Legislature(2017 - 2018)HOUSE FINANCE 519

01/30/2018 01:30 PM FINANCE

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Audio Topic
01:34:54 PM Start
01:35:34 PM HB285 || HB286
01:35:41 PM Overview: Department of Corrections
02:23:13 PM Overview: Department of Public Safety
03:07:05 PM Overview: Department of Natural Resources
03:53:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 286 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 285 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ FY19 Dept. Budget Overviews: TELECONFERENCED
- Dept. of Corrections
- Dept. of Public Safety
- Dept. of Natural Resources
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                     January 30, 2018                                                                                           
                         1:34 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:34:54 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Seaton  called the House Finance  Committee meeting                                                                    
to order at 1:34 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Paul Seaton, Co-Chair                                                                                            
Representative Les Gara, Vice-Chair                                                                                             
Representative Jason Grenn                                                                                                      
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
Representative Dan Ortiz                                                                                                        
Representative Lance Pruitt                                                                                                     
Representative Steve Thompson                                                                                                   
Representative Cathy Tilton                                                                                                     
Representative Mark Neuman - Alternate                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Tammie Wilson                                                                                                    
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Dean  Williams,  Commissioner,  Department  of  Corrections;                                                                    
April  Wilkerson,   Director,  Division   of  Administrative                                                                    
Services,   Department   of   Corrections;   Walt   Monegan,                                                                    
Commissioner,  Department of  Public  Safety; Kelly  Howell,                                                                    
Director,  Division of  Administrative Services,  Department                                                                    
of   Public  Safety;   Mark  Wiggin,   Deputy  Commissioner,                                                                    
Department  of Natural  Resources; Fabienne  Peter-Contesse,                                                                    
Support Services Director, Department of Natural Resources.                                                                     
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
John  "Chris"   Maisch,  Director,  Division   of  Forestry,                                                                    
Department  of  Natural  Resources;  Ethan  Tyler,  Division                                                                    
Director, State Parks and  Outdoor Recreation, Department of                                                                    
Natural Resources.                                                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 285    APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 285 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 286    APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 286 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
FY 19 BUDGET OVERVIEWS:                                                                                                         
          DEPARTMENT OF CORRECTIONS                                                                                             
          DEPARTMENT OF PUBLIC SAFETY                                                                                           
          DEPARTMENT OF NATURAL RESOURCES                                                                                       
                                                                                                                                
HOUSE BILL NO. 285                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
HOUSE BILL NO. 286                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making   supplemental  appropriations;                                                                    
     making  appropriations  under   art.  IX,  sec.  17(c),                                                                    
     Constitution  of   the  State   of  Alaska,   from  the                                                                    
     constitutional budget  reserve fund; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
1:35:34 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton reviewed the agenda for the day.                                                                                
                                                                                                                                
^OVERVIEW: DEPARTMENT OF CORRECTIONS                                                                                          
                                                                                                                                
1:35:41 PM                                                                                                                    
                                                                                                                                
DEAN  WILLIAMS,  COMMISSIONER,  DEPARTMENT  OF  CORRECTIONS,                                                                    
introduced   himself    and   introduced    the   PowerPoint                                                                    
presentation: "Department  of Corrections  FY2019 Department                                                                    
Overview." He preferred that questions  from members be held                                                                    
to the end of his presentation.                                                                                                 
                                                                                                                                
Commissioner  Williams  began  with slide  2:  "Mission  and                                                                    
Sources."  He wanted  to acknowledge  and identify  that the                                                                    
Department of  Corrections (DOC) in the  governor's proposed                                                                    
budget showed  an increase of  $22 million. He  relayed that                                                                    
he had  been in his position  for 2 years and  had looked at                                                                    
the  department's  history  and budget.  The  Department  of                                                                    
Corrections  had been  on a  glide path  of reductions  over                                                                    
several fiscal  years with anticipation that  the department                                                                    
would arrive  at a  certain place  in the  prison population                                                                    
that would  allow it to  take advantage of  certain savings.                                                                    
He reminded members  that starting in FY  15, the department                                                                    
lost $1 million  out of its operating budget; in  FY 16, the                                                                    
department lost $8.5 million; in  FY 17, the department lost                                                                    
$10.8  million;  and in  FY  18  the department  lost  $11.8                                                                    
million. The total reductions were  about $32 million. There                                                                    
were  certain expectations  of the  department. He  had made                                                                    
the difficult  decision to close  a facility about  9 months                                                                    
into his  tenure to  get particular  savings. Even  with the                                                                    
closure,  he still  found the  department approximately  $22                                                                    
million  short in  the operating  budget. He  requested that                                                                    
the governor and  the Office of Management  and Budget (OMB)                                                                    
team had full  funding in the budget to get  a clear picture                                                                    
of what it would cost to run the department.                                                                                    
                                                                                                                                
1:39:17 PM                                                                                                                    
                                                                                                                                
Commissioner Williams  indicated Ms. Wilkerson  would review                                                                    
the following several slides.                                                                                                   
                                                                                                                                
APRIL  WILKERSON,   DIRECTOR,  DIVISION   OF  ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT  OF  CORRECTIONS, discussed  slide  3:                                                                    
"Department   of   Corrections'   Share  of   Total   Agency                                                                    
Operations  (GF Only)."  The slide  was a  representation of                                                                    
the overall general  funds (GF) for the  department over the                                                                    
previous 10  years. In 2019,  the department  was requesting                                                                    
$297 million be  added to the general funds  for the agency,                                                                    
an increase over FY 18. The  general funds made up just over                                                                    
6.3  percent of  the overall  governor's budget  request. It                                                                    
was an increase  of $79 million from ten years  prior. In FY                                                                    
09 the department had a budget request of $217 million.                                                                         
                                                                                                                                
1:40:23 PM                                                                                                                    
                                                                                                                                
Ms. Wilkerson  moved to slide 4:  "Department of Corrections                                                                    
Line Items  (All Funds)." She  relayed that the slide  was a                                                                    
representation  of   how  the  funds  were   allocated.  The                                                                    
majority  of  the  department's   funds  were  dedicated  to                                                                    
personal  services  at  just over  $210  million.  The  next                                                                    
highest  line  was  the department's  services  line,  which                                                                    
included the  department's utilities,  contractual services,                                                                    
and  halfway  houses  which  made  up  $98  million  of  the                                                                    
department's budget.  The commodities equaled  $19.8 million                                                                    
and included  food, housing, clothing,  bedding, and  all of                                                                    
the   operational  costs   for   commodity  purchases.   The                                                                    
department also had a small  travel line of $1.8 million The                                                                    
majority  of  that  amount   was  associated  with  prisoner                                                                    
transports  between Alaska's  institutions and  to and  from                                                                    
medical  appointments.  The  department  also  had  a  small                                                                    
appropriation of  just over $600,000 dedicated  to returning                                                                    
inmates  to   their  point  of  arrest   upon  release.  The                                                                    
department  was  asking for  $1  million  in the  governor's                                                                    
budget for capital outlay to  address any annual maintenance                                                                    
and  repair. Of  the institutions  that were  operating, the                                                                    
department was  responsible for the  facility upkeep  of its                                                                    
institutions.                                                                                                                   
                                                                                                                                
1:41:32 PM                                                                                                                    
                                                                                                                                
Ms. Wilkerson  advanced to  slide 5:  "Appropriations within                                                                    
the  Department of  Corrections  (GF  Only)." She  indicated                                                                    
that  the  department's  budget was  allocated  through  six                                                                    
result delivery units (RDU)s.  Population Management was the                                                                    
largest RDU within the budget.  It included three divisions:                                                                    
The Division of Institutions,  the Division of Probation and                                                                    
Parole, and  the Division of  Pretrial Services, as  well as                                                                    
the  Board of  Parole.  The overall  allocation  made up  80                                                                    
percent  of DOC's  overall general  fund budget.  Health and                                                                    
Rehabilitative Services  (HARS) made up the  additional 15.6                                                                    
percent of the budget. Administrative  and Support made up 3                                                                    
percent of  the budget, and Offender  programs in recidivism                                                                    
reduction  budgets  made  up  just over  1  percent  of  the                                                                    
budget.                                                                                                                         
                                                                                                                                
Ms.  Wilkerson  continued  that  the  Population  Management                                                                    
budget had an  increase. In FY 19 the  department was asking                                                                    
for 10.4 million which would  be allocated throughout the 12                                                                    
operating  institutions to  bring them  up to  full funding.                                                                    
Their budget was reduced in FY  17 and FY 18 in anticipation                                                                    
of  further closures  or constrictions  of  the beds,  which                                                                    
were   not   being   achieved  presently.   Therefore,   the                                                                    
department was  asking for full funding.  The department was                                                                    
also asking for $10.3 million  be added to HARS. The request                                                                    
was  associated with  increased  medical  costs of  prisoner                                                                    
inmate care.                                                                                                                    
                                                                                                                                
1:43:11 PM                                                                                                                    
                                                                                                                                
Ms. Wilkerson  moved to slide 6:  "Appropriations within the                                                                    
Department  of Corrections  (All  Funds)." The  slide was  a                                                                    
representation of the  overall funds - all  funds within the                                                                    
department broken  out by  various allocations.  The federal                                                                    
funds  increased  by  $4.6   million.  They  were  primarily                                                                    
dedicated  to  receipts  the department  collected  for  the                                                                    
housing of federal inmates within its various facilities.                                                                       
                                                                                                                                
Co-Chair  Seaton  recognized  that the  committee  had  been                                                                    
joined by Representative Mark Neuman.                                                                                           
                                                                                                                                
