Legislature(1993 - 1994)
02/12/1993 01:40 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 12, 1993
1:40 p.m.
TAPE HFC 93-21, Side 1, #000 - end.
TAPE HFC 93-21, Side 2, #000 - end.
TAPE HFC 93-22, Side 1, #000 - #347
CALL TO ORDER
Co-Chair MacLean called the House Finance Committee to order
at 1:40 p.m.
PRESENT
Co-Chair MacLean
Representative Martin
Representative Navarre
Representative Brown
Representative Parnell
Representatives Hoffman, Grussendorf, Hanley, Foster,
Therriault and Co-Chair Larson were absent from the meeting.
ALSO PRESENT
Representative Toohey; Mike Greany, Director, Legislative
Finance Division; Nancy Bear-Usera, Commissioner, Department
of Administration; Sharon Barton, Director, Department of
Administration; John Abshire, Deputy Commissioner,
Department of Labor; David Teal, Director, Division of
Administrative Services, Department of Labor; Janet Clarke,
Director, Division os Administrative Services, Department of
Health and Social Services; Newton Chase, Facilities Section
Chief, Division of Administrative Services, Department of
Health and Social Services; Major General Hugh L. Cox III,
Adjutant General, Commissioner, Department of Military and
Veterans Affairs;
Jeff Morrison, Director, Administrative and Support
Services, Department of Military and Veterans Affairs.
SUMMARY INFORMATION
HB 60 "An Act making appropriations for capital
projects; and providing for an effective date."
OVERVIEWS: Department of Health and Social Services
Department of Administration
Department of Labor
Department of Military and Veterans
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Affairs
Members were provided with detailed descriptions of the
Department's Capital Improvement Projects (CIP) request as
described in the Office of Budget and Management's detailed
budget books (copy on file).
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES noted that the
Department employs over 2,000 employees and covers a large
range of projects and programs. The Department has 25 state
owned facilities and is in 88 sites across the State.
Ms. Clarke noted that the Department's CIP budget revolves
around:
* Transforming the mental health system;
* Improving operating efficiency; and
* the Harbor Developmental Center - steam heat
system.
Ms. Clarke discussed prioritization of deferred maintenance
projects. She noted that projects are reviewed at the start
of every fiscal year. She provided members with the
Department of Health and Social Services's FY 94 Capital
Budget priority list (Attachment 1). She also presented
members with information entitled, "API (Alaska Psychiatric
Institute) 2000, Mental Health Alaska," (Attachment 2).
Ms. Clarke noted that the Department's first CIP priority is
$1.557.3 million dollars for Renovation/Repair/Replacement,
Equipment and Deferred Maintenance. She noted that clinic
repairs, roof replacement, asbestos abatement and kitchen
equipment replacement will be provided for under this
request.
Ms. Clarke commented on the Department's $1 million dollar
request for Americans with Disabilities Act (ADA) Response.
She noted that the Department of Health and Social Services
would not be seeking funding for ADA projects within the
Department of Transportation and Public Facilities's budget.
Representative Navarre asked if the deferred maintenance was
actual or anticipated. Ms. Clarke replied that the deferred
maintenance is actual.
Ms. Clarke discussed the Department's $300.0 thousand dollar
request for completion of the McLauglin Youth Center's
electrical fire control system. She noted that the project
was begun in FY 93 under a $250.0 thousand dollar
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appropriation.
Ms. Clarke referred to the Department's CIP request of
$100.0 thousand dollars for Ketchikan Secure Modular
Completion. Representative Navarre asked for an update of
expenditures.
NEWTON CHASE, FACILITIES SECTION CHIEF, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES clarified that the first appropriation to the
Ketchikan Youth Facility was in FY 84. The original plan
was for a 12 bed facility. Current funding will complete
two holding cells for juvenile offenders. The department
has spent $100.0 thousand dollars on site in connection with
the Ketchikan Health Center. The Department has $90.0
thousand dollars to put the project to bid. The $100.0
thousand dollar request will ensure completion of the award.
Ms. Clarke clarified that the Department's projects are
prioritized as listed.
Ms. Clarke discussed the Department's CIP request of $250.0
thousand dollars for the Disabled Vocational Training Center
roof replacement. She noted that the building has been
returned to the State.
Ms. Clarke noted that the Department's second priority is
$4,476.6 million dollars for Computers/Communication. She
relayed that the Department is operating from the Department
of Health and Social Services Management Information Plan.
