative Fiscal Analyst                                                                                          
Legislative Finance Division                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Provided information on  RPL 06-06-0168 and                                                               
25-06-1039.                                                                                                                     
                                                                                                                                
NANCY SLAGLE, Director                                                                                                          
Division of Administrative Services                                                                                             
Department of Transportation & Public Facilities                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information on RPL 25-06-1039.                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CHAIR  GENE THERRIAULT  called the  Legislative Budget  and Audit                                                             
Committee meeting to  order at 1:12:27 PM.   Senators Hoffman and                                                             
Therriault,  and  Representatives   Samuels,  Hawker,  Kott,  and                                                               
Kerttula were  present at  the call to  order.   Senators Stedman                                                               
and Stevens arrived as the meeting was in progress.                                                                             
                                                                                                                                
^APPROVAL OF MINUTES                                                                                                          
                                                                                                                                
1:14:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SAMUELS moved  to approve  the committee  minutes                                                               
from the  following dates:  May  6, 2005; May 11,  2005; July 12,                                                               
2005; August  31, 2005; and September  26, 2005.  There  being no                                                               
objection, the specified committee minutes were approved.                                                                       
                                                                                                                                
^REVISED PROGRAM - LEGISLATIVE (RPLs)                                                                                         
                                                                                                                                
1:14:35 PM                                                                                                                    
                                                                                                                                
CHAIR THERRIAULT announced that the  committee would now turn its                                                               
attention to the RPLs.                                                                                                          
                                                                                                                                
REPRESENTATIVE SAMUELS  moved that the committee  approve RPL 05-                                                               
06-6017,  Department   of  Education   -  Alaska   Commission  on                                                               
Postsecondary College Goal Sunday.                                                                                              
                                                                                                                                
CHAIR THERRIAULT objected for discussion purposes.                                                                              
                                                                                                                                
1:15:03 PM                                                                                                                    
                                                                                                                                
DIANE   BARRANS,  Executive   Director,   Alaska  Commission   on                                                               
Postsecondary  Education (ACPE),    Department  of Education  and                                                               
Early Development  (EED), explained  that the  aforementioned RPL                                                               
would carry forward funding that  was in the prior year's budget.                                                               
The  [commission] received  a three-year  grant  from the  Lumina                                                               
Foundation  to support  activities for  the College  Goal Sunday.                                                               
She further explained  that the College Goal  Sunday is sponsored                                                               
collaboratively  by   the  University   of  Alaska,   the  Alaska                                                               
Association  of  Financial  Aid Administrators,  and  the  Alaska                                                               
Native  Claims   Settlement  Act  (ANCSA)   Education  Consortia.                                                               
College  Goal  Sunday  is  an   effort  to  provide  high  school                                                               
students, parents,  and other  individuals assistance  in filling                                                               
out the  Free Application for  Federal Student Aid (FAFSA).   The                                                               
first  year  was  successful.    However,  the  budget  authority                                                               
provided  by   the  Lumina  Foundation  wasn't   fully  expended.                                                               
Therefore, this is a request to  roll those funds forward so that                                                               
in  year two  ACPE will  have access  to the  additional funding.                                                               
Ms. Barrans  informed the committee  that seven sites  around the                                                               
state participated, and the desire is  to expand to three to four                                                               
more sites.                                                                                                                     
                                                                                                                                
1:16:46 PM                                                                                                                    
                                                                                                                                
CHAIR  THERRIAULT  turned  attention   to  the  fiscal  analyst's                                                               
comment,  which relates  that  the total  fiscal  year (FY)  2006                                                               
budget will be $91,645 with  $70,000, the remainder of the grant,                                                               
to be  used in FY  07.  Therefore, he  inquired as to  the amount                                                               
that will be carried forward in FY 07.                                                                                          
                                                                                                                                
