Legislature(2009 - 2010)HOUSE FINANCE 519
01/28/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Department of Health and Social Services Budget Overview | |
| Military and Veterans Affairs Budget Overview | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
HOUSE FINANCE COMMITTEE
January 28, 2009
1:36 p.m.
CALL TO ORDER
Co-Chair Hawker called the House Finance Committee meeting
to order at 1:36:02 PM.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Richard Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
None.
ALSO PRESENT
William Hogan, Commissioner, Department of Health and Social
Services; Alison Elgee, Assistant Commissioner, Finance and
Management Services, Department of Health and Social
Services; John Boucher, Senior Economist, Office of
Management and Budget, Office of the Governor; Craig
Campbell, Adjutant General, Commissioner, Department of
Military & Veterans Affairs.
PRESENT VIA TELECONFERENCE
William Streur, Deputy Commissioner, Medicaid & Health Care
Policy, Department of Health and Social Services.
SUMMARY
Budget Overview:
Department of Health and Social Services
Military and Veterans Affairs
^DEPARTMENT OF HEALTH AND SOCIAL SERVICES BUDGET OVERVIEW
1:39:59 PM
WILLIAM HOGAN, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES (DHSS), reviewed his leadership team as laid out in
the "Organizational Chart" Slide 1 (Copy on File).
1:41:04 PM
Commissioner Hogan introduced his staff and stressed the
importance of the Office of Faith-Based and Community
Initiatives in helping DHSS achieve its mission.
Commissioner Hogan referred to Slide 2: "Expenditures
Category Comparisons of general fund Authorization". The
four pie charts compare the general fund expenditure for the
department in 2000 and 2010 and the total budget
expenditures in 2000 and 2010.
Commissioner Hogan noted that the overall budget request
increase of 0.2 percent from 2009 to 2010 is low. He
stressed that the programs and services DHSS provides are
very important. He felt this budget request was reasonable
even in the current economic environment. Co-Chair Hawker
agreed that the incremental budget increase noted in the 10-
year plan for FY10 was small. He reminded the committee that
this year there is potential for a multi-billion dollar
deficit and that may make funding more difficult.
1:53:36 PM
Commissioner Hogan reviewed Slide 3. The department has
3,670 positions budgeted under Direct Field Work, Program
Support Services, and Administrative Management Services.
The table on the slide indicates the geographical location
of programs and their coordinating position count. He
admitted that 3,670 positions may seem excessive but
asserted that the workforce is effective and efficient.
Co-Chair Hawker voiced that in the past three years the
legislature and the Office of Children's Services (OCS) had
been working together to ensure adequate staffing of OCS in
order to serve at-risk children in the state.
1:54:49 PM
Co-Chair Hawker wondered if the governor's hiring freeze
would affect the planned expansion of OCS positions.
Commissioner Hogan revealed that the hiring freeze would not
impact 24-hour facilities, the Alaska Psychiatric Institute
(API), pioneer homes, or juvenile detention facilities. He
reported that DHSS was prepared to ask the governor's office
and the Office of Management and Budget (OMB) to look at
frontline social workers, public health nurses, adult
protective service workers, and eligibility specialists. A
memo will be prepared to request those positions be exempt
from the hiring freeze.
1:57:03 PM
Representative Gara asked about an OCS study regarding the
staffing of frontline social workers. He wondered how many
unfilled positions there presently were and if the
department was short staffed. Commissioner Hogan answered
that a workload study recommendation had called for an
increase of 17 frontline social workers. Over the next three
years the department plans to reach that number. There is a
request in the FY10 budget for five social workers and one
administrative support position. He could not answer as to
the current vacancy rate and added he would get back to the
committee with the numbers.
Representative Gara wondered if positions were vacant
because of low wages. He asked if there had been a recent
salary review for social workers. Commissioner Hogan replied
that he did not know.
ALISON ELGEE, ASSISTANT COMMISSIONER, FINANCE AND MANAGEMENT
SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
explained that the state was in the process of developing a
Request for Proposal (RFP) that would identify specific job
classes for salary review. She stated that frontline social
worker salaries would be highlighted in the review. The
study would compare Alaska with other states' public,
private, and non-profit sector employment. The hope is that
the review will be completed early next fall.