She assured members that the Department intends to integrate
its data systems.
Representative Martin asked if the Department's requests
have received approval from the Information Systems Projects
Review Committee in the Department of Administration
(ISPRC). Ms. Clarke clarified that many of the projects
received approval in their phase one form. The Committee
has not met to approve FY 94 projects.
Representative Navarre asked for statistics of state v.
federal caseloads. He noted that regional field offices'
computer and data systems are not being updated as quickly
as the central offices. Ms. Clarke recognized the problem.
Ms. Clarke discussed the Department's CIP requests of
$2,988.2 million dollars for EIS Redesign (This project is a
component of the Department's second priority request). She
observed that the total project will cost $30 million
dollars over five years. Half of this will come from state
general funds. The Department estimates that there will be
a net savings in non-payment of benefits. She emphasized
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that the complications of the current system have made it
"almost unworkable". The Department estimates that the
system, once completed, will serve for 15 years or more.
She clarified that the current eligibility information
system will remain on the Anchorage mainframe.
Representative Brown observed that 10 positions are included
in the request. She asked if the redesign will allow
welfare and public assistance programs to share information.
MARGO NASH, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES stressed that the feasibility
study looked at the involvement of ancillary divisions and
agencies that interface within the Department.
Ms. Clarke reviewed the Department's CIP request of $412.5
thousand dollars for Harborview Data and Communications,
Developmentally Disabled Section Information Management
System and the API Information System (This is a component
of the Department's priority two request).
Ms. Clarke referred to the Department's CIP request of
$620.4 thousand dollars for Office Automation and Network
Expansion for the Division of Family and Youth Services.
The Department has included a Imaging Pilot System in this
request (This is a component of the Department's priority
two request).
Ms. Clarke noted that the Department's number three priority
is $500.0 thousand dollars for the Public Health Lab -
Design and Replacement. Mr. Chase explained that the
Department received $25 thousand dollars in FY 93 for a
feasibility study. Preliminary information indicates that
replacement will be needed.
Co-Chair MacLean asked if the Department has looked into
alternatives to replacement. Mr. Chase indicated that the
feasibility study will address privatization.
Representative Brown asked if the Department of
Environmental Conservation, Palmer Lab could preform the
functions. Ms. Clarke noted that the option has been
studied. She observed that it was not deemed possible to
combine the functions of the Department of Health and Social
Services and the Department of Environmental Conservation.
She added that the Department is pursing the possibility of
building adjacent to the Anchorage Crime Lab.
Representative Toohey asked if the Lab could be combined
with the new Indian Health Hospital. Mr. Chase replied that
the Department of Health and Social Services would not be
able to locate in the same building. He stressed that they
would be accessible to the Indian Health Hospital. Ms.
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Clarke added that the feasibility study will review whether
the Department of Health and Social Services' three current
labs can be combined.
Co-Chair MacLean asked the total project cost. Mr. Chase
noted that a new laboratory would cost $15 - $17 million
dollars. Representative Martin asked what additional
operating costs would be involved. Ms. Clarke promised to
supply him with the information.
Ms. Clarke discussed the Department's fourth CIP priority
request of $8,873.7 dollars for API Design and Site work.
Ms. Clarke reviewed Attachment 2. She observed that API
2000 will replace a failing facility. It will also down
size the facility. She noted that API was not built for
mental health. There are problems with breaking pipes and
asbestos.
(Tape Change, HFC 93-21, Side 2)
Ms. Clarke stressed that the Department has looked at
financial alternatives to reduce costs. She concluded that
it will cost less to replace than to repair the facility.
She referred to page 7, Attachment 2. She noted that the
replacement cost is $251 dollars per square foot. She
emphasized that the new facility will be smaller that the
current facility. The current facility is licensed for 133
beds the new facility will contain 114 beds. Twenty-four
beds in the new facility will be used by the Department of
Corrections. Mr. Chase observed that page 9, Attachment 2,
shows cost comparisons with other facilities.
Representative Toohey observed that part of the cost will be
paid by the Mental Health Trust Account (MHTA). Ms. Clarke
clarified that 6 percent of unrestricted revenues are
deposited into the General Fund Mental Health Trust. The
Mental Health Trust Account will contribute $7.7 million
dollars.
Representative Toohey asked if MHTA will pay for operations.
Ms. Clarke did not know if operations could be paid for by
MHTA.
