Legislature(2013 - 2014)HOUSE FINANCE 519
02/11/2013 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB30 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 30 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 11, 2013
1:36 p.m.
1:36:19 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:36 p.m.
MEMBERS PRESENT
Representative Alan Austerman, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Mark Neuman, Vice-Chair
Representative Bryce Edgmon
Representative Les Gara
Representative Lindsey Holmes
Representative Scott Kawasaki, Alternate
Representative Cathy Munoz
Representative Steve Thompson
Representative Tammie Wilson
MEMBERS ABSENT
Representative David Guttenberg
Representative Mia Costello
ALSO PRESENT
Mike Chenault, Speaker of the House; Joshua Walton, Staff,
Representative Costello; Kris Curtis, Legislative Auditor,
Legislative Budget and Audit; Sharon Kelly, Staff, Speaker
Chenault.
SUMMARY
HB 30 STATE AGENCY PERFORMANCE AUDITS
HB 30 was was HEARD and HELD in committee for
further consideration.
HOUSE BILL NO. 30
"An Act relating to performance reviews, audits, and
termination of executive and legislative branch
agencies, the University of Alaska, and the Alaska
Court System; and providing for an effective date."
1:36:28 PM
Co-Chair Stoltze stated that the quorum was available
Co-Chair Stoltze stated that the subcommittee for HB 30 was
chaired by Representative Costello.
Vice-Chair Neuman MOVED to ADOPT proposed committee
substitute for HB 30, Work Draft 28-LS0180\Y (FIN). There
being NO OBJECTION, it was so ordered.
Co-Chair Stoltze invited the Speaker to discuss the
subcommittee processes.
MIKE CHENAULT, SPEAKER OF THE HOUSE, discussed the staff.
JOSHUA WALTON, STAFF, REPRESENTATIVE COSTELLO, discussed
the CS and the changes made. He expressed gratitude for the
subcommittee members. He stated that the subcommittee met
twice and heard testimony from the speaker and analysts.
The subcommittee deliberations led to the changes. The
first change on page 4, lines 12 and 14, which replaced all
instances of the year 2015 with 2017. Page 4, line 15
replaced 2016 with 2015. Page 4, line 16 replaced 2017 with
2016. He added that agencies were listed in chronological
order. The effect of the changes led to a different order
beginning with Department of Corrections in 2014 and
Department of Health and Social Services in 2015,
Department of Education and Early Development in 2016,
Office of the Governor, Legislature and Alaska Court System
in 2017. The agencies in the following years remained
unchanged. The intent was to allow for early evaluation of
the larger departments for use by the legislature.
1:42:31 PM
Mr. Walton discussed agency information for review teams.
He began with page 5, line 14, which replaced paragraph C
"are not essential" with "are not essential to the agency
mission or delivery of the agency's core services. The
intent was to clarify the meaning of the word "essential."
He pointed out that the changes were relocated on lines 14
and 15 of page 5 of the CS. Page 5, line 17 - 19 deleted
"all material" and replace with "all information submitted
to the legislature in the agency's most recent submission
under Alaska statutes 37.07.050 including agency mission,
results based measures, prioritization of core services and
all programs within the core services from the most
important to the least important." The changes were located
on lines 18 - 21 of the CS. The statutory reference
referred to agency's financial plans including mission
statements, measures and ten-year plans. The intent of the
change was to include results-based measuring within the
information required from agencies for the review team.
1:43:13 PM
Mr. Walton discussed page 6, line 10 of the CS, where a new
paragraph 1 was inserted stating "all material provided
under Alaska statutes 44.66.020 section c, paragraph 4."
The change would direct the review team to analyze the
previously specified material as part of their analysis.