2:00:00 PM
Representative Gara wondered if support staff would also
receive a pay increase. Commissioner Hogan answered that it
was possible.
Commissioner Hogan discussed Slide 4 containing two pie
charts that illustrate Medicaid direct services in both FY08
and FY10. There was a $46 million dollar reduction in
expenditures entering FY09 which allowed the current fiscal
year to begin with savings. A greater capacity to project
current and future Medicaid expenditures should give a
better understanding of when and how much excess spending
authority is available for FY09. He felt great strides have
been made in cost containment. He also thought extensive
technical assistance to the provider community has lead to
more accurate Medicaid billing. The department has been very
serious about performing Medicaid audits which has made
providers take the provision of services and billing
responsibilities more seriously. He was not suggesting there
was Medicaid fraud. Providers are being more careful to
ensure they are compliant with Medicaid. The net request in
the Medicaid budget is $14 million.
2:05:28 PM
Representative Fairclough referenced page 101 of "The Fiscal
Year 2010 Budget: Legislative Fiscal Analyst's Overview of
the Governor's Request," specifically the legislative fiscal
analyst comment:
According to the check write information available
on-line, the FY09 authorization may exceed Medicaid
projections by as much as $40 million.
Representative Fairclough wondered if Commissioner Hogan was
familiar with the comment. He affirmed he and he thought it
pertained to the federal stimulus package.
2:06:28 PM
Ms. Elgee agreed that the comment was related to the
potential for additional federal funding through the
economic stimulus package. She pointed out that the numbers
in the note reflect what is being debated in the House on
the federal level.
Representative Gara asked for clarification on Medicaid
reimbursement and the federal contribution rate. He wondered
if the rate was rising or falling. Commissioner Hogan
replied that it had come up slightly and accounted for $7.7
million in the FY10 budget. He understood that the economic
stimulus package could raise the federal matching percentage
to 4.9 percent. This means federal government would match 55
percent and the state 45 percent. He anticipated a
substantial boost in the Medicaid budget in FY10.
Co-Chair Hawker explained that there are a lot of unknowns
concerning the economic stimulus package. He stated that the
general fund could not be supplanted by stimulus funds and
that there could be maintenance of effort requirements and
other restrictions related to the stimulus funds.
Ms. Elgee understood that the proposal currently being
debated in the House could provide funding across the board.
She explained that the restrictions Co-Chair Hawker
mentioned were under consideration in the Senate.
Discrepancies between the two bodies have made it difficult
to know what the stimulus will mean to the state budget.
Representative Gara asked about federal and state match
funds for DHSS programs such as Denali Kid Care. He wanted
to know what the reimbursement rates are for Medicaid.
Commissioner Hogan replied that there are varying rates for
different programs. He proposed educating Representative
Gara and his staff on Medicaid at another time as it is
complicated. Representative Gara asked if there is a general
base federal match for Medicare. Commissioner Hogan answered
that there is the one federal base match of approximately
50/50. The match is subject to change depending on
population size and which program the recipient is enrolled
in.
2:11:19 PM
Co-Chair Hawker asked about a reference to the check write
analysis. Commissioner Hogan explained that the check write
analysis gives DHSS information regarding claims paid in a
variety of provider categories. It tells DHSS what they are
paying out and future payouts or surplus funds for projects.
2:12:55 PM
Co-Chair Hawker emphasized that the check write analysis is
one of several used by the department for the projection of
program expenditures.
2:14:12 PM
Commissioner Hogan talked of possible improvements because
of the economic stimulus package. Co-Chair Hawker expressed
concerns regarding future state funding of programs expanded
by the stimulus package.
2:16:55 PM
Commissioner Hogan assured the committee that DHSS will work
with the committee before accepting funds available from the
stimulus package.
Co-Chair Hawker trusted that the dialogue would continue as
the stimulus package is developed.
