Legislature(2007 - 2008)HOUSE FINANCE 519
02/07/2008 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB313 | |
| HB343 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 313 | TELECONFERENCED | |
| *+ | HB 343 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 7, 2008
1:40 p.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:40:14 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Mary Nelson
Representative Bill Thomas Jr.
MEMBERS ABSENT
Representative Richard Foster
Representative John Harris
ALSO PRESENT
John Glass, Deputy Commissioner, Department of Public
Safety; Dan Spencer, Director, Division of Administrative
Services, Department of Public Safety; Deven Mitchell,
Executive Director, Alaska Municipal Bond Bank Authority,
Department of Revenue; Karen Rehfeld, Director, Office of
Management and Budget; Laura Baker, Acting Deputy Director,
Division of Administrative Services, Department of Health
and Social Services; Karleen Jackson, Commissioner,
Department of Health and Social Services; Eric Swanson,
Director, Division of Administrative Services, Department of
Administration; Samuel Thomas, Director, Division of
Administrative Services, Department of Commerce, Community
and Economic Development; Sharleen Griffin, Director,
Division of Administrative Services, Department of
Corrections.
PRESENT VIA TELECONFERENCE
Matt Tanaka, Engineer, Construction and Operations,
Department of Transportation and Public Facilities; Orin
Dym, Forensic Lab Manager, Crime Lab Supervisor, Department
of Public Safety; Josh Fink, Public Advocate, Office of
Public Advocacy, Department of Administration.
SUMMARY
HB 313 "An Act providing for and relating to the issuance
of general obligation bonds for the purpose of
paying the cost of a scientific crime detection
laboratory; and providing for an effective date."
HB 313 was HEARD and HELD in Committee for further
consideration.
HB 343 "An Act making supplemental appropriations,
capital appropriations, reappropriations, and
other appropriations; amending certain
appropriations; ratifying certain expenditures;
making appropriations to capitalize funds; and
providing for an effective date."
HB 343 was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 313
"An Act providing for and relating to the issuance of
general obligation bonds for the purpose of paying the
cost of a scientific crime detection laboratory; and
providing for an effective date."
JOHN GLASS, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC
SAFETY, described the inadequacies of the current crime lab
and the proposed new crime lab for which they are seeking
funds in the amount of $100 million. The current lab was
built in 1986 to house 14 people. Currently 41 people are
working in the same space, utilizing approximately ten
different sciences. The crime lab did not start processing
DNA until 1994 and is now receiving 1,000 samples of DNA per
month. In 2006 the Legislature appropriated $4.8 million to
research and design a new lab, and to find a location. After
looking at 34 locations, the Department chose Anchorage as
the best location for the lab. Anchorage is in proximity
with the most work being done by the lab and has an
international airport. The site consists of 15.3 acres on
Tudor Road between the current crime lab and the Anchorage
Police Department. The Department is in negotiations with
the municipality of Anchorage for the property.
1:44:25 PM
Mr. Glass strongly emphasized the need for a new crime lab.
The current lab cannot be added onto. The Department hired a
firm to determine what size laboratory was needed currently
and in the future. The new building is designed for forty
years of use. The planned building is 83,000 square feet and
has room to expand as new technologies and analysts are
needed.
1:45:31 PM
Co-Chair Meyer asked about plans for the old building. Mr.
Glass answered that the building cannot be made into another
kind of lab. He hopes to move the Sexual Offenders
Registration, the Alcohol Beverage Control Board and an
investigation unit to the old building.
Vice-Chair Stoltze wanted to know how critical the situation
was in the old lab in relation to preserving evidence.
1:47:25 PM
Representative Hawker asked for real numbers.
MATT TANAKA, ENGINEER, CONSTRUCTION AND OPERATIONS,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
(TESTIFIED VIA TELECONFERENCE), reviewed the process of
designing the new lab and establishing the dollar amount
needed. An architectural firm with a nationally recognized
crime lab expert was hired to determine the necessary size.
The budget figure was arrived at from the bottom up based on
need. An executive decision was made near the end of the
study phase to limit the scope of the project to a $100
million upper limit.
Representative Hawker asked what the optimal number would
be.
Mr. Tanaka replied that initially they foresaw a need for up
to 97,000 square feet, but the timeline for this square
footage was too far in the future. They thought they could
use up to $120 million for the project. This was scaled back
to $106 million, which provides for a $100 million face
value plus up to $6 million of interest earnings from the
bonds.
1:50:38 PM
Representative Kelly observed the 400% increase in square
footage over the old lab and asked for justification for the
additional space.
Mr. Glass described the cramped conditions for the 41 people
doing both lab and paperwork on the same workbenches, which
causes serious concerns of cross-contamination of evidence.
In addition, five new DNA analysts were added through the
Legislature in FY 08 and space must be made for them. The
lab is trying to expand into other sciences such as
toxicology, which is currently sent out-of-state.
Representative Kelly thought a 400% increase still seemed
excessive. He was also concerned about additional expenses
for the proposed operations in the old building. He wondered
if sending some work out-of-state wasn't appropriate.