She assure Representative Toohey that the Department has
worked extensively to contain operational costs. She noted
that MHTA dollars pay for the current API operations. She
anticipated that they would continue to pay for the new
facility. Mr. Chase clarified that operation costs for the
new facility will be similar to FY 92.
Representative Parnell asked how long the new facility will
meet Alaska's mental health care needs. Mr. Chase stated
that the building should last 30 to 40 years. He
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anticipated that API will be used for specialized care.
Community hospitals and community based programs will
provide for secondary care cases. Ms. Clarke clarified
that, based on conservative population growth estimates, API
should suffice until the year 2000.
Representative Martin asked where the new facility will be
built. Ms. Clarke observed that the new facility would fit
on the current API site.
Representative Navarre referred to cost comparisons on page
7, Attachment 2. Mr. Chase clarified that the New Hampshire
State Hospital has 235 beds.
Ms. Clarke discussed page 10, Attachment 2. She stressed
that the current situation will result in more clients in
the hospital costing more per client, $1 - $1.4 million in
repairs and a risk of catastrophic building failure.
Ms. Clarke noted that the Department has submitted a letter
of intent, through the certificate of need program,
regarding the number of beds. She emphasized that the
Department will be conducting public hearings.
Ms. Clarke commented on the Department's number five
priority, $5,776.6 million dollars for Mental Health Trust
Beneficiaries Grants. She pointed out that grants would be
given to build up the community based mental health system.
Grants will be competitive.
Ms. Clarke noted that the Department's number six CIP
priority request is $1 million dollars for API stop gap
repairs.
Ms. Clarke summarized the Department's number seven CIP
priority request of $800.0 dollars for the Harborview steam
plant, phase II. She noted that estimates by the Department
of Transportation and Public Facilities in FY 92 were
inadequate to complete the project. This request will
complete the project. She noted that the Department
currently pays $500.0 thousand dollars annually to the
Department of Transportation and Public Facilities in
heating costs.
DEPARTMENT OF ADMINISTRATION
NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION
provided members with an outline of the Department's CIP
requests (Attachment 3). She emphasized that the Department
has attempted to increase delivery efficiency. She spoke in
support of consolidation of leasing public facilities
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Commissioner Usera outlined the Department's CIP requests:
* Computerized Hiring Forms - $250.0 to design and
implement an integrated forms management system
for personnel, payroll, finance and retirements
and benefits.
* Procurement System Automation - $71 9 to implement
an automated system for processing procurement
actively. This will maximize larger order
purchases.
* Public Defender Voice Mail System - $53.8 to
purchase a new 42 station phone system.
* Pioneers' Home Repair & Renovation - $3,001.3
thousand dollars. This request is the result of
an audit. Projects will be brought into
compliance with ADA.
* Anchorage Warehouse Services Building Improvements
-$58.0 thousand dollars - program receipts will be
used to provide a heated storage warehouse for
surplus property.
* Anchorage Warehouse Materials Handling Vehicle -
$65.0 thousand dollars - program receipts will be
used to buy a fork lift.
Co-Chair MacLean noted that the FY 93 capital budget
included $18 million dollars for data processing projects.
She asked how the Department of Administration is overseeing
these projects.
Commissioner Usera relayed that the Telecommunications
Information Council (TIC) is progressing in its goal to
review all projects. She noted that all departments are
required to develop plans in compliance with the overall
statewide plan. She anticipates that TIC will review FY 95
data related CIP requests prior to inclusion.
Representative Martin expressed concern that the State of
Alaska not develop a condition which would create a surplus
of jobs to attract out-of-state residents.
Representative Brown spoke in support of the TIC review
process.
Co-Chair MacLean asked if development of the computerized
form could be accomplished within the Department.
Commissioner Usera replied that the Department does not have
the needed software. Co-Chair MacLean asked if the
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Governor's audit management team could complete a form
study. Commissioner Usera questioned whether the Governor's
audit management team would have the needed expertise.
DEPARTMENT OF LABOR
JOHN ABSHIRE, DEPUTY COMMISSION, DEPARTMENT OF LABOR noted
that the Department's total CIP request is $1 million
dollars. He reviewed the Department's CIP requests:
* Labor Standards & Safety Program Automation -
$186.0 thousand dollars to establish a computer
network;
* Workers' Compensation Records Automation - $495.7
thousand dollars for an imagining project;
Representative Brown asked the status of the Imaging Study
to be completed by the Department of Administration.