1:43:47 PM                                                                                                                    
                                                                                                                                
Ms.  Wilkerson   continued  to   slide  7:   "Department  of                                                                    
Corrections  Total Funding  Comparison  by  Fund Group  (All                                                                    
Funds)."   She   reported   that  the   slide   showed   the                                                                    
distribution  of the  department's  overall  budget by  fund                                                                    
source. The  department collected federal receipts  used for                                                                    
the  housing of  federal  inmates  detained within  Alaska's                                                                    
various institutions. Unrestricted general  funds made up 85                                                                    
percent of the department's  overall budget at $289 million.                                                                    
The  department also  had other  funds allocated  within the                                                                    
department  in the  amount of  $25.7  million that  included                                                                    
items  such as  the facilities  Capital Improvement  Project                                                                    
(CIP) authorization, the mental  health trust authority, and                                                                    
interagency receipts.  The department had a  small amount of                                                                    
$8.5  million of  designated general  funds. The  department                                                                    
collected   funds  from   inmates  assigned   to  electronic                                                                    
monitoring as  well as  the collection  of funds  from other                                                                    
municipalities  for the  housing  of inmates  held on  local                                                                    
municipal  charges. The  department  also  had a  collection                                                                    
from the  cost of  incarceration that was  collected through                                                                    
the Department of Law and the courts.                                                                                           
                                                                                                                                
1:45:01 PM                                                                                                                    
                                                                                                                                
Commissioner  Williams scrolled  to  slide  8: "Division  of                                                                    
Institutions."  He mentioned  that the  slide broke  out the                                                                    
different offices within the  Divisions of Institutions. The                                                                    
subsequent  slides  did  the  same for  each  of  the  other                                                                    
divisions. He  thought that in  the previous year,  when the                                                                    
department made its presentation  to the legislature, he had                                                                    
been  too broad  in saying  that the  department served  all                                                                    
Alaskans.  He had  been asked  by the  committee to  be more                                                                    
specific. He  had taken  the request to  heart but  may have                                                                    
overdone it.  He mentioned one  example in  the institutions                                                                    
line  that  indicated  the   department  was  serving  4,800                                                                    
Alaskans.  The number  reflected  the  average capacity  for                                                                    
incarceration. The  number went  up and down  throughout the                                                                    
year. Some of the things he  was not mentioning was that the                                                                    
department  had  about 30,000  bookings  per  year, and  the                                                                    
number of  Alaskans' served  was conservative.  The bookings                                                                    
of  people coming  into the  state's  facilities involved  a                                                                    
significant  amount of  work,  and they  did  not stay  very                                                                    
long.  In  each  of  the  areas in  which  he  talked  about                                                                    
Alaskans  served,  he  was  trying  to  get  it  right  with                                                                    
legislators   on  how   members  wanted   to  describe   the                                                                    
information.  He  was  certain  that in  terms  of  Alaskans                                                                    
served, he  was missing many  Alaskans that were  served due                                                                    
to budget  cuts. He wanted  guidance on how  the legislature                                                                    
wanted to see the information presented.                                                                                        
                                                                                                                                
Ms. Wilkerson continued to review  slide 8, a representation                                                                    
of the  Division of Institutions.  The budget  had decreased                                                                    
overall, and the department was  asking that a portion of it                                                                    
be  restored.   Alaska  was  one   of  six   unified  states                                                                    
throughout the  country. The  division handled  prisons, the                                                                    
unsentenced  population, and  the sentenced  population upon                                                                    
conviction.  The   division  operated   twelve  institutions                                                                    
throughout the state that was  handled by the classification                                                                    
and furlough office for appropriate  placement of housing of                                                                    
those offenders.  The division was also  responsible for the                                                                    
inmate transportation  that was delegated to  the department                                                                    
by the  Department of Public  Safety (DPS).  That delegation                                                                    
allowed the department to  move inmates between institutions                                                                    
for  population purposes  as  well as  to  and from  medical                                                                    
appointments. The  point of  arrest component  rested within                                                                    
the  division.  It  returned offenders  to  their  point  of                                                                    
arrest. The division had a  $1.5 million budget dedicated to                                                                    
education  and   vocational  educational   opportunities  in                                                                    
efforts to assist individuals  upon reentry into communities                                                                    
to  obtain  employment.  The   division  had  $16.8  million                                                                    
dedicated   for  the   department's  community   residential                                                                    
centers (CRC).  She reported that  $7 million  was allocated                                                                    
to the  Regional and Community Jail  Program. The department                                                                    
had contracts with 15 local entities throughout the state.                                                                      
                                                                                                                                
1:48:28 PM                                                                                                                    
                                                                                                                                
Ms.  Wilkerson detailed  slide 9:  "Division  of Health  and                                                                    
Rehabilitation."  The overall  budget  for  the Division  of                                                                    
Health and  Rehabilitation was $58.559 million  and included                                                                    
the  ask  of   $10.3  million  that  was   identified  as  a                                                                    
shortfall. It  would also be  reflected in  the supplemental                                                                    
bill  for  FY  18.  The division  encompassed  the  phisical                                                                    
health  care component  required  under  statute to  provide                                                                    
essential care to individuals  placed under the department's                                                                    
custody. It  also included  the behavioral  health component                                                                    
as  well  as  the  department's  substance  abuse  treatment                                                                    
programs,  sex offender  treatment, sex  offender management                                                                    
programs, and domestic violence programs.                                                                                       
                                                                                                                                
1:49:18 PM                                                                                                                    
                                                                                                                                
Commissioner  Williams scrolled  to slide  10: "Division  of                                                                    
Probation and  Parole." He made  a caveat comment  about the                                                                    
department's probation  counts. The issue had  been a source                                                                    
of significant discussion the  previous year. The department                                                                    
had 3075  as the  number of Alaskans  served, which  was the                                                                    
department's capacity.  It was  an important issue  to bring                                                                    
up   in  terms   of  budgeting   for  the   department.  The                                                                    
department's  average   count  was  about  5100   people  on                                                                    
probation in  the prior year. Currently,  the department had                                                                    
about  3900   people  on  probation.  The   reason  for  the                                                                    
reduction  had  to  do,  in  part,  with  earned  compliance                                                                    
credits and  changes in reform  to the  department regarding                                                                    
technical  violations.  He  explained that  putting  someone                                                                    
back  in jail  had to  be related  to something  larger than                                                                    
missing an  appointment or  some other  technical violation,                                                                    
which brought  the count down.  He explained that  with some                                                                    
of the  changes under  SB 54 [Legislation  passed in  2017 -                                                                    
Short  Title:  Crimes;   Sentencing;  Probation;  Parc]  the                                                                    
department was  set at a  cap of 3075. As  the commissioner,                                                                    
he thought the  division had a reasonable  chance of getting                                                                    
to that number.  At the same time, the  department was being                                                                    
very strategic  about who  it had on  probation and  for how                                                                    
long. It was  a part of the department's  operations that he                                                                    
continued  to watch  very closely  to make  sure it  had the                                                                    
right people on  probation for the right period  of time. He                                                                    
wanted to continue to work the  issue to make sure the right                                                                    
supervision was  in place for  the offender  population upon                                                                    
release.                                                                                                                        
                                                                                                                                
Ms. Wilkerson  reported on  slide 10.  She relayed  that the                                                                    
Division  of Probation  and Parole  encompassed about  $21.2                                                                    
million  of  the  overall  budget. It  was  broken  up  into                                                                    
statewide  probation and  parole which  covered 13  regional                                                                    
locations  and  provided  supervision to  individuals  under                                                                    
probation  and  parole  who   were  released  into  Alaska's                                                                    
communities. Electronic  monitoring was  also a part  of the                                                                    
division and  was currently operating in  six locations with                                                                    
expansion  to two  additional locations,  Sitka and  Barrow.                                                                    
The department  was also  actively expanding  the electronic                                                                    
monitoring program to other areas.                                                                                              
                                                                                                                                
1:52:12 PM                                                                                                                    
                                                                                                                                
Commissioner   Williams  reported   that  the   Division  of                                                                    
Pretrial Services  was a  new division  that went  into full                                                                    
operation in  January [2018] and  had been in  operation for                                                                    
four weeks.  He looked  forward to  subsequent conversations                                                                    
to talk about  the division and its efforts.  He thought the                                                                    
division would  be a  critical piece  of the  department. He                                                                    
anticipated  more   discussion  on   the  division   in  the                                                                    
subcommittee process. He wanted  to make sure the department                                                                    
had  clarity  about  what  it  was  doing  in  the  pretrial                                                                    
enforcement  division and  for  what  reasons. He  indicated                                                                    
that in the prior 10  years, the department's largest growth                                                                    
in prison  population had  been in  the pretrial  area, like                                                                    
most  other  states in  the  nation.  The people  in  prison                                                                    
pretrial cost the state a  significant amount of money. Some                                                                    
of the individuals  in jail pretrial needed to  be there due                                                                    
to  their  charge and  potential  risk.  The department  had                                                                    
about half of the needed employees hired for the division.                                                                      
                                                                                                                                
Commissioner Williams continued that he  had put some of the                                                                    
money back into  enhancing local community jails  to do some                                                                    
of   the  work,   rather  than   the   state  being   solely                                                                    
responsible.  In  the following  week  he  would update  the                                                                    
subcommittee on the topic.  Most communities were supportive                                                                    
of the  change and  others were waiting  to see  results. He                                                                    
thought  support   for  the  division  and   keeping  it  on                                                                    
trajectory was  important for a  host of reasons.  He though                                                                    
the division  was the greatest  promise in  improving public                                                                    
safety,  especially for  the pretrial  people who  had never                                                                    
had any  monitoring previously. The  department was  using a                                                                    
risk tool  as another option  for a  judge to use  to decide                                                                    
who should  stay in or out  of prison. In every  other state                                                                    
where  pretrial  services  were  offered,  it  had  improved                                                                    
public safety  when done appropriately. He  was pleased with                                                                    
the direction of the division.                                                                                                  
                                                                                                                                
1:55:19 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton  indicated that  Representative  Guttenberg                                                                    
had joined the meeting.                                                                                                         
                                                                                                                                
1:55:39 PM                                                                                                                    
                                                                                                                                
Ms.  Wilkerson  moved to  slide  11:  "Division of  Pretrial                                                                    
Services." She  reported that the  new Division  of Pretrial                                                                    
Services  had an  allocation of  $10.2 million.  One of  the                                                                    
things  the division  had achieved  to-date was  negotiating                                                                    
with 11 of  15 community regional jails  to provide pretrial                                                                    
level services on behalf of the pretrial unit.                                                                                  
                                                                                                                                
