Legislature(2013 - 2014)HOUSE FINANCE 519

01/29/2014 01:30 PM FINANCE


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01:31:40 PM Start
01:32:24 PM HB266 || HB267
01:32:26 PM Fy 15 Governor's Budget Overview: Department of Labor and Workforce Development
02:32:03 PM Presentation: Alaska Mental Health Trust Authority
03:28:14 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 266 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 267 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ - Governor's Budget Overview: TELECONFERENCED
Dept. of Labor & Workforce Development
Alaska Mental Health Trust Authority, Trustee
Presentation
                  HOUSE FINANCE COMMITTEE                                                                                       
                     January 29, 2014                                                                                           
                         1:31 p.m.                                                                                              
                                                                                                                                
1:31:40 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Austerman  called   the  House  Finance  Committee                                                                    
meeting to order at 1:31 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Alan Austerman, Co-Chair                                                                                         
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Mark Neuman, Vice-Chair                                                                                          
Representative Mia Costello                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Lindsey Holmes                                                                                                   
Representative Cathy Munoz                                                                                                      
Representative Steve Thompson                                                                                                   
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Diane   Blumer,  Commissioner,   Department  of   Labor  and                                                                    
Workforce    Development;    Paloma    Harbour,    Director,                                                                    
Administrative  Services Division,  Department of  Labor and                                                                    
Workforce  Development;  Fred   Esposito,  Director,  Alaska                                                                    
Vocational  Technical Center  (AVTEC),  Department of  Labor                                                                    
and   Workforce   Development;  Gray   Mitchell,   Assistant                                                                    
Commissioner,    Department   of    Labor   and    Workforce                                                                    
Development; Mike  Barton, Chair, Board of  Trustees, Alaska                                                                    
Mental Health Trust Authority;  Jeff Jessee, Chief Executive                                                                    
Officer, Alaska  Mental Health  Trust Authority;  Russ Webb,                                                                    
Trustee, Alaska Mental Health Trust Authority.                                                                                  
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 266    APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 266 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 267    APPROP: MENTAL HEALTH BUDGET FY15                                                                                     
                                                                                                                                
          HB 267 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
FY 15 GOVERNOR'S BUDGET OVERVIEW:                                                                                               
     DEPARTMENT OF LABOR and WORKFORCE DEVELOPMENT                                                                              
                                                                                                                                
PRESENTATION: ALASKA MENTAL HEALTH TRUST AUTHORITY                                                                              
                                                                                                                                
HOUSE BILL NO. 266                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain  programs,   capitalizing  funds,   and  making                                                                    
     reappropriations; making appropriations  under art. IX,                                                                    
     sec. 17(c),  Constitution of the State  of Alaska, from                                                                    
     the constitutional budget reserve fund."                                                                                   
                                                                                                                                
HOUSE BILL NO. 267                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health program."                                                                                      
                                                                                                                                
1:32:24 PM                                                                                                                    
                                                                                                                                
^FY 15 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF LABOR and                                                                    
WORKFORCE DEVELOPMENT                                                                                                         
                                                                                                                                
1:32:26 PM                                                                                                                    
                                                                                                                                
DIANE BLUMER, COMMISSIONER, DEPARTMENT OF LABOR AND                                                                             
WORKFORCE DEVELOPMENT, (DLWD) introduced herself.                                                                               
                                                                                                                                
Commissioner Blumer discussed the PowerPoint presentation,                                                                      
"Alaska Department of Workforce Development" (copy on                                                                           
file).                                                                                                                          
                                                                                                                                
Commissioner Blumer presented slide 2, "Mission: Provide                                                                        
safe and legal working conditions and advance opportunities                                                                     
for employment."                                                                                                                
                                                                                                                                
     Core Services:                                                                                                             
                                                                                                                                
     -Protect Alaska's workers through statutory and                                                                            
     regulatory assistance and enforcement.                                                                                     
                                                                                                                                
     -Income replacement for injured, unemployed, and                                                                           
     permanently disabled workers.                                                                                              
                                                                                                                                
     -Workforce development to support Alaska hire and                                                                          
     economic development.                                                                                                      
                                                                                                                                
Commissioner  Blumer   looked  at  slide   3,  "Organization                                                                    
Chart." She explained  that the slide did  not represent the                                                                    
standard  organizational  chart,  but   was  outlined  as  a                                                                    
functional  organizational chart.  She noted  that the  dark                                                                    
blue areas  provided departmental  oversight, and  the light                                                                    
blue  areas  provided  workforce development  function.  She                                                                    
remarked  that the  Business  Partnerships Division  reached                                                                    
out to  business and industry  to assist in  design, policy,                                                                    
and  implementation of  training  and workforce  development                                                                    
programs.  She   explained  that  the   Employment  Security                                                                    
Division  had two  components within  the core  services, so                                                                    
she will  refer to the  division twice in  the presentation.                                                                    
She  remarked   that  the  Workers'   Compensation  Division                                                                    
operated as a public labor  exchange. She announced that the                                                                    
Alaska  Workforce  Investment  Board   would  be  hosting  a                                                                    
reception that evening, and  encouraged committee members to                                                                    
attend.  She stated  that  the  Alaska Vocational  Technical                                                                    
Center (AVTEC)  was the adult vocational  training school in                                                                    
Seward.  The  Vocational  Rehabilitation  Division  had  two                                                                    
components.  She   furthered  that  there  was   staff  that                                                                    
assisted  individuals   with  disabilities  to   obtain  and                                                                    
maintain  employment. She  explained  that  the brown  areas                                                                    
identified the  Labor Standards  and Safety  Division, which                                                                    
provided enforcement,  training, and monitoring of  the laws                                                                    
governing occupational  safety and  health. She  stated that                                                                    
the green  areas provided income  replacement for  those not                                                                    
able to work, or are looking for work.                                                                                          
                                                                                                                                
Commissioner  Blumer  highlighted   slide  4,  "Services  by                                                                    
Location."  She remarked  that the  slide showed  where DLWD                                                                    
provided services across the state.                                                                                             
                                                                                                                                
Commissioner Blumer  discussed slide  5, "State  and Private                                                                    
Partnerships."                                                                                                                  
                                                                                                                                
     State Partners                                                                                                             
                                                                                                                                
          Veteran Services                                                                                                      
                                                                                                                                
          -Department of Military and Veterans Affairs                                                                          
                                                                                                                                
         Economic and Demographic Data Production                                                                               
         -Department of Health and Social Services                                                                              
          -Department of Commerce, Community and Economic                                                                       
          Development                                                                                                           
          -Department of Education and Early Development                                                                        
                                                                                                                                
          Prisoner Reentry                                                                                                      
          -Department of Corrections                                                                                            
                                                                                                                                
