Legislature(2005 - 2006)Anch LIO Conf Rm
11/04/2005 01:00 PM House LEGISLATIVE BUDGET & AUDIT
| Audio | Topic |
|---|---|
| Start | |
| Approval of Minutes | |
| Revised Program - Legislative (rpls) |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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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