DAVID TEAL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF LABOR stated that a RFP has been prepared by
the Division of Information Services, Department of
Administration. He noted that the RFP will ask for a
consultant to develop a statewide view in regards to future
technology and to exam the needs of departments for an
imaging system. He assured Representative Brown that the
Department will follow the guidelines which will be
developed.
Mr. Abshire continued to outline the Department's CIP
requests:
* Mechanical Inspection Equipment Purchase - $78.60
thousand dollars for a photo licencing system and
other equipment;
* Occupational Safety & Health Equipment - $67.6
thousand dollars for office, training and
personnel protection and electronic testing
equipment;
* Economic and Demographic Information Equipment
Upgrade - $172.0 thousand dollars for computer
upgrades.
PAUL ARNOLDT, DIRECTOR, WORKERS' COMPENSATION, DEPARTMENT OF
LABOR clarified that the Workers' Compensation Fund can only
be used to fund grants.
Co-Chair MacLean asked for information concerning the FY 93
$1.7 million dollar appropriation. Mr. Teal clarified that
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the funds were spent in the Division of Employment Security
for an integrated data base.
Representative Martin asked if user fees could be
instigated. Mr. Abshire observed that the Department is
researching a claims fee or a surcharge.
(Tape Change, HFC 93-21, Side 1)
Co-Chair MacLean informed the Department of Labor that
requests for furniture replacements will be scrutinized by
the House Finance Committee.
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
JEFF MORRISON, DIRECTOR, DIVISION OF ADMINISTRATIVE AFFAIRS,
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS noted that the
Department has four CIP requests. Mr. Morrison noted that
HB 60 contains authorization for $3 million dollars in
federal funds for environmental compliance projects. He
explained that this is authority to receive and expand
federal funds. The funding will be used to restore and
replace land around storage tanks on armory land.
Mr. Morrison noted that the Department is asking for $2
million general fund dollars and $3.1 in federal funds for
deferred maintenance of Armory Guard facilities. He noted
that there is a $6 million general fund dollar backlog in
deferred maintenance. He emphasized that this is the
Department's number one priority.
Mr. Morrison discussed the Department's request for $100.0
thousand general fund dollars and $100.0 thousand federal
dollars for maintenance of the Fairbanks Armory. He
explained that the Legislature appropriated $450.0 thousand
dollars for design of this project in 1991. The request
would complete the design, begun by the Department of
Transportation and Public Facilities, and make the project
eligible for federal construction funding. Construction
funding will be a 75/25, federal/state match. Construction
will cost $1.3 million general fund and $3.9 million federal
dollars.
Mr. Morrison noted that the Department's second CIP priority
is $1.5 million dollars for Emergency Operation Center
Enhancements. He noted that the following projects are
included in this request:
* Relocation of the Alaska State Troopers Detachment
B Communications and Dispatch Center to the SEOC;
* SEOC Furnishing and Equipment;
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* Emergency Power Generator;
* Armory Modem Pool
Mr. Morrison clarified that state general funds are required
for all federal matching grants.
Co-Chair MacLean noted that there is $8.8 million dollars
for Armory Guard maintenance in the operating budget. Mr.
Morrison clarified that the operating budget includes both
federal and state funds. He emphasized that this amount
covers utilities, operations and preventative maintenance.
He noted that the Department is not keeping up with the
deferred maintenance schedule.
Mr. Morrison noted that the federal government will provide
75 percent of the construction cost of the Fairbanks Armory
and 100 percent of the cost of the organizational
maintenance shop. The bulk of the design cost must be paid
for by the State of Alaska in order to receive federal
funding.
Co-Chair MacLean noted that $1.3 million dollars was
appropriated in FY 92 for four armory expansion designs.
She noted that the Fairbanks Armory was listed as 22,840 sq
ft. The Fairbanks Armory is currently planned at 28,500 sq
ft. Mr. Morrison clarified that the increase in square
footage corresponds to federal requirements based on units
assigned to the facility.
Co-Chair MacLean asked why funding for the relocation of the
Alaska State Troopers is included in the Department's SEOC
request.
HUGH L. COX, III, COMMISSIONER, DEPARTMENT OF MILITARY AND
VETERANS AFFAIRS responded via teleconference that the State
of Alaska is responsible for equipping the State Emergency
Center. The Center was moved in 1991. Commission Cox
discussed the State Emergency Center. He noted the
importance of working with the State Troopers during a state
emergency. He emphasized that the State of Alaska's
emergency response capability needs to be improved.
ADJOURNMENT
The meeting adjourned at 2:26 p.m.
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