Legislature(2013 - 2014)HOUSE FINANCE 519

02/07/2013 01:30 PM FINANCE


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01:33:35 PM Start
01:35:50 PM HB91
02:26:34 PM Department of Administration - Statewide Information Technology Governance Systems Overview
02:26:34 PM HB91
02:32:04 PM Department of Administration - Statewide Information Technology Governance Systems Overview
03:05:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 91 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS TELECONFERENCED
Heard & Held
+ Overviews: TELECONFERENCED
- Governor's Supplemental Budget by Karen
Rehfeld, Director, Office of Management & Budget
- Statewide Information Technology Governance
Systems by Michael Barnhill, Deputy Commissioner,
Dept. of Administration & Dave Blaisdell,
Director, Administrative Services Division,
Dept. of Law
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 7, 2013                                                                                           
                         1:33 p.m.                                                                                              
                                                                                                                                
1:33:35 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Austerman  called   the  House  Finance  Committee                                                                    
meeting to order at 1:33 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                                                                                                                  
                                                                                                                                
Karen Rehfeld,  Director, Office  of Management  and Budget;                                                                    
Paloma  Harbour,  Acting   Division  Director,  Division  of                                                                    
Administrative    Services;   Dave    Blaisdell,   Director,                                                                    
Administrative   Services  Division,   Department  of   Law;                                                                    
Michael   Barnhill,  Deputy   Commissioner,  Department   of                                                                    
Administration                                                                                                                  
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB  91    SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS                                                                             
                                                                                                                                
          HB 91 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
DEPARTMENT   OF  ADMINISTRATION   -  STATEWIDE   INFORMATION                                                                    
TECHNOLOGY GOVERNANCE SYSTEMS OVERVIEW                                                                                          
                                                                                                                                
HOUSE BILL NO. 91                                                                                                             
                                                                                                                                
     "An  Act  making supplemental  appropriations,  capital                                                                    
     appropriations,  and   other  appropriations;  amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     appropriations to  capitalize funds; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
1:35:50 PM                                                                                                                    
                                                                                                                                
KAREN REHFELD,  DIRECTOR, OFFICE  OF MANAGEMENT  AND BUDGET,                                                                    
(OMB) provided a  spreadsheet and summary page  for the FY13                                                                    
Supplemental Bill, HB 91 (copies on file).                                                                                      
                                                                                                                                
Ms. Rehfeld  looked at  the summary,  and stated  that there                                                                    
was  a  reduction  in  general   funds  requests  of  $2.877                                                                    
million;  a designated  general  funds  request increase  of                                                                    
$4,200; other  funds requests  totaled $24.464  million; and                                                                    
federal  funds requests  totaled $2.864  million. She  noted                                                                    
that  the  total  operating supplemental  request  showed  a                                                                    
decrease of  $3.344 million. She remarked  that the governor                                                                    
had  asked for  an  additional $5.3  million,  based on  the                                                                    
estimates  of  fire  suppression activities  for  FY13.  She                                                                    
pointed out  a request of  $3.4 million in  disaster relief;                                                                    
and $900,000  of that  request was  related to  the previous                                                                    
winter's storms and an anticipation  of spring flooding. She                                                                    
pointed out  the $25 million  general fund decrement  in the                                                                    
Medicaid decrement.  There was  a debt service  reduction of                                                                    
approximately  $6  million  in   general  funds;  and  eight                                                                    
judgments and settlements from the  Department of Law (DOL).                                                                    
The total capital supplemental  items totaled $27.8 million,                                                                    
of which $3.8 million was general funds.                                                                                        
                                                                                                                                
Ms. Rehfeld highlighted  some of the sections of  SB 42. She                                                                    
stated that Section  1 was the operating  numbers portion of                                                                    
the bill.  Section 2 was  the funding summary  by department                                                                    
for  the  individual  items.  Section   3  was  the  capital                                                                    
summary,  followed  by  a  funding  summary  in  Section  4.                                                                    
Section 5  was the funding  summary for all  items contained                                                                    
in both the operating and capital supplemental budget.                                                                          
                                                                                                                                