1:53:31 PM
Co-Chair Meyer voiced similar concerns about costs. He
recognized that the need for the crime lab was increasing.
He wondered about using General Fund money instead of the
bond and appropriating funds in phases, such as $40 million
each year for three years. Mr. Glass thought that could be a
possibility. He said the planning and review money will run
out in late July and General Funds could carry the project
through to the planned ground-breaking in February 2009.
Co-Chair Meyer wondered how Alaskans might react to a $100
million project for Anchorage on the ballot and asked about
the Department's marketing strategy. Other municipalities
might want the lab. Mr. Glass concurred that they were
asking for a lot of money and reiterated the need for the
laboratory.
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, commented on Co-Chair Meyer's
thought about appropriating $40 million over three years. He
said the State cannot let a contract for more than the
appropriation.
1:56:30 PM
Representative Hawker noticed that HB 313 authorizes bonds
for design and construction and asked if the $106 million
included equipment and land. Mr. Glass said equipment, land
and moving costs were included. Representative Hawker
wondered if this should be in the language of the bill.
Representative Gara calculated that the cost for the lab
would be $2.5 million per employee for 41 employees and
thought that sounded high. Mr. Glass had had some of the
same concerns; however, the numbers came from crime lab
experts. Representative Gara asked for help understanding
the enormity of the amount.
1:59:11 PM
Mr. Glass reiterated that the experts had said the amount
was needed for the type of laboratory and services needed.
Representative Gara pointed out that Alaska had many needs.
He questioned whether the consultants had both needs and
efficiency in mind.
Mr. Tanaka assured the Committee that Representative Gara's
questions were common. He said he had managed two other
successful lab projects for the State: the environmental
health lab for the Department of Environmental Conservation
in Anchorage, and the virology lab for the Department of
Health and Social Services in Fairbanks. He pointed out that
laboratory space is sized based on the analyses that will be
performed in the space, not on how many people are in the
building. One analyst may need to work in several different
laboratory modules. There may be very few people and many
technologies. If the module is not built, the lab cannot
perform the function.
Mr. Tanaka said the consultants hired for the project are
nationally recognized crime lab experts, McClaren, Wilson
and Lawrie, Inc. This firm has designed and built crime labs
all over the country. The State can draw on the expertise of
the consultants as well as the experience of the two labs
already built in the state.
2:03:34 PM
Representative Gara asked about the process used to
determine the size of the lab.
Mr. Tanaka explained the process. First, the national crime
lab experts met with Public Safety staff, including Orin
Dim, the Crime Lab Supervisor, and the architects to
determine what the needs were for the new lab. The space was
then designed for optimal use, factoring in both current and
future program needs. The design is designed based on real
need and not speculation. Mr. Tanaka said that at this point
floor plans are developed and there is a program and needs
analysis. The budget presented is based on thorough study.
Representative Crawford questioned a proposed bullet-proof
wall to the road. He asked for a breakdown of costs of
machinery and equipment separate from the costs of the
actual building. He agreed with other Committee members that
the amount requested seemed high.
2:06:22 PM
Mr. Glass said that part of the cost-cutting did include the
removal of the bullet proof wall. He said Orin Dim has
conducted a study of the dollar values of the equipment.
Representative Nelson wondered if part of the high expense
was due to storage space needs for DNA and crime scene
material. Mr. Glass emphasized the critical importance of
storage space. He provided the Committee with photographs
documenting crowded evidence storage and work space (On
File). The garage space needed for examination of cars is
also used for evidence storage. Each time the garage is
needed to examine a car, the stored evidence must be moved
out and back in, wasting a great deal of time. He went on to
say that although storage space is important, work space for
the DNA analysts and other scientists is more of an issue.
Representative Meyer asked for a breakdown of costs for the
building, land, equipment and so on. Mr. Glass said they
would get that information to the Committee.
Co-Chair Meyer added he would also like to know the future
operating costs of the building.
2:09:32 PM
Vice-Chair Stoltze clarified the sterile, secure and non-
public nature of the building. He wondered if the building
could obtain an exemption from One Percent for Art, which
could save $1 million.
2:12:38 PM
Representative Gara stated for the record his respect and
appreciation for members of the arts community.
Representative Gara asked if the proposed land for the crime
lab is private. Mr. Glass responded that the land is not
private but belongs to the Municipality of Anchorage
Heritage Land Bank. The Department is still in negotiations
for the land and close to a contract agreement for long-term
lease.
Representative Gara wondered what the lease price was and if
it was included in the $106 million figure. Mr. Glass
clarified that in exchange for the use of the land, the lab
would do free work for the municipality.
2:14:36 PM
Representative Gara asked if the $100 million covered more
than construction costs. Mr. Glass replied that the money
was also for site preparation, design and engineering costs,
in addition to construction costs. Representative Gara
wondered if there a per square foot cost. Mr. Glass
described some of the complexities that made finding a
square foot cost difficult.