2:18:47 PM
Commissioner Hogan discussed the Bring the Kids Home
program, which brings Alaskan children residing in out-of-
state psychiatric treatment centers home for care. At one
time over 500 children were residing in out-of-state
centers. That number is currently down to 168. He felt that
the substantial reduction would not have occurred without
help from the Mental Health Trust Authority and the
University of Alaska. The department's goal is to have
enough facilities to house all of Alaska's juvenile
psychiatric patients by 2013. The hope is that this will
lead to a more comprehensive children's behavioral health
service system in the state.
2:20:01 PM
Representative Kelly asked about the construction workforce
used to build the Bring the Kids Home facility in Fairbanks.
He wondered if the hiring was handled by the private sector.
Commissioner Hogan replied that the facility in Fairbanks
was funded through bonds. He informed the committee that the
services are paid for with Medicaid but a state match helps
to operate the facility. He maintained that no public
dollars were used to build the facility in Fairbanks.
Representative Kelly asked if that was the case in other
communities. Commissioner Hogan answered that some other
communities have received federal public dollars through the
Denali Commission. He elaborated that those are smaller
residential facilities and group homes with only 5 or 6
beds.
Commissioner Hogan reported that in FY09 incremental
increases for providers had been made that allowed a 2 to 6
percent increase in reimbursement rates. The department has
been working to establish a methodology to determine the
actual cost incurred by providers for the services they
offer. The department has discovered that there are varying
degrees of sophistication among the providers concerning
cost per unit of service. Commissioner Hogan maintained that
the methodology must be examined in order to offer greater
technical assistance to providers.
2:23:53 PM
Commissioner Hogan thought there was solidarity among
providers to commit to incremental rate increases. The issue
is complicated and not moving as quickly as he had
anticipated. Some rates have been frozen for the last four
years, particularly with home and community based providers,
preventing reimbursement rates from being cost based.
2:24:59 PM
Commissioner Hogan shared that rates are now being looked at
on a regular basis. Some providers have not had rate
increases since the early 1990s which could affect the
availability of services to economically vulnerable
Alaskans.
Representative Gara asked about the foster family
reimbursement rate. Between 1992 and 2008 the rates had not
been raised. He recognized that the rates were finally
raised in FY09 but wanted to know if they would be regularly
reviewed. Commissioner Hogan answered that he anticipated a
review every two or three years. Co-Chair Hawker reminded
the committee that an annual review does not automatically
translate into increased appropriations. Representative Gara
pointed out that there is a shortage of foster families in
the state. He wondered if there were other programs with
regular automatic reimbursement rate increases. Commissioner
Hogan relayed that statute calls for regular adjustments for
hospitals and nursing homes only. All providers would like
to be included in regular adjustments for a reimbursement
rate increase.
2:27:32 PM
Commissioner Hogan felt DHSS had a positive relationship
with the provider community. He reaffirmed that help from
the legislature was necessary to ensure a positive outcome
concerning rate increases.
Vice-Chair Thomas asked if Commissioner Hogan had seen the
foster parent application. Commissioner Hogan replied no. He
hoped that the application was not keeping good people from
applying. The extensive application process is an attempt to
ensure that children are placed in safe and secure homes.
Vice-Chair Thomas shared he had tried to apply in the past
and the forms were too overwhelming without help from a
field representative. He has not seen the application since
that time and wondered if it had been reviewed. Commissioner
Hogan replied that he would look into the application
process and provide an update.
Representative Crawford remarked the he had gone through the
foster parent application process and felt it could be
improved. Commissioner Hogan agreed the process could be
streamlined.
2:30:48 PM
Commissioner Hogan drew attention to the handout titled
"ADHSS 2009 Priorities" (Copy on File). The handout outlines
major strategies for issues facing Alaskans: substance
abuse, health and wellness, health care reform, long-term
care, and vulnerable Alaskans.
2:32:04 PM
Commissioner Hogan continued with the "DHSS Overview of 10-
Year Plan" (Copy on File). Co-Chair Hawker clarified that
Commissioner Hogan was reading from the DHSS 10-year plan
packet issued by OMB.
2:32:56 PM AT EASE
2:42:44 PM RECONVENED
Co-Chair Hawker asked about the 10-year prospects for the
department. He pointed out that requesting a 10-year plan
for department budget overviews is essential to spark
conversation among the legislature, the departments, OMB,
and the public. He mentioned the graphic representation of
technical numbers on pages 12 and 13 of the OMB packet.
