Legislature(1997 - 1998)

01/17/1997 08:03 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                             
                       STANDING COMMITTEE                                      
                        January 17, 1997                                       
                           8:03 a.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Ivan Ivan, Chairman                                            
 Representative Fred Dyson                                                     
 Representative Joe Ryan                                                       
 Representative Jerry Sanders                                                  
 Representative Albert Kookesh                                                 
 Representative Reggis Joule                                                   
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Representative Scott Ogan                                                     
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 OVERVIEW:  Department of Community and Regional Affairs                       
              Division of Municipal and Regional Assistance;                   
              Division of Energy; and Boards and Commissions                   
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 No previous action to record                                                  
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 YVONNE CHASE, Director                                                        
 Division of Community and Rural Development                                   
 Department of Community and Regional Affairs                                  
 333 West Fourth Avenue, Suite 220                                             
 Anchorage, Alaska  99501-2341                                                 
 Telephone:  (907) 269-4607                                                    
 POSITION STATEMENT:  Presented overview of the Division of                    
                      Community and Rural Development                          
                                                                               
 REDMOND HENDERSON, Director                                                   
 Division of Administrative Services                                           
 Department of Community and Regional Affairs                                  
 P.O. Box 112100                                                               
 Juneau, Alaska  99811-2100                                                    
 Telephone:  (907) 465-4708                                                    
 POSITION STATEMENT:  Presented overview of the budget of the                  
                      Division of Community and Rural Development              
                                                                               
 PAT POLAND, Director                                                          
 Division of Municipal & Regional Assistance Division                          
 Department of Community and Regional Affairs                                  
 333 W 4th Avenue, Suite 220                                                   
 Anchorage, Alaska  99501-2341                                                 
 Telephone:  (907) 269-4500                                                    
 POSITION STATEMENT:  Presented overview of the Division of                    
                      Municipal & Regional Assistance Division                 
                                                                               
 PERCY FRISBY, Director                                                        
 Division of Energy                                                            
 Department of Community and Regional Affairs                                  
 333 W 4th Avenue, Suite 220                                                   
 Anchorage, Alaska  99519-2341                                                 
 Telephone:  (907) 269-4640                                                    
 POSITION STATEMENT:  Presented overview of the Division                       
                      of Energy                                                
                                                                               
 LAMAR COTTON, Deputy Commissioner                                             
 Office of the Commissioner                                                    
 Department of Community and Regional Affairs                                  
 P.O. Box 112100                                                               
 Juneau, Alaska  99811-2100                                                    
 Telephone:  (907) 465-2948                                                    
 POSITION STATEMENT:  Answered questions regarding Boards &                    
                      Commissions                                              
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-2, SIDE A                                                             
 Number 000                                                                    
                                                                               
 CHAIRMAN IVAN IVAN called the House Community and Regional Affairs            
 Committee meeting to order at 8:03 a.m.  Members present at the               
 call to order were Representatives Ivan, Dyson, Ryan, Sanders, and            
 Joule.  He announced a quorum was present.                                    
                                                                               
 CHAIRMAN IVAN said this meeting would be the continuation of the              
 overview by the Department of Community and Regional Affairs                  
 (DCRA).  Several divisions within DCRA would present information              
 including the Division of Community and Rural Development, Division           
 of Municipal and Regional Assistance and the Division of Energy.              
 He said if there was an interest in Boards and Commissions it would           
 be addressed also.                                                            
                                                                               
 Number 0135                                                                   
                                                                               
 YVONNE CHASE, Director, Division of Community and Rural                       
 Development, Department of Community and Regional Affairs, said she           
 would present a brief overview on the Division of Community and               
 Rural Development (DCRD) and distributed information to the                   
 committee members.  She said she would address the Head Start                 
 Program, the child care programs, Jobs Training Partnership Act               
 (JTPA) programs and the Alaska Community Service Commission.                  
 MS. CHASE said the Head Start Program is a 28-year-old program with           
 a proven track record in terms of the children and the families               
 served by the program.  She said services are provided to over                
 3,000 children every year which provides jobs for close to 600                
 individuals.  She said a little over half of those employees of the           
 Head Start Program have either been or currently are Head Start               
 parents.  She said there is parent involvement in the program as              
 well as employment for the communities where the Head Start                   
 Programs exist.                                                               
                                                                               
 MS. CHASE referred to information she had distributed and said the            
 Head Start State Collaboration Project is run with $500,000 of                
 federal money and currently they are in the fifth year of operation           
 of a five-year grant.  She said they've been able to leverage the             
 money to provide various services.  She said it would be difficult            
 to pick one particular project, but said the Danforth COMPASS                 
 Project is a timely one.                                                      
                                                                               
 Number 0362                                                                   
                                                                               
 MS. CHASE said the Danforth COMPASS Project encourages communities            
 to develop local initiatives to evaluate successes and to build on            
 those successes.  She said the communities also provide some seed             
 money for projects to continue in those communities.  Ms. Chase               
 referred to a policy team, which is an interdepartmental team that            
 she serves on.  She outlined a selection of projects across the               
 state where representative groups from those projects will be                 
 brought in to a training session in February, which will allow                
 those communities to go back with information about what other                
 communities are doing and, in an community inter-collaboration                
 group, begin to do some additional things to utilize departmental             
 monies in the best way that they can.                                         
                                                                               
 MS. CHASE said there are 13 Head Start grantees across the state              
 who are active on both a state and national level.  She said a key            
 to the Head Start Program is the parental involvement and parents             
 are encouraged to not only work in the program, but also to                   
 participate in state and national activities.                                 
                                                                               
 CHAIRMAN IVAN welcomed Representative Kookesh to the meeting.                 
                                                                               