2:16:11 PM
Mr. Tanaka said a square-foot figure could be calculated by
comparing the project with other similar projects. After
taking out project specifics and escalating the figures to
the present, the cost for the DEC environmental health lab
was $950 per square foot. The Fairbanks virology lab, in
comparison, cost $1,136 per square foot. The proposed crime
lab comes to approximately $1,050 per square foot. He
concluded that the cost is on par with other laboratories of
similar complexity in Alaska.
Mr. Tanaka delineated site preparation costs: $7 million for
site preparation, $3 million for laboratory-specific
features in the building, and $2.3 million for laboratory
equipment.
Representative Gara questioned whether the costs for the
other state buildings were scrutinized.
2:19:19 PM
Co-Chair Chenault wondered how much work the lab would do
for Anchorage in exchange for the land use. Mr. Glass said
approximately 70% of the crime lab's work is currently for
the Anchorage Police Department.
Vice-Chair Stoltze compared the building to a hospital. He
pointed out that hospitals out-source their records and
wondered if every function in the crime lab was essential.
Mr. Glass answered in the affirmative. He explained that
part of the challenge is that a piece of evidence might have
to be put through many processes. Once the piece is brought
on-site, shipping it out can cause cross-contamination.
2:22:33 PM
Representative Nelson acknowledged progress made on specific
cold case files because of the application of forensic
science. She didn't want the State to contract out vital
pieces of evidence. She thought the price well worth the
money for victims' rights.
Vice-Chair Stoltze agreed but wondered if there could be
less expensive buildings for storage.
Co-Chair Meyer asked Mr. Glass for a breakdown of the costs.
He referred to the case of a fish hatchery in which costs
were double what the Legislature approved.
Mr. Glass said he would bring the numbers the following
week.
2:24:59 PM
Representative Kelly wondered if other states sub-contracted
to the private sector.
ORIN DYM, FORENSIC LAB MANAGER, CRIME LAB SUPERVISOR,
DEPARTMENT OF PUBLIC SAFETY (TESTIFIED VIA TELECONFERENCE),
answered that some evidence cannot be farmed out. Some is
sent to the FBI. There are no facilities to perform
controlled substance analyses. Currently, major outsourcing
is non-evidentiary, such as convicted offender DNA samples.
2:27:24 PM
Representative Gara wanted to know the annual financing cost
for the $100 million bond.
DEVEN MITCHELL, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL BOND
BANK AUTHORITY, DEPARTMENT OF REVENUE, thought the cost
would correlate to the interest on the bonds; Alaska's
current rate would be close to 4%. This would make the
annual payment approximately $7.5 million.
Co-Chair Meyer asked for a fiscal note from Revenue showing
the repayment schedule and the ultimate cost of the bond.
Mr. Deven said he would get the fiscal note to him.
2:29:28 PM
Co-Chair Meyer closed public testimony on HB 313.
Representative Kelly stated his skepticism regarding space
studies. He wondered what would happen if the square footage
of the crime lab was cut it in half.
Co-Chair Meyer reiterated the need for a break-down of
costs.
HB 313 was HEARD and HELD in Committee for further
consideration.
2:32:10 PM AT EASE
2:43:42 PM RECONVENE
HOUSE BILL NO. 343
"An Act making supplemental appropriations, capital
appropriations, reappropriations, and other
appropriations; amending certain appropriations;
ratifying certain expenditures; making appropriations
to capitalize funds; and providing for an effective
date."
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
thanked the committee for hearing the bill.
2:45:31 PM
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Section 7-9 Foster Care Base Rate
Increased costs in the amount of $656.3 due to
increase in Protective Services Reports received.
Increased collections of Supplemental Security
Income (SSI) and Child Support Services Division
(CSSD) receipts $800.0. Collections attached to
IV-E eligible children are reimbursed to the
federal government; other funds are built into the
Foster Care Base Rate payments. Approximate 2,000
children are in foster care at any given time. The
Foster Care Base Rate is $24.13 per day or $724
per month.
$1,456.3
LAURA BAKER, ACTING DEPUTY DIRECTOR, FINANCE AND
ACCOUNTABILITY, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
spoke regarding the Foster Care Base Rate. She said an
increase in foster parenting and foster children in care has
resulted in a need for increased funds.
2:47:01 PM
Representative Hawker thought the FY 09 budget request
should be looked at to reflect the increased need. Ms.
Baker agreed.
Section 7-9 Foster Care Special Needs
Increased costs. An estimated 240 more children
will require special needs funding support for
their foster care this year. Approximately 1,800
children are eligible to receive special needs
funds at an average cost of $240.00 per month.
$699.8
Ms. Baker addressed Foster Care Special Needs at $622.8
General Fund (GF) with a $77.0 federal match, which relates
to a case load increase.
2:47:55 PM
Representative Hawker referred to the FY 09 budget request
for $1.2 million in interagency receipts and no additional
GF and wondered if that should be reconciled. Ms. Baker
explained that the $1.2 million in FY 09 relates to child
care costs for foster care children connected to the
Childcare Development Fund. These are different cost issues.
Representative Hawker asked if the Department was requesting
$622.8 in General Funds that won't be needed in FY 09. Ms.