1:56:10 PM                                                                                                                    
                                                                                                                                
Ms. Wilkerson scrolled  to slide 12: "Board  of Parole." The                                                                    
Board of  Parole was housed within  DOC and had a  budget of                                                                    
$1.7 million. The board was  responsible for determining the                                                                    
suitability  of  individuals   for  potential  release  onto                                                                    
parole  from  custody.  The   board  oversaw  the  mandatory                                                                    
parole, the  discretionary Parole,  and the  special medical                                                                    
parole.  They also  oversaw the  geriatric  parole and  were                                                                    
working  with  the governor's  office  on  the new  clemency                                                                    
elements being implemented.                                                                                                     
                                                                                                                                
Commissioner Williams believed the  parole hearings would at                                                                    
least  double.  The parole  board  had  a full  schedule  of                                                                    
hearings  and  was  doing  a   great  job  of  managing  the                                                                    
workload.  He  reemphasized that  there  would  likely be  a                                                                    
dramatic increase in parole hearings.                                                                                           
                                                                                                                                
1:57:33 PM                                                                                                                    
                                                                                                                                
Ms.   Wilkerson  advanced   to   slide   13:  "Division   of                                                                    
Administrative  Services." She  explained that  the Division                                                                    
of  Administrative   Services  oversaw   the  administrative                                                                    
functions  for   the  department.  The  allocation   to  the                                                                    
division was  $9.7 million  and included  all items  such as                                                                    
recruitment,  human resources,  procurement, budgeting,  and                                                                    
financials.  It  also  encompassed the  offender  management                                                                    
system  and  certified  the   breath  and  alcohol  ignition                                                                    
interlock devise  program. The division was  responsible for                                                                    
employee background  checks and APSE [Association  of People                                                                    
Supporting  EmploymentFirst]   certification.  The  division                                                                    
oversaw  all  offender  records including  those  that  were                                                                    
active and  inactive. The division was  also responsible for                                                                    
maintenance for all institutions  within the department. The                                                                    
division was  actively coordinating  with the  Department of                                                                    
Administration (DOA) on shared services elements.                                                                               
                                                                                                                                
1:58:48 PM                                                                                                                    
                                                                                                                                
Ms.   Wilkerson   reviewed   slide  14:   "Office   of   the                                                                    
Commissioner."  She reported  that  the  allocation for  the                                                                    
Office of  the Commissioner was $3.76  million consisting of                                                                    
funding for  the correctional  academy. She  elaborated that                                                                    
the   academy  provided   Alaska  Police   Standard  Counsel                                                                    
Training   required   for   all   probation   officers   and                                                                    
correctional  officers. The  professional  conduct unit  and                                                                    
the recidivism  reduction component  were housed  within the                                                                    
Office of the Commissioner.                                                                                                     
                                                                                                                                
1:59:22 PM                                                                                                                    
                                                                                                                                
Ms.   Wilkerson  turned   to   slide   15:  "Department   of                                                                    
Corrections Five-Year Health Care  Trends." The slide showed                                                                    
the department's  5-year health care trends.  The allocation                                                                    
for  health  care  including inmate  health  care  was  23.3                                                                    
percent.  The department's  employer  contribution was  just                                                                    
over  $30 million,  and workers  compensation was  just over                                                                    
$3.8  million.  The  inmate  health   care  portion  of  the                                                                    
allocation was  almost $40 million. The  employee allocation                                                                    
was 11  percent of the 23  percent. The rest was  made up of                                                                    
inmate health care contributions.  The department made every                                                                    
effort  to   reduce  health  care  costs   such  as  posting                                                                    
information   on   the   department  website   and   sharing                                                                    
information with  employees. Each  of the  institutions were                                                                    
putting  forward  employee   wellness  programs  within  the                                                                    
facilities. The  department coordinated  with the  unions to                                                                    
have   on-site   wellness  resources   including   training,                                                                    
webinars,  and group  activities.  For  inmate efforts,  the                                                                    
department was  moving higher cost  cases out of  state. The                                                                    
department  had been  successful  in placing  two high  cost                                                                    
dialysis  inmates  in  a  lower  cost  facility  outside  of                                                                    
Alaska. The department reviewed  its high cost medical cases                                                                    
as soon as they came to  the attention of the department for                                                                    
a community  placement to see  if it  could get them  out of                                                                    
custody and under Medicaid. The  department was making other                                                                    
efforts such  as providing information to  inmates, focusing                                                                    
on heart-healthy  diets, and  coordinating efforts  to issue                                                                    
Vitamin D throughout the institutions.                                                                                          
                                                                                                                                
2:01:30 PM                                                                                                                    
                                                                                                                                
Ms. Wilkerson explained slide 16:  "What is Vacancy Factor?"                                                                    
She  explained that  a  vacancy  factor meant  intentionally                                                                    
underfunding  positions  in   anticipation  of  turnover  of                                                                    
positions by long-term employees  and hiring newer employees                                                                    
into those positions.                                                                                                           
                                                                                                                                
2:02:02 PM                                                                                                                    
                                                                                                                                
Ms.  Wilkerson   continued  to  slide  17:   "Department  of                                                                    
Corrections FY2019  Personnel Vacancy Factor."  She reported                                                                    
that of  the department's  1895 budgeted positions,  if they                                                                    
were to be filled 100 percent  all year long, the cost would                                                                    
be  $217 million.  The department  had an  average statewide                                                                    
vacancy  of 4.47  percent which  equated to  just over  $9.7                                                                    
million  that was  unfunded. The  department had  the parole                                                                    
board  and  a  lump-sum  premium pay  added  back  in,  $2.8                                                                    
million, for  an overall  personal service  authorization of                                                                    
$210.4 million. She  indicated that she had  reached the end                                                                    
of the department's presentation.                                                                                               
                                                                                                                                
2:02:49 PM                                                                                                                    
                                                                                                                                
Commissioner  Williams reiterated  that  the department  was                                                                    
looking  for full  funding for  FY 19.  He had  looked at  a                                                                    
supplemental. The  department had  a supplemental  for about                                                                    
$10 million  the prior year.  In the current  year's budget,                                                                    
the department  would have  a supplemental  request, despite                                                                    
every effort his team had  made to avoid one. The department                                                                    
would  have  a  difficult  time making  its  budget  in  the                                                                    
present year. As the Commissioner,  he had advocated that in                                                                    
running the systems there should  be a full accounting and a                                                                    
full transparency  of what it  would cost the state.  He did                                                                    
not like supplementals. He thought  it was important to have                                                                    
a  fair  accounting  of  what  it  would  cost  to  run  the                                                                    
department. If  the state wanted  to do  something different                                                                    
as a policy call, a  substantial major change to the state's                                                                    
correctional system, everyone should  be upfront about that.                                                                    
He thought the budget presentation  was a fair assessment of                                                                    
what  it would  cost to  run the  correctional system  as it                                                                    
stood for the following year.                                                                                                   
                                                                                                                                
2:04:46 PM                                                                                                                    
                                                                                                                                
Representative   Grenn   asked   about   the   Division   of                                                                    
Institutions on slide 8. He  pointed to line 7 regarding the                                                                    
education and  vocational programs. It listed  a high number                                                                    
of  offenders  served  in  the  program.  He  asked  if  the                                                                    
commissioner had details  of what the budget  looked like in                                                                    
the  past  3  years   including  reductions.  Ms.  Wilkerson                                                                    
responded that the budget Representative  Grenn spoke of had                                                                    
remained flat funded for the last  3 years and had not had a                                                                    
decrement. She relayed that the  number of offenders that it                                                                    
served could include an offender  that had received multiple                                                                    
certifications.                                                                                                                 
                                                                                                                                
2:05:30 PM                                                                                                                    
                                                                                                                                
Representative  Grenn  asked  if  the  number  of  offenders                                                                    
served  had  increased.  Ms. Wilkerson  responded,  "Yes  it                                                                    
has."                                                                                                                           
                                                                                                                                
Representative  Grenn  thought   the  information  would  be                                                                    
helpful for the committee.                                                                                                      
                                                                                                                                
Co-Chair    Seaton   clarified    the   number    of   years                                                                    
Representative Grenn was requesting.                                                                                            
                                                                                                                                
Representative Grenn responded, "Since  2015." He brought up                                                                    
pretrial services.  There were  several positions  that were                                                                    
not filled. He asked the  commissioner to comment on why the                                                                    
department was having trouble with recruiting.                                                                                  
                                                                                                                                
Commissioner  Williams  responded  that there  were  several                                                                    
reasons for the positions being  open. First, the start date                                                                    
for the  division was January  1 at which time  the division                                                                    
would  start the  process of  doing assessments  provided to                                                                    
the courts.  It was  clear that certain  people would  go on                                                                    
supervision. The  division was going  to grow. There  was no                                                                    
point having 60  employees at the inception of  a system. He                                                                    
argued  that it  was better  that  as the  division grew  it                                                                    
could  slowly  bring in  people  as  they were  trained.  He                                                                    
continued that standing up 60  people at the capacity of the                                                                    
academy  was impossible.  The  wise and  frugal  way was  to                                                                    
slowly  grow  the  number  of   employees  as  the  division                                                                    
workload  increased over  time. The  real division  workload                                                                    
would be about a year out.  Having said that, there was some                                                                    
recruitment  and retention  issues. Presently,  the division                                                                    
was  having   people  apply  and   get  into   the  pretrial                                                                    
enforcement division. The division  was being wise about how                                                                    
it was advancing the workforce with the workload.                                                                               
                                                                                                                                
Representative Grenn asked if  the vacant positions were not                                                                    
holding him back  from standing up as much as  he wanted to.                                                                    
Commissioner  Williams  responded  that his  director  would                                                                    
feel a little  better if the division had a  few more staff.                                                                    
He  thought the  division was  in the  ballpark of  where it                                                                    
wanted to be.                                                                                                                   
                                                                                                                                