 Number 0523                                                                   
                                                                               
 REPRESENTATIVE FRED DYSON referred to the Head Start Program staff            
 in the villages and asked if they were trained in diagnosing and              
 working with persons affected with Fetal Alcohol Syndrome (FAS) and           
 Fetal Alcohol Effect (FAE).                                                   
                                                                               
 Number 0552                                                                   
                                                                               
 MS. CHASE said the staff are trained in identifying FAS and FAE to            
 provide referrals for appropriate follow up services.  She said the           
 staff are trained to work with children in the Head Start setting             
 who have FAS or FAE.                                                          
                                                                               
 Number 0568                                                                   
                                                                               
 REPRESENTATIVE DYSON asked if the staff is trained to spot child              
 physical abuse and sexual abuse.                                              
                                                                               
 Number 0575                                                                   
                                                                               
 MS. CHASE said the staff receives some training in terms of the               
 identification of abuse and, hopefully, sufficient training to                
 alert a resource agency like the Division of Family and Youth                 
 Services (DFYS) or a community agency.  She clarified that although           
 staff are trained to identify abuse, staff are not expected to be             
 specialists in the area.                                                      
                                                                               
 Number 0600                                                                   
                                                                               
 REPRESENTATIVE DYSON asked if there was a standard procedure or               
 policy of what the staff is supposed to do when they spot child               
 abuse.                                                                        
                                                                               
 Number 0612                                                                   
                                                                               
 MS. CHASE said Head Start staff are among the list of mandatory               
 reporters under the state policy which requires them to report any            
 incidence of abuse.                                                           
                                                                               
 Number 0628                                                                   
                                                                               
 REPRESENTATIVE DYSON asked if there was a formalized training on              
 spotting abuse.                                                               
                                                                               
 Number 0647                                                                   
                                                                               
 MS. CHASE said there is a section of the training curriculum that             
 has been developed over a number of years which deals with abuse              
 and it has been continually updated.  She said the staff should be            
 trained or have the most up to date curriculum available to them              
 adding that because of the low turnover of Head Start staff the               
 training is able to go beyond just a basic training.                          
                                                                               
 Number 0687                                                                   
                                                                               
 REPRESENTATIVE DYSON requested a copy of the training curriculum.             
 He referred to her testimony regarding the community groups                   
 labeling their successes and requested information regarding what             
 is working with children affected by FAS, FAE and child abuse.                
                                                                               
 Number 0730                                                                   
                                                                               
 MS. CHASE said one of the things that has been effective is early             
 intervention and prevention.  She said Head Start does home                   
 visitation and early identification with families who are not                 
 necessarily involved in child abuse or neglect at the time, but may           
 be at risk families.  She said Head Start has one of the nationally           
 recognized home visitation programs.  She referred to information             
 the legislature received last year on the healthy families programs           
 which is a similar home visitation program.  She said this                    
 visitation offers an ability to provide support to the parents.               
                                                                               
 Number 0813                                                                   
                                                                               
 REPRESENTATIVE REGGIE JOULE complimented Ms. Chase on the Head                
 Start Program.  He referred to the $500,000 grant the program got             
 from the federal government and noted this is the fifth year of               
 that grant.  He asked what the chances are of getting another                 
 grant.  He asked whether or not this was already being worked on.             
                                                                               
 Number 0834                                                                   
                                                                               
 MS. CHASE said DCRD is constantly applying for additional federal             
 money and the funding status of an additional grant is going to               
 depend on the congressional appropriation.  She said that what DCRD           
 has done with the federal money, hopefully, puts them in a top                
 position to receive money.  She said this money would not be for a            
 follow on to the current project as she doesn't see this project              
 continuing.  The money would be for a new project that would build            
 on the strengths of the current project.                                      
                                                                               
 Number 0870                                                                   
                                                                               
 REPRESENTATIVE JOE RYAN asked for budget information of the DCRD.             
 Number 0885                                                                   
                                                                               
 MS. CHASE said she obtained the director's position in December so            
 she would rely on the Division of Administrative Services in order            
 to provide accurate budget information.                                       
                                                                               
 Number 0917                                                                   
                                                                               
 REDMOND HENDERSON, Director, Division of Administrative Services,             
 Department of Community and Regional Affairs, said Head Start grant           
 dollars budgeted for fiscal year 1998 are $5.9 million.                       
                                                                               
 REPRESENTATIVE RYAN asked if there was state matching money                   
 included in the $5.9 million.                                                 
                                                                               
 Number 0933                                                                   
                                                                               
 MR. HENDERSON said the state funded portion of the Head Start                 
 program was $5.9 million and this was general fund dollars.  He               
 said there are Head Start dollars received by the grantees directly           
 from the federal government.  He said his division has two and a              
 half people administering that program.                                       
                                                                               
 Number 0960                                                                   
                                                                               
 REPRESENTATIVE RYAN clarified that the rest of the money goes                 
 directly to the recipients in the field.                                      
                                                                               
 Number 0970                                                                   
                                                                               
 MS. CHASE said DCRD serves approximately 23 percent of the children           
 who would be eligible for Head Start services.                                
                                                                               
 Number 0980                                                                   
                                                                               
 REPRESENTATIVE RYAN clarified that the exact number is 3,228                  
 children.  He asked for information on the 592 jobs provided for              
 Head Start families.                                                          
                                                                               
 Number 0999                                                                   
                                                                               
 MS. CHASE said presently 52 percent of the staff who run the                  
 programs either are or were former Head Start parents.                        
                                                                               