Commissioner Hogan related that the department had discussed
the Bring the Kids Home project and questions had arisen
concerning how much money the project needed and how long it
would continue. The discussion prompted the department to
change its view as to how budgets are put together. He
explained that Medicaid is a big driver in cost for
provision of services and operating expenses. The federal
matching percentage fluctuates. He maintained that the
department had worked diligently to craft a 10-year plan.
Commissioner Hogan shared that the department has
anticipated implementing "Health and Social Service Impact
Assessments" in expectation of social issues that will be
compounded by the Alaska Gasline Inducement Act.
2:48:09 PM
Commissioner Hogan added that the department had yet to
determine what model to use and include in the numbers.
Ms. Elgee expressed that long-term Medicaid modeling
software has allowed the department to project the 10-year
numbers comfortably but other areas were more subjective.
She related that creating the 10-year projections had been a
difficult but valuable exercise and had enabled the
department to do some hypothetical modeling that had not
been part of past policy discussions.
2:50:03 PM
Co-Chair Hawker asked about the "Health & Social Services-
All Funds" (Slide 12). Commissioner Hogan clarified that the
red line on the chart indicating the baseline plus
initiatives was based on the anticipation of implementing
the initiatives. Ms. Elgee added that the need for state
expenditures will double within the next 10 years if the
department continues with its current operations.
2:52:00 PM
Co-Chair Hawker asked if the state is looking at a $4
billion budget for DHSS in FY19. Commissioner Hogan replied
yes. Co-Chair Hawker explained that the low numbers of the
projected 10-year overview were a positive sign.
2:54:27 PM
Representative Salmon asked about departmental funding and
programming concerning suicide prevention. Commissioner
Hogan responded that the department is actively working with
the Suicide Prevention Council. He did not have exact dollar
amounts available. The focus in FY09 is on Northwestern
Alaska because the suicide rates in that area are the
highest in the state. He pointed out that the department
could provide resources and hoped communities would be
proactive in seeking out solutions. The issue of suicide is
complicated by substance abuse and economic hardship. He
stated that he would provide the dollar amounts for suicide
programs as quickly as possible.
2:56:14 PM
Co-Chair Hawker asked what DHSS's approach had been to
initiatives for the programs it supports. Commissioner Hogan
replied that the department had looked at historical trends.
2:57:25 PM
Commissioner Hogan stressed that defaulting to historical
trends had been the best option given the shortage of time.
Co-Chair Hawker queried the department's contribution to
deficit reduction strategies over time. Commissioner Hogan
stated that the department would examine all of its programs
to determine where budget reductions could be made.
2:58:56 PM
Vice-Chair Thomas wondered if people could be dropped from
social service programs if they fail to quit smoking. He
felt that people who smoke cigarettes will become a
financial burden to the state through eventual medical
costs. He elaborated on the ills of smoking and wanted to
know what was being done about prevention. Commissioner
Hogan stated that it was a matter of personal responsibility
and a system should be created to help people make good
choices. He agreed that the bad choices made by some people
using the social service programs add significant cost to
the healthcare system.
Representative Fairclough asked if there were vacancies on
the board of the Alaska Suicide Prevention Council.
Commissioner Hogan thought that all appointments to the
board had been made. He hoped in the future there would be
more collaboration between the department and the council.
Representative Fairclough asked him to double check that the
board was fully functioning.
Co-Chair Stoltze wondered if applicants with a history of
drug abuse could be required to be drug tested when applying
for social service programs. Commissioner Hogan responded
that applicants who have gone through the court system are
required to submit to drug screening. He added that the
majority of individuals that are involved in the
department's substance abuse system are subject to regular
urinalysis. Co-Chair Stoltze emphasized that he did not want
to brand possible recipients but he felt if money was going
to be spent it should not be on people who use drugs. Co-
Chair Hawker asked if the department was able to make drug
screening a requirement for Medicaid eligibility in
particular. Commissioner Hogan replied it would take an
increase of capacity and capability to test every Medicaid
applicant. Co-Chair Hawker added that the practice would be
unconstitutional.