Baker said she would follow up on that.
2:48:55 PM
Section 7-9 Medicaid Services
ProShare Disallowance. ProShare was disallowed by
the U.S. Department of Health and Human Services
Departmental Appeals Board in July 2007. Before
ProShare was begun, the department funded these
grants with general funds. Supplemental funding is
needed to continue the grants to community service
providers.
$17,062.3
Ms. Baker addressed the ProShare disallowance. The
Department worked to maximize federal revenue over the past
years and was able to save a total of $40 million for two
years of that time. The federal government decided that the
Department cannot use the financing mechanism which results
in a GF increase of $17,062.3.
Representative Gara asked for clarification regarding the
foster care base rate. He asked if the base rate was the
per-day reimbursement rate for foster families. Ms. Baker
answered in the affirmative. Representative Gara clarified
that the rate had increased in 1999 to reflect the 1993
poverty level. He asked about the proposed rates for FY 09.
Ms. Baker said the rates were still being discussed.
Representative Gara wondered if the supplemental amount
would accommodate that change. Ms. Baker answered that the
amount did not accommodate any change but makes up for an
increased case load and reflected a component of the base
services.
2:50:54 PM
Section 7-9 Nome Youth Facility
Increased operating costs. The facility is fully
staffed and cannot cover the budgeted 4% vacancy
factor or other costs related to the larger
facility. This request provides $70.0 personal
services and $80.0 contractual services costs.
$150.0
Ms. Baker explained that the Nome youth facility is now
fully staffed and has new utility costs.
Section 7-9 Johnson Youth Center
Increased medical costs for services provided to
juveniles at the facility. In the past two years
these costs were covered with ProShare funds, but
that is no longer an option.
$250.0
Ms. Baker explained that although the request is listed
under the Johnson Youth Center, it also applies to increased
medical costs at the McLaughlin, Fairbanks, Bethel, and Nome
centers. Up until this year the Department has been able to
expand ProShare coverage to absorb the increase.
Co-Chair Chenault asked if Kenai was included in the
request. Ms. Baker replied that Kenai has not had the
increased expenses. Co-Chair Chenault wondered if all the
centers would be seeing the increased costs that the Nome
Youth Facility was experiencing. Ms. Baker explained that
the FY 09 budget does contain a request for more money to
bring all the facilities closer to being fully staffed.
2:53:26 PM
Representative Gara referred to increased Medicaid service
cost. His understanding was that the State budgeted money to
replace lost federal Medicaid funding. He wanted
clarification on the difference in what Medicaid funds the
State received from the federal government last FY compared
to this FY to get a sense of how much has to be replaced.
Ms. Baker pointed out that the federal match rate has gone
down and some of the increases relate to replacing the lost
federal receipts for ProShare.
Section 7-9 Probation Services
Replace uncollectible federal funding for Targeted
Case Management.
$600.0
Ms. Baker described a fund source change for Probation
Services in Juvenile Justice consisting of a reduction of
$600.0 in federal receipts and an increase of the same
amount in General Funds. Juvenile Justice had planned to use
targeted case management, but they will not be able to claim
those funds this fiscal year. There is a similar request in
FY 09. Co-Chair Chenault clarified that this cost will be
picked up by the State. Ms. Baker said the State had picked
up the cost until FY 08 when the reduction was taken, hoping
the case management method would work.
Representative Hawker asked how the item would be reflected
in the FY 09 operating budget. Ms. Baker said there would be
an amendment.
2:55:45 PM
Section 7-9 Probation Services
Court Ordered costs. Per legislative direction,
these costs are requested through supplementals
instead of being incorporated into the base
budget.
$221.0
Ms. Baker explained that the Legislature had asked the
Department to come through the supplemental process for
costs that were above and beyond regular operating and that
were court ordered. Juvenile Justice has tracked those costs
and is asking for $221.0 GF to cover the projected need.
Section 7-9 Women, Infants and Children
Increased SDPR from baby formula rebates. This
corresponds to the department's FY 09 increment
request of $650.0.
$852.3
Ms. Baker explained that manufacture rebates come to the
State for any infant formula that the State disbursed. Co-
Chair Chenault asked what the funds would be used for. Ms.
Baker said the infant food packages sent out through the
program are funded by statutory designated program receipts.
2:57:10 PM
Section 7-9 Certification and Licensing
Increased authority to receive and expend fees
generated by background check applications.
Originally anticipated 16,000 to 18,000
applications; projected increase is 12,000
applications from Foster Care and Child Care
employees.
$945.0
Ms. Baker explained that when the Department originally put
the numbers together for FY 08, they had anticipated
processing approximately 14,000 background check
applications from hospitals, nursing homes, residential
child care, assisted living homes and other health related
service providers. At the end of August 2007 there had been
23,000 processed and over 9,000 more by the end of December.
The majority of the funds are for the Department of Public
Safety for fingerprint checks.
Section 8-9 Alaska Psychiatric Institute
Increased Third-Party payment receipts enabling
the department to save some general funds. This is
reflected in section 8, the departmental fund
source list.