2:08:05 PM                                                                                                                    
                                                                                                                                
Representative Thompson  referred to  slide 11. He  asked if                                                                    
the  department  broke  out  the  transportation  costs  for                                                                    
people in  pretrial having to  go to  court. He asked  if it                                                                    
was  broken   out  from   other  transportation   costs  for                                                                    
prisoners.  Commissioner Williams  replied in  the negative.                                                                    
He relayed  that the  transports were  on another  slide. It                                                                    
was  really considered  an institutional  cost. The  cost of                                                                    
moving  people  between  cities   was  still  borne  by  the                                                                    
institution.    The   division    was   not    showing   any                                                                    
transportation costs  of offenders  in the slide  because if                                                                    
someone  was   in  violation  the  community   jail  or  the                                                                    
department's pretrial  officers would arrest them  and bring                                                                    
them back  in. He  thought there were  places in  the budget                                                                    
that rested on the institutional side.                                                                                          
                                                                                                                                
Ms. Wilkerson  asked Representative Thompson to  clarify his                                                                    
question. Representative Thompson  indicated a large portion                                                                    
of  the correction  population was  awaiting pretrial.  They                                                                    
had to get to trial.  He wondered if the transportation cost                                                                    
was paid for by the  department. He was talking about people                                                                    
in  jail  having  to  get  to  pretrial.  He  asked  if  the                                                                    
transportation  costs were  paid  for by  the division.  Ms.                                                                    
Wilkerson relayed  that court  service officers  were housed                                                                    
within  the  Department of  Public  Safety.  She thought  it                                                                    
would be better to hear from the department.                                                                                    
                                                                                                                                
Commissioner   Williams  added   that  the   department  did                                                                    
prisoner transport. It  was not in the  Division of Pretrial                                                                    
Services,  but  it  was  in  the  Division  of  Institutions                                                                    
budget. There  was a substantial  cost to  moving prisoners.                                                                    
Part of the costs were borne by DOC and DPS.                                                                                    
                                                                                                                                
Representative  Thompson asked  how  much  of inmate  health                                                                    
care  was  offset  by  monies   from  their  Permanent  Fund                                                                    
Dividend (PFD). Ms. Wilkerson  responded that the department                                                                    
received  $11.9  million  in  the  FY  19  budget  that  was                                                                    
specifically  associated with  the  Permanent Fund  criminal                                                                    
fund.  They  were funds  allocated  to  the department  from                                                                    
those   inmates   that   were  ineligible   due   to   being                                                                    
incarcerated who would have been  eligible had they not been                                                                    
incarcerated for that year.                                                                                                     
                                                                                                                                
Representative  Thompson thought  that originally  a portion                                                                    
of an  inmate's Permanent Fund  Dividend was supposed  to go                                                                    
to  victim  restitution. He  asked  if  the information  was                                                                    
being broken  out as  required by statute.  He asked  her to                                                                    
explain.  Ms.  Wilkerson  replied  that  the  Department  of                                                                    
Revenue  (DOR), Division  of the  Permanent Fund  identified                                                                    
the  amount that  was eligible  for allocation  and provided                                                                    
the information to OMB. The  Office of Management and Budget                                                                    
would  fund the  victim's restitution  (about $1.4  million)                                                                    
and  allocate  the  remaining   funds  to  the  department's                                                                    
budget.                                                                                                                         
                                                                                                                                
2:12:06 PM                                                                                                                    
                                                                                                                                
Representative Neuman asked  about the victim's compensation                                                                    
fund.  He  pointed  to  the  note on  slide  5  in  the  box                                                                    
regarding $8.6 million of UGF  replacing PFD criminal funds.                                                                    
He  thought a  prisoner's  PFD check  was  garnished by  the                                                                    
department  and  was  supposed   to  go  into  the  victim's                                                                    
compensation fund. He understood  those monies were used for                                                                    
operating costs. He also asked  why the state had to replace                                                                    
UGF with  PFD criminal  funds. Ms. Wilkerson  responded that                                                                    
the  amount was  reallocated  by the  governor's office  and                                                                    
then placed  into the  governor's budget.  As the  amount of                                                                    
PFD  criminal funds  were adjusted  up or  down there  was a                                                                    
like  fund change  that was  then put  into DOC's  budget to                                                                    
maintain a flat amount available for inmate health care.                                                                        
                                                                                                                                
Representative  Neuman   mentioned  that  with  SB   91  the                                                                    
legislature  intended to  see a  reinvestment for  the funds                                                                    
that were supposed  to be the savings resulting  from SB 91.                                                                    
He asked  Ms. Wilkerson to  show the committee where  in the                                                                    
budget  those  savings  were  spent.  Commissioner  Williams                                                                    
responded that  he was unsure  how to  answer Representative                                                                    
Neuman's   question.   He   thought  that   there   was   an                                                                    
anticipation  that through  some of  the reform  efforts the                                                                    
state would receive more savings.  To capture a savings, the                                                                    
state would have to have  substantially less inmates so that                                                                    
a facility  could be closed.  He had not seen  the projected                                                                    
savings,  although he  had closed  one  prison. The  savings                                                                    
from that closing  did not make up for  the assumptions that                                                                    
were made of closing an additional facility.                                                                                    
                                                                                                                                
2:15:05 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg  wondered  about  the  amount  of                                                                    
savings   the  state   was  not   accruing  because   of  an                                                                    
inefficient   state  system.   He  asked   about  electronic                                                                    
monitoring. He  brought up the  issue of internet  costs and                                                                    
phone costs.  He asked about statewide  probation and parole                                                                    
and  about  the number  of  people  in  a community  with  a                                                                    
probation officer.  He spoke  to the  idea of  someone being                                                                    
able  to go  home with  direct  monitoring with  the use  of                                                                    
broadband. He wondered about the  cost of the inefficiencies                                                                    
of  the  system.  He  mentioned  the  cost  of  transporting                                                                    
inmates to  court hearings  that lasted  only a  few minutes                                                                    
versus participating telephonically.  He wanted to highlight                                                                    
the cost  to the  state of  having an  inefficient broadband                                                                    
system.                                                                                                                         
                                                                                                                                
Commissioner Williams  was keenly aware that  the department                                                                    
needed  to have  the video  court systems  greatly enhanced.                                                                    
The  attorney general,  DPS,  and DOC  were  working on  the                                                                    
issue.  It would  require capital  investment.  If he  could                                                                    
avoid  moving inmates  to attend  court  hearings, it  would                                                                    
result in a cost savings  and increased safety. It was safer                                                                    
for  those doing  the transfers,  his staff  and the  Alaska                                                                    
State Troopers  staff. It was  an area he continued  to work                                                                    
on. Some progress had been  made. Currently, there was video                                                                    
conferencing  in Nome  and Kotzebue.  A  willful effort  was                                                                    
necessary to address the issue.                                                                                                 
                                                                                                                                
Representative   Guttenberg  pointed   out  that   Nome  and                                                                    
Kotzebue were on fiber.                                                                                                         
                                                                                                                                
2:17:43 PM                                                                                                                    
                                                                                                                                
Representative Pruitt relayed that  30 percent to 40 percent                                                                    
of  inmates were  Alaska  Natives.  Representative Kopp  had                                                                    
brought up the  notion of the state partnering  with some of                                                                    
the native  health organizations  to provide health  care to                                                                    
some   of   the   state's   inmates.   The   native   health                                                                    
organizations  might have  the opportunity  to have  some of                                                                    
their costs  offset by federal  funds. It would  provide the                                                                    
organizations the  opportunity to interact with  some of the                                                                    
inmates assisting some of their  own members. He wondered if                                                                    
the department had considered the idea.                                                                                         
                                                                                                                                
Commissioner Williams responded in  the negative. He did not                                                                    
think  there was  much opportunity.  He had  asked the  same                                                                    
question.  He  relayed  that   the  federal  guidelines  and                                                                    
statutes   under  Indian   Health   Services  and   Veterans                                                                    
Administration  were  very  prescriptive: If  a  person  was                                                                    
inside a  prison, they  were not covered.  He was  hoping to                                                                    
put a fix  into place in the following week.  The answer was                                                                    
to have more flexibility for  the department to place people                                                                    
in  locations  that did  not  represent  a risk  in  halfway                                                                    
houses or  community reentry  center environments.  The idea                                                                    
was  to have  a broad  array of  places people  could go  to                                                                    
finish   out  the   rest  of   their  sentence   safely  and                                                                    
strategically. He reported that  the department had very few                                                                    
problems  with people  at  the end  of  their sentences.  He                                                                    
argued that  the more flexibility  he had in  the department                                                                    
to put  people out  into halfway  house locations,  the more                                                                    
likely they would become eligible  for Medicaid. He hoped to                                                                    
provide  more diversity  as to  where people  finished their                                                                    
sentence. He had  asked the director to relook  at the issue                                                                    
again and  to poor over  the topic looking for  wiggle room.                                                                    
He admitted he  did not think there was much  wiggle room to                                                                    
find. He thought there might  be flexibility in other areas.                                                                    
He  noted having  2 patients  in  the cue  to testify.  Both                                                                    
dialysis patients  represented a $20,000 to  $30,000 savings                                                                    
per month for DOC. There  were certain people that were high                                                                    
cost patients. He  had been pressing about  looking at other                                                                    
options. He  was happy to look  at the issue again  with the                                                                    
legislature.                                                                                                                    
                                                                                                                                
Co-Chair Seaton indicated that the  meeting was a high-level                                                                    
look  at the  department.  The subcommittee  would get  into                                                                    
more of the details with DOC.                                                                                                   
                                                                                                                                
2:22:03 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:23:06 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^OVERVIEW: DEPARTMENT OF PUBLIC SAFETY                                                                                        
                                                                                                                                
2:23:13 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton noted the presentation  would need to end by                                                                    
3:00  p.m. He  asked members  to hold  any policy  questions                                                                    
until the end of the presentation.                                                                                              
                                                                                                                                
WALT  MONEGAN, COMMISSIONER,  DEPARTMENT  OF PUBLIC  SAFETY,                                                                    
introduced himself  and his staff. He  provided a PowerPoint                                                                    
presentation:  "Department   of  Public   Safety  Department                                                                    
Overview" dated  January 30, 2018  (copy on file).  He began                                                                    
on slide 1: "Our Mission":                                                                                                      
                                                                                                                                