 MS. CHASE referred to information given to the committee members              
 labeled, "Child Care Programs," and pointed out the historical                
 progression of the child care programs.  She said these programs              
 are referred to in connection with the Welfare to Work Program.               
 She said child care and day care assistance began in 1975 and the             
 department has been providing day care assistance since that time.            
 It was divided into three areas; the child care grant, day care               
 assistance for parents who met low and moderate income levels, and            
 resource development which was the funding for licensed provider              
 training.                                                                     
                                                                               
 MS. CHASE said child care continued for many years without any                
 changes occurring until 1990.  She said at that time, transitional            
 child care began, which is a child care assistance program                    
 targeting parents who had worked their way off of welfare to be               
 sure that they did not move back onto the welfare roles.  At the              
 same time these parents were assured quality day care programs, as            
 well as resource and referral services.  In 1991, at risk child               
 care was developed for individuals in that income level where they            
 were certainly at risk of being on welfare.                                   
                                                                               
 Number 1164                                                                   
                                                                               
 MS. CHASE stated that in 1993, the Child Care Development Block               
 Grant came about.  This was designed to focus on low to moderate              
 income families, those which were working or training to provide              
 needed support.  Last year, with the federal changes in the Welfare           
 Reform Program, a number of changes also took place in the child              
 care area, including the Child Care Development Fund.  The three              
 federal assistance programs were folded into one program and became           
 part of the new fund.  The department now works in partnership with           
 Heath and Social Services to develop a comprehensive plan to                  
 utilize these funds.  Needless to say, it's extremely important in            
 terms of the Welfare to Work effort that they can provide quality             
 day care, the availability of it, and the financial assistance                
 which parents will need to move from welfare to work.                         
                                                                               
 MS. CHASE furthered noted that the state is required to meet                  
 federal guidelines and conduct number crunching to ensure that a              
 certain percentage of individuals presently on welfare move from              
 welfare to work.  This is an essential piece of this program.  At             
 the same time, it's equally important that they ensure this program           
 continues to be available to families operating from hand to mouth            
 on a day to day basis.                                                        
                                                                               
 MS. CHASE stated that one of their challenges in working with                 
 Health & Social Services is that they don't compromise the quality            
 of day care while they increase the day care slots.  It's important           
 that they maintain the needed capacity in the communities as they             
 progress on the Welfare to Work Program.  She then noted figures              
 listed on the right hand side of the Child Care Program handout               
 regarding the current program activities for Day Care Assistance.             
 The department serves about 3600 children per month and of that               
 about 2500 families.  She added that they handle about 2300 child             
 care referrals annually and they do have a waiting list which they            
 try to work through as quickly as possible.                                   
                                                                               
 Number 1336                                                                   
                                                                               
 REPRESENTATIVE RYAN asked if this program was an unfunded mandate             
 or if the federal government provided money for this program.  He             
 also asked if the state was required to provide matching funds and,           
 if so, how were the funds broken out.                                         
                                                                               
 MS. CHASE noted that there was both state and federal money                   
 involved.  She asked Remond Henderson to give the percentages of              
 these.  She stated that there were definitely incentives for states           
 to obtain available federal money.  Ms. Chase also noted that there           
 were also some penalties for Health & Social Services if the number           
 of individuals moving from Welfare to Work don't meet the                     
 percentages based on their population reflected in the rolls.                 
                                                                               
 Number 1384                                                                   
                                                                               
 REMOND HENDERSON stated that he did not have all of the details of            
 the budget with respect to the Day Care programs, but he did say              
 that the general fund portion of the Day Care program is $9.8                 
 million.  He noted a new fund which was developed as a result of              
 welfare reform which contains federal funds, as well as the matched           
 assets associated with it.  In the fund, there is $4.8 million of             
 which, $3.5 million is interagency receipts received from the                 
 Department of Health & Social Services.  There is $1.3 million in             
 the general fund match which is associated with this as well.                 
                                                                               
 Number 1427                                                                   
                                                                               
 REPRESENTATIVE RYAN asked if this program was still so heavily                
 regulated by local building codes as it was years ago.  He noted              
 how these requirements pushed overall expenses up for these                   
 facilities.                                                                   
                                                                               
 MS. CHASE stated that the standards today are more reasonable.                
 She referred to the handout again, when in 1975, the Day Care                 
 Assistance Program began funding for training limited to licensed             
 providers.  In 1991, there was a provision established which was              
 targeted at family child care and child care homes.  She also noted           
 waivers for rural communities since safety is the real point such             
 as an establishment's egress windows, two exits, etc., rather than            
 whether or not a facility has running water, as long as it is                 
 adequate to drink.  The department has looked at regulations and              
 the intent of them to find a way to make sure that the children are           
 safe, but under reasonable circumstances.                                     
                                                                               
 MS. CHASE then noted the various forms of day care provided and               
 mentioned that not only was the department's goal to ensure safety,           
 but an environment where children can learn.                                  
                                                                               
 Number 1579                                                                   
                                                                               
 REPRESENTATIVE RYAN asked who determined what curriculum is used in           
 these various environments.                                                   
                                                                               
 Number 1584                                                                   
                                                                               
 MS. CHASE stated that it depends on the individual centers.  In a             
 number of areas throughout the state, home visitation programs are            
 being instituted.  This is an important program for the prevention            
 of child abuse and neglect through early identification.  This                
 program is also helpful in determining possible physical challenges           
 of a child which might impede learning or their progress in the               
 future.                                                                       
                                                                               
 Number 1673                                                                   
                                                                               
 REPRESENTATIVE DYSON asked if Ms. Chase or administrators of child            
 care have any difficulty in obtaining criminal and arrest records             
 of people who apply for positions in the program.                             
                                                                               