Ms. Baker described this delete/add supplemental item as the
Department offering up $850.0 GF mental health funds and
replacing that with statutory designated receipts for the
same amount. The Alaska Psychiatric Institute has increased
collections related to third-party payments such as
Medicare. Changes in the Medicare regulations allowed for
reimbursement for diagnosis-related group activities; more
activities can be claimed for Medicare reimbursement.
Section 10-12 Capital
Alaska Psychiatric Institute Automation. Funding
for electronic records system and tele-behavioral
health evaluation and treatment system. The
electronic records system is partially funded with
an existing capital project with the remainder
coming from the operation budget. This system is
used to track important patient data and will
provide API with reliable funding and census
information. API is moving towards tele-behavioral
health to allow psychiatric evaluation and
treatment of patients from remote locations.
$1,200.00
Ms. Baker said that the Alaska Psychiatric Institute (API)
expects to collect approximately $2 million in additional
statutory designated program receipts. In addition to the
fund source change discussed in the previous item, the
Department would like to supplement the capital project the
Legislature provided a few years ago for an electronic
medical records system for API. The original system was of
limited scope.
3:01:21 PM
Ms. Baker explained that in addition, API hopes to expand
treatment options to include more community-based work. The
Department thought it would be more beneficial to ask for
the money as a capital project.
Co-Chair Chenault acknowledged that the Legislature started
the program DHSS was asking to capitalize. He recalled that
$674,000 was put into the program and wondered what the
total cost would be to bring the records up to date. Ms.
Baker did not have a specific estimate.
Co-Chair Chenault requested the total cost as it affects
both this year's budget and the out years. The Governor has
said that she would like to control the increases. Ms. Baker
responded that she would follow up on that.
Section 14 Senior Benefits Payment Program
Senior Benefits. SB 4, which passed in June 2007,
does not establish a flat rate, but sets rates
from $100 to $175/month depending on household
income. Maximum income eligibility level is 150%
of federal poverty guidelines for Alaska.
$18,492.1
Ms. Baker explained that the senior benefits program request
is a fast-track request. Senior care benefits expired last
year and SB 4 continued those benefits. The request is for
$18,492,100; the estimate is in the informational fiscal
note that passed with SB 4. Ms. Baker reported that the
program is on track with the payments.
Section 29(b)(1) Ratification: Team Nutrition $8,210.00
Section 29(b)(2) Ratification: EMS Data Collection $9,488.71
Section 29(b)(3) Ratification: Phase II EMS Data
Collection $5,533.25
Section 29(b)(4) Ratification: IPEMS CPS Coord. $6,980.98
Ms. Baker talked about Ratifications in Section 29(b)(1)
through 29(b)(4), which all relate to unbudgeted
reimbursable services agreements (RSA) or services within
Public Health. Due to timing and miscommunications, DHSS has
ended up in a shortfall situation. There is no
administrative way to remedy the shortfall; however, the
programs impacted would have had the necessary funding in
the regular side of the accounting system to cover these
costs.
3:05:16 PM
Section 29(b)(5)Ratification: Medicaid $25,141,116
Ms. Baker explained that in FY 03 and FY 04 the DHSS saved a
total of $40 million related to ProShare. When ProShare was
disallowed, the $21,357,000 spent in FY 06 was ratified.
These funds were within the total appropriation; DHSS
expected the federal revenue and carried a federal accounts
receivable on the books. However, the payment has gone out
of the GF. She reminded the Committee that DHSS had the
understanding of both the Administration and the Legislature
that there was risk to continuing the refinancing process.
Ms. Baker further explained that the second part of the
29(b)(5) ratification is the Indian Health Services (IHS)
request for $3,784,017. If someone goes into an IHS facility
and they are referred to a non-HIS, the Department feels
that the referral should be covered by 100% federal funds.
The federal government disagrees, and other states have lost
this appeal.
Section 29(b)(6) Ratification: Medicaid $4,350,407.00
Ms. Baker explained this ratification as a small piece of
the FY 07 ProShare ratification.
3:08:27 PM
Section 29(b)(7) Ratification: Health Care Serv. $231,500.00
Ms. Baker described another ratification related to health
care services in FY 05 for the women and adolescent services
component. The Department over-collected on the grant
resulting in a shortfall of $231,500.
3:09:25 PM
DEPARTMENT OF ADMINISTRATION
Section 1-3 General Government Unit (GGU)
Ratified bargaining unit agreement costs for the
GGU. 4% wage increase and health insurance
increase of $16.58 from $863.20 to $879.78
$24,234.3
ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION DOA, explained that the section
pertains to the funding necessary to provide for the GGU
contract. The increase will be reflected in adjustments for
virtually every agency.
Section 4-6 ETS Net Zero Supplemental
Funds previously distributed to state agencies to
offset increased chargeback rates for enterprise
technology services as identified in the statewide
federal cost allocation plan are redistributed to
more closely align with costs.