1:40:00 PM                                                                                                                    
                                                                                                                                
Ms.  Rehfeld  highlighted  the  items  listed  in  the  FY13                                                                    
Supplemental Bill  spreadsheet. Lines 2  and 3 were  for the                                                                    
Alcoholic Beverage  Control (ABC)  Board. The  requests were                                                                    
program  receipts requested  specific  to legal  assistance,                                                                    
and  maintaining an  underage drinking  enforcement program.                                                                    
Both of the requests were in  the FY14 budget. She looked at                                                                    
line  4,  which was  a  request  for the  Alaska  Industrial                                                                    
Development  and  Export  Authority (AIDEA).  She  explained                                                                    
that AIDEA  requested to participate  and assist  in several                                                                    
large project  development and  financing options;  and were                                                                    
seeking  some additional  capacity  to  hire some  technical                                                                    
expertise.  The   $200,000  in   AIDEA  receipts   was  also                                                                    
requested in the governor's FY14  budget. She explained that                                                                    
line 5  related to the  DFG appropriation for  the waterfowl                                                                    
and sanctuary access permit fees  from DFG funds rather than                                                                    
from  program  receipts.  She  stated that  line  6  was  in                                                                    
compliance  with  federal  findings. She  pointed  out  that                                                                    
$303,000 was  requested to deposit shooting  range fees into                                                                    
the fish  and game fund.  She explained  that lines 7  and 8                                                                    
were for the  DHSS, and were for food  service, laundry, and                                                                    
janitorial  contracts at  the Pioneer  Homes. She  explained                                                                    
that  line 9  was a  request  for security  upgrades at  the                                                                    
Office  of Children  Services Anchorage  Regional Office  in                                                                    
response  to recent  security  threats,  and furthered  that                                                                    
there  was a  request in  the  FY14 budget  related to  that                                                                    
item.  Ms. Rehfeld  stated that  line  10 was  a request  to                                                                    
maintain  services   for  child  protection   programs.  She                                                                    
furthered  that line  11  was a  request  for social  worker                                                                    
class  study implementation.  That  study  is now  complete.                                                                    
This request is included in the governor's FY14 budget.                                                                         
                                                                                                                                
1:46:21 PM                                                                                                                    
                                                                                                                                
Ms. Rehfeld explained  that line 12 was a  request from DHSS                                                                    
for social  security income and  child support  for children                                                                    
in  State  custody.  There  is  additional  Social  Security                                                                    
Income  and child  support receipts  for protective  custody                                                                    
available. There is also a  reduction of federal funds. This                                                                    
request  was included  in the  governor's  FY14 budget.  She                                                                    
stated  that line  13 was  a fund  source. She  relayed that                                                                    
line 14 was a request  from DHSS for increased medical costs                                                                    
for  clients  in  the Division  of  Juvenile  Justice.  This                                                                    
request  is  included in  the  governor's  FY14 budget.  She                                                                    
explained that line  15 was for an  increase federal receipt                                                                    
authority to  provide cash assistance  and work  services to                                                                    
low-income families  with children  to help them  with basic                                                                    
needs while they work  toward becoming self-sufficient. This                                                                    
request, and  the request  on line 16,  was included  in the                                                                    
FY14 Governor's budget.                                                                                                         
                                                                                                                                
Ms.  Rehfeld shared  that line  17  was a  correction of  an                                                                    
omitted fiscal  note from the  previous year. Line 18  was a                                                                    
one-time request  of $137,000 for  a general  relief program                                                                    
increase.                                                                                                                       
                                                                                                                                