1:17:15 PM                                                                                                                    
                                                                                                                                
MS. BARRANS answered that the  $21,645 will be carried forward in                                                               
FY 07.   She explained that the grant was  split into three equal                                                               
components  of $70,000.   Because  the full  amount of  the prior                                                               
year's grant wasn't expended, the  [$21,645] remained.  Under the                                                               
rules  of the  grant, the  remaining  balance was  allowed to  be                                                               
carried forward into the next activity year.                                                                                    
                                                                                                                                
1:17:46 PM                                                                                                                    
                                                                                                                                
CHAIR  THERRIAULT  surmised  then that  ACPE  isn't  anticipating                                                               
consuming all  of FY  06 and  thus some  funds will  be forwarded                                                               
into FY 07.                                                                                                                     
                                                                                                                                
1:17:58 PM                                                                                                                    
                                                                                                                                
MS. BARRANS  answered that such  may be  the case.   However, the                                                               
additional  sites may  actually expend  the total  amount in  the                                                               
current fiscal year.   However, she expected that  there would be                                                               
some carry-over in  FY 07 because ACPE doesn't  want to overspend                                                               
the  budget.    In  further response  to  Chair  Therriault,  Ms.                                                               
Barrans  confirmed that  the  remainder of  the  grant would  [be                                                               
spent] in the third year.                                                                                                       
                                                                                                                                
CHAIR THERRIAULT withdrew his objection.                                                                                        
                                                                                                                                
There being no further objection, RPL 05-06-6017 was approved.                                                                  
                                                                                                                                
1:19:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS  moved that the committee  approve RPL 06-                                                               
06-0168, Department of Health and  Social Services State Planning                                                               
Grant on Uninsured.                                                                                                             
                                                                                                                                
CHAIR THERRIAULT objected for discussion purposes.                                                                              
                                                                                                                                
LAURA  BAKER,  Budget  Chief, Finance  and  Management  Services,                                                               
Department of  Health and Social Services  (DHSS), explained that                                                               
DHSS  is  requesting  additional  federal  authorization  in  the                                                               
amount of $964,000  for a state planning grant  project to review                                                               
the status of  uninsured Alaskans.  This grant  funding is coming                                                               
from  the U.S.  Department of  Health  and Human  Services.   Ms.                                                               
Baker further explained  that one of the goals  with this project                                                               
is to  assemble current data,  to describe the levels  and nature                                                               
of  the  lack  of  health  insurance  coverage  and  its  impact.                                                               
Additionally,   the   project   would  bring   policymakers   and                                                               
stakeholders, both  public and private,  together with DHSS  as a                                                               
convener to identify possible  strategies in Alaska's challenging                                                               
health insurance  environment in  order to propose  a coordinated                                                               
approach to realizing the benefits of coverage to all.                                                                          
                                                                                                                                
CHAIR  THERRIAULT   drew  attention   to  the   fiscal  analyst's                                                               
comments, which specifies that the  replacement of several grants                                                               
with this  single program appears  to provide an  opportunity for                                                               
position  reclassification.   He  asked Mr.  Teal  to detail  the                                                               
meaning of position reclassification.                                                                                           
                                                                                                                                
1:21:36 PM                                                                                                                    
                                                                                                                                
DAVID  TEAL,  Legislative  Fiscal  Analyst,  Legislative  Finance                                                               
Division,  answered   that  the  reference  is   specifically  to                                                               
reclassification.   He explained that five  different grants have                                                               
been  eliminated and  now there  is a  single grant.   Currently,                                                               
there are three managers, a  coordinator position, and a planner,                                                               
which are  in the pay ranges  of 17-21.  The  question is whether                                                               
there is  going to  be any  reclassification of  those positions.                                                               
However, he  acknowledged that reclassification is  strictly left                                                               
to  the executive  branch, which  has indicated  that it  doesn't                                                               
know  which  grants  it  will be  operating  with  which  people.                                                               
Therefore,   Mr.   Teal   didn't   expect   there   to   be   any                                                               
reclassifications.                                                                                                              
                                                                                                                                