3:07:39 PM
Representative Joule interjected that revisiting efforts to
tighten airport security on the local level, particularly in
rural communities, could alleviate some of the social ills
throughout the state.
3:10:19 PM
Representative Kelly asked if the numbers in the
department's 10-year plan reflected inflation.
3:11:21 PM
JOHN BOUCHER, SENIOR ECONOMIST, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR, explained that there was no
overall built-in constant inflation adjustment.
Representative Kelly asked for more clarification. Mr.
Boucher informed the committee that some programs had built
in an inflation factor of 2.75 percent and some did not. The
dollars in the presentation are a combination of the two.
Ms. Elgee added that the 2.75 percent inflation factor was
employed in the case of Medicaid.
3:13:25 PM: AT EASE
3:14:54 PM: RECONVENED
^MILITARY AND VETERANS AFFAIRS BUDGET OVERVIEW
CRAIG CAMPBELL, ADJUTANT GENERAL, COMMISSIONER, DEPARTMENT
OF MILITARY & VETERANS AFFAIRS, began his presentation.
3:16:55 PM
Commissioner Campbell explained that the department is
composed of a variety of divisions.
3:17:58 PM
Commissioner Campbell began with the issue of the Alaska
Territorial Guard. A decade ago Senator Ted Stevens passed
federal legislation that allowed territorial guard members
to receive official recognition as retired military
personnel. The guard members had been denied military
retirement benefits for 60 years. In 2004 the first
certificate was issued allowing the recipient to draw
military retirement benefits. There are currently 27 members
who receive full military retirement benefits because of
their service in the ATG. Over 1000 applications have been
processed.
3:20:05 PM
Commissioner Campbell continued that presently those
benefits are under scrutiny and are being challenged by the
U.S. Army. He had been informed on January 27, 2009 that
benefits would be discontinued in two months. He is
confident that with Alaska's two senators working the issue
through the congressional process, the law will be changed
and there will be no interruption of benefits to Alaska
Territorial Guard members.
3:21:50 PM
Commissioner Campbell relayed that over the last few years
the Army National Guard (ANG) has been transforming from a
scout group into a battlefield surveillance brigade. They
now have the equipment and training to support active-duty
army soldiers deployed worldwide. The training also provides
the guard with a skill set beneficial to Alaska in emergency
response situations. The guard will maintain 2000 members
and the main readiness centers in Nome, Bethel, and Juneau
will remain intact. The headquarters will be in Anchorage.
He expected that the transformation will be completed in 24
months.
3:23:30 PM
Commissioner Campbell reported that the Defense Base Closure
and Realignment Commission (BRAC) has recommended the
closing of the Kulis ANG base. The guard would be relocated
to Elmendorf United States Air Force (USAF) Base. The land
at the Anchorage International Airport, where Kulis is
currently located, is valuable land for the airport. The
land can be used for other opportunities which will generate
more civilian jobs.
3:24:39 PM
Commissioner Campbell communicated that the project will be
entirely federally funded. The project will cost $150
million and is currently on schedule.
3:25:33 PM
Commissioner Campbell explained that the relocation of Kulis
to Elmendorf will save the state money because Elmendorf is
a federally funded USAF base. The department is still in
negotiations with the USAF to determine what the overall
operational costs will be. The Alaska National Guard will
maintain two air force units and 2000 guardsmen in the
state.
3:26:44 PM
Commissioner Campbell declared that across the country the
United States National Guard is attempting to reduce the
number of air force units per state to one. The department
has an air force unit at Eielson and at Kulis, soon to be at
Elmendorf. If the pressure from the federal National Guard
is successful one of Alaska's air force units will be at
risk. By establishing the USAF as the department's strongest
proponent for maintaining two air force units, Alaska gains
leverage against the federal National Guard. The state's
current relationship with the USAF is good and is
strengthened by a mutual understanding that the relocation
of the Kulis base is necessary for the future of the state.
3:28:04 PM
Commissioner Campbell talked about the Alaska Military Youth
Academy. The academy is the fourth strongest in the nation.
Several years ago the legislature converted academy funding
from the general fund over to the educational foundation
formula. This change was critical as the program does not
qualify for federal public education funds because of its
military style training.