1:49:44 PM                                                                                                                    
                                                                                                                                
Ms. Rehfeld  reported that line  19 was a request  from DHSS                                                                    
for Health  Care Access and Service  Delivery Evaluation and                                                                    
System Development Funds were  available from the Children's                                                                    
Health  Insurance   Program  Reauthorization  Act   of  2009                                                                    
(CHIPRA)  based  on  the Department  of  Health  and  Social                                                                    
Services' performance  in managing  the CHIP  program. These                                                                    
funds would be  used to help oversee and  manage health care                                                                    
services and Medicaid programs  through evaluation of health                                                                    
care  services   and  delivery.  Studies  to   evaluate  and                                                                    
determine the most cost efficient  and effective delivery of                                                                    
health  care  services and  systems  and  equipment to  help                                                                    
achieve  increased efficiency  and  effectiveness of  health                                                                    
care  delivery and  reporting capabilities  are included  in                                                                    
this request.  The impact of  this supplemental  request was                                                                    
being considered for a FY14 budget amendment.                                                                                   
                                                                                                                                
Ms. Rehfeld  explained that  line 20 was  for a  $25 million                                                                    
decrement  for   savings  from  Medicaid   cost  containment                                                                    
measures.  She  communicated  that  line  21  was  from  the                                                                    
Department  of Labor  and Workforce  Development (DLWD)  for                                                                    
department-wide  unavoidable   lease  cost   increases.  She                                                                    
explained that  line 22  was from  DNR for  fire suppression                                                                    
activity.                                                                                                                       
                                                                                                                                
1:52:02 PM                                                                                                                    
                                                                                                                                
Ms. Rehfeld announced  that line 23 was from  DPS to replace                                                                    
federal pass-through  funds from  the Alaska  Highway Safety                                                                    
Office, which  would cover both Driving  Under the Influence                                                                    
(DUI) and  non-DUI related activities. A  similar request is                                                                    
included  in the  FY14 governor's  budget in  the amount  of                                                                    
$2.937  million.  She  shared  that line  25  was  from  the                                                                    
Department   of   Transportation   and   Public   Facilities                                                                    
(DOT/PF), and  was a request  for legal fees related  to Old                                                                    
Quihaguk Airport;  line 26 was  for storm  water compliance;                                                                    
and  line  27 was  for  maintenance  and operations  of  New                                                                    
Akutan  Airport. She  shared that  line 28  was for  retiree                                                                    
health  insurance   increases  for  Alaska   Marine  Highway                                                                    
Systems unions,  and furthered that certain  retirees in the                                                                    
Alaska Marine  Highway System bargaining units  can elect to                                                                    
remain covered  under their active  health plan  through the                                                                    
North West Marine Welfare  Trust. Recalculations of premiums                                                                    
occur annually, based on claims  and number of participants.                                                                    
Bargaining   Units  include   the  Inland   Boatmen's  Union                                                                    
representing the  Unlicensed Marine Unit;  Marine Engineer's                                                                    
Beneficial  Association; and  International Organization  of                                                                    
Masters, Mates, and  Pilots. She explained that  line 29 was                                                                    
from the  Alaska Court System (COURT)  to provide reasonable                                                                    
accommodations  to  assist a hearing impaired  judge who was                                                                    
appointed to the superior court  bench in Bethel. She stated                                                                    
that line 32 was from  Department of Commerce, Community and                                                                    
Economic  Development  (DCCED)  for the  Petersburg  Borough                                                                    
organization  grant,   and  was  a  one-time   request.  She                                                                    
announced that line  33 was from DOR for  the Alaska Housing                                                                    
Finance  Corporation   (AHFC)  San  Roberto   Mountain  View                                                                    
development project.                                                                                                            
                                                                                                                                