          Training and Education Program Outcomes                                                                               
          -Department of Education and Early Development                                                                        
          -University of Alaska                                                                                                 
          -Commission on Postsecondary Education                                                                                
                                                                                                                                
1:38:23 PM                                                                                                                    
                                                                                                                                
Commissioner  Blumer specifically  highlighted the  issue of                                                                    
training women. She stated that  the numbers showed that the                                                                    
recidivism rate for individuals  who completed the Bridge to                                                                    
Success course were 50 percent  or less. She stated that the                                                                    
program was working and was very beneficial.                                                                                    
                                                                                                                                
Commissioner Blumer highlighted slide 6, "State and Private                                                                     
Partnerships."                                                                                                                  
                                                                                                                                
     Private Partners                                                                                                           
                                                                                                                                
          Training and Education                                                                                                
                                                                                                                                
               -Tribal Vocational Rehabilitation Programs                                                                       
               -Community Rehabilitation Programs                                                                               
               -Construction Education Foundation                                                                               
               -Alaska Works Partnership                                                                                        
               -School Districts                                                                                                
               -Association of General Contractors                                                                              
               -Home Building Associations                                                                                      
               -Regional Training Centers                                                                                       
               -Other Private Training Providers                                                                                
               -Employers                                                                                                       
                                                                                                                                
          Private   Sector   Membership    on   Boards   and                                                                    
          Commissions                                                                                                           
                                                                                                                                
          Centers for Independent Living                                                                                        
                                                                                                                                
Commissioner   Blumer  looked   at  slide   7,  "Development                                                                    
Challenges."                                                                                                                    
                                                                                                                                
     Maintaining services to Alaskans while managing:                                                                           
                                                                                                                                
          A trained Alaskan labor force for new projects                                                                        
                                                                                                                                
          Flat or declining federal revenue                                                                                     
                                                                                                                                
          Increasing operating expenses                                                                                         
                                                                                                                                
PALOMA HARBOUR, DIRECTOR,  ADMINISTRATIVE SERVICES DIVISION,                                                                    
DEPARTMENT  OF LABOR  AND  WORKFORCE DEVELOPMENT,  discussed                                                                    
slide 8,  "Protect Workers."  She remarked  that one  of the                                                                    
department's  core services  was to  promote safe  and legal                                                                    
working  conditions for  Alaskans. She  explained that  DLWD                                                                    
achieved this goal through a  combination of enforcement and                                                                    
consultative efforts  to both  employers and  employees. She                                                                    
announced  that  one measure  that  the  department uses  to                                                                    
track performance  in this area  is the  Workplace Loss-time                                                                    
Injury  and Illness  Rate per  100 employees.  In FY  13 the                                                                    
rate  declined to  1.61  from 1.73  the  previous year.  She                                                                    
pointed  out  that  the rate  was  the  second-lowest  level                                                                    
achieved in  the last 12  years. She stated that  the lowest                                                                    
level was 1.60.                                                                                                                 
                                                                                                                                
Ms. Harbour  highlighted slide 9, "Income  Replacement." She                                                                    
explained  that DLWD  also  provided  income replacement  to                                                                    
injured,  unemployed, and  disabled Alaskans.  She explained                                                                    
that  timely  benefit  payments  to  these  individuals  was                                                                    
extremely   important  for   providing  some   semblance  of                                                                    
stability,  therefore DLWD  focused  on timeliness  measures                                                                    
when evaluating  the performance of  the program. In  FY 13,                                                                    
DLWD  processed  91.7   percent  of  unemployment  insurance                                                                    
payments  within   21  days,  which  exceeded   the  federal                                                                    
benchmark  of   87  percent.  She   pointed  out   that  the                                                                    
performance percentage  increase also occurred during  an 11                                                                    
percent  increase in  the total  number  of claimants,  from                                                                    
just over 56,000 to 62,500 claimants.                                                                                           
                                                                                                                                
1:43:26 PM                                                                                                                    
                                                                                                                                
Ms.  Harbour looked  at slide  10, "Workforce  Development."                                                                    
She announced that  the total number of  resident workers in                                                                    
Alaska,  in 2011,  was  331,081, which  was  an increase  of                                                                    
2,470  from  2010.  She stated  that  2012  resident  worker                                                                    
information would be available after the upcoming Friday.                                                                       
                                                                                                                                
Ms.  Harbour displayed  slide  11, "Workforce  Development."                                                                    
She  explained that  the graph  represented the  performance                                                                    
measure  for  the  Vocational  Rehabilitation  Program  that                                                                    
provided  employment  services  for disabled  Alaskans.  She                                                                    
stated  that  the  services   included  the  development  of                                                                    
individualized plans  for employment. In  FY 13, 598  of the                                                                    
individuals  that were  exiting an  individualized plan  for                                                                    
employment  were  employed upon  exit.  She  stated that  it                                                                    
represented  64 percent  of the  individuals that  exited an                                                                    
individualized plan.                                                                                                            
                                                                                                                                
Ms.  Harbour  discussed slide  12,  "Share  of Total  Agency                                                                    
Operations.                                                                                                                     
                                                                                                                                
     The department's general fund budget grew by $26.5                                                                         
     million between FY 06 and the FY 15 governor's request                                                                     
     - an average annual growth rate of 7.1 percent                                                                             
                                                                                                                                
     Growth since FY 09 has been $4.5 million (1.2 percent                                                                      
     growth rate).                                                                                                              
                                                                                                                                
     The department continues to represent a small portion                                                                      
     of the overall statewide budget (six straight years of                                                                     
     decline).                                                                                                                  
                                                                                                                                
Ms. Harbour  looked at slide  13, "Total  Funding Comparison                                                                    
by Fund Group."                                                                                                                 
                                                                                                                                
     Between FY06 & FY15:                                                                                                       
                                                                                                                                
          -Federal    Funds   remained    relatively   flat,                                                                    
         increasing by $1.4 million (1.5 percent)                                                                               
          -Other funds decreased by $1.4 million (6.2                                                                           
          percent)                                                                                                              
          -DGF increased by $7.9 million (30.9 percent)                                                                         
          -UGF increased by $18.6 million (117.8 percent)                                                                       
                                                                                                                                
     Thus state funds have increased as a percentage of the                                                                     
     total                                                                                                                      
                                                                                                                                
Ms. Harbour highlighted slide 14, "Line Item Distribution."                                                                     
                                                                                                                                
    The majority of funding in FY15 is in the following                                                                         
     line items:                                                                                                                
                                                                                                                                
          Personal Services: 46 percent                                                                                         
          Grants: 32 percent                                                                                                    
                                                                                                                                