1:22:57 PM                                                                                                                    
                                                                                                                                
MR.  TEAL, in  further  response to  Chair Therriault,  clarified                                                               
that  the  reclassification  was  referring  to  potential  range                                                               
changes.    He  explained  that the  question  is  whether  three                                                               
managers  are necessary  to work  on this  single grant  or could                                                               
these employees be reclassified in  a manner that might make more                                                               
sense under a single program.                                                                                                   
                                                                                                                                
1:23:35 PM                                                                                                                    
                                                                                                                                
MS. BAKER  informed the committee  that the unit  itself oversees                                                               
10 federal  grants of which many  have been ongoing for  5 years.                                                               
There may  be some smaller grants  coming, she noted.   Ms. Baker                                                               
highlighted  that the  positions  working on  this federal  grant                                                               
would also  be working  on two  to six other  grants.   The staff                                                               
resources are allocated across all  grants and based on the level                                                               
of  staffing  experience  and  classification.    Therefore,  she                                                               
emphasized  that this  single grant  really isn't  replacing five                                                               
whole grants.                                                                                                                   
                                                                                                                                
1:24:30 PM                                                                                                                    
                                                                                                                                
CHAIR  THERRIAULT  related  his  understanding  that  before  the                                                               
committee today  is whether  to approve the  grant and  allow the                                                               
money to be  accepted and expended in the current  fiscal year or                                                               
not.   The number of personnel  who would draw off  this grant is                                                               
left to the executive branch, he surmised.                                                                                      
                                                                                                                                
1:24:50 PM                                                                                                                    
                                                                                                                                
MR. TEAL agreed.                                                                                                                
                                                                                                                                
1:24:54 PM                                                                                                                    
                                                                                                                                
SENATOR  STEDMAN directed  attention to  the bottom  paragraph of                                                               
the  first  page  of  RPL  06-06-0168, and  inquired  as  to  the                                                               
definition  of the  term "population  planning related  to health                                                               
care needs."                                                                                                                    
                                                                                                                                
1:25:14 PM                                                                                                                    
                                                                                                                                
MS.  BAKER answered  that  in general  the  [Health Planning  and                                                               
Infrastructure] unit works with  communities and organizations to                                                               
assure access to  quality primary and acute  health care services                                                               
in Alaska.  She related that  the unit is discussing performing a                                                               
current  population  survey.   In  further  response  to  Senator                                                               
Stedman, Ms.  Baker added  that the language  refers to  the unit                                                               
reviewing the  old data  and performing new  surveys in  order to                                                               
determine the size of the uninsured population.                                                                                 
                                                                                                                                
1:27:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER inquired  as to the work  product of [HPI].                                                               
He  then  inquired  as  to the  contractual  services  for  which                                                               
$551,000 is designated in the RPL.                                                                                              
                                                                                                                                
MS. BAKER explained that some  of the contractual dollars will be                                                               
utilized  for the  following:    household/employer surveys;  key                                                               
informant interviews; focus groups  for regional data collection;                                                               
actuarial   consultation;  current   population  survey   update;                                                               
technical  assistance  on  model  reform  initiatives,  including                                                               
other state's  initiative analyses  as compared  to Alaska.   The                                                               
final report will have to be printed as well.                                                                                   
                                                                                                                                
1:28:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HAWKER inquired  as  to what  information in  the                                                               
final report will  be of value to and provide  policy guidance to                                                               
the legislature.                                                                                                                
                                                                                                                                
MS. BAKER responded that it  will provide analysis with regard to                                                               
Alaska's uninsured  population and what the  public health system                                                               
can  do  to   ensure  that  Alaskans  receive   the  health  care                                                               
necessary.                                                                                                                      
                                                                                                                                
1:29:35 PM                                                                                                                    
                                                                                                                                
CHAIR THERRIAULT removed his objection.                                                                                         
                                                                                                                                
There being no further objection, RPL 06-06-0168 was approved.                                                                  
                                                                                                                                
1:29:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS  moved that the committee  approve RPL 10-                                                               
06-5025, Department of Natural Resources  - Potter Marsh Phase I.                                                               
There being no objection, RPL 10-06-5025 was approved.                                                                          
                                                                                                                                