1:58:03 PM                                                                                                                    
                                                                                                                                
Ms. Rehfeld explained  that line 36 was  from the Department                                                                    
of Fish  and Game  (DFG) for wildlife  conservation aircraft                                                                    
maintenance, to  allow for  general maintenance  of aircraft                                                                    
as  Capstone  avionics  is  not   feasible  in  the  primary                                                                    
locations flown  by the  aircraft. Line 37  was from  DFG to                                                                    
add authority  to the Wild/Hatchery Salmon  Management Tools                                                                    
project to  receive funding from  processors. Line 38  was a                                                                    
request from  the Department of  Health and  Social Services                                                                    
(DHSS)  for the  unobligated  balance estimated  to be  $1.3                                                                    
million  of  the  federal  unrestricted  receipts  form  the                                                                    
Children's Health  Insurance Program Reauthorization  Act of                                                                    
2009, for  operating costs for  the fiscal year  ending June                                                                    
30, 2014. Lines 39 and 40  were from DOL for actual judgment                                                                    
and settlement costs  received as of January  30, 2013. Line                                                                    
41  was  from  DOL  for  the purpose  of  paying  the  costs                                                                    
associated with  fast ferry litigation for  the fiscal years                                                                    
ending  June 30,  2012; June  30, 2013,  and June  30, 2014.                                                                    
Line  42  was  from  DNR   to  extend  the  lapse  date  for                                                                    
permitting and  application processing related to  the state                                                                    
gas  pipeline right-of-way  work related  to bringing  North                                                                    
Slope  natural  gas to  market.  Line  43  was from  DPS  to                                                                    
reappropriate   funds  for   a  statewide   aircraft  hangar                                                                    
improvement   project.  Line   44   was  from   DOR  for   a                                                                    
reappropriation   for   the   San  Roberto   Mountain   View                                                                    
development project.  Line 45 was from  DOR to reappropriate                                                                    
funds for an Oil and Gas fiscal systems analysis.                                                                               
                                                                                                                                
                                                                                                                                
2:03:33 PM                                                                                                                    
                                                                                                                                
Ms.  Rehfeld announced  that  line 46  was  from DOT/PF  for                                                                    
legal fees related to the  Ruth Burnett Sport Fish Hatchery.                                                                    
Line  47  was from  DOT/PF  for  right-of-way carry  forward                                                                    
language. Line 48  through 50 was for debt  service. Line 51                                                                    
was  a fund  transfer to  allow fees  from shooting  ranges,                                                                    
sanctuary permits  and waterfowl  prints to be  deposited in                                                                    
Fish and  Game Fund.  Line 58  was HB  91 effective  date of                                                                    
April  14, 2013.  Line 62  was a  request from  DNR for  the                                                                    
unpredictable cost of each fire season.                                                                                         
                                                                                                                                
2:09:32 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze wondered  if each item was  necessary to be                                                                    
placed in  the supplemental budget, rather  than the capital                                                                    
or  operating budgets  for FY14.  Ms.  Rehfeld replied  that                                                                    
there  was  constant  work  analyzing  the  priorities,  and                                                                    
stressed that  the current supplemental bill  was relatively                                                                    
small.                                                                                                                          
                                                                                                                                
Co-Chair  Stoltze looked  at line  36, and  did not  believe                                                                    
that  there was  an  anticipation  of supplemental  aircraft                                                                    
maintenance. He  felt that  request was  more opportunistic,                                                                    
rather  than an  emergency. Ms.  Rehfeld replied  that there                                                                    
were  items   that  were  reappropriations,  and   if  those                                                                    
reappropriations were  not approved by the  legislature, the                                                                    
money would be deposited into the general fund.                                                                                 
                                                                                                                                
Co-Chair Stoltze  declared that  he had  heard that  the ABC                                                                    
Board had  been complaining about office  and administrative                                                                    
issues   related  to   moving   from  DPS   to  DCCED.   The                                                                    
appropriation  in this  bill  caused  suspicion, because  he                                                                    
felt  like  the ABC  Board  was  not  "a team  player."  Ms.                                                                    
Rehfeld  replied that  the legal  fees request  for the  ABC                                                                    
Board  was  in the  bill,  because  legal fees  were  billed                                                                    
differently in DPS than they were in DCCED.                                                                                     
                                                                                                                                
2:14:13 PM                                                                                                                    
                                                                                                                                
Representative Gara  looked at line  2, and wondered  if the                                                                    
request was  an extra  $62,000; or if  it was  receipts that                                                                    
were moving from DPS to  DCCED. Ms. Rehfeld replied that the                                                                    
request  was  for  increase program  receipt  authorization,                                                                    
because DCCED's billing for legal  services was greater than                                                                    
what  was paid  under  DPS. She  furthered  that DPS's  cost                                                                    
allocation  plan  was  based on  number  of  positions,  and                                                                    
DCCED's  cost  allocation  plan  was based  on  cost  for  a                                                                    
specific  program.  The  ABC  Board  had  significant  legal                                                                    
assistance.                                                                                                                     
                                                                                                                                