 MS. CHASE responded there was a provision that individuals who work           
 directly with children are required to have a criminal history                
 check.  She noted that while this check is effective, quite often,            
 individuals in child care programs may have an offense somewhere              
 else which the department is not able to detect, or an individual             
 may not have an arrest record.  Ms. Chase offered that one of the             
 problems which continues in child care is the low rate of pay for             
 the individuals who work in these programs.  It tends to be an                
 entry level job.                                                              
                                                                               
 Number 1739                                                                   
                                                                               
 REPRESENTATIVE DYSON asked if there was anything they could do to             
 make it easier for the department to get the information they need,           
 especially in the area of child abusers.                                      
                                                                               
 MS. CHASE said she would like to get back to him on this.  She felt           
 as though the system had improved over the years because of                   
 technology and the access to information is faster.  Technology has           
 enabled them to hook into the national network so that the criminal           
 background is not just limited to Alaska.  An offense record                  
 usually tells them what an individual has been convicted of rather            
 than what they have been arrested for.  There are pros and cons to            
 looking at arrest data.                                                       
                                                                               
 Number 1784                                                                   
                                                                               
 REPRESENTATIVE DYSON asked if the department had detected any                 
 pattern where offenses may have started while the perpetrator was             
 still a juvenile.                                                             
                                                                               
 MS. CHASE said she would follow up on this at a later time for the            
 representative.                                                               
                                                                               
 Number 1817                                                                   
                                                                               
 REPRESENTATIVE JOULE asked if the waiting list mentioned previously           
 for day care was a problem in terms of providing adequate                     
 facilities for the children in the program.                                   
                                                                               
 MS. CHASE said that this continues to be a challenge for them                 
 because when they have an adult who needs day care assistance in              
 order to continue work, they need this service immediately, which             
 usually means that this day care provided will be subsidized.  When           
 an individual has found a job and would like to stay with it, it's            
 important that the department tries to do what they can to support            
 this situation.                                                               
                                                                               
 REPRESENTATIVE JOULE asked, in the context of welfare reform,                 
 whether or not Ms. Chase has seen an increase in the demands of               
 slots available to place children and asked if she had any                    
 projections on how this waiting list might play out.                          
                                                                               
 MS. CHASE stated that she thought they'd see more of a demand on              
 the slots.  They actually had an interagency meeting about a week             
 and a half ago in Anchorage and she said there will be continual              
 follow up meetings of a cross agency group to look at the                     
 availability of slots, how the overall capacity can be increased              
 statewide and how they can make the slots available.  She also                
 mentioned putting a parent in a slot along with a subsidy when it's           
 needed.                                                                       
                                                                               
 Number 1903                                                                   
                                                                               
 REPRESENTATIVE JOULE asked with the continuing demand, whether or             
 not people will be able to receive some sort of training on how to            
 open up licensed day care centers in their own home, etc.                     
                                                                               
 MS. CHASE said that training is on-going and she thought they would           
 probably see an increase in private home facilities cropping up.              
 Some of the larger centers are also looking at trying to increase             
 their capacity.  She is most interested in targeting the rural                
 areas.  She said that in Alaska's urban areas, they have the                  
 capacity or the ability to increase the capacity more easily than             
 in some of the rural areas.                                                   
                                                                               
 Number 1953                                                                   
                                                                               
 REPRESENTATIVE JOULE asked if she knew, based on waiting lists, in            
 which communities were additional facilities needed.                          
                                                                               
 MS. CHASE answered that in working with Heath & Social Services               
 based on how the population breaks down across the state while                
 moving people from welfare to work, they need to be sure to target            
 the same communities.                                                         
                                                                               
 Number 1989                                                                   
                                                                               
 REPRESENTATIVE SANDERS asked about the 23 percent of children which           
 are eligible for the program, but are left out.                               
                                                                               
 MS. CHASE responded that they presently serve 23 percent of the               
 eligible children.  There are a little over 75 percent of children            
 who are eligible for Head Start.                                              
                                                                               
 REPRESENTATIVE SANDERS asked if the majority of this 75 percent               
 figure were located in the rural areas and asked why so many                  
 children are not being served.  He asked if it was merely funding             
 or if the parents didn't want to participate.                                 
                                                                               
 MS. CHASE stated that it was the lack of availability, not the lack           
 of desire from the parents to participate.  She noted that the main           
 reason the Head Start program had been funded by the federal                  
 government over a thirty year period was because of parental                  
 participation.  Parents in communities do become very active in               
 this program, but certainly resources help also.                              
                                                                               
 Number 2069                                                                   
 REPRESENTATIVE SANDERS asked if the primary purpose of this program           
 was to help children or to help people return to the work force.              
                                                                               
 MS. CHASE stated that the initial focus of Head Start was to better           
 prepare children to enter formalized school while requiring a                 
 parental component.  As the program got off the ground many years             
 ago, parental participation became as important as their initial              
 goals for the children.  If a parent is one, interested; but two,             
 active in what's occurring with their child in these early years;             
 there is a better chance that this interest will continue through             
 the formal education process as well.  Many parents become so                 
 committed to the program that they want to become staff.  This is             
 one of the biggest success factors of the program.                            
                                                                               
 Number 2080                                                                   
                                                                               
 MS. CHASE continued with her presentation by addressing the Job               
 Training Program (JTPA) under the Job Training Partnership Office             
 (JTPO).  She provided the committee with a hand out and referred to           
 the left column.  She noted that it was important to provide the              
 committee with the number of adults served through programs, as               
 well as the emphasis of Welfare to Work to show the committee what            
 the actual numbers of the totals in these programs were, i.e.,                
 adults on public assistance or youth in youth welfare families.               
 She added that there was a commitment to work with not only                   
 dislocated workers who may have been very active in the work force            
 and need to be retrained, but also to work with individuals who               
 have been in those borderline, low income jobs which she spoke                
 about previously.                                                             
                                                                               