1:45:10 PM
Mr. Walton discussed the report generated by the review
team. The first change deleted paragraph 1, page 7, line 4
"evaluate the efficiency and the effectiveness of the
agency's program" and insert "evaluate the success of the
agency in achieving its mission through the effective and
efficient delivery of its core services, goals, programs
and objectives." Insert paragraph two, "determine whether
the agency's results-based measures demonstrate the
effectiveness and efficiency of the agency's core services,
goals, programs and objectives and recommend changes if
necessary." Insert paragraph three, "determine whether the
results-based measures were useful in conducting a review
and recommend changes if necessary." He stated that the
original bill evaluated the review team's report for
program effectiveness and efficiency and the success that
the agency had in meeting its mission. The changes resulted
in the review team's report containing evaluation of the
agency's success via program effectiveness and efficiency.
Mr. Walton pointed out page 7, lines 6 - 8: delete
paragraph 4, which was replaced as part of the first 3
paragraphs. Paragraphs 1 and 2 were removed and reinserted
with an additional focus on the results-based measures.
1:47:06 PM
Mr. Walton highlighted the next three changes found on page
7, line 10. Page 7, lines 17 and 23 were grammar repairs.
He mentioned a change to page 7, lines 25 - 27; deleting
"all material" and replacing with paragraph 13 "identify
services provided by programs and functions duplicated by
another government agency or private entity and recommend
the most effective and efficient way to perform those
services." The change was relocated to page 8, lines 1 - 3.
The intent behind the amendment was to identify programs
and functions, but the subcommittee prioritized services.
Mr. Walton discussed page 8, line 2, insert the words "and
efficiencies" following the words "identify reductions."
The CS shows the changes on paragraph 16 with the intent
that efficiencies and reductions were addressed in the
report. The final change renumbered the sections
appropriately.
1:48:59 PM
Speaker Chenault complimented the subcommittee on their
work eliminating some of the members' issues.
Co-Chair Stoltze closed public testimony. He discussed the
fiscal notes.
1:50:45 PM
Representative Kawasaki asked about the contractual
consultant costs detailed on the fiscal note. He wondered
if LB&A could use internal staff as opposed to hiring a
consultant.
KRIS CURTIS, LEGISLATIVE AUDITOR, LEGISLATIVE BUDGET AND
AUDIT, explained that the amounts listed in the fiscal note
compiled costs for contractual entities. She understood
that the issue was discussed at length in previous years.
The work included performance reviews as opposed to audits.
She mentioned that the contractual consultants had
expertise that the division did not have on staff. She
stated that the experts would have knowledge of other
states' processes.
1:53:18 PM
Representative Kawasaki commented that the performance
reviews might be valuable in the future and in-house
employees might be available for future work.
Co-Chair Stoltze asked if a person doing a performance
review in one agency would employ the same expertise for
another agency's review. Was the skill transferable?
Ms. Curtis did not know. She clarified that support
positions would be added at LB&A to serve the consultants.
The support team would allow the transfer of expertise from
the contracted consultants following the review.
Representative Munoz stated that two people hired first
with a third person hired later. She asked if the new
employees would work for LB&A.
Ms. Curtis affirmed that the employees would work for LB&A.
The employees would not function as auditors. The employees
will procure the consultants, draft contracts, monitor
contracts and facilitating the report process. The
positions will be full time and focus on performance
reviews.
1:55:47 PM
Representative Munoz asked why personnel cost increases
were not reflected in the fiscal note.
Ms. Curtis stated that the annual increases were not known.
1:56:26 PM
Representative Gara wondered if the reason for the proposed
cuts were clear to the reader of the legislation. He asked
about a requirement that the reader understand the reason
for a cut.
SHARON KELLY, STAFF, SPEAKER CHENAULT, stated that an
agency employee would seek out the information regarding
reasons for the cuts.
Representative Gara agreed with Ms. Kelly, but recommended
amending the bill to clarify the issue.
1:59:46 PM
HB 30 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 2:01 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CS WORK DRAFT HB 30-Y version.pdf |
HFIN 2/11/2013 1:30:00 PM |
HB 30 |
| HB 30 Subcommittee Report to House Finance.pdf |
HFIN 2/11/2013 1:30:00 PM |
HB 30 |
| HB30-FN-LegAudit2a-2-11-13 v2.pdf |
HFIN 2/11/2013 1:30:00 PM |
HB 30 |