     About 54 percent ($31.5 million) of the grants funding                                                                     
     is in the Business Partnerships appropriation (with                                                                        
     the                                                                                                                        
     majority housed in two allocations):                                                                                       
                                                                                                                                
          $23.4 million in Business Services                                                                                    
         $3.2 million in the Construction Academy                                                                               
                                                                                                                                
Ms. Harbour highlighted slide 15, "Budgeted Positions."                                                                         
                                                                                                                                
    Between FY06 and FY15 the total number of budgeted                                                                          
     positions decreased by 115.                                                                                                
                                                                                                                                
     Reduction in positions is due to flat or declining                                                                         
     base operating federal funds and the expiration of                                                                         
     onetime federal grant funds.                                                                                               
                                                                                                                                
Ms.  Harbour discussed  slide 16,  "FY 2015  Budget Request:                                                                    
$185,080.9"   She  stated   that   the   chart  showed   the                                                                    
department's FY  15 budget, which  totaled $185  million. It                                                                    
included  $95 million  in federal  funds,  $44.4 million  in                                                                    
UGF,  $34.1  million in  DGF,  and  $21.8 million  in  other                                                                    
funds.  She  announced  the   department's  budget  by  core                                                                    
services:  7 percent  for Protect  Workers,  29 percent  for                                                                    
Income   Replacement,   and   64   percent   for   Workforce                                                                    
Development.                                                                                                                    
                                                                                                                                
1:48:49 PM                                                                                                                    
                                                                                                                                
Ms.  Harbour   looked  at   slide  17,   "Governor's  Budget                                                                    
Overview."                                                                                                                      
                                                                                                                                
     FY2015 Operating Budget                                                                                                    
                                                                                                                                
    Departmentwide Long Term Vacant Position deletions                                                                          
           $975.5 total reduction for deleting 20 positions                                                                     
          including 10 vacant for more than two years                                                                           
                                                                                                                                
     Departmentwide    uncollectible    receipt    authority                                                                    
     reduction                                                                                                                  
           $4,900.0 Fed/Other reduction to reflect decreased                                                                    
          receipt collection due to federal sequestration                                                                       
                                                                                                                                
     Employment Security Division (ESD)                                                                                         
          $125.0 DGF increase in Training and Building fund                                                                     
          receipts for support of Job Centers                                                                                   
                                                                                                                                
     Business Partnerships (DBP)                                                                                                
           $159.6 UGF decrease by deleting one vacant                                                                           
          Gasline position                                                                                                      
                                                                                                                                
     TVEP funding distribution change                                                                                           
          $47.6 DGF increase to distribution amounts based                                                                      
          on available fund balance                                                                                             
                                                                                                                                
Ms. Harbour discussed slide 18, "Governor's Budget                                                                              
Overview."                                                                                                                      
                                                                                                                                
     FY2015 Capital Budget                                                                                                      
                                                                                                                                
                                                                                                                                
          Heavy Equipment/Diesel/Pipe Welding Relocation                                                                        
          Phase 2 of 3                                                                                                          
                                                                                                                                
               -$8,000.0 this phase, $15,000.0 all three                                                                        
               phases, replaces a training facility with                                                                        
               safety issues                                                                                                    
                                                                                                                                
          Deferred Maintenance                                                                                                  
                                                                                                                                
               -$1,000.0  UGF for  reducing  the backlog  of                                                                    
               maintenance  needs on  the Alaska  Vocational                                                                    
               Technical     Center's      (AVTEC)     aging                                                                    
               infrastructure                                                                                                   
                                                                                                                                
          Public Access Network                                                                                                 
                                                                                                                                
               -$170.0 UGF for development of a public                                                                          
               access network across statewide Job Centers                                                                      
                                                                                                                                
1:53:33 PM                                                                                                                    
                                                                                                                                
Ms. Harbour highlighted slide 19, "Ten Year Plan-General                                                                        
Funds Only."                                                                                                                    
                                                                                                                                
     The department's general fund budget grew by $26.6                                                                         
     million between FY06 and the FY15 Governor's Request                                                                       
     an average annual growth rate of 7.1 percent.                                                                              
                                                                                                                                
     Growth since FY10 has been $4.0 million (1.2 percent                                                                       
     growth rate).                                                                                                              
                                                                                                                                
     The department's ten year plan equates to an average                                                                       
     annual growth rate of 1.0 percent.                                                                                         
                                                                                                                                
Ms. Harbour discussed slide 20,  "Ten Year Plan- All Funds."                                                                    
She  explained that  the red  line represented  the ten-year                                                                    
plan,  which showed  a growth  rate of  0.4 percent.  If one                                                                    
were to look at all funds  over nine years, there would be a                                                                    
growth rate of  1.9 percent. If one would look  at all funds                                                                    
over five years, there would  be a negative 1 percent growth                                                                    
rate.  She likened  that percentage  to the  fluctuations in                                                                    
federal  funds. The  reason  for  the department's  ten-year                                                                    
plan showed a relatively flat  rate was because DLWD did not                                                                    
anticipate federal funds to grow.                                                                                               
                                                                                                                                
Co-Chair Stoltze remarked that the  private sector was not a                                                                    
part of the  department's process. He felt  that the private                                                                    
sector  should  be  considered  when  determining  workforce                                                                    
development in every area.  Commissioner Blumer replied that                                                                    
DLWD  had embarked  on outreach  to various  industries. She                                                                    
remarked  that  private industry  did  not  always have  the                                                                    
luxuries to  provide detailed outlines and  financial needs,                                                                    
but  pointed  out  that  she  had  recently  made  steps  to                                                                    
coordinate  efforts with  the private  sector, because  some                                                                    
companies had felt neglected.                                                                                                   
                                                                                                                                
Co-Chair  Stoltze wondered  if the  private sectors  concern                                                                    
over  possible neglect  was  justified. Commissioner  Blumer                                                                    
replied that she could not comment.                                                                                             
                                                                                                                                
1:58:56 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  remarked  that  Commissioner  Blumer  had                                                                    
improved the  relationship with the private  sector. He felt                                                                    
that DLWD could do even  more to develop a relationship with                                                                    
the private  sector, in  order to  enhance training  and job                                                                    
placement.                                                                                                                      
                                                                                                                                
Vice-Chair  Neuman queried  the cost  per student  at AVTEC.                                                                    
Commissioner Blumer did not know.                                                                                               
                                                                                                                                
Vice-Chair Neuman  queried the cost of  the welding program.                                                                    
Commissioner Blumer deferred to Mr. Esposito.                                                                                   
                                                                                                                                