1:31:27 PM                                                                                                                    
                                                                                                                                
SENATOR  STEDMAN returned  attention  to RPL  06-06-0168 and  the                                                               
breakdown  information  regarding salaries,  benefits,  personnel                                                               
costs, and consulting costs.   He said, "The fringe benefits were                                                               
roughly  45 percent  of  the  salaries and  wages,  and I'm  just                                                               
wondering if some  time we shouldn't have that  ratio checked and                                                               
a  broader  break  down  brought to  the  committee  for  general                                                               
information."  He opined that 45 percent seems high.                                                                            
                                                                                                                                
1:32:44 PM                                                                                                                    
                                                                                                                                
MR. TEAL provided  the following summary.  He  confirmed that the                                                               
benefit costs are  about 45 percent of the salary.   He explained                                                               
that  the   Public  Employees'   Retirement  System   (PERS)  and                                                               
Teachers' Retirement  System (TRS)  have had 5  percent increases                                                               
over  the last  couple of  years  and increases  are expected  to                                                               
occur again.   The PERS  increase is increasing to  21-26 percent                                                               
on that item alone.  The  remainder of the percentage is standard                                                               
stuff that hasn't changed much over the years.                                                                                  
                                                                                                                                
1:34:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS moved that the committee amend RPL 25-06-                                                                
1039,  Department   of  Transportation  &  Public   Facilities  -                                                               
Anchorage  Handicapped  &  Pedestrian  Access  of  2006  National                                                               
Veterans' Wheelchair  Games, to cite the  appropriation authority                                                               
as  "Section 1,  Chapter  61, SLA  2001, page  37,  line 33"  and                                                               
delete "Section  1, Chapter 3, FSSLA  05, page 85, line  20".  He                                                               
noted that this was requested by the fiscal analyst.                                                                            
                                                                                                                                
CHAIR THERRIAULT objected for discussion purposes.                                                                              
                                                                                                                                
1:35:14 PM                                                                                                                    
                                                                                                                                
MR.  TEAL  explained  that  the original  citation  was  for  the                                                               
general   federal   earmarked    funds,   which   are   typically                                                               
transportation  projects.    Under   that  appropriation  of  the                                                               
earmarked funds  there was  no specific  project related  to this                                                               
[RPL].   Legislative Legal  and Research  Services had  a problem                                                               
with that and the revised  cite certainly stops any questions and                                                               
is clearly an appropriate link.                                                                                                 
                                                                                                                                
1:36:02 PM                                                                                                                    
                                                                                                                                
CHAIR THERRIAULT  surmised then that an  RPL has to attach  to an                                                               
active  appropriation   that  is  project  specific,   which  the                                                               
original citation did not.                                                                                                      
                                                                                                                                
MR. TEAL agreed, adding that  the first citation was not specific                                                               
enough.                                                                                                                         
                                                                                                                                
1:36:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS  moved that the committee  approve RPL 25-                                                               
06-1039, as amended.                                                                                                            
                                                                                                                                
CHAIR THERRIAULT objected for discussion purposes.                                                                              
                                                                                                                                
1:37:16 PM                                                                                                                    
                                                                                                                                
NANCY  SLAGLE,  Director,  Division of  Administrative  Services,                                                               
Department of Transportation &  Public Facilities, explained that                                                               
the  request   is  for  $2   million  in  federal   receipts  and                                                               
expenditure authority related to  the Veterans' Wheelchair Games.                                                               
This is a congressional earmark  for support of the 2006 National                                                               
Veterans'  Wheelchair Games,  which are  scheduled to  take place                                                               
the  first part  of  July.   These  funds will  be  used to  make                                                               
improvements to the Anchorage football  stadium, to the sidewalks                                                               
and crosswalks in the Anchorage  area to accommodate athletes and                                                               
supporters in wheelchairs.  These funds  will be passed on to the                                                               
Municipality  of Anchorage,  which  will oversee  the design  and                                                               
construction   of   these   improvements.      Furthermore,   the                                                               
municipality will provide matching funds as well.                                                                               
                                                                                                                                