"The  mission  of the  Department  of  Public Safety  is  to                                                                    
ensure public safety and enforce fish and wildlife laws."                                                                       
                                                                                                                                
Commissioner  Monegan turned  the presentation  over to  Ms.                                                                    
Howell.                                                                                                                         
                                                                                                                                
KELLY   HOWELL,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT OF  PUBLIC SAFETY,  began on  slide 2:                                                                    
"Department  of   Public  Safety:  Share  of   Total  Agency                                                                    
Operations (GF  Only)." She indicated  that the  following 5                                                                    
slides contained graphs prepared  by the Legislative Finance                                                                    
Division.  The current  slide showed  a 10-year  lookback of                                                                    
the  department's   general  fund  budget,   which  included                                                                    
unrestricted  general  funds  (UGF) and  designated  general                                                                    
funds (DGF). She shared that from  FY 09 to FY 19 governor's                                                                    
request  the department's  budget  grew by  $49 million,  an                                                                    
average  annual  growth rate  of  3.4  percent. From  FY  09                                                                    
through  FY 14,  DPS  experienced increases  in its  general                                                                    
fund budget with decreases beginning  in FY 15. She reported                                                                    
that the  total general fund reduction  from FY 14 to  FY 19                                                                    
governor's request  was $7.4 million.  Speaking specifically                                                                    
to  the  department's  FY  19  governor's  request,  it  was                                                                    
slightly  above FY  13 levels  by approximately  $1 million.                                                                    
The  general  fund  category comprised  86  percent  of  the                                                                    
department's overall budget. Of  the general fund budget, 95                                                                    
percent  of  it  was  unrestricted  general  funds  at  $163                                                                    
million.                                                                                                                        
                                                                                                                                
2:26:40 PM                                                                                                                    
                                                                                                                                
Ms.  Howell slide  3: "Department  of  Public Safety:  Total                                                                    
Comparison by  Fund Group (All Funds)."  The slide reflected                                                                    
a  10-year lookback  of  the  department's annual  operating                                                                    
budget totals by  fund source. The department's  total FY 19                                                                    
budget  request was  $199.3 million  a 2.7  percent increase                                                                    
over  FY  18.  She   would  be  reviewing  the  department's                                                                    
increment  requests as  she went  through the  components in                                                                    
upcoming slides. She reported  that UGF comprised 82 percent                                                                    
of the department's overall budget  with federal funds being                                                                    
8  percent.  Other  funds,  which  included  funds  such  as                                                                    
interagency receipts,  was 6 percent  of the budget  and DGF                                                                    
was 4 percent. Speaking  specifically to the department's FY                                                                    
19 budget request, the department  made reductions of nearly                                                                    
$3.8  million  in   hollow  authorization  or  uncollectable                                                                    
receipt authority  to more accurately align  the budget with                                                                    
the department's anticipated revenues.                                                                                          
                                                                                                                                
2:27:45 PM                                                                                                                    
                                                                                                                                
Ms. Howell moved  to slide 4: "Department  of Public Safety:                                                                    
Line Item Comparison (All Funds)."  The slide provided a 10-                                                                    
year lookback  at the  department's annual  operating budget                                                                    
by  line  item   by  all  fund  sources.   Like  most  other                                                                    
departments,   personal  services   comprised  the   largest                                                                    
percentage  of the  department's budget  at 57  percent. She                                                                    
relayed that the department's FY  19 budget request included                                                                    
804  permanent  full-time positions,  a  net  decrease of  4                                                                    
positions  from FY  18 and  a net  decrease of  81 permanent                                                                    
full-time positions since FY 15.  The budgeted positions the                                                                    
department had in FY 19 were at the same levels as FY 2006.                                                                     
                                                                                                                                
2:28:32 PM                                                                                                                    
                                                                                                                                
Ms.  Howell  advanced  to slide  5:  "Department  of  Public                                                                    
Safety: Appropriations  (All Funds)."  The slide  provided a                                                                    
10-year   lookback    of   the   department's    budget   by                                                                    
appropriation  including all  fund  sources. The  department                                                                    
had 6 appropriations, or results  delivery units (RDU), that                                                                    
made up  the budget. She  reported that when looking  at all                                                                    
fund sources  for the FY  19 governor's proposed  budget, at                                                                    
$131.4 million  the Alaska State Troopers  appropriation was                                                                    
the largest share at 66  percent of the department's overall                                                                    
budget.   She  noted   that   the   Alaska  State   Troopers                                                                    
appropriation  included both  the Alaska  State Trooper  and                                                                    
the Alaska Wildlife Trooper divisions.                                                                                          
                                                                                                                                
2:29:22 PM                                                                                                                    
                                                                                                                                
Ms.  Howell  scrolled  to slide  6:  "Department  of  Public                                                                    
Safety: Appropriations  (GF Only)."  The slide showed  a 10-                                                                    
year  lookback of  the department's  general fund  budget by                                                                    
appropriation. The slide was similar  to the previous slide,                                                                    
just  limited  to general  funds.  Also,  like the  previous                                                                    
slide,  the Alaska  State  Trooper's  appropriation was  the                                                                    
largest  at  72 percent  of  the  department's general  fund                                                                    
budget. She  indicated the following 5  slides would provide                                                                    
a breakdown of the department by allocation.                                                                                    
                                                                                                                                
2:29:55 PM                                                                                                                    
                                                                                                                                
Ms. Howell  detailed slide 7:  "Department of  Public Safety                                                                    
by Allocation." The  first allocation on the  slide was fire                                                                    
and  life  safety.  The  Department  of  Public  Safety  was                                                                    
statutorily  required  to  foster,  promote,  regulate,  and                                                                    
develop  ways  and means  of  protecting  life and  property                                                                    
against  fire and  explosion. Most  of  the allocation  went                                                                    
through  the state  fire marshal's  office. Their  statutory                                                                    
mission was  to prevent the  loss of life and  property from                                                                    
fire.  They   had  statewide  jurisdiction  for   fire  code                                                                    
enforcement and plan review  authority except in communities                                                                    
that  had   received  deferrals.   She  reported   that  the                                                                    
allocation  included an  increment in  the FY  19 budget  of                                                                    
$75,000 in  UGF and  $125,000 in  DGF, a  $200,000 increment                                                                    
request  to conduct  fire safety  inspections and  for rural                                                                    
firefighter  training.  The  Alaska Fire  Standards  Council                                                                    
established   professional   standards  for   fire   service                                                                    
personnel and curriculum  requirements for the certification                                                                    
of  training programs  in  support  of legislative  findings                                                                    
under Alaska Statute (AS) 18.70.320.                                                                                            
                                                                                                                                
Ms. Howell continued that  the department's special projects                                                                    
allocation  was comprised  of  primarily  federal funds  for                                                                    
special projects  such as public safety  services within the                                                                    
Chugach  and  Tongass  National Forests  through  US  Forest                                                                    
Service   contracts,   overtime    costs   associated   with                                                                    
participation  in federal  task forces  through the  US Drug                                                                    
Enforcement  Administration, and  the department's  domestic                                                                    
violence  and sexual  training for  law enforcement  through                                                                    
the  US Department  of Justice  Office  of Violence  Against                                                                    
Women.  She addressed  the Alaska  Bureau of  Highway Patrol                                                                    
allocation.  The  troopers   within  the  allocation  helped                                                                    
maintain the  safety of  Alaska's highways  through targeted                                                                    
enforcement,  speeding violations,  distracted and  impaired                                                                    
drivers,  and other  driver  behaviors  that contributed  to                                                                    
serious injury and fatal crashes.                                                                                               
                                                                                                                                
Ms. Howell reported that positions  budgeted in the Judicial                                                                    
Services  Bureau allocation  were  primarily court  services                                                                    
officers.  They   conducted  most  of  the   state  prisoner                                                                    
transports  throughout Alaska.  They  provided security  for                                                                    
Alaska's  courts and  court facilities.  They protected  the                                                                    
judiciary  and provided  timely  service  of legal  process.                                                                    
There   were  no   positions   budgeted   in  the   prisoner                                                                    
transportation   allocation.  The   allocation  funded   the                                                                    
transportation  of  prisoners   needing  pre-arraignment  or                                                                    
post-arraignment  escorts  as  well   as  the  transport  of                                                                    
convicted prisoners  between in-state facilities.  There was                                                                    
a  small  amount  of  funding  in  interagency  receipts  to                                                                    
transport individuals  with mental health issues  from their                                                                    
communities to  either the  Alaska Psychiatric  Institute or                                                                    
to a  community with  a hospital providing  local designated                                                                    
treatment and evaluation services.  Those funds came through                                                                    
the Department of Health and Social Services (DHSS).                                                                            
                                                                                                                                
2:33:13 PM                                                                                                                    
                                                                                                                                
Ms.  Howell  reviewed the  allocations  listed  on slide  8:                                                                    
"Department  of Public  Safety by  Allocation -  Continued."                                                                    
She  reported   that  the   search  and   rescue  allocation                                                                    
supported search  and rescue operations for  the recovery of                                                                    
lost or  missing persons.  It was  used to  reimburse public                                                                    
and  private organizations  for the  resources spent  during                                                                    
search  and  rescue  operations.  There  were  no  employees                                                                    
budgeted  under  the  allocation. The  resources  were  also                                                                    
coordinated with  the rescue coordination components  of the                                                                    
Alaska National  Guard and the  US Coast Guard.  Under rural                                                                    
trooper housing,  the department  operated state  housing in                                                                    
support  of its  statutory responsibilities.  The department                                                                    
charged  rent  consistent  with  the  applicable  collective                                                                    
bargaining agreement  or with competitive  market conditions                                                                    
if  it was  not addressed  within the  collective bargaining                                                                    
agreement.  Rent  paid  by the  troopers  staying  in  state                                                                    
housing was  deducted from their payroll  and deposited into                                                                    
this  allocation. The  department currently  had 63  housing                                                                    
units   located   in   Rural  Alaska   where   housing   was                                                                    
traditionally scarce.  It helped  to have troopers  based in                                                                    
the  rural  communities.  She continued  that  14  of  those                                                                    
properties were  state owned and  49 were  leased throughout                                                                    
20 communities.                                                                                                                 
                                                                                                                                