FRED ESPOSITO, DIRECTOR,  ALASKA VOCATIONAL TECHNICAL CENTER                                                                    
(AVTEC),  DEPARTMENT  OF  LABOR AND  WORKFORCE  DEVELOPMENT,                                                                    
agreed  to provide  that information.  He stated  that there                                                                    
were various factors that went  into determining the cost of                                                                    
tuition per student.                                                                                                            
                                                                                                                                
Vice-Chair  Neuman recalled  that  the cost  of tuition  was                                                                    
approximately $23,000  for a six week  program. Mr. Esposito                                                                    
replied that the number was  not accurate. He explained that                                                                    
the combination  welding program was  made up of  two parts.                                                                    
He stated  that the  first part  was an  18 week  program of                                                                    
structural  welding,  and the  second  part  was a  14  week                                                                    
program  of  pipe  welding. He  stressed  that  the  tuition                                                                    
depended on the program.                                                                                                        
                                                                                                                                
2:04:17 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Neuman queried  the  ratio of  state funding  to                                                                    
pupil  funding.  He  wondered  if  it was  25  to  one.  Mr.                                                                    
Esposito agreed to provide that information.                                                                                    
                                                                                                                                
Vice-Chair  Neuman  wondered   how  the  departments  worked                                                                    
together. He specifically queried  the efforts to get people                                                                    
to work,  so there  is not an  increase in  applications for                                                                    
public  assistance. Commissioner  Blumer replied  that there                                                                    
were various  programs that focused  on different  areas and                                                                    
people in the state.                                                                                                            
                                                                                                                                
Vice-Chair Neuman  stressed that  more people needed  to get                                                                    
jobs in the  state. He specifically wondered if  there was a                                                                    
systematic   approach    to   examining   areas    of   high                                                                    
unemployment, or areas of high  need of public assistance to                                                                    
develop job  training programs. Commissioner  Blumer replied                                                                    
the department examined those  statistics and partnered with                                                                    
many  communities and  private entities  to put  Alaskans to                                                                    
work.                                                                                                                           
                                                                                                                                
Co-Chair Stoltze wondered if Mr.  Esposito came to Juneau to                                                                    
assist  the commissioner  in the  presentation. Commissioner                                                                    
Blumer  replied that  Mr.  Esposito was  in  Juneau for  the                                                                    
Alaska Workforce Investment Board meeting.                                                                                      
                                                                                                                                
Representative  Holmes looked  at  slide 10,  and noted  the                                                                    
number  of  resident workers  over  time.  She wondered  how                                                                    
Alaska  Hire  was  faring  as  a  percentage  of  the  total                                                                    
workforce. Commissioner Blumer deferred to Ms. Harbour.                                                                         
                                                                                                                                
Ms.  Harbour responded  that the  non-resident worker  count                                                                    
totaled 83,488  in 2011, for  an overall percentage  of 20.1                                                                    
percent of  the workforce.  She furthered  that it  had been                                                                    
around 19 and 20 percent for the last several years.                                                                            
                                                                                                                                
Representative Holmes  surmised that the workforce  had been                                                                    
steady, and  staying roughly  the same  over the  years. Ms.                                                                    
Harbor agreed.                                                                                                                  
                                                                                                                                
2:09:29 PM                                                                                                                    
                                                                                                                                
Representative  Gara remarked  that he  had understood  that                                                                    
there was  a massive  expanse of workers  in the  Cook Inlet                                                                    
that came  from outside  of Alaska.  He wondered  how people                                                                    
were getting trained to perform  the jobs in the Cook Inlet.                                                                    
He  queried the  efforts  to fill  those  jobs with  Alaskan                                                                    
workers. Commissioner  Blumer responded that  the department                                                                    
had been meeting  with people in the Kenai.  She stated that                                                                    
there  was an  expectation of  training for  employment; and                                                                    
remarked that  the jobs become available  and training could                                                                    
not be  completed as quickly  as the jobs  become available.                                                                    
She stated that there were  meetings to produce more workers                                                                    
more quickly.                                                                                                                   
                                                                                                                                
Representative  Gara wondered  if the  efforts would  make a                                                                    
significant impact. He  also wondered if there  was a strong                                                                    
effort to  train the rural  workers in  Alaska. Commissioner                                                                    
Blumer responded  that there  was a  strong effort  to train                                                                    
Alaskans. She  furthered that  the grantees  were encouraged                                                                    
to  train  and employ  Alaskans.  She  stated that  the  Job                                                                    
Service Center in  Kenai was very involved  and engaged with                                                                    
industry. She remarked  that there had been  strong focus on                                                                    
the Kenai  to determine what was  needed and how to  get the                                                                    
Alaskans to  work. She felt  that many people in  Kenai were                                                                    
not  utilizing  the  job  center,  so  the  job  center  had                                                                    
recently engaged  in outreach programs,  independent visits,                                                                    
and  participating in  many of  the functions  to learn  the                                                                    
actual needs of  the Job Center in Kenai.  She stressed that                                                                    
the department  was currently engaging  in as  much outreach                                                                    
as possible.                                                                                                                    
                                                                                                                                
2:15:53 PM                                                                                                                    
                                                                                                                                
Co-Chair  Austerman   wondered  if  there  should   be  more                                                                    
training  centers. Commissioner  Blumer  replied that  there                                                                    
should be more targeted training programs.                                                                                      
                                                                                                                                
Representative Munoz remarked  that the governor's education                                                                    
proposal   included   a    dual   credit   requirement   for                                                                    
institutions  that  receive Technical  Vocational  Education                                                                    
Program  (TVEP)  money.  She   understood  that  UA  already                                                                    
provided  dual  opportunities  for  high  school  and  post-                                                                    
secondary education. She wondered  how the regional training                                                                    
centers would  meet the requirement,  and wondered  if AVTEC                                                                    
had formulated  a plan  to make  programs available  to high                                                                    
school  students.  Commissioner  Blumer responded  that  the                                                                    
department  would work  closely with  the regional  training                                                                    
centers.  She  explained  that  some  training  centers  had                                                                    
developed  digital  course  work. She  believed  that,  with                                                                    
participation  of the  school  districts, training  centers,                                                                    
and other departments AVTEC could  provide some training for                                                                    
high school  students. She hoped  to have a  program similar                                                                    
to  the  Running  Start  Program  that  Washington  recently                                                                    
enacted.                                                                                                                        
                                                                                                                                
Mr. Esposito furthered  that there were efforts  by AVTEC to                                                                    
provide high  school level  training via  distance delivery.                                                                    
He remarked  that it was  dual credited in most  cases where                                                                    
the school district allowed.                                                                                                    
                                                                                                                                