$0.0
Mr. Swanson reassured the Committee that DOA was not looking
for new funding with this request but looking for approval
to redistribute some of the funding that has been
appropriated in prior years for enterprise technology
services charge backs. For three departments the cost is
going down; for the remainder of the departments costs are
going up.
Section 7-9 Office of Public Advocacy
Current projections indicate OPA will require
supplemental funding in the amount of $2,400.0 to
operate through FY2008. Caseload growth has gone
beyond anybody's expectation. OPA has seen a
significant spike in case assignments in Anchorage
and Palmer. OPA has also seen a number of the more
complicated and expensive cases go to trial (cold
cases and numerous murder cases). While OPA
projected an increase in felony cases of 12%
statewide based on a 5 year average, in Anchorage
OPA has seen a 43% increase in felony filings in
the first half of FY2008 compared to last year. On
the higher level crimes, OPA saw a 48% increase in
unclassified cases and a 158% increase in A
felonies.
There are $90.0 excess guardianship fees receipts
in FY2008, which will be used to fund a portion of
this supplemental.
$2,400.0
Section 7-9 Public Defender Agency
Current projections indicate the PD will require
supplemental funding in the amount of $820.0 to
operate through FY2008. The PD has experienced
significant increases in case load of a variety of
types throughout the much of the state in the
first quarter of FY2008 as compared to the same
period in FY2007. In Anchorage felonies are up 2%
and misdemeanors are up 19%. In Southcentral
Alaska felonies are up 12%, misdemeanors are up
19%, child in need of aid (CINA) cases are up 82%,
while in Southwest Alaska those cases are up 30%,
21%, and 85% respectively.
$820.0
Mr. Swanson explained that in these supplemental requests
for the Office of Public Advocacy (OPA) and Public Defender
Agency (PD), the funding amount is driven by caseload.
Caseload is up for both agencies. The disparate amount
requested by the agencies is explained by several factors.
3:12:27 PM
Mr. Swanson thought PD has improved its ability to identify
potential conflicts early in a case. A case with conflicts
is automatically transferred to the OPA. Those types of
cases have tended to be more expensive ones with significant
fiscal impact. Many of those cases must be assigned to
contract attorneys, who cost more than staff attorneys.
Representative Gara pointed out that under the previous
administration there was an attempt to save costs by hiring
in-house. He wondered if the case load was expected to
increase substantially and if the Department has given OPA
the authority to save money by hiring more staff attorneys.
He was concerned that past administrations have tried to
keep down the number of state employees.
JOSH FINK, PUBLIC ADVOCATE, OFFICE OF PUBLIC ADVOCACY,
DEPARTMENT OF ADMINISTRATION (TESTIFIED VIA TELECONFERENCE),
explained that in FY 08 the DOA was authorized ten new
positions. Those positions were not enough to handle the
significant and unexpected increases in caseloads. Anchorage
is up 43% on felony cases; the trial rate is up 61% from the
previous year. He believed the Commissioner of DOA is
amenable to bringing on staff as long as people will be
represented more efficiently. He is currently looking at
data to figure out how to hire staff to lessen the need for
contractors and reduce those costs.
3:16:01 PM
Co-Chair Chenault asked how many of the ten employees had
been hired. Mr. Fink replied that eight have been hired and
DOA is recruiting for the others. Co-Chair Chenault wondered
if Mr. Fink saw the increase in cases as an on-going trend
or a one-time spike. Mr. Fink thought the situation was
unusual and that although typically PD gets most of the
criminal cases, OPA would start getting a larger percentage
of them. Early in FY 08 as a number of cases were going to
trial, PD realized they had a conflict and so OPA received a
surge of unanticipated cases. The Public Defender decided to
conduct conflict analysis early in the cases.
3:19:06 PM
Section 28(a) Administrative Lease Financing
Atwood parking garage debt: $3,443,000 was
appropriated in HB 95, Sec 30(m) for FY08. Only
one debt payment in the amount of $535,105.53 will
be made in FY08, a reduction of $2,907,894 from
the maximum amount that had originally been
estimated.
($2,907.9)
Mr. Swanson explained the debt service reduction for the
Atwood parking garage.
3:19:52 PM
DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC DEVELOPMENT
Section 7-9 Alaska Energy Authority Power Cost Equalization
Fully fund PCE by increasing the program $1,200.0
from $26,760.0 to $27,960.0 due to the increase in
fuel costs.
$1,200.0
SAMUEL THOMAS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, explained the increase requested for PCE.
Section 7-9 Banking and Securities
Estimated legal and administrative hearing costs
above the funding level of the fiscal note for
Chapter 50, SLA2007 (HB162 - Mortgage Bill). At
the time the bill was passed it was agreed with
the legislature that, if necessary, these
additional costs would be sought for FY08.
$95.0
Mr. Thomas explained that Banking and Securities are
requesting $95,000 receipt support services money because of
recent legal costs especially on the ANCSA oil site.
Section 7-9 Insurance
Estimated legal and administrative hearing costs
above funding level.
$140.0
Mr. Thomas described the Division of Insurance request for
$140,000 receipt supported services to cover increased cost
due to fraud convictions.