Ms. Howell  continued that  the department's  statewide drug                                                                    
and alcohol unit have  troopers that investigate trafficking                                                                    
of   both   controlled   substances  and   illegal   alcohol                                                                    
throughout the state. She reported  that with respect to the                                                                    
Alaska State  Trooper (AST)  detachments allocation,  it was                                                                    
the department's  largest in terms of  budget and personnel.                                                                    
It covered all  the trooper posts across  the department's 5                                                                    
geographic detachments.  Most troopers were  budgeted within                                                                    
the allocation.  Services included patrol,  enforcement, and                                                                    
search  and rescue  areas across  the state.  The allocation                                                                    
included an  incremental request in  the FY 19 budget  of $2                                                                    
million in  UGF to expand  the troopers' ability  to conduct                                                                    
more  proactive policing  and enhance  the level  of service                                                                    
provided, primarily in rural Alaska.  She mentioned that the                                                                    
increments  the  department was  asking  for  in the  FY  19                                                                    
budget were primarily associated  with the governor's public                                                                    
safety action plan.                                                                                                             
                                                                                                                                
Ms. Howell  advanced to the  Alaska Bureau  of Investigation                                                                    
allocation. The  unit focused on major  crime investigations                                                                    
including  homicides and  sexual assaults  and in  providing                                                                    
investigative assistance  to other law  enforcement agencies                                                                    
across  the  state.  The allocation  included  an  increment                                                                    
request of  $570,000 in UGF  to add 2  non-permanent trooper                                                                    
investigator  positions  that  would   be  embedded  in  the                                                                    
Department  of   Law  and  would  provide   vital  follow-up                                                                    
investigative  activities  for   domestic  violence,  sexual                                                                    
assault,  and  sexual  abuse  of  minor  cases.  The  Alaska                                                                    
Wildlife  Troopers  allocation was  where  the  bulk of  the                                                                    
state's  Alaska   Wildlife  Troopers  were   budgeted.  They                                                                    
performed statewide patrol of  commercial big game services,                                                                    
commercial  fisheries, sport  fish and  sport fish  guiding,                                                                    
and  game and  trapping. The  also provided  enforcement and                                                                    
education  regarding  boating  safety, and  in  safeguarding                                                                    
habitat   through   reduction   of  watershed   damage   and                                                                    
non-compliance with environmental permits.                                                                                      
                                                                                                                                
2:36:52 PM                                                                                                                    
                                                                                                                                
Ms.  Howell  advanced  to slide  9:  "Department  of  Public                                                                    
Safety by  Allocation - Continued."  She explained  that the                                                                    
Alaska  Wildlife Troopers  Aircraft  Section maintained  the                                                                    
fleet of department aircraft  and provided aircraft services                                                                    
for  prisoner   transports,  search  and   rescue  missions,                                                                    
emergency response,  and basic law enforcement  patrols. The                                                                    
allocation  included  an  increment  request in  the  FY  19                                                                    
governor's budget  of $570,000 to add  2 permanent full-time                                                                    
aircraft  pilot  positions to  provide  a  broader level  of                                                                    
service to  rural Alaska. The  2 additional  positions would                                                                    
enable the  department to  staff both  of its  complex fixed                                                                    
wing aircraft  which was  the King Air  350 and  its primary                                                                    
search and  rescue helicopters, the  A-Stars, nearly  7 days                                                                    
per week.                                                                                                                       
                                                                                                                                
Ms. Howell relayed that the  Alaska Wildlife Troopers Marine                                                                    
Enforcement  Section  maintained  the  fleet  of  department                                                                    
vessels for search and  rescue missions, emergency response,                                                                    
and   basic  law   enforcement  patrols.   Funds  from   the                                                                    
allocation  for the  Village Public  Safety Officers  (VPSO)                                                                    
program were granted  to 10 organizations to  hire VPSOs and                                                                    
to administer  the program within  their region.  The Alaska                                                                    
Police   Standards  Council   allocation  was   100  percent                                                                    
supported  with general  fund program  receipts through  the                                                                    
Alaska  police  training fund.  The  fund  was comprised  of                                                                    
surcharges  on  fines  that were  associated  with  criminal                                                                    
offenses and  violations. She noted that  the administration                                                                    
introduced House  Bill (HB) 294, which proposed  to increase                                                                    
by  100  percent,  the  surcharge   amounts  imposed  for  a                                                                    
defendant  who  pled  guilty  to,  forfeited  bail,  or  was                                                                    
convicted  of a  felony offense,  misdemeanor offense,  or a                                                                    
violation.  Should money  from  the  Alaska police  training                                                                    
fund  continue  to  be appropriated  to  the  Alaska  Police                                                                    
Standards Council,  it would  result in  an increase  in the                                                                    
ability to  provide training to  law enforcement  across the                                                                    
state.                                                                                                                          
                                                                                                                                
Ms. Howell  conveyed that the  Council on  Domestic Violence                                                                    
and Sexual  Assault provided  for planning  and coordination                                                                    
of  services  to  victims of  domestic  violence  or  sexual                                                                    
assault, to their families, and  to perpetrators of domestic                                                                    
violence  and  sexual  assault. They  also  provided  crisis                                                                    
intervention   and  prevention   programs.  The   allocation                                                                    
included an increment request  for increased federal receipt                                                                    
authority in the  amount of $4 million based on  a growth in                                                                    
the federal grant  received by the council  from the victims                                                                    
of crime act.                                                                                                                   
                                                                                                                                
2:39:44 PM                                                                                                                    
                                                                                                                                
Ms.  Howell  scrolled to  slide  10:  "Department of  Public                                                                    
Safety  by Allocation  - Continued."  She  relayed that  the                                                                    
Commissioner's Office  allocation funded  the commissioner's                                                                    
office  staff  and  included   the  department's  office  of                                                                    
professional standards.  The allocation included  a one-time                                                                    
funding request of  $150,00 in UGF to  conduct a feasibility                                                                    
study  for purposes  of determining  whether creating  state                                                                    
managed  centralized  dispatch  centers  would  benefit  the                                                                    
state more  than the existing  structure. The  public safety                                                                    
training  academy, located  in Sitka,  provided initial  and                                                                    
continuing law enforcement training  to troopers, state fire                                                                    
marshals,  court  service  officers, park  rangers,  airport                                                                    
police, municipal law enforcement agencies, and VPSOs.                                                                          
                                                                                                                                
Ms.   Howell  continued   to  the   Administrative  Services                                                                    
allocation provided  centralized administrative  support for                                                                    
the other  divisions within the  department in the  areas of                                                                    
finance,    general     administration,    budget,    grants                                                                    
administration procurement,  and supply  management. Funding                                                                    
in the allocation  for the Alaska Wing Civil  Air Patrol was                                                                    
appropriated  by  the  legislature  to DPS  and  was  passed                                                                    
directly through to the Alaska  Wing Civil Air Patrol as the                                                                    
state's contribution  in support  of the Civil  Air Patrol's                                                                    
mission. The  Civil Air Patrol  currently used the  funds to                                                                    
pay operating  costs for the Lake  Hood aircraft maintenance                                                                    
facility and maintained 12  existing hangers. The department                                                                    
worked  with  the Civil  Air  Patrol  on search  and  rescue                                                                    
missions  and the  department accessed  use of  some of  the                                                                    
hangers    maintained    by    the   Civil    Air    Patrol.                                                                    
A  mutually beneficial  relationship  existed. She  reported                                                                    
that   he  information   system  allocation   contained  the                                                                    
department's information  technology section  which provided                                                                    
programing  and support  for the  state's critical  criminal                                                                    
justice information systems.                                                                                                    
                                                                                                                                
2:41:59 PM                                                                                                                    
                                                                                                                                
Ms.  Howell continued  to slide  11:  "Department of  Public                                                                    
Safety by  Allocation - Continued."  She explained  that the                                                                    
criminal justice  information systems  (CJIS) program  was a                                                                    
new  allocation.  The  previous  allocation  of  information                                                                    
systems and  CJIS were  one allocation  in the  prior budget                                                                    
cycle  -  the   statewide  information  technology  services                                                                    
allocation. The component was split  into 2 allocations: the                                                                    
information  technology  allocation  and the  CJIS  programs                                                                    
allocation.  The   purpose  of  the  split   was  to  better                                                                    
differentiate  the services  that each  allocation provided,                                                                    
and also was a result  of the administration's consolidation                                                                    
of information technology through  the Office of Information                                                                    
Technology Services.                                                                                                            
                                                                                                                                
Ms.  Howell  explained  that  the  CJIS  program  allocation                                                                    
provided and  maintained centralized  information pertaining                                                                    
to state  criminal history records,  finger prints,  and sex                                                                    
offenders.   The  program   conducted  process   server  and                                                                    
security  guard   licensing,  administrated   the  concealed                                                                    
handgun permit program, and  was responsible for collecting,                                                                    
tabulating,  reporting,  and  publishing the  uniform  crime                                                                    
report  data provided  by state  and  local law  enforcement                                                                    
agencies. The  program submitted information to  the Federal                                                                    
Bureau  of Investigation  (FBI)  for  inclusion in  national                                                                    
crime   statistic  reports.   The  allocation   included  an                                                                    
increment request in  the FY 19 budget of $595,000  to add 6                                                                    
new  permanent full-time  positions to  establish a  records                                                                    
and  classification  unit  in   preparation  for  the  FBI's                                                                    
transition to a new reporting system for crime statistics.                                                                      
                                                                                                                                