Representative  Munoz wondered  if there  were major  school                                                                    
districts  that  do  not participate  in  the  program.  She                                                                    
wondered  if there  was a  way to  get the  school districts                                                                    
involved in  the program. Mr. Esposito  responded that AVTEC                                                                    
was working 12 mostly rural  school districts, and felt that                                                                    
the digital  learning network could enhance  the partnership                                                                    
with high schools.                                                                                                              
                                                                                                                                
Representative  Munoz  wondered  what  the  $8  million  for                                                                    
project would  be directed. Mr. Esposito  responded that the                                                                    
project was  a three  phase project:  phase 1  was currently                                                                    
underway  to replace  the  diesel shop;  and  phase 2  would                                                                    
replace the heavy equipment shop.                                                                                               
                                                                                                                                
2:19:54 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg looked  at slide  8. He  remarked                                                                    
that this was  a nice trend downward, and he  asked for more                                                                    
information about the protection of workers.                                                                                    
                                                                                                                                
GRAY MITCHELL,  ASSISTANT COMMISSIONER, DEPARTMENT  OF LABOR                                                                    
AND  WORKFORCE   DEVELOPMENT,  responded   that  it   was  a                                                                    
combination  effort with  the  private  sector. He  remarked                                                                    
that  the  Alaska  workers'   compensation  costs  were  the                                                                    
highest in  the nation.  He stated  that the  department had                                                                    
produced a program through  consultation and training, which                                                                    
had a very positive impact.                                                                                                     
                                                                                                                                
Representative Guttenberg wondered  where the most effective                                                                    
places that the  reduction in lost time  accidents. He asked                                                                    
what the outline would look like,  if it were broken down by                                                                    
industry. Mr. Mitchell  responded that there was  a focus on                                                                    
three primary  industries: construction;  transportation and                                                                    
warehousing; and  seafood processing.  He stated  that those                                                                    
three categories  had historically  had higher  than average                                                                    
illness and injury  rates in the work sites.  He shared that                                                                    
there had been tremendous  improvements in construction, and                                                                    
transportation  and  warehousing.   He  announced  that  the                                                                    
previous year saw  a flat result in  seafood processing, but                                                                    
if that number  was compared to the last decade  it had come                                                                    
a long  way. The department was  focusing additional efforts                                                                    
on seafood processing through a  partnership with one of the                                                                    
largest seafood  processors in Alaska to  develop a training                                                                    
course  that  was  designed   specifically  at  the  hazards                                                                    
related to seafood processing.                                                                                                  
                                                                                                                                
Representative Wilson  stated that she had  written down the                                                                    
members' questions,  so those issues  would be  addressed in                                                                    
subcommittee.                                                                                                                   
                                                                                                                                
2:26:02 PM                                                                                                                    
                                                                                                                                
Representative Costello remarked that  there were work ethic                                                                    
issues that  some young workers  faced. She wondered  if the                                                                    
department  had people  that were  specifically assigned  to                                                                    
assisting  high school  students in  how to  perform in  the                                                                    
workplace.  Commissioner Blumer  responded  that there  were                                                                    
career  counselors that  did not  work in  the schools,  but                                                                    
rather visited the schools.                                                                                                     
                                                                                                                                
Representative Costello  wondered if  she could  connect the                                                                    
department  to  a principal  in  her  district in  order  to                                                                    
coordinate  a meeting  with a  career counselor.  She stated                                                                    
that  the school  currently  had a  volunteer  to assist  in                                                                    
career counseling.                                                                                                              
                                                                                                                                
Vice-Chair  Neuman  shared  that, according  to  Legislative                                                                    
Finance,  the  unregulated  general fund  tuition  ratio  at                                                                    
AVTEC  was  approximately  70 percent  UGF  and  30  percent                                                                    
tuition. He  furthered that UA was  approximately $1 tuition                                                                    
for  every $1.28  in UGF.  He remarked  that there  had been                                                                    
discussions  with  UA  regarding  considerations  of  moving                                                                    
AVTEC to UA's  oversight. He wondered if  the department had                                                                    
ever engaged in conversations with  UA about moving AVTEC to                                                                    
UA. Commissioner Blumer replied that  she had not engaged in                                                                    
conversations  with UA  regarding that  issue. She  remarked                                                                    
that AVTEC  was currently  reviewing their tuition  rates to                                                                    
compare  them with  other training  centers to  determine if                                                                    
there was  a program by  program tuition increase.  She felt                                                                    
that some of the rural  students found AVTEC more community,                                                                    
because it was not an intimidating environment.                                                                                 
                                                                                                                                
2:31:08 PM                                                                                                                    
                                                                                                                                
^PRESENTATION: ALASKA MENTAL HEALTH TRUST AUTHORITY                                                                           
                                                                                                                                
2:32:03 PM                                                                                                                    
                                                                                                                                
MIKE BARTON, CHAIR, BOARD OF  TRUSTEES, ALASKA MENTAL HEALTH                                                                    
TRUST  AUTHORITY,  introduced the  PowerPoint  presentation,                                                                    
"Alaska Mental Health Trust  Authority Presentation to House                                                                    
Finance Committee; January 29, 2014" (copy on file).                                                                            
                                                                                                                                
Mr. Barton looked at slide 2, "Trustees."                                                                                       
                                                                                                                                
     Mike Barton, chair                                                                                                         
     Laraine Derr, vice chair                                                                                                   
     Paula Easley, secretary                                                                                                    
     William Doolittle, MD                                                                                                      
     Mary Jane Michael                                                                                                          
     Larry Norene                                                                                                               
     Russ Webb                                                                                                                  
                                                                                                                                
Mr. Barton  highlighted slide  3, "Trust  Beneficiaries." He                                                                    
outlined  the  Alaskan   trust  beneficiaries:  34,479  with                                                                    
mental  illness;  12,784  with  developmental  disabilities;                                                                    
21,000 with chronic alcoholism  or substance abuse disorder;                                                                    
5,000  with Alzheimer's  disease and  related dementia;  and                                                                    
11,900 with a traumatic brain injury.                                                                                           
                                                                                                                                
Mr. Baron displayed slide 4, "Guiding Principles."                                                                              
                                                                                                                                
     Improve the lives of beneficiaries                                                                                         
                                                                                                                                
          -Education of the public and policymakers on                                                                          
          beneficiary needs                                                                                                     
                                                                                                                                
          -Collaboration with advocates                                                                                         
                                                                                                                                
         -Maximize beneficiary input into programs                                                                              
          prioritize services for beneficiaries at risk of                                                                      
          institutionalization                                                                                                  
                                                                                                                                
          -Useful and timely data for evaluation                                                                                
                                                                                                                                
          -Include intervention and prevention components                                                                       
                                                                                                                                
          -Provision of reasonably necessary beneficiary                                                                        
          services based on ability to pay                                                                                      
                                                                                                                                