 MS. CHASE referred to the information in the middle column                    
 outlining the ways in which the department serves individuals.  For           
 example, in Valdez, with the closing of the Harborview Hospital,              
 JTPA has been working with the onsite labor management committee at           
 Harborview and with the larger state-wide committee to assess                 
 whether or not JTPA assesses whether they can provide help in                 
 either re-training or re-locating a worker to other parts of the              
 state in the event of a lay-off.  She also noted the Ketchikan pulp           
 mill and their dealings there.                                                
                                                                               
 MS. CHASE next referred to the handout regarding training for rural           
 Alaskans.  The Home Care Services Program with the Tanana Chiefs              
 Council (TCC) trains individuals in the communities to work with              
 the elders in order to help them maintain residence in their own              
 homes if at all possible.  Ms. Chase noted that the secret to                 
 success with job training programs are partnerships.  She pointed             
 out that the right hand column of this same handout reflected                 
 information related to areas the department works in to partner               
 with other agencies.  She mentioned specifically the Alaska                   
 Resource Investment Council which takes the lead in the program               
 area and intends to work with the department on the one stop                  
 federal grant which the department received.  This grant consists             
 of approximately $7.2 million over three years and gives the                  
 department the ability to partner with private industry.  It brings           
 together the resources the state has to bear to see that the                  
 department can retrain and relocate where necessary.                          
                                                                               
 MS. CHASE summed up her comments by mention of the Alaska Community           
 Services Commission which is essentially the domestic Peace Corps.            
 This commission provides volunteers the ability to do community               
 service projects while receiving a minimum wage.  At the end of a             
 commitment to the program, a volunteer gets a stipend for further             
 educational training.                                                         
                                                                               
 Number 2366                                                                   
                                                                               
 REPRESENTATIVE DYSON asked if there was anything which precluded              
 the job training partnership from conducting training within                  
 correctional facilities.                                                      
                                                                               
 MS. CHASE stated that she didn't know the answer to this question,            
 but she said she would follow up on this issue for Representative             
 Dyson.  Initially she didn't think so.                                        
                                                                               
 Number 2388                                                                   
                                                                               
 REPRESENTATIVE RYAN asked if they still employed youths to paint              
 murals and such during the summertime.                                        
                                                                               
 MS. CHASE said that they still do.                                            
                                                                               
 Number 2406                                                                   
                                                                               
 REPRESENTATIVE SANDERS asked how much general fund money was                  
 involved with the JTPA program.                                               
                                                                               
 MR. HENDERSON stated that with the JTPA program the amount of grant           
 money was zero.  Between the JTPA money and the State Training                
 Employment Program (STEP), there is $17 million consisting of                 
 federal funds and UI (Unemployment Insurance) trust funds.  He also           
 added for clarification purposes information regarding the grant              
 funds.  He noted that there are general funds involved in the                 
 administration to pay for salaries and travel related to these                
 grant fund programs.                                                          
                                                                               
 REPRESENTATIVE SANDERS asked how much money this was.                         
                                                                               
 MR. HENDERSON stated that he would follow up on this information              
 for Representative Sanders.                                                   
                                                                               
 Number 2456                                                                   
                                                                               
 PAT POLAND, Director, Municipal and Regional Assistance Division              
 came forward to testify.  He noted that this division was                     
 relatively small, but predominately provided a broad range of                 
 services to community governments.  He said that he would briefly             
 review the programs within the division and then answer questions.            
                                                                               
 MR. POLAND noted that the bulk of their organization, consisting of           
 50 employees, was focused on local government assistance.  They               
 spend the majority of their time traveling to communities, working            
 hands on with local city clerks, administrators, managers, etc.,              
 helping to manage the day to day affairs of a community.  A subset            
 of this organization, their rural utility advisor program, provides           
 the same type of assistance, but is focused exclusively on managing           
 the business affairs of local utilities with a particular emphasis            
 on sewer and water.                                                           
                                                                               
 TAPE 97-2, SIDE B                                                             
 Number 000                                                                    
                                                                               
 MR. POLAND stated that the division provides staff support to the             
 Local Boundary Commission which is an independent body appointed by           
 the governor and attached to the department.  They have two staff             
 who conduct the commission's technical work such as receiving                 
 petitions for incorporation, dissolution, annexation, and also                
 logistics of setting up meetings, analysis, writing reports, etc.             
 The division does some lands management and planning, although this           
 function has been significantly reduced.  Currently, there is a               
 staff of three which does this type of work.  Under this general              
 component is the Municipal Lands Trustee, a responsibility which              
 the state accepted and received under the Alaska Native Land Claims           
 Settlement Act.  Under this Act, the state holds in trust for                 
 unincorporated communities land for future municipal or other                 
 public uses.                                                                  
                                                                               
 MR. POLAND continued that the division also provides basic planning           
 assistance which has evolved into special planning projects such as           
 the base closures at Adak and Delta Junction, as well as                      
 participation in the Community Response Partnerships in Ketchikan             
 and Wrangell with the mill closures.  They also administer the                
 state revenue sharing, municipal assistance programs, and they also           
 distribute funds under a raw fish tax sharing program.  They                  
 distribute national forest receipts, which comes under a pass                 
 through program, among other such projects conducted with a one               
 person staff.                                                                 
                                                                               