Ms. Howell  detailed that the  CJIS program would  be moving                                                                    
from  summary  based or  uniform  crime  reporting (UCR)  to                                                                    
incident  based or  the  National  Incident Based  Reporting                                                                    
System (NIBRS)  format. The new format  required more detail                                                                    
and  intricacies in  reporting.  The unit  would review  law                                                                    
enforcement  case reports  for  completeness, accuracy,  and                                                                    
consistency  under   the  new   NIBRS  format   which  would                                                                    
ultimately   allow  for   more  timely   and  robust   crime                                                                    
statistics reporting  and hopefully provide better  data for                                                                    
policy  making.  Additionally,  the  allocation  included  a                                                                    
request  for   $1  million  in  increased   federal  receipt                                                                    
authority based  on a new  federal grant that  the component                                                                    
received  for NIBRS  compliance. The  funding received  from                                                                    
the  US  DOJ was  to  prepare  the department's  information                                                                    
systems  for  the  new  reporting   format  that  was  being                                                                    
implemented  by the  FBI. She  elaborated  that the  federal                                                                    
funding side  was to  do the  programing and  the department                                                                    
was asking for  the operating budget increment  to staff the                                                                    
unit that would be performing the work.                                                                                         
                                                                                                                                
Ms.  Howell   reported  that  the   department's  laboratory                                                                    
services allocation  performed forensic services  across the                                                                    
state   for  law   enforcement   agencies.   Staff  at   the                                                                    
department's laboratory  provided expert court  testimony on                                                                    
the   results  of   tested   evidence.   They  trained   law                                                                    
enforcement officers  in proper  evidence collection  and on                                                                    
evidence  preservation   techniques  and   administered  the                                                                    
statewide   breath    alcohol   program.    The   facilities                                                                    
maintenance  represented annual  expenditures for  scheduled                                                                    
and  preventative  maintenance   to  keep  the  department's                                                                    
facilities  operational   and  in   a  continued   state  of                                                                    
readiness. The state  facilities rent allocation represented                                                                    
the  public  building  fund  rent   that  was  paid  to  the                                                                    
Department of  Administration for  the Juneau  public safety                                                                    
building.                                                                                                                       
                                                                                                                                
2:46:02 PM                                                                                                                    
                                                                                                                                
Ms.  Howell  turned  to  slide 12:  "DPS  Health  Care  Cost                                                                    
Trends."  The slide  represented  the trend  in health  care                                                                    
costs for  the department from FY  14 to the proposed  FY 19                                                                    
budget.  It  had remained  relatively  stable  across the  5                                                                    
years   with  FY   19  reflecting   18.2   percent  of   the                                                                    
department's budget  being dedicated  to health  care costs.                                                                    
The  department   took  the  health  and   wellness  of  its                                                                    
employees very  seriously, particularly its  troopers, court                                                                    
service  officers, and  deputy  fire marshals  who were  out                                                                    
doing work that was  both physically and mentally demanding.                                                                    
Some of the  efforts the department had taken  to ensure the                                                                    
health and  wellness of its  employees as well as  to reduce                                                                    
health   care  costs   included  establishing   a  voluntary                                                                    
wellness program.  It had  been in effect  for a  year since                                                                    
January  2017. The  program incentivized  employees to  take                                                                    
part in  general health activities  such as  annual physical                                                                    
exams, health  screenings (including blood test  for vitamin                                                                    
D levels, thyroid, and  metabolic panels), stress management                                                                    
activities,  and  oral  and  eye  health  examinations.  The                                                                    
department   incentivized   its   employees   by   providing                                                                    
administrative leave to participate  in those activities. In                                                                    
addition,  the  department  shared information  as  received                                                                    
through  the  union  health  trusts   and  DOA  sharing  the                                                                    
information  with   employees  as  it  was   available.  She                                                                    
concluded  the   presentation  and   was  happy   to  answer                                                                    
questions from the committee.                                                                                                   
                                                                                                                                
2:47:53 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton  asked Ms. Howell  to return to slide  7. He                                                                    
asked  about the  Alaska Bureau  of Highway  Patrol rate  of                                                                    
effectiveness  being ineffective.  He asked  her to  discuss                                                                    
the   rating.  Commissioner   Monegan  responded   that  the                                                                    
original set up  of the Alaska Bureau of  Highway Patrol was                                                                    
staffed with  about 21 troopers.  Since the past  few budget                                                                    
cycles, the department  had reduced the number  from 21 down                                                                    
to  3  troopers  on  the road  and  other  individuals  that                                                                    
supported  some of  the grants  through the  allocation. The                                                                    
department reduced  the number by reallocating  the troopers                                                                    
from  a specialized  to a  generalized  patrol. However,  he                                                                    
thought the change was ineffective.                                                                                             
                                                                                                                                
Co-Chair Seaton  asked if the  department was  considering a                                                                    
change in allocations. Commissioner  Monegan replied that it                                                                    
was important to  keep the positions in tact  because of the                                                                    
federal  grants  the  department received  and  shared  with                                                                    
other local  entities such  as the  Anchorage police  or the                                                                    
Palmer-Wasilla police,  especially on the  designated safety                                                                    
corridors. He wanted to build staff back up at some point.                                                                      
                                                                                                                                
2:49:57 PM                                                                                                                    
                                                                                                                                
Representative   Ortiz  mentioned   unfilled  positions   of                                                                    
troopers.   He  asked   for  an   update  on   the  numbers.                                                                    
Commissioner  Monegan  responded  that   there  would  be  a                                                                    
hearing  in the  upcoming  subcommittee  meeting that  would                                                                    
address  his  question  in depth.  The  department  had  put                                                                    
together a more robust plan to address vacancies.                                                                               
                                                                                                                                
Representative Ortiz  shared that a constituent  that worked                                                                    
in  the public  safety field  had brought  a concern  to the                                                                    
representative    about   troopers    being   hired    away.                                                                    
Commissioner  Monegan   agreed  that  his   constituent  was                                                                    
correct  that  employees  had   been  hired  away  including                                                                    
troopers and  VPSOs because  of better  pay or  benefits. He                                                                    
would  present some  of the  incentives that  the department                                                                    
was  considering.  He  indicated  that retaining  5  of  the                                                                    
current  staff  was  equal  to saving  $1  million  for  the                                                                    
department. He thought  it was crucial to  resolve the issue                                                                    
for  the  state,  as  it  was a  matter  of  public  safety.                                                                    
Recruitment  and  retention was  a  national  problem for  a                                                                    
variety  of reasons.  The department  was trying  to address                                                                    
the problem as best as  possible given the restraints it was                                                                    
under.The department  was trying  to resolve the  problem in                                                                    
the best  way possible  given the restraints  the department                                                                    
currently faced.                                                                                                                
                                                                                                                                
2:53:09 PM                                                                                                                    
                                                                                                                                
Representative   Guttenberg  asked   about  the   difference                                                                    
between  the   trooper  detachments  that   were  considered                                                                    
constitutionally  required, and  the  VPSOs  that were  not.                                                                    
Even  though   both  officers   had  different   or  similar                                                                    
functions they  were still required under  public safety for                                                                    
the State  of Alaska. He  asked the commissioner  to address                                                                    
the differences between the 2 types of officers.                                                                                
                                                                                                                                
Commissioner  Monegan   responded  that  the   VPSO  program                                                                    
started about  40 years  prior. The  program was  started to                                                                    
supplement  the Alaska  State  Troopers  because there  were                                                                    
several  communities  that did  not  have  any form  of  law                                                                    
enforcement. Most police  departments, the state's included,                                                                    
had to  combat two  things: crime and  fear of  crime, which                                                                    
could  be  just  as  devastating   to  a  community.  Having                                                                    
individuals  out in  the communities  who could  function in                                                                    
addressing  low  level crime  or  disorder  was better  than                                                                    
having no  law enforcement at  all. The largest  support for                                                                    
the VPSOs came from Alaska's villages.                                                                                          
                                                                                                                                
Representative   Guttenberg  commented   that  he   did  not                                                                    
understand  why both  did not  fall  under a  constitutional                                                                    
requirement.                                                                                                                    
                                                                                                                                
Commissioner Monegan  responded that 40 years  ago they were                                                                    
not  primarily  law  enforcement but  rather  a  generalized                                                                    
public safety  individual. They were  trained in  first aid,                                                                    
helped with  search and rescue efforts,  addressed low-level                                                                    
crime, and  assisted with fire  prevention. Over  time VPSOs                                                                    
became more of a law  enforcement entity. The department has                                                                    
escalated and  improved their training,  and VPSOs  were now                                                                    
attending the trooper academy. He  thought the situation was                                                                    
evolving.  Time would  tell what  the state  and communities                                                                    
could do together.  He believed there was a  place for VPSOs                                                                    
in  many  communities but  thought  an  ongoing dialog  with                                                                    
tribes would continue. He hoped  that the parties could come                                                                    
up with a solution that satisfied everyone.                                                                                     
                                                                                                                                
2:57:10 PM                                                                                                                    
                                                                                                                                
Representative  Grenn  referred  to  slide 10.  He  had  two                                                                    
questions regarding the Civil  Air Patrol. He wondered about                                                                    
the  pass-through  grant  and   what  it  represented  as  a                                                                    
percentage  of the  Civil Air  Patrol's  budget. Ms.  Howell                                                                    
responded that  she would  get back  to him.  The department                                                                    
did not  know the total budget  for the Civil Air  Patrol or                                                                    
the sources  of its funding.  It was a  501(c)(3) non-profit                                                                    
organization and an axillary arm of the US Air Force.                                                                           
                                                                                                                                
Representative Grenn asked about  the public safety training                                                                    
academy.  He asked  for the  number  of people  served in  a                                                                    
year.  He  asked  if  the  other  funding  source  was  from                                                                    
municipalities  or fees.  Ms. Howell  responded that  it was                                                                    
the receipt  authority for the  training academy  to receive                                                                    
fees from local law  enforcement or self-paying individuals.                                                                    
The  academy   ran  two  Alaska  Law   Enforcement  Training                                                                    
Academies  per year  and  provided recertification  training                                                                    
and  ongoing  training  throughout  the year.  In  terms  of                                                                    
numbers,   the   training   facility   could   provide   the                                                                    
information.                                                                                                                    
                                                                                                                                