Mr. Barton discussed prioritizing principles. He noted that                                                                     
useful and timely data for the beneficiary services was                                                                         
crucial.                                                                                                                        
                                                                                                                                
2:34:02 PM                                                                                                                    
                                                                                                                                
Mr. Barton discussed slide 5, "Advisors and Partners."                                                                          
                                                                                                                                
     Advisory Board on Alcoholism & Drug Abuse                                                                                  
                                                                                                                                
     Alaska Mental Health Board                                                                                                 
                                                                                                                                
     Governor's Council on Disabilities & Special Education                                                                     
                                                                                                                                
     Alaska Commission on Aging                                                                                                 
                                                                                                                                
     Commissioners of:                                                                                                          
          -Health and Social Services                                                                                           
          -Revenue                                                                                                              
          -Natural Resources                                                                                                    
          -Corrections                                                                                                          
                                                                                                                                
     Alaska Brain Injury Network                                                                                                
                                                                                                                                
     Statewide Suicide Prevention Council                                                                                       
                                                                                                                                
     Alaska Court System                                                                                                        
                                                                                                                                
Mr. Barton looked  at slide 6, "Trust Cash Assets  - FY 13."                                                                    
He listed the  various components of cash  assets managed by                                                                    
the Permanent fund.                                                                                                             
                                                                                                                                
Mr. Barton  discussed slide  7, "Trust  Resource Portfolio."                                                                    
He noted that the pie chart  on the right displayed the need                                                                    
to develop the minerals on the 45 percent.                                                                                      
                                                                                                                                
Mr. Barton  outlined slide 8,  "FY 15 Available  Income." He                                                                    
stated  that the  prior year  payout was  not utilized.  The                                                                    
average income generated  by the trust land  office added to                                                                    
a payout of over $26 million.                                                                                                   
                                                                                                                                
Mr.  Barton highlighted  slide 9:  "Established Trust  Focus                                                                    
Areas."                                                                                                                         
                                                                                                                                
     Promoting change in systems to better serve Trust                                                                          
     beneficiaries in a cost effective manner                                                                                   
                                                                                                                                
          -Bring the Kids Home                                                                                                  
          -Disability Justice                                                                                                   
          -Housing                                                                                                              
          -Beneficiary Projects                                                                                                 
          -Workforce Development                                                                                                
                                                                                                                                
2:39:06 PM                                                                                                                    
                                                                                                                                
JEFF JESSEE,  CHIEF EXECUTIVE OFFICER, ALASKA  MENTAL HEALTH                                                                    
TRUST AUTHORITY, introduced himself.                                                                                            
                                                                                                                                
Mr.   Jessee   discussed   slide   10,   "Bring   the   Kids                                                                    
Homeā€¦Investing  Wisely."  He  noted that  the  contributions                                                                    
from  different departments  allowed  the trust  to use  the                                                                    
funds  previously used  out of  state to  be used  in Alaska                                                                    
instead.  The role  of  the  trust was  as  to generate  the                                                                    
necessary  capital. He  noted that  the  program working  in                                                                    
other  locations were  then utilized  in  Alaska. He  stated                                                                    
that  FY  15 was  the  last  year  of  Bring the  Kids  Home                                                                    
Program. He recalled that the  Alaska Youth Industry was the                                                                    
pilot  program that  identified  certain  issues. He  stated                                                                    
that upcoming  data regarding  expenditures could  allow for                                                                    
early intervention.                                                                                                             
                                                                                                                                
Co-Chair Stoltze  stated that Lyda  Green was the  leader of                                                                    
the effort.                                                                                                                     
                                                                                                                                
Mr.  Jessee  agreed  and provided  further  history  of  the                                                                    
movement.                                                                                                                       
                                                                                                                                
Mr.   Jessee  explained   slide  11,   "Disability  Justice:                                                                    
Investing Wisely?"  He stated that  the slide  was presented                                                                    
to the  legislature in January,  2009. He remarked  that the                                                                    
dotted  line in  blue represented  what would  occur if  the                                                                    
legislature did  not make any  changes to  behavioral health                                                                    
issues. The red dotted line  represented what would be done,                                                                    
if  there was  an investment  in a  series of  strategies to                                                                    
"turn  the curve"  to reduce  recidivism. He  announced that                                                                    
the legislature was currently following the blue line.                                                                          
                                                                                                                                
Mr. Jessee  highlighted slide 12,  "Clinical Characteristics                                                                    
Trust  Beneficiaries  in   the  Department  of  Corrections"                                                                    
(DOC). He  announced that 42  percent of inmates in  the DOC                                                                    
were trust  beneficiaries; 38 percent  of all  inmates could                                                                    
qualify as  beneficiaries, solely  because of  their alcohol                                                                    
diagnosis; and 26 percent of  all inmates could qualify as a                                                                    
beneficiary based on their mental  health diagnosis. He felt                                                                    
that  the slide  provided a  picture  of the  scope of  dual                                                                    
diagnosis,  because there  were  many inmates  who had  both                                                                    
mental health and substance abuse problems.                                                                                     
                                                                                                                                
2:45:45 PM                                                                                                                    
                                                                                                                                
Mr.   Jessee  discussed   slide  13,   "Trust  Beneficiaries                                                                    
Recidivism  and  Length  of  Stay."  He  stated  that  trust                                                                    
beneficiaries  stayed  longer in  DOC  and  recidivate at  a                                                                    
higher rate  than those that  were not  trust beneficiaries.                                                                    
He stressed that  he wanted to work with  the legislature to                                                                    
turn the curve around.                                                                                                          
                                                                                                                                
Mr. Jessee highlighted slide 14, "Housing."                                                                                     
                                                                                                                                
     Bridge  Home program  targeting  people exiting  Alaska                                                                    
     Psychiatric Institute  or Dept. of  Corrections through                                                                    
     intensive   community  outreach   project  demonstrated                                                                    
     success in lowering these costs                                                                                            
                                                                                                                                
Mr. Jessee  stressed that the  trust could not fund  what it                                                                    
took to take the larger programs to their full potential.                                                                       
                                                                                                                                
2:50:01 PM                                                                                                                    
                                                                                                                                
Mr.  Jessee   looked  at  slide  15,   "Supporting  Existing                                                                    
Infrastructure."                                                                                                                
                                                                                                                                
     Behavioral health infrastructure is fragile                                                                                
                                                                                                                                
          -Meyers and Stauffer study                                                                                            
                                                                                                                                
          -Behavioral health systems assessment                                                                                 
                                                                                                                                
     Grant reductions threatening stability                                                                                     
                                                                                                                                
          -Grants used  to support  Medicaid billing  due to                                                                    
          lack of adequate reimbursement rates                                                                                  
                                                                                                                                