 MR. POLAND mentioned the function of a state assessor who, under              
 the department's auspice, is a one person office with a clerical              
 position.  This person serves much like that of a local government            
 assessor.  This person is responsible for monitoring the practices            
 of local governments, assessment and tax collection practices, as             
 well as assuring that functions are done within the confines of               
 state law.  They are also responsible for administering the Senior            
 Citizen's Renters Rebate Program and the Disabled Veteran's Renters           
 Rebate Program.                                                               
 MR. POLAND stated that the division has staff associated with the             
 Alaska Coastal Management Program.  Largely, they receive funds               
 from the Division of Governmental Coordination.  These funds in               
 turn are awarded to the various coastal districts throughout the              
 state.  They are responsible for grant oversight, as well as for              
 technical assistance.                                                         
                                                                               
 MR. POLAND mentioned the division's research and analysis section             
 consisting of two individuals located in Juneau.  Some of this                
 program's more notable accomplishments include a very extensive               
 community database which covers a wealth of information about                 
 Alaska communities.  He recognized that the state budget has gotten           
 smaller and the fact that other department's ability to do outreach           
 to communities has diminished.  The division finds itself more in             
 the role of working on behalf of other departments and he named               
 some.                                                                         
                                                                               
 MR. POLAND stated that the division has assumed responsibilities              
 and programs related to community and economic development which              
 were formally in the Division of Community and Rural Development.             
 These include the Community Development Quota Program, the                    
 Community Development Block Grant Program, the Rural and                      
 Development Assistance Program, and the Rural Development                     
 Investment Fund.                                                              
                                                                               
 MR. POLAND concluded by stating that the department has seven                 
 offices scattered over the state located in Anchorage, Fairbanks,             
 Juneau, Nome, Kotzebue, Bethel and Dillingham.  Their primary                 
 offices are located in Anchorage and Juneau.  Their Kotzebue and              
 Dillingham offices consist of one person.  Their Nome, Fairbanks              
 and Bethel offices consist of three people.                                   
                                                                               
 Number 250                                                                    
                                                                               
 REPRESENTATIVE RYAN asked about the formula for figuring mill rates           
 on property and what it's based on.  He said in the past it was not           
 based on a very specific formula.                                             
                                                                               
 MR. POLAND noted that the state assessor has been able to evolve              
 the estimating procedures, but there still is no formal detailing             
 of what property is out there and continued that it's basically a             
 formula driven series of estimates which dictates property rates.             
 This is not true for vehicles though.  Through state registration             
 of automobiles and the use of technology, they are able to get a              
 hard number of how many vehicles there are in the state.  The state           
 assessor is charged with determining the full and true value of               
 these vehicles, including everything which is conceivably taxable             
 regardless of exemptions.                                                     
                                                                               
 Number 334                                                                    
                                                                               
 REPRESENTATIVE RYAN next asked about the Municipal Land Entitlement           
 Program.  When municipalities form they receive a certain amount of           
 land from the state and in exchange they compose a government for             
 the area.  The vast majority of municipalities still maintain in              
 some cases an excess of 90 percent of the land which they were                
 given.  The original intent of the act was a way of getting land              
 into the private sector.  Municipalities still owning this land               
 defeats the purpose of this act.  He noted Mr. Poland's mention of            
 a land trust.                                                                 
                                                                               
 MR. POLAND responded that under the Alaska Native Land Claim                  
 Settlement Act a certain amount of land was required to be set                
 aside in the community for future public needs.  In places where              
 there is no municipal government they hold this land in trust until           
 such a government is formed.  In the interim the department acts as           
 a trustee, for example, they leased some land to the school                   
 district in Chignik for a school there.                                       
                                                                               
 Number 394                                                                    
                                                                               
 REPRESENTATIVE RYAN asked if they do anything with the present                
 municipal land or with the future incorporation of a municipality             
 as to their entitlement under the Municipal Lands Act.                        
                                                                               
 MR. POLAND noted that their only role there is to secure                      
 information from the Department of Natural Resources so that areas            
 can get an estimate of what their entitlement might be.  In a                 
 planning context, they also provide technical assistance in                   
 identifying potential uses.                                                   
                                                                               
 Number 420                                                                    
                                                                               
 REPRESENTATIVE IVAN recognized Representative Mark Hodgins in the             
 gallery and invited him to the committee table.                               
                                                                               
 Number 430                                                                    
                                                                               
 REPRESENTATIVE DYSON asked if the division's work with potable                
 water was done through the Village Clean Water Program.                       
                                                                               
 MR. POLAND responded yes, that they work both with Village Safe               
 Water and with the Indian Health Service.  They go through a mutual           
 process of identifying and prioritizing communities to work with,             
 particularly ones which are of concern to them.  This is done in              
 several fashions.  They work with them in advance before                      
 installation of a system by identifying the appropriate technology            
 so that they'll be able to operate and financially pay for the                
 system.  They also work with communities on existing systems.                 
                                                                               
 MR. POLAND drew the distinction that they are separate from                   
 physical plant maintenance.  This is done under the Village Safe              
 Water with their crews.  His division is focused on the business              
 end of this program by establishing good billing and collection               
 systems with rates at a level which will pay for the services.                
                                                                               
 Number 488                                                                    
                                                                               
 REPRESENTATIVE DYSON asked if there was another department within             
 Community & Regional Affairs which does deal on the operational               
 level of waste water treatment.                                               
                                                                               
 MR. POLAND stated that no, this is located in Environmental                   
 Conservation and their Village Safe Water Program.                            
                                                                               
 Number 510                                                                    
                                                                               
 REPRESENTATIVE IVAN inquired about the Coastal Zone Management                
 Program and asked what areas of the state are active under this               
 program.                                                                      
                                                                               