Representative Gara wondered if  the ABC Board's request for                                                                    
legal  fees  was  considered  an  "extra  expenditure."  Ms.                                                                    
Rehfeld replied  that the request  was general  fund program                                                                    
receipts,  which  come  from the  licensees  under  the  ABC                                                                    
Board. She reiterated  that, under DCCED, the  ABC Board was                                                                    
billed for the percentage of  time that an attorney needs to                                                                    
spend on the legal work. In  DPS, the ABC Board's legal fees                                                                    
were billed differently. She added  that DPS and DCCED could                                                                    
provide more information.                                                                                                       
                                                                                                                                
Co-Chair Stoltze agreed with Representative Gara.                                                                               
                                                                                                                                
Representative  Wilson looked  at line  21, and  queried the                                                                    
time  of the  agreement  for the  change  in contracts.  Ms.                                                                    
Rehfeld  replied that  Anchorage lease  came into  effect in                                                                    
April 2012, and the Juneau lease expired in June 2012.                                                                          
                                                                                                                                
2:19:40 PM                                                                                                                    
                                                                                                                                
PALOMA  HARBOUR,  ACTING   DIVISION  DIRECTOR,  DIVISION  OF                                                                    
ADMINISTRATIVE SERVICES,  replied that  the item on  line 21                                                                    
was a partial year's expense.  The lease costs for the Eagle                                                                    
Street increased in April 2012,  and would increase again in                                                                    
2013 at  the time  of completed  renovations. The  costs for                                                                    
the 8th Street  facility increased in July 1,  2012, with an                                                                    
anticipation of a greater increase  once the renovations are                                                                    
complete at the end of FY13.                                                                                                    
                                                                                                                                
Co-Chair Austerman wondered if  the Medicaid decrement would                                                                    
carry forward into  the FY 14 budget.  Ms. Rehfeld responded                                                                    
that  DHSS  had  projected  an increase  in  the  number  of                                                                    
eligible individuals  under Medicaid  in FY 14.  She pointed                                                                    
out  that  the   costs  were  driven  by   how  many  people                                                                    
participate in  Medicaid, and  the ability  of the  State to                                                                    
contain  the costs  in Medicaid.  The DHSS  commissioner was                                                                    
encouraged  by the  decrement in  the current  year, however                                                                    
DHSS was not able to project a decrement in FY 14.                                                                              
                                                                                                                                
Co-Chair Austerman remarked that  the Affordable Health Care                                                                    
for  America Act  had addressed  expansion of  Medicaid, but                                                                    
the  FY 14  did not  include the  expansion of  Medicaid. He                                                                    
wondered  if  there  were any  anticipated  amendments  that                                                                    
would address  Medicaid expansion. Ms. Rehfeld  replied that                                                                    
she did not anticipate any  amendments. She stated that DHSS                                                                    
had  reviewed  the  impacts,  pros,  and  cons  of  Medicaid                                                                    
expansion in order to inform any decision.                                                                                      
                                                                                                                                
Representative Gara looked  at line 46, and  wondered if in-                                                                    
house attorneys or  private attorneys would be  used for the                                                                    
litigation. Ms. Karen deferred to LAW.                                                                                          
                                                                                                                                
DAVE BLAISDELL, DIRECTOR,  ADMINISTRATIVE SERVICES DIVISION,                                                                    
DEPARTMENT OF  LAW, stated  that the  request would  pay for                                                                    
both in-house and private attorneys.                                                                                            
                                                                                                                                
SB  91  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
2:25:02 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:26:34 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^DEPARTMENT  OF   ADMINISTRATION  -   STATEWIDE  INFORMATION                                                                  
TECHNOLOGY GOVERNANCE SYSTEMS OVERVIEW                                                                                        
                                                                                                                                