          -Grants   intended  for   people  without   Social                                                                    
          Security/  Medicaid  but  are not  able  to  cover                                                                    
          these services                                                                                                        
                                                                                                                                
          -Organizations are  not able  to make it  based on                                                                    
          current reimbursement methods and rates                                                                               
                                                                                                                                
Mr. Jessee discussed slide 16, "Safety net failure costs."                                                                      
                                                                                                                                
    Cost of loss of key safety net service agencies in                                                                          
     communities is high                                                                                                        
                                                                                                                                
     Fairbanks behavioral health agency closure:                                                                                
                                                                                                                                
          10 Fairbanks residents  relocated to Anchorage due                                                                    
          to lack of available services                                                                                         
                                                                                                                                
          Lost  5 units  of housing  for people  with mental                                                                    
          illness (approximately 35 rooms/apartments)                                                                           
                                                                                                                                
          42 jobs  lost; prior employees lost  accrued leave                                                                    
          and health coverage                                                                                                   
                                                                                                                                
          700 people receiving services  prior to closure of                                                                    
          old  organization. Current  number served  approx.                                                                    
          300                                                                                                                   
                                                                                                                                
          More  than  $350,000  to  re-start  services  (new                                                                    
          training  and  legal  checks for  retained  staff,                                                                    
          supplies,  mentor   staff  of   new  organization,                                                                    
          transfer of records, software licenses, etc.)                                                                         
                                                                                                                                
Mr. Jessee highlighted slide 17, "New Emphasis on: Long-                                                                        
term Services and Supports."                                                                                                    
                                                                                                                                
     Challenges                                                                                                                 
                                                                                                                                
          Population increases straining our long term                                                                          
          supportive services and safety net                                                                                    
                                                                                                                                
          Maintaining quality social services locally and                                                                       
          over time (workforce, financing challenges)                                                                           
                                                                                                                                
     Preliminary strategies                                                                                                     
                                                                                                                                
          Participate with DHSS' strategic planning efforts                                                                     
                                                                                                                                
          Development of a statewide plan for services to                                                                       
          individuals with Alzheimer's disease and related                                                                      
          dementia                                                                                                              
                                                                                                                                
          Support of lower cost services statewide (home-                                                                       
          based                                                                                                                 
          care)                                                                                                                 
                                                                                                                                
Mr. Jessee looked at slide 18, "New Emphasis on:                                                                                
Beneficiary Employment."                                                                                                        
                                                                                                                                
     Improving opportunities for:                                                                                               
                                                                                                                                
          Integrated employment and competitive wages                                                                           
                                                                                                                                
          Self-sufficiency                                                                                                      
                                                                                                                                
          Education & awareness                                                                                                 
                                                                                                                                
Mr. Jessee presented a video that highlighted the                                                                               
importance of employing trust beneficiaries.                                                                                    
                                                                                                                                
2:56:47 PM                                                                                                                    
                                                                                                                                
Mr. Jessee shared that many employers had come to him to                                                                        
express how well the trust beneficiaries were performing in                                                                     
the work place.                                                                                                                 
                                                                                                                                
Mr. Jessee looked at slide 19, "Current Projects."                                                                              
                                                                                                                                
     Beneficiary Projects Initiative has made great                                                                             
     strides supporting peer support organizations and                                                                          
     workforce opportunities for beneficiaries across                                                                           
     Alaska                                                                                                                     
                                                                                                                                
     Microenterprise Grants                                                                                                     
                                                                                                                                
          FY13- 24 grant recipients awarded totaling                                                                            
          $86,229 with an additional $112,429 in                                                                                
          leveraged funds                                                                                                       
                                                                                                                                
Mr. Jessee  highlighted slide 20,  "New focus on  impacts of                                                                    
alcohol and substance abuse."                                                                                                   
                                                                                                                                
     Private/public partnership                                                                                                 
                                                                                                                                
          Alignment with:                                                                                                       
                                                                                                                                
          Recover Alaska                                                                                                        
                                                                                                                                
          Mat-Su Health Foundation                                                                                              
               -substance abuse and trauma emphasis                                                                             
                                                                                                                                
          Alaska Wellness Coalition                                                                                             
               - positive community norms campaign                                                                              
                                                                                                                                
          Alaska Resiliency Partnership                                                                                         
                                                                                                                                
          Empowering Hope                                                                                                       
                                                                                                                                
3:01:57 PM                                                                                                                    
                                                                                                                                
Mr. Jessee  discussed slide 21,  "Annual cost of  alcohol in                                                                    
Alaska: $1.2 billion economic impact."  He remarked that the                                                                    
McDowell Group had recently conducted  a study on the annual                                                                    
cost of  alcohol to  Alaska. They  determined that  the cost                                                                    
was $1.2 billion  in economic impact. He  stressed that $670                                                                    
million  of that  was considered  lost  productivity in  the                                                                    
work  place.  He  felt  that   encouraging  people  to  stop                                                                    
overindulging in  alcohol would have a  very positive effect                                                                    
on Alaska's economy.                                                                                                            
                                                                                                                                
Mr.  Jessee looked  at slide  22, "New  focus on  impacts of                                                                    
alcohol and substance abuse."                                                                                                   
                                                                                                                                
     Solutions must be comprehensive                                                                                            
                                                                                                                                
          Prevention                                                                                                            
                                                                                                                                
          Harm reduction                                                                                                        
                                                                                                                                
          Expansion of access to treatment                                                                                      
               -Increased access                                                                                                
               -Same day access & other efficiencies                                                                            
              -Patient Centered Medical Home                                                                                    
                                                                                                                                
          Enhanced tribal partnerships                                                                                          
                                                                                                                                
          Environmental strategies                                                                                              
               -Title 4                                                                                                         
                                                                                                                                
Mr. Jessee highlighted slide 23, "Investing Wisely."                                                                            
                                                                                                                                
     Complex Behavioral Collaborative                                                                                           
                                                                                                                                
          Prevent inappropriate and costly institutional                                                                        
          placements (API, correctional facilities, and                                                                         
          out-of-state placements)                                                                                              
                                                                                                                                
          Build capacity and expertise within the state to                                                                      
          serve individuals with complex behavioral needs                                                                       
          who have multiple disabling conditions                                                                                
                                                                                                                                
3:07:16 PM                                                                                                                    
                                                                                                                                
Mr. Jessee discussed slide 24, "Outcomes of CBC."                                                                               
                                                                                                                                
     FY 13: 14 participants discharged                                                                                          
                                                                                                                                
     FY 13: 76 percent participants avoided institutional                                                                       
     care                                                                                                                       
                                                                                                                                