3:23:16 PM
Section 7-9 Regulatory Commission of Alaska
Unexpected high, ongoing costs of major litigation
are exceeding FY07 supplemental and FY08 operating
funding amounts. In the past, some litigation
costs were funded by not filling positions. This
is no longer possible due to expanding case load,
recently imposed statutory deadlines, and dramatic
loss of tenured advisory staff.
$ 500.0
Mr. Thomas explained the rising costs of the Regulatory
Commission of Alaska.
Section 10-12 Capital Request: Prescription Drug Monitoring
This capital project grant request is for the
initial planning grant awarded by the U.S.
Department of Justice related to the Prescription
Drug Monitoring Program. Prescription monitoring
programs help prevent and detect the diversion and
abuse of pharmaceutical controlled substances,
particularly at the retail level where no other
automated information collection system exists.
$49.4
Mr. Thomas described a new prescription drug monitoring
program. Investigators are spending a great deal of time
searching for drugs. The $49,000 is for planning purposes,
to research the purchase of a software program that will cut
search time from three months to a few weeks.
Co-Chair Chenault voiced concerns that this is a mechanism
to start a new program that will eventually lead to new
State operating costs.
3:25:59 PM
Section 10-12 Capital Request: Grant for Elections.
The Division of Elections will be conducting an
incorporation election in Wrangell in early May.
If voters approve, city will be dissolved and a
borough will be formed. The department only has 30
days after the election is certified to provide
the first year organization grant. This request is
for the first year grant for Wrangell, the FY09
Capital Budget requests the second year grant.
$300.0
Mr. Thomas explained that the city of Wrangell is asking for
a grant to cover costs related to becoming a borough.
Section 10-12 Capital Request: Climate Change Impact
Climate Change Impact Mitigation Program. Grants
($150.0 max) to imminently threatened communities
for planning for addressing threats and mitigation
measures; mini grants ($50.0 max) to identify
climate change related impacts that are
threatening life, property or economics; support
for local coordination in communities
demonstrating imminent threats; and funding for
oversight of programs and grants.
$1,100.0
Mr. Thomas delineated the $1.1 million request for the
Climate Change Impact Mitigation Program. He described major
erosion problems in villages and other effects of climate
change in northern Alaska.
Co-Chair Chenault reiterated concerns and questions
regarding new programs.
3:28:01 PM
Representative Joule wondered if help would get to
communities when urgently needed rather than depend on
funding cycles. He described the difficulties in Kivalina
after a bad season and wondered about the need for a capital
supplemental.
Section 20(a) Capital
Correct sec 42(c), SB53, SLA 2007, pg 164, line
19, by deleting the reference to "for the fiscal
year ending June 30, 2008."
$0.0
Mr. Thomas pointed out a language change.
Section 20(b) Capital
Restore $34,334 revenue sharing for the community
of Whitestone - sec. 55(c), ch. 30, SLA 2007, page
184, line 3.
$34.3
Mr. Thomas talked about restoring $34,334 to the community
of Whitestone which did not receive money appropriated to
them due to confusion about two locations with the same
name. One of the locations was a mining operation.
3:31:34 PM
Section 20(c) Alaska Energy Authority
Rename the Alaska Energy Authority - ALCAN
Intertie project (sec. 4, ch. 82, SLA 2006, page
117, lines 21-22 - $3,200,000) to Alaska Energy
Authority - Kake - Petersburg Intertie and Alaska
- British Columbia Intertie.
$0.0
Mr. Thomas talked about the Alaska Energy Authority name
change and said he did not have many details. Co-Chair
Chenault wanted to be sure the Alaska Energy Authority is
changing their name and not re-appropriating to a different
project.
Section 20(d) Quality Trade Association Contract
Reduce the FY08 operating appropriation for this
component by $800.0 from $5,005.1 to $4,205.1 to
"free up" funds that are then used in the FY09
capital budget named recipient grant to ATIA.
($800.0)
Mr. Thomas said the Alaska Tourism Industry Association
could not come up with a match in FY 08, so they asked for
an $800,000 reduction in that appropriation.
Section 20(e) Capital
Scope change: Community Development Assistance
[GRANTS] capital project to expand scope to allow
department spending to provide community
assistance. Currently scope is too narrow, only
allowing grants to communities. (Sec. 4, ch. 30,
SLA 2007, page 84, line 26) The estimated
unobligated balance is $11,089,500.
$0.0
Mr. Thomas said this item proposes adjusting language to
reflect a change in scope. The current scope is too narrow
and only allows grants to communities.
3:35:25 PM
Representative Kelly asked if the section dealt with federal
funds. Mr. Thomas said some of the money comes from other
agencies and some from other sources. Representative Kelly
wanted to make sure a simple word change does not have a
broader effect.
Section 27 PCE Fund
PCE Fund Increase PCE Fund capitalization by
$700.0 from $12,999.4 GF to $13,699.4 GF (total
funds from $25,273.0 to $25,973.0) in order to
provide more PCE funding needed due to increased
fuel costs.