 MR. POLAND stated that the majority of the districts under this               
 management plan are municipalities, either organized boroughs or              
 small first class cities with planning powers.  In addition, there            
 are four coastal resource service areas within the unorganized                
 borough which have coastal management planning responsibilities.              
 There is one in the Bristol Bay area, the Bethel region, the Bering           
 Straits/Nome region and one in the Alaska Westward area of the                
 Aleutian Islands.  These areas are supported by federal coastal               
 management program funds.  They have no taxing authority.  They               
 have no real implementation authority.  They have a local board               
 which prepares and adopts a plan which is then forwarded to the               
 state and adopted by the state.  It then becomes the responsibility           
 of state agencies to implement the plan.                                      
                                                                               
 MR. POLAND stressed that these plans proposed are general in nature           
 and not zoning plans per se, although there are some significant              
 controls.  The legislature adopted the Alaska Coastal Management              
 Program and set it up through statute.  The plan is developed and             
 adopted locally.  It is then forwarded to the state.  There is a              
 coastal policy council which is set up in statute consisting of               
 state commissioners, as well as certain representatives of the                
 coastal districts and public members.  These individuals approve or           
 disapprove a plan, but there is no actual formal submission of the            
 plan to the legislature for approval.                                         
                                                                               
 Number 764                                                                    
                                                                               
 REPRESENTATIVE IVAN asked about the receipt of Alaska Industrial              
 Development & Export Authority (AIDEA) funding by the Rural                   
 Development Agency and what the amount of this money was.  He asked           
 what the department is looking for in the next fiscal year.                   
                                                                               
 MR. HENDERSON noted that they received $800,000 from AIDEA for the            
 Alaska Regional Development Organization (ARDOR) Program in FY 97             
 and $650,000 from ADA for the Rural Development Assistance Program.           
 REPRESENTATIVE IVAN asked for Mr. Poland's forecast for budget                
 planning this year.                                                           
                                                                               
 MR. POLAND stated that they would be budgeting the same amount of             
 money this year.                                                              
                                                                               
 MR. HENDERSON said that the Rural Development Assistance Program is           
 in the Capital Budget.  They haven't been given the exact number              
 yet, but they're looking to receive the same amount of money.                 
                                                                               
 Number 842                                                                    
                                                                               
 PERCY FRISBY, Director, Department of Energy, came forward to                 
 testify.  He noted that this department dealt with construction and           
 maintenance in rural Alaska consisting of four programs.  First,              
 the department deals with rural bulk fuel repair & upgrades for               
 community tank farms in conjunction with the Coast Guard and the              
 EPA in attempts to bring the tank farms into minimal compliance.              
 They oversee about ten piping projects for minimum compliance per             
 year, as well as three to five complete upgrades.  They also deal             
 with rural power system upgrades by taking a look at distribution             
 systems to determine line loss efficiencies, repair, (indisc.).               
 They deal with power plants, replacing them if needed, as well as             
 looking at alternative energy and ways to replace fossil fuel                 
 generation.  They also look to downsize systems and to make them              
 more centralized.  The department responded to bulk fuel and                  
 electrical emergencies particularly in the winter time when                   
 temperatures plunge.                                                          
                                                                               
 Number 992                                                                    
                                                                               
 REPRESENTATIVE DYSON asked how this department interfaced with the            
 Alaska Village Electric Cooperative, Inc. (AVEC).                             
                                                                               
 MR. FRISBY said they work closely with AVEC.  As for upgrades and             
 efficiencies, AVEC is a regulated utility and they answer to the              
 Alaska Public Utilities Commission (APUC).      The department works          
 with them on some regionalization concepts along with the smaller             
 distributions and inter-ties to eventually set up more centralized            
 systems.  They also work with AVEC on potential hydro projects.               
 The Energy Division also works with the Power Cost Equalization               
 Program which is related to AVEC.                                             
                                                                               
 REPRESENTATIVE DYSON asked if all of the power systems they work              
 with are regulated.                                                           
                                                                               
 MR. FRISBY responded that not all of them were regulated.  He noted           
 a co-op which is AVEC, Alaska Power and Telephone, and numerous               
 others which aren't.  He went on to add that there are 50 stand               
 alone communities which are not regulated.                                    
                                                                               
 Number 1085                                                                   
 REPRESENTATIVE DYSON asked what systems are in place to protect the           
 consumer from being gouged.                                                   
                                                                               
 MR. FRISBY responded that each community is required under the                
 Power Cost Equalization program to submit monthly reports to the              
 APUC and these numbers are verified as allowable costs.  The state            
 then disburses the funds.  The state works with the stand alone               
 communities by helping them formulate budgets.  The state also                
 helps with planning and efficiency.                                           
                                                                               
 Number 1178                                                                   
                                                                               
 REPRESENTATIVE DYSON asked about shallow gas technologies or other            
 alternatives which the state is exploring.                                    
                                                                               
 MR. FRISBY said that he thought shallow gas was worth exploring.              
 He would like to complete a comparative analysis in these potential           
 sites for development of the same.  He has done a preliminary                 
 analysis of the potential sites, but would like to do something               
 more in-depth.                                                                
                                                                               
 Number 1238                                                                   
                                                                               
 REPRESENTATIVE DYSON asked if some of the communities were                    
 concerned with recent legislation which allows for competition.               
                                                                               
 MR. FRISBY said he hadn't heard any concerns.  He thought the                 
 communities would like to see more competition.  The cost of doing            
 business in the rural communities is so expensive it is hard to               
 amortize an operation.  He noted that in some cases there are three           
 providers of fuel in a community and stated that if these                     
 communities established bulk facilities the cost of fuel could be             
 dropped.                                                                      
                                                                               