1:38:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SAMUELS, on  behalf of  the Veterans'  Wheelchair                                                               
Games and the Veterans'  Administration, thanked U.S. Congressman                                                               
Young, who managed to [secure these funds].                                                                                     
                                                                                                                                
1:39:25 PM                                                                                                                    
                                                                                                                                
CHAIR THERRIAULT withdrew his objection.   There being no further                                                               
objection, RPL 25-06-1039 was approved.                                                                                         
                                                                                                                                
CHAIR THERRIAULT announced that the  committee would take a brief                                                               
at-ease before going into executive session.                                                                                    
                                                                                                                                
^EXECUTIVE SESSION                                                                                                            
                                                                                                                                
The committee went into Executive Session at 1:39 p.m.                                                                          
                                                                                                                                
[Due  to  technical difficulties  the  motion  to move  into  and                                                               
return  from Executive  Session  was not  recorded  nor were  the                                                               
following  items   discussed  under  Other   Committee  Business.                                                               
Therefore, the following information  was obtained from the notes                                                               
of the committee aide who was present at the hearing.]                                                                          
                                                                                                                                
^OTHER COMMITTEE BUSINESS                                                                                                     
                                                                                                                                
CHAIR  THERRIAULT   informed  the   committee  that   the  Alaska                                                               
Permanent  Fund  Corporation (APFC)  Board  of  Trustees will  be                                                               
meeting November 15th  and 16th in order to take  up a regulation                                                               
to allow  the fund  managers to  keep some  investment strategies                                                               
and decisions  confidential.   Although Michael  Burns, Executive                                                               
Director, Alaska  Permanent Fund Corporation, has  indicated that                                                               
the trustees have  been vested with the authority to  do so since                                                               
the creation of the APFC in  1980, the matter in conjunction with                                                               
the trustees' new flexibility  regarding investment decisions has                                                               
received attention.   In fact, an op-ed piece on  the subject has                                                               
been written  and its  author, Gregg  Erickson, is  continuing to                                                               
follow  the story.    Since  the committee  is  charged with  the                                                               
oversight of  APFC, Chair Therriault  asked if members  wished to                                                               
have the APFC  appear at the next meeting in  order to provide an                                                               
overview of these regulations.                                                                                                  
                                                                                                                                
CHAIR THERRIAULT  then reminded  the committee  that at  its July                                                               
meeting,  it approved  a  reimbursable  services agreement  (RSA)                                                               
with  the Alaska  Department of  Fish &  Game to  continue to  do                                                               
research work on  navigable waters in the state.   The Department                                                               
of Natural Resources has provided a  request for a similar RSA to                                                               
help pay for the costs necessary  to perform its part of the work                                                               
regarding  navigable   waters  and  R.S.  2477   trails.    Chair                                                               
Therriault announced  that the aforementioned request  will be an                                                               
agenda item for the next meeting.   He offered that his staff can                                                               
make the  request available to  committee members and  answer any                                                               
questions.                                                                                                                      
                                                                                                                                
CHAIR  THERRIAULT  informed  the  committee  that  prior  to  the                                                               
issuance  of   the  Attorney  General's  opinion   regarding  the                                                               
commissioner  of  the  Department   of  Natural  Resources'  memo                                                               
expressing  concerns with  regard  to the  natural gas  pipeline,                                                               
Representative  Berkowitz requested  an independent  legal review                                                               
of  the  aforementioned  memo.    Chair  Therriault  related  his                                                               
recommendation that  Representative Berkowitz should  exhaust the                                                               
avenues available  to him through the  Legislative Legal Division                                                               
before the committee considers his request.  However, Chair                                                                     
Therriault said that he wanted to solicit input from the                                                                        
committee members before making such a recommendation.                                                                          
                                                                                                                                
[Due to technical difficulties the adjournment was not                                                                          
recorded.]                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the                                                                       
Legislative Budget and Audit Committee meeting was adjourned at                                                                 
3:39 p.m.                                                                                                                       
                                                                                                                                

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