2:26:34 PM                                                                                                                    
                                                                                                                                
MICHAEL   BARNHILL,  DEPUTY   COMMISSIONER,  DEPARTMENT   OF                                                                    
ADMINISTRATION,     (DOA)    displayed     the    PowerPoint                                                                    
presentation, "Statewide  Information Technology Governance"                                                                    
(copy on file).                                                                                                                 
                                                                                                                                
Mr. Barnhill  pointed to slide 2,  "IT Governance Overview."                                                                    
The slide included tiers of  review. The first step was that                                                                    
all state departments submit an  IT plan on an annual basis;                                                                    
that  plan advances  to  the  Technology Management  Council                                                                    
(TMC);  that review  funnels to  the Enterprise  Review Team                                                                    
(ERT);  the Enterprise  Investment Board  (EIB) is  the next                                                                    
step; and  finally, investment decisions  were made  at OMB.                                                                    
All  executive  branch   departments  annually  prepare  and                                                                    
submit IT plans.                                                                                                                
                                                                                                                                
Mr. Barnhill  reiterated that all departments  must annually                                                                    
prepare  and submit  IT plans  (slide 3).  He read  from the                                                                    
slide.                                                                                                                          
                                                                                                                                
     Department IT Plans                                                                                                        
                                                                                                                                
     IT Plans describe the department's:                                                                                        
                                                                                                                                
     IT strategy                                                                                                                
                                                                                                                                
     IT accomplishments                                                                                                         
                                                                                                                                
          -non-standard technical solutions                                                                                     
          -strategy to migrate to standard technical                                                                            
          solutions                                                                                                             
          -plan for backup and recovery                                                                                         
          -plan for desktop provisioning                                                                                        
          -use of the mainframe                                                                                                 
          -plan to meet storage needs                                                                                           
          -plan for desktop and server virtualization                                                                           
                                                                                                                                
     IT Plans set out                                                                                                           
                                                                                                                                
          -IT project funding requests                                                                                          
          -IT projects that require no further funding                                                                          
          -IT operational costs                                                                                                 
                                                                                                                                
     IT Plans are reviewed and evaluated by the Technology                                                                      
     Management Council (TMC)                                                                                                   
                                                                                                                                
2:32:04 PM                                                                                                                    
                                                                                                                                
Mr.  Barnhill  believed IT  plans  had  been collected  from                                                                    
departments  for 13  years. The  documents  had been  fairly                                                                    
large in  years past,  but under  the stewardship  of former                                                                    
Director Pat Shire they had been scaled down.                                                                                   
                                                                                                                                
Mr. Blaisdell explained that a reduction to the size of the                                                                     
plans would make them more useful.                                                                                              
                                                                                                                                
Mr. Barnhill indicated that the plans had been dramatically                                                                     
reduced (with his hands).                                                                                                       
                                                                                                                                
Mr. Barnhill looked at slide 4, "Technology Management                                                                          
Council."                                                                                                                       
                                                                                                                                
     The TMC consists of:                                                                                                       
                                                                                                                                
          Director of Enterprise Technology Services (Adam                                                                      
          Paulick)                                                                                                              
                                                                                                                                
          DHSS IT Data Processing Manager (Tim Banaszak)                                                                        
                                                                                                                                
          DOTPF IT Data Processing Manager (George Crowder)                                                                     
                                                                                                                                
          General Seat 1 (DOA, Gov, Law) (Jennifer McCaul)                                                                      
                                                                                                                                
          General  Seat 2  (DCCED, DEED,  DOLWD, DOR)  (Paul                                                                    
          Hegg)                                                                                                                 
                                                                                                                                
          Public   Protection  (DOC,   DMVA,  DPS)   (Lonnie                                                                    
          Leibbrand)                                                                                                            
                                                                                                                                
          Resources (DEC, DF&G, DNR) (Greg Light)                                                                               
                                                                                                                                
     Duties of the TMC:                                                                                                         
                                                                                                                                
          Sets technology standards for all agencies                                                                            
                                                                                                                                
          Reviews exemption requests                                                                                            
                                                                                                                                
          Reviews   and   makes  recommendations   regarding                                                                    
          department IT plans                                                                                                   
                                                                                                                                
          Makes   recommendations  for   new  and   emerging                                                                    
          technologies                                                                                                          
                                                                                                                                