3:29:23 PM
Commissioner Campbell furthered that securing funding
through the educational foundation formula has allowed the
academy to build a highly successful program with a 95
percent graduation rate.
3:31:41 PM
Commissioner Campbell continued that the method of funding
for the academy works well and should remain the same.
Commissioner Campbell addressed the Emergency Management and
Homeland Security Division. The division had been split in
two in the past and in 2001 there were only three people
working in the Division of Homeland Security.
3:33:22 PM
Commissioner Campbell stated that three years ago the
divisions were combined for efficiency. At that time both
programs employed a grant program and a response program
that worked countercyclical to each other. The division, as
it is now structured, is thriving and cognizant of the needs
of communities throughout the state.
3:34:55 PM
Representative Kelly asked if the population of the youth
academy had increased recently and if there is a waiting
list.
3:36:35 PM
Commissioner Campbell reported that this year's graduating
class is the largest in academy history. Over 400
applications are processed per year. Out of the 300 students
accepted each year, 250 students graduate. The academy has
one full female and three male platoons. He felt the
facility would not be run as effectively if expanded. He
mentioned the possibility of another academy to accommodate
student overflow. There is no waiting list for the academy.
There are always more applications than open positions. He
felt the true demand for the academy lies at around 400
students.
3:38:54 PM
Commissioner Campbell added that the facility could be
expanded to accommodate more students.
Vice-Chair Thomas stated that he had received complaints
from vets who were denied a permanent fund dividend (PFD)
because they had been deployed to Kuwait, a non-combat zone,
and wondered if Commissioner Campbell was aware of the
problem. He spoke of soldiers deployed to Iraq with post
traumatic stress disorder (PTSD) who could not find
employment and soldiers with substance abuse and other
health problems. He worried that soldiers were ashamed to
seek help from the military and queried the department's
involvement with PTSD cases in Alaska.
3:42:57 PM
Commissioner Campbell replied that he was aware of the PFD
issue. He asked for time to research the issue and get back
to the committee. The Alaska Army National Guard has not had
many soldiers serve multiple tours of duty. The average tour
of duty can last one to four years. He stressed that there
are many programs available to help soldiers with PTSD but
that the programs may be hard to access. The Yellow Ribbon
Program requires that soldiers be evaluated at 30, 60, and,
90 days after returning from deployment in order to catch
health issues. A full-time chaplin has been hired to travel
throughout the state to visit with soldiers and their
families as needed.
3:46:16 PM
Commissioner Campbell parlayed that the department has
developed the Warrior Transition Program to accommodate
soldiers still under Army authority with PTSD issues. He
pointed out that this program was not available several
years ago. He explained that the majority of National Guard
members are working for the guard mainly on the weekend. He
stressed that the department encourages soldiers to talk
about possible destructive issues. He felt comfortable that
the problems among soldiers who had been deployed with the
guard have not been major abuse problems. He impressed upon
the committee the he personally would assist soldiers
experiencing difficulty receiving help.
3:48:11 PM
Representative Gara asked about a past intensive outreach
effort to locate the Alaska Territorial Guardsmen who were
entitled to retirement benefits. He asked how many people
had been located to date and how many are receiving
benefits.
3:49:41 PM
Commissioner Campbell replied that there are six people
working on the project. He explained that he was not
personally overseeing the program. He noted that the
outreach program is exceptional and is endorsed by many
groups around the state.
3:50:54 PM
Commissioner Campbell furthered that the program has located
6,600 people who have served in the past; of those, 1300
have been processed, 700 have been approved, 27 are
currently receiving benefits, and 56 are qualified but
waiting to receive benefits. Representative Gara wondered if
the process was taking too long. He feared that some
qualified guardsmen may have already passed away.
Commissioner Campbell felt that the department was
effectively engaging with every community involved in the
program.
Co-Chair Hawker queried Commissioner Campbell's approach to
reaching departmental goals within the next 10 years.
3:54:49 PM
Commissioner Campbell avowed that there will be no general
fund supplemental for FY09; however, a supplemental may be
necessary for fuel and utility expenses that come from the
state. Co-Chair Hawker responded that the committee has
anticipated the supplemental.