$700.0
Mr. Thomas said he would provide more detail if the
Committee needed it.
3:37:43 PM
DEPARTMENT OF CORRECTIONS
SECTION 7-9 Correctional Academy
Training Academy - Recruitment efforts have been
successful, however, this has created a very
critical backlog in getting new hires their
mandatory training. This is a serious safety and
security issue. A supplemental request will meet
the current training needs of the recruits as well
address the curriculum needs of the academy.
$145.4
SHARLEEN GRIFFIN, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF CORRECTIONS, began with the $145,400
supplemental request for the Department's training academy.
She said the Department has done well with a recruitment
campaign which has succeeded in filling the positions;
however, an additional academy is needed to train new
officers this year.
Section 7-9 Institution Director's Office
This request covers the Correctional Facilities
shortfall of personal services, contractual, and
commodities. This includes costs such as
correctional officer overtime, fuel surcharges,
electricity and other utility and heating costs,
increased commodities costs for food and other
operational commodities. The prisons are 24-hour
facilities that must remain open. Every effort is
made to control costs, however, actual costs are
exceeding the FY2008 budget.
$1,852.0
Ms. Griffin said a portion of the $1,852,000 is needed to
pay an additional day of salaries and meals because of leap
year. Another $795,000 is to make up for increased fuel
costs. There are additional costs for overtime to cover for
new officers going through the correctional academy.
Supplies also cost more because of fuel costs.
Co-Chair Chenault asked for clarification regarding the
overtime expenses. Ms. Griffin explained that correctional
officers are working as well as being trained. Additional
resource is needed to cover for them during training.
Section 7-9 Inmate Health Care
The department is requesting a supplemental for
increased inmate health care costs and to meet
medical staff overtime costs. The funding is
needed to meet the department's mandated
obligations of medical care for the aging and
increased population of offenders and for the
sharp increase in the number and the cost for
inmates needing dialysis, cancer treatment and the
growing number of life-threatening cases. Funding
will also assist in meeting the personal service
overtime costs associated with providing the
required nursing oversight.
$2,427.3
Ms. Griffin described the additional costs for inmate health
care due to increases in population and to catastrophic
cases.
3:42:02 PM
Co-Chair Chenault wondered how the State is doing regarding
catastrophic cases. Ms. Griffin answered that so far this
year the cost is $2 million. She said some of those costs
are being recovered due to a $1.9 million increase in the
budget. She said the population is aging and has serious
health challenges, including several heart cases.
Section 21(a) Community Jails
The Division of Legislative Audit recommends that
the Department of Corrections restructure the
community jails program to promote equity between
communities. This involves identifying the various
types of activities and costs associated with
operating local jails while being consistent with
security standards and staffing requirements. This
is even more important because according to the
Department of Administration each community
participating in the community jails program is
already required to have a State single audit.
Establishing a professional services agreement
with an independent contractor will assist the
department in its endeavor to ensure that a
balanced distribution of funding is allocated on
an equitable basis within the community jails
program. An extended termination date is required
to allow sufficient time to procure a contract and
assure the vendor has adequate time to complete
this analysis.
$45.0
Ms. Griffin described the request of $45,000 to restructure
the community jails program to promote equity between
communities. The Department would like a term date extension
on the supplemental. In response to an audit, the Department
proposes to hire a contractor to review each of these
communities and present a plan to more equitably distribute
the money.
Representative Kelly wondered about correcting inequity in
the smaller facilities. He hoped the Department could
recognize that there are differences in what can be provided
in different communities. He was concerned about spending
too much money.
3:45:07 PM
Representative Nelson thought Dillingham, a community in her
district, had one of the smaller facilities. A boom in
prison population during the fishing season resulted in
prisoners sleeping on the floor. She thought there were
disparities in smaller communities compared to places with
larger and more consistent populations.
Ms. Griffin listed some of the smaller prison communities in
the state.
Representative Kelly reiterated his concerns and wanted the
list.
3:47:34 PM
Section 21(b) Out-of-State Contractual
This amount pays for an FY2006 unpaid outstanding
contractual invoice for $50,000 from the
Correctional Corporation of America.
$50.0
Ms. Griffin explained that the vendor had overlooked sending
the invoice.
Section 21(c) Parole Board
This request is to pay an FY2005 unpaid
outstanding invoice for $399.09 from the Voyager
Hotel.
$0.4
Section 21(d) Population Management, Anchorage
There have been lower than anticipated costs and
therefore federal receipts, for housing federal
inmates (man-day federal shortfall). Beds are used
for state and local inmates so general fund
authorization is necessary.
$0.0
Ms. Griffin said DOC is requesting that $1 million of empty
federal receipt authorization be replaced with General
Funds. She said last year federal receipts collected could
not be expended and required a GF replacement. The
Department was $960,000 short last year. These receipts are
slightly overstated as the federal population is going down
and the costs of the facilities are static.
Co-Chair Chenault wondered if there would be another
supplement request next year. Ms. Griffin replied that the
FY 09 request addresses this issue.
HB 343 was HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 3:50 PM.
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