     FY 14: 86 percent of FY funded                                                                                             
                                                                                                                                
Mr.   Jessee   looked  at   slide   25,   "FY  15   GF/   MH                                                                    
Recommendations." He remarked  that every recommendation was                                                                    
intended to  gain control of  long-term spending.  He stated                                                                    
that   the   requests    included   the   Complex   Behavior                                                                    
Collaborative; mental health clinical  positions in DOC; and                                                                    
traumatic  and acquired  brain  injury  case management.  He                                                                    
understood  the  frustration   related  the  development  of                                                                    
programs and transferring the program  funding to the GF. He                                                                    
remarked  that the  slide represented  the total  request to                                                                    
move from Mental Health funding to GF.                                                                                          
                                                                                                                                
3:12:41 PM                                                                                                                    
                                                                                                                                
Co-Chair   Stoltze   welcomed   the   trustees.   He   asked                                                                    
specifically about  the legalization  of marijuana,  and how                                                                    
it  might  impact  the  mental   health  board.  Mr.  Barton                                                                    
responded  that there  would probably  be no  impact on  the                                                                    
mental health board.                                                                                                            
                                                                                                                                
                                                                                                                                
Co-Chair Stoltze wondered if there  was a way that the board                                                                    
planned   to   address    the   possibility   of   marijuana                                                                    
legalization. Mr.  Barton replied that the  trustees had not                                                                    
discussed the  issue of  marijuana, but  felt that  it could                                                                    
fall under the category of substance abuse.                                                                                     
                                                                                                                                
Representative  Costello  remarked   that  there  were  many                                                                    
hearings, and appreciated the efforts  of the Bring the Kids                                                                    
Home Campaign.                                                                                                                  
                                                                                                                                
Representative  Gara  remarked  that there  were  individual                                                                    
substance  abuse treatment  provider results,  but requested                                                                    
an overall  need for substance  abuse treatment.  He queried                                                                    
the capacity to treat those  individuals who were already in                                                                    
treatment. Mr.  Jessee responded that the  Behavioral Health                                                                    
Systems   Assessments   would    eventually   provide   that                                                                    
information.                                                                                                                    
                                                                                                                                
3:17:43 PM                                                                                                                    
                                                                                                                                
RUSS WEBB,  TRUSTEE, ALASKA  MENTAL HEALTH  TRUST AUTHORITY,                                                                    
stated  that there  were no  definitive  answers. He  shared                                                                    
that many people  were seeking treatment as a  result of the                                                                    
criminal  justice  system.  He  announced  that  there  was,                                                                    
virtually,  a waiting  list for  everyone  that was  seeking                                                                    
treatment.  He  shared that  there  could  be a  point  when                                                                    
someone is allowed to seek  treatment rather than jail time,                                                                    
and  those individuals  had a  very high  incentive to  seek                                                                    
treatment.  He remarked  that there  was  often a  six-month                                                                    
wait to enter  treatment, so those individuals  may have two                                                                    
or three more offenses.                                                                                                         
                                                                                                                                
Representative  Gara  wondered   if  the  Behavioral  Health                                                                    
System  Assessments  would provide  a  blueprint  on how  to                                                                    
eliminate the  wait-lists for  those that  desire treatment.                                                                    
Mr. Webb  responded that the  goal was to provide  much more                                                                    
definitive  answers.  He  remarked that  the  Mental  Health                                                                    
Trust was  working hard to  obtain the best  information for                                                                    
all Alaskans that seek behavioral health treatment.                                                                             
                                                                                                                                
Representative Gara looked  at slide 25, and  asked for more                                                                    
information about the Early  Intervention for Young Children                                                                    
program. He also wondered if  38 percent of all incarcerated                                                                    
people had an alcohol abuse  problem. Mr. Jessee stated that                                                                    
38  percent of  incarcerated people  would qualify  as trust                                                                    
beneficiaries, because of their alcohol addiction.                                                                              
                                                                                                                                
Representative Gara wondered how  that was different than an                                                                    
alcohol  problem. Mr.  Jessee  responded  the percentage  of                                                                    
people who were incarcerated  because of an alcohol-involved                                                                    
crime  was much  higher. He  explained that  a criminal  who                                                                    
commits a  crime while  under the  influence of  alcohol may                                                                    
not have an alcohol addiction;  so therefore, they would not                                                                    
be a trust beneficiary.                                                                                                         
                                                                                                                                
Mr. Jessee  explained that the Early  Intervention for Young                                                                    
Children  program  was  intended   to  help  day  cares  and                                                                    
preschools hold  on to  the children  that had  high Adverse                                                                    
Childhood  Experience  scores;   have  behavioral  problems;                                                                    
and/or were at risk of expulsion.                                                                                               
                                                                                                                                
3:22:58 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  wondered how  the impact of  changing some                                                                    
drug  laws  to  misdemeanors  would affect  the  board.  Mr.                                                                    
Barton  replied that  the trustees  had  not discussed  that                                                                    
impact specifically,  but remarked that  it would be  a part                                                                    
of the focus  area. He stated that it would  be discussed in                                                                    
the area of substance abuse.                                                                                                    
                                                                                                                                
Mr. Webb  furthered that  the interest  is the  same whether                                                                    
the crime  is a  misdemeanor or felony.  He stated  that the                                                                    
difference may be  what kind of person was  convicted of the                                                                    
crime.  He  stressed  that, in  his  experience,  whether  a                                                                    
person was  convicted of  a misdemeanor or  a felony  had no                                                                    
impact on their choice to seek treatment.                                                                                       
                                                                                                                                
Co-Chair Stoltze  wondered if there was  a greater incentive                                                                    
to  seek  treatment if  the  drug  crime were  considered  a                                                                    
felony.  Mr. Webb  responded that  he had  been a  probation                                                                    
officer, and in his experience,  a person responded the same                                                                    
regardless of the level of the sentence.                                                                                        
                                                                                                                                
Representative  Edgmon   felt  that  there  would   be  many                                                                    
questions regarding the marijuana and other drug issues.                                                                        
                                                                                                                                
HB  266  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB 267 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:28:14 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:28 p.m.                                                                                          

Document Name Date/Time Subjects
AMHTA Presentation HFIN 1-29-14.pdf HFIN 1/29/2014 1:30:00 PM
DOLWD Overview HFIN.pdf HFIN 1/29/2014 1:30:00 PM
DOL Overview HFIN
HFIN DOLWD 1-29-14 Hearing Response.pdf HFIN 1/29/2014 1:30:00 PM
Responses DOL Overview
AVTEC funding ratios (02-06-14 update).pdf HFIN 1/29/2014 1:30:00 PM
DOL Responses Overview
AVTEC Costs per student.pdf HFIN 1/29/2014 1:30:00 PM
DOL Responses Overview