     Meets every two weeks                                                                                                      
                                                                                                                                
Mr. Barnhill  looked at  slide 2, again.  He pointed  to the                                                                    
dotted   line   on  the   right   connecting   TMV  to   the                                                                    
Administravies  Service  Director's  Team (AST).  He  stated                                                                    
that  AST  performed an  important  function  in overall  IT                                                                    
governance.                                                                                                                     
                                                                                                                                
2:37:00 PM                                                                                                                    
                                                                                                                                
Mr. Blaisdell slide 5, "Administrative Services Directors"                                                                      
(ASDs).                                                                                                                         
                                                                                                                                
     This group consists of the administrative services                                                                         
     directors of all departments                                                                                               
                                                                                                                                
          -ASD  purpose: focus  on  new  initiatives in  the                                                                    
          administration  of  State government,  substantive                                                                    
          changes    in    administrative    policies    and                                                                    
          procedures, and  items that  have a  fiscal impact                                                                    
          across all departments.                                                                                               
                                                                                                                                
     The ASDs meet every two weeks                                                                                              
                                                                                                                                
     The ASDs have formed an ASD IT subcommittee                                                                                
                                                                                                                                
     -IT issues are brought to the IT subcommittee by the                                                                       
     ETS Director                                                                                                               
     -reviews the fiscal impact of IT initiatives                                                                               
     -reviews chargeback rates                                                                                                  
     -reviews technical issues and their impacts to                                                                             
     business processes                                                                                                         
     -considers technology needs that may require direct                                                                        
     multiple agency funding                                                                                                    
     -helps direct monthly IT issues that should be                                                                             
     addressed at enterprise level                                                                                              
                                                                                                                                
Mr. Barnhill  slide 6,  "Enterprise Review  Team, Enterprise                                                                    
Investment Board, Office of Management and Budget."                                                                             
                                                                                                                                
     Enterprise Review Team (ERT):                                                                                              
     The ERT consists of DOA Deputy Commissioner, OMB Chief                                                                     
     Policy Analyst, ETS Director, and ASD/IT Chair                                                                             
                                                                                                                                
     Enterprise Investment Board (EIB):                                                                                         
     The EIB consists of DOA Commissioner, Gov Chief of                                                                         
     Staff, OMB Director, ETS Director, ASD/IT Chair                                                                            
                                                                                                                                
          -collectively, ERT/EIB/OMB perform a filtering                                                                        
          and review function of IT project proposals and                                                                       
          policy direction.                                                                                                     
                                                                                                                                
          -the ERT met twice in the last year to consider                                                                       
          IT project proposals                                                                                                  
                                                                                                                                
          -adjustments to the IT Governance structure may                                                                       
          be taken up in the future                                                                                             
                                                                                                                                
Mr. Barnhill  referred back to  slide 2. He stated  that the                                                                    
arrows pointing  upward were a structure  that was developed                                                                    
in  2008.  The  nature  of  the  structure  was  beneficial,                                                                    
because  the small  groups have  a  large stake  in how  the                                                                    
decisions were made. He furthered  that there may need to be                                                                    
a change  in structure,  so that  upper level  policy makers                                                                    
could insert direction in the policy making process.                                                                            
                                                                                                                                
2:42:42 PM                                                                                                                    
                                                                                                                                
Mr.  Barnhill   emphasized  that  there  was   a  government                                                                    
structure.  He declared  that DOA's  focus  had been  almost                                                                    
entirely   internal,  and   examining  how   ETS  functioned                                                                    
internally.                                                                                                                     
                                                                                                                                
Co-Chair Austerman  queried the long-term  planning process.                                                                    
Mr. Barnhill  replied that the  structure would  continue to                                                                    
exist, and the  plans would be analyzed based  on the tiered                                                                    
government  structure.  He furthered  that  DOA  was in  the                                                                    
process  of   implementing  a  replacement  for   the  State                                                                    
accounting  and  payroll  systems.   He  stressed  that  the                                                                    
interface   was   complicated,   and  it   great   need   of                                                                    
replacement.                                                                                                                    
                                                                                                                                