 Number 1357                                                                   
                                                                               
 REPRESENTATIVE IVAN encouraged the establishment of regional grid             
 systems and the feasibility of natural gas use.                               
                                                                               
 Number 1464                                                                   
                                                                               
 REPRESENTATIVE JOULE asked about the problem of disintegrated bulk            
 fuel storage tanks in some communities and wondered about a time              
 table to change out these systems.                                            
                                                                               
 MR. FRISBY responded that there is a $3 million problem with bulk             
 fuel systems in Alaska.  He said he is engaged in crisis management           
 working with the Coast Guard and the EPA.  These organizations                
 issue the citation for each community.  Mr. Frisby attempts to keep           
 these facilities open with piping projects.  In addition, the state           
 has been fairly successful in filing for federal funds on behalf of           
 communities to help take care of the problem.  In these instances             
 communities are responsible to pull together their own financial              
 packages for submission.                                                      
                                                                               
 Number 1643                                                                   
                                                                               
 REPRESENTATIVE RYAN asked why the Community Safe Drinking Water               
 Program was put into DEC rather than in Community and Regional                
 Affairs.                                                                      
                                                                               
 MR. POLAND stated that in the early 70's, the federal monies were             
 directed at more traditional sewer and water systems of larger                
 communities.  There was an engineering department in place which              
 was probably trying to stretch as much as they could.  They                   
 administered these monies and after a while the emphasis was placed           
 on rural Alaska.                                                              
                                                                               
 REPRESENTATIVE RYAN has observed that DEC is not very effective in            
 implementing these programs in the rural areas.  He asked if Mr.              
 Poland thought their department would do a more efficient job.                
                                                                               
 MR. POLAND responded that there had been some serious efforts made            
 by both agencies to work more closely together.  Significant                  
 strides have taken place.                                                     
                                                                               
 Number 1885                                                                   
                                                                               
 REPRESENTATIVE ALBERT KOOKESH asked Mr. Frisby if he and his                  
 department were working on a state energy plan and offered the                
 committee's help in implementing one.                                         
                                                                               
 MR. FRISBY said they were actively working with AIDEA on a short              
 term, immediate issue plan which will go to the administration.  A            
 complete state plan is appropriate at this time, short and long, to           
 encompass both the rural and urban areas.                                     
                                                                               
 Number 1997                                                                   
                                                                               
 REPRESENTATIVE IVAN asked what would happen if the PCE program                
 discontinued.                                                                 
                                                                               
 MR. FRISBY responded that APUC and their regulatory authority gets            
 the state in the door to work with small stand alone utilities.               
 They also have rural utility workers which go out and do periodic             
 inspections of facilities.  This is also a safeguard that the                 
 utility is running efficiently.  If PCE discontinues, there will              
 still be some form of regulation.  They actively look for                     
 safeguards to protect the consumer.                                           
                                                                               
 REPRESENTATIVE IVAN then asked about the department's budget and              
 what they forecast for this coming year in light of cutting                   
 $400,000 from their budget                                                    
                                                                               
 MR. FRISBY said that he has 27 employees in the division.  He                 
 proposed the $400,000 cut which means a reduction of this work                
 force to 23 employees.  He is scaling back some of the project                
 activity from 15 projects down to 10.  Also, he intends to contract           
 out to the private sector to do design and cost estimates of                  
 various projects.  He is trying to shift to the private sector for            
 rural Alaska projects.                                                        
                                                                               
 TAPE 97-3, SIDE A                                                             
 Number 000                                                                    
                                                                               
 MR. FRISBY responded to a scenario set up by Representative Dyson             
 regarding non-conformity of some tank farms with leakages and the             
 department being under pressure to avoid these facilities from                
 being shut down.  Mr. Frisby noted that they serve 210 communities            
 and on the average there are three tank farm owners in a community,           
 in some communities there are as many as seven tank farms.  This              
 increases the sites of liability.  He would like to consolidate               
 these facilities into one unit for compliance purposes.  At the               
 same time they'd be able to increase the volume of fuel this                  
 community buys.   Mr. Frisby said he would supply Representative              
 Dyson with the data related to communities which are under threat             
 of noncompliance.  He said his division has put together the most             
 comprehensive database on bulk fuel needs in rural Alaska, as well            
 as electrical power upgrade needs.                                            
                                                                               
 Number 416                                                                    
                                                                               
 REPRESENTATIVE JOULE said he would like to see how much money                 
 awarded to a particular project gets spent in a community when they           
 obtain bulk storage fuel facilities.  He asked to meet with Mr.               
 Frisby later on this issue.                                                   
                                                                               
 MR. FRISBY said when he first came to the department he instituted            
 a policy to hire as many of the local people of a community to work           
 on a particular project.  The only types of work the department               
 will do is design, professional engineering drawings, construction,           
 etc.  He said he would provide additional information on this                 
 issue.                                                                        
                                                                               
 Number 543                                                                    
                                                                               
 MR. HENDERSON followed up on information regarding a general fund             
 question posed earlier in relation to JTPA programs.  He noted that           
 in relation to the $20.7 million associated with the job training             
 partnership programs and the STEP program that there was a little             
 less than $600,000 in general funds.                                          
                                                                               
 Number 600                                                                    
                                                                               
 LAMAR COTTON, Deputy Commissioner, Department of Community &                  
 Regional Affairs, made himself available for questions regarding              
 Boards and Commissions.  He stated that the department works with             
 two entities, the Americorps Board and the Local Boundary                     
 Commission.  The Local Boundary Commission is slated to make a                
 presentation in front of this committee on February 14, 1997.                 
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 REPRESENTATIVE IVAN adjourned the meeting at 9:49 a.m.                        
                                                                               

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