3:56:07 PM
Commissioner Campbell pointed out the highlights of the 2010
budget request. He explained that the budget is the same as
the FY09 budget, minus the cost of fuel ("Summary of DMVA
10-year Plan Assumptions" Copy on File). He maintained that
the budget is transparent and invited the public to visit
his website to view the department's strategic plan, annual
report, and annual budget for the past six years.
3:57:50 PM
Commissioner Campbell revealed that $50,000 would be added
to veteran's services. This is possible through money left
over from the FY08 budget. The extra funding will add two
more veterans services officers.
4:00:17 PM
Commissioner Campbell spoke of the long-range view of the
department. The construction of a Bethel Readiness Center
(Armory) is a top priority. He explained that in 2004, 2005,
and 2006 the state matched federal funds to build the
center. The National Defense Appropriation Act Budget put
$16 million in for the Bethel armory, so the federal funding
match is now available.
Commissioner Campbell elaborated that there were other
obstacles. The land established for the building was full of
refrigerators, cars, and other waste. The department worked
with the city, cleaned up the trash, and put in fill.
Because the fill has altered the landscape, run-off water
from rain and snow is not draining sufficiently, which could
put surrounding residencies at risk for flood. To solve the
problem the fill must be raised, the project scaled back, or
a new location must be established. He maintained that he
was not asking the committee for more funding for the
project. The request is for permission to have $258,000 in
operating costs included in the yearly budget starting in
2011. He added that the center is number two on a list of
three readiness centers. The center in Juneau was completed
three years ago and the hope is to build the third in Nome.
4:03:22 PM
Commissioner Campbell expected a $138,000 to $149,000
increase in personnel cost per year over the next decade. He
believed operating costs could also rise. He asked that the
committee pay attention to the effects of inflation on the
needs of the department.
4:05:24 PM
Commissioner Campbell informed the committee that the
department is working to begin a new program to build a
state veteran's cemetery in the Interior. The veteran
population in and around Fairbanks could qualify the
Interior for a veterans cemetery; however, it would not be a
fully federally funded and operated veterans cemetery. The
federal government would pay to build the cemetery if the
state agrees to cover operating expenses. Many states have
participated in this program. The project would require
$750,000 up front in architectural and engineering costs to
the state. The federal government would pay $5 million for
construction costs; annual operations would cost $250,000.
The department's 10-year projection had initially requested
four $250,000 increments for the construction of the
cemetery.
4:07:51 PM
Commissioner Campbell explained that on January 16, 2008 the
Veterans Administration advised the department that costs
had been overestimated. The actual cost would only be
$750,000, the caveat being that the department cannot apply
for federal funding for the project until the state made a
commitment to the full $750,000 for operation costs. The
department recommends that the state fund the $750,000.
Commissioner Campbell stated that the application is
prepared and the cemetery would take two years to build.
4:09:22 PM
Commissioner Campbell mentioned a number of appropriation
requests found in the 10-year plan that pertain to the
authority to spend federal money. He concluded with two
charts on Slide 5 comparing the federal government match
with the state match. Commissioner Campbell stressed the
significance of the federal funding the department receives.
He discussed the capital funds charts located Slide 4
showing the value to the state of accepting federal dollars.
He clarified that he did not believe in asking for state
money simply because federal money was available. The
department asks for federal money that is right for the
state. He urged the committee to take that into
consideration when examining the Department of Military and
Veterans Affairs budget.
4:14:05 PM
ADJOURNMENT
The meeting was adjourned at 4:14 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DHSS-5 Priorities-1.27.09.pdf |
HFIN 1/28/2009 1:30:00 PM |
|
| DHSS Org Chart & Financials-1.27.09.pdf |
HFIN 1/28/2009 1:30:00 PM |
|
| MILITARYVETAFFAIRS_Plan 2009.pdf |
HFIN 1/28/2009 1:30:00 PM |
|
| H&SS_Plan 2009.01.27 HFC.pdf |
HFIN 1/28/2009 1:30:00 PM |
|
| DMVA Overview 10 yr plan - Talking Points.pdf |
HFIN 1/28/2009 1:30:00 PM |
HB 81 |