Representative Munoz queried the  number of people that work                                                                    
on  each  IT plan.  Mr.  Blaisdell  replied that  it  varied                                                                    
depending on the department. He  shared that DOL had a small                                                                    
staff, and DHSS had a very large staff.                                                                                         
                                                                                                                                
2:48:27 PM                                                                                                                    
                                                                                                                                
Representative Munoz  wondered if  the process  was ongoing.                                                                    
Mr. Blaisdell  responded that DOL's process  included a two-                                                                    
week development phase, followed by  a couple of reviews. He                                                                    
stated  that  he  used  the  IT plan  was  used  as  a  tool                                                                    
throughout  the year,  but it  did not  get updated.  The IT                                                                    
plan was a once-a-year project.                                                                                                 
                                                                                                                                
Representative Holmes looked at  slide 2, and wondered where                                                                    
the  oversight  authority  was  placed  in  the  chart.  Mr.                                                                    
Barnhill  responded  that  the  oversight  should  exist  at                                                                    
multiple  levels.  He stressed  that  there  were dozens  of                                                                    
interfaces that exist in the enterprise.                                                                                        
                                                                                                                                
Representative Holmes  felt that  there should be  a process                                                                    
for the  departments to work  together, for  continuity. Mr.                                                                    
Barnhill  agreed  that there  should  be  an improvement  in                                                                    
achieving scale. He stressed that  DOA was de-centralized in                                                                    
how IT was managed.                                                                                                             
                                                                                                                                
Mr. Blaisdell  furthered that there was  some dialog between                                                                    
departments.                                                                                                                    
                                                                                                                                
Co-Chair Austerman commented  that there advanced technology                                                                    
was  of  great interest  to  the  legislature, in  order  to                                                                    
address  the  long-term  cost  savings  to  the  State.  Mr.                                                                    
Blaisdell  agreed,  and  furthered   that  there  were  many                                                                    
exciting technologies that DOA was considering.                                                                                 
                                                                                                                                
2:57:03 PM                                                                                                                    
                                                                                                                                
Representative Gara  wondered if  the new  technology actual                                                                    
saved  money.  He felt  that  the  high cost  of  technology                                                                    
implementation  may not  be worth  it. He  pointed out  that                                                                    
some  people  would be  laid-off,  and  worried about  those                                                                    
jobs. He wondered  if the new payroll  system would actually                                                                    
save  the State  money. Mr.  Barnhill replied  that the  new                                                                    
payroll system  was an interesting topic.  He announced that                                                                    
the current payroll system company  was implemented in 1990,                                                                    
and  was  profoundly  old  fashioned.  The  payroll  company                                                                    
currently had 12 customers, and  was threatening to file for                                                                    
bankruptcy.  The  interface  was  difficult,  and  made  for                                                                    
unnecessary manual input. The  personnel had a high turnover                                                                    
rate, and stressed  that a new system  would greatly improve                                                                    
employee morale.                                                                                                                
                                                                                                                                
Representative Gara  wondered if the  case-management system                                                                    
had been  analyzed on  a cost  benefit level.  Mr. Blaisdell                                                                    
responded  that  a  feasibility  study  had  been  conducted                                                                    
geared toward what  would happen if the  electronic tool was                                                                    
lost.                                                                                                                           
                                                                                                                                
Mr. Barnhill  clarified that his earlier  comments pertained                                                                    
to the time and attendance systems.                                                                                             
                                                                                                                                
Representative Gara stressed that  he made the point because                                                                    
he wanted  to be  sure that  he was  not mandating  too much                                                                    
downsizing in personnel.                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:05:58 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:05 p.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
DOA-LAW_IT-Governance(02-07-2013).pdf HFIN 2/7/2013 1:30:00 PM
DOA-LAW IT Governance
HB91 FY13 Supplemental Summary.pdf HFIN 2/7/2013 1:30:00 PM
HB 91
HB91 FY13 Supplemental Spreadheet Requests 1-28-13.pdf HFIN 2/7/2013 1:30:00 PM
HB 91