2:59:08 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Gara asked  about the  department's plan  to get                                                                    
officers to  communities. He  wondered how  many communities                                                                    
did not  have a public safety  officer. Commissioner Monegan                                                                    
replied that the department had  a VPSO coordinator meeting.                                                                    
He noted that  Andrew Merrill had been  the VPSO coordinator                                                                    
for the  previous two  years, and  his plan  was to  embed a                                                                    
VPSO within the department's  recruiting team trying to fill                                                                    
the vacancies.  He estimated  that currently  44 communities                                                                    
were being served by VPSOs.  The department was working with                                                                    
the grantees, the employers  of VPSOs, regarding recruitment                                                                    
and retention.  There was discussion  about a schedule  of 2                                                                    
weeks on  / 2  weeks off schedule  for posts  the department                                                                    
was  having a  difficult time  filling. It  was an  evolving                                                                    
situation. He suspected  it would be years  before there was                                                                    
a VPSO in every community.                                                                                                      
                                                                                                                                
Co-Chair  Seaton asked  if it  was true  that the  money for                                                                    
VPSOs  could not  be  used for  recruiting.  He asked  about                                                                    
mechanisms the  department might use to  improve flexibility                                                                    
for recruitment purposes.  Commissioner Monegan relayed that                                                                    
the department was relaxing unused funds for recruitment.                                                                       
                                                                                                                                
3:02:48 PM                                                                                                                    
                                                                                                                                
Representative  Thompson referred  to  slide  8. He  noticed                                                                    
there was of shortage of 60  positions filled: 43 in the AST                                                                    
detachments unit;  12 in the Alaska  Wildlife Troopers unit;                                                                    
3 in the  Alaska Bureau of Investigation unit; and  3 in the                                                                    
statewide  drug and  alcohol  enforcement  unit. He  assumed                                                                    
that most  of the positions  had vehicles assigned  to them.                                                                    
He  wondered if  there was  a fleet  of vehicles  in storage                                                                    
waiting for someone to be  hired. Commissioner Monegan would                                                                    
have  to check.  He  understood that  vehicles were  ordered                                                                    
when they needed replacement.                                                                                                   
                                                                                                                                
3:03:48 PM                                                                                                                    
                                                                                                                                
Representative  Thompson relayed  that a  few years  ago the                                                                    
legislature  had removed  funding for  the helicopter  pilot                                                                    
position in Fairbanks.  He asked if the  helicopter was back                                                                    
online or  in storage.  Commissioner Monegan  responded that                                                                    
the  aircraft was  back online  and was  functioning out  of                                                                    
Fairbanks. He noted it was being used in the present day.                                                                       
                                                                                                                                
Co-Chair  Seaton informed  the committee  that it  needed to                                                                    
move on to the next presentation.                                                                                               
                                                                                                                                
Representative Guttenberg  asked about restrictions  on VPSO                                                                    
grant  funds. As  he understood,  the grants  could only  be                                                                    
used to pay salaries. He  asked the commissioner to get back                                                                    
to him.  Commissioner Monegan responded that  the department                                                                    
was  available  to  the grantees.  The  department  received                                                                    
several requests  that were often  approved. He would  get a                                                                    
complete answer for the committee.                                                                                              
                                                                                                                                
3:05:30 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:07:05 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^OVERVIEW: DEPARTMENT OF NATURAL RESOURCES                                                                                    
                                                                                                                                
3:07:05 PM                                                                                                                    
                                                                                                                                
MARK  WIGGIN,  DEPUTY  COMMISSIONER, DEPARTMENT  OF  NATURAL                                                                    
RESOURCES, introduced himself.                                                                                                  
                                                                                                                                
FABIENNE   PETER-CONTESSE,    SUPPORT   SERVICES   DIRECTOR,                                                                    
DEPARTMENT OF NATURAL RESOURCES, introduced herself.                                                                            
                                                                                                                                
Co-Chair Seaton asked members to  hold their questions until                                                                    
the end of the presentation.                                                                                                    
                                                                                                                                
Ms. Peter-Contesse  introduced the  PowerPoint presentation:                                                                    
"State  of Alaska  Department  of  Natural Resources  FY2019                                                                    
Budget Overview."  She noted that the  Department of Natural                                                                    
Resources (DNR)  Program Guide was  in member's  packets and                                                                    
provided  much greater  detail about  each  of the  programs                                                                    
within DNR. The presentation  would be a high-level overview                                                                    
of  the department's  budget. The  financial information  in                                                                    
the program guide was from  FY 18 management plan. She began                                                                    
with  slide 2:  "Department of  Natural Resources:  Mission,                                                                    
Core Services,  and Division  Measures." The  department had                                                                    
been  focused on  its 4  core services.  The department  had                                                                    
been focused since the FY  15 budget forward on pairing down                                                                    
or trimmed  any program  that was not  specific to  its core                                                                    
services.  The department's  overall  budget for  FY 19  was                                                                    
$152 million down approximately 15  percent since FY 15. The                                                                    
department's  UGF budget  $58.7 million  UGF, 39  percent of                                                                    
the department's budget  and down 33 percent from  the FY 15                                                                    
budget. The designated general fund  budget was $33 million,                                                                    
about 22 percent of the  department's budget. The department                                                                    
had  increased  its  program  receipt  budget  by  about  24                                                                    
percent  over the  previous 3  years. She  would be  talking                                                                    
about  the  department's  focus on  generating  revenue  and                                                                    
using  those receipts  for operations.  She  noted that  the                                                                    
other category  which included statutory  designated program                                                                    
receipts,  interagency  receipts,  and  capital  improvement                                                                    
projects  equaled  about 23  percent  of  DNR's budget  down                                                                    
about  15  percent  since  FY   15  to  about  $25  million.                                                                    
Positions  were   down  207  positions  since   FY  15.  The                                                                    
department  currently  had   900  position  control  numbers                                                                    
(PCN)s.  The  department  had  taken a  19  percent  cut  in                                                                    
positions since the high number in FY 15.                                                                                       
                                                                                                                                
3:11:07 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse  turned  to   slide  3:  "Department  of                                                                    
Natural   Resources  Share   of   Total  Agency   Operations                                                                    
(GF Only)."  She  reported   that  the  Legislative  Finance                                                                    
Division (LFD)  graph showed general funds  only, designated                                                                    
general funds  and unrestricted  general funds.  She pointed                                                                    
out  the  high in  FY  15,  much  of  which was  the  Alaska                                                                    
Liquified  Natural Gas  (AKLNG) project  ($10 million).  The                                                                    
drop in  FY 16,  because the  project, was  recategorized as                                                                    
in-state   pipeline   funds,   an  "other"   category.   The                                                                    
department  had steadily  decreased its  general funds.  She                                                                    
noted  the  bump  in  FY   18,  which  was  an  increase  of                                                                    
reappropriated capital funds for  the A-Star project. It was                                                                    
a multi-year operating project. The  large bump did not show                                                                    
up in the governor's adjusted  project yet. It would show up                                                                    
in the management plan in the following year.                                                                                   
                                                                                                                                
Ms.  Peter-Contesse continued  that  there  were two  things                                                                    
that were not  included in the department's  budget that had                                                                    
been included  on the slide previously,  adjustments made by                                                                    
LFD including boating receipts  and contingency language for                                                                    
fire crew. Boating receipts  had previously been categorized                                                                    
as "other"  but was  recategorized in  the FY  19 governor's                                                                    
adjusted budget as "designated general  funds" in the amount                                                                    
of   $300,000.   Additionally,   the  department   had   had                                                                    
contingency language  in the budget  for the past  3-5 years                                                                    
for fire  crew. If  the department  did not  receive federal                                                                    
funds  for fire  crew  there was  contingency language  that                                                                    
would allow  the department  to use  general funds  for fire                                                                    
crew. The department  had never used the  money to-date, but                                                                    
because  the  federal funding  for  fire  was volatile,  the                                                                    
department liked to  keep it in the  budget. The legislative                                                                    
Finance  Division wanted  to see  transparent budgeting  and                                                                    
because  the potential  for DNR  to  ask for  the money  was                                                                    
there,  it was  included in  the budget.  There was  a small                                                                    
increase  in the  budget of  $1.125 million  because of  the                                                                    
contingency language.  The department's general  fund budget                                                                    
decreased  about $6.8  million since  FY 09.  The department                                                                    
decreased its  UGF about  21 percent  since FY  15. However,                                                                    
DGF increased due  to the department trying  to increase its                                                                    
reliance on  program receipts and  decrease its  reliance on                                                                    
UGF.                                                                                                                            
                                                                                                                                
Ms. Peter-Contesse relayed  that some of the  areas in which                                                                    
the  department  collected  receipts included  park  passes,                                                                    
parking,  public  use passes,  mineral  sales  on the  North                                                                    
Slope, mining  leases, and other categories.  The department                                                                    
had new  fees in  place for  the sale  of seismic  data. The                                                                    
department was looking  for ways to increase  revenue and to                                                                    
find  new revenue  rather than  relying on  the revenue  the                                                                    
state was  already generating. Since  the fees had  been put                                                                    
in place,  the department  had collected about  $130,000 for                                                                    
seismic  data  sales  and potentially  another  $160,000  to                                                                    
$170,000 was  in the works.  She was conveying  only initial                                                                    
available  information.   She  thought  there  would   be  a                                                                    
significant  amount available  in FY  19. She  reported that                                                                    
the department  was looking  for new  fee regulations  in FY                                                                    
19.  The department  would be  looking  to use  some of  the                                                                    
increased revenues from those  fees. Overall, the department                                                                    
had about $1.4 million in fund  source changes in FY 19. She                                                                    
clarified  that  the  fund  source  changes  were  not  from                                                                    
existing revenue  but new  revenue the  department projected                                                                    
from the new fee packages.                                                                                                      
                                                                                                                                
3:16:06 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse continued  to  slide  4: "Department  of                                                                    
Natural  Resources Line  Items  (All  Funds)." She  reported                                                                    
that the  slide showed all funds  by line item. The  bulk of                                                                    
DNR's expenditures  were in  personal services.  Even though                                                                    
the  department reduced  its PCN  count from  1095 in  FY 09                                                                    
down to 900 in FY 19,  the department's costs had still gone                                                                    
up. The average  cost of a PCN  in FY 09 was  $75,000. In FY                                                                    
19 the estimated cost was $98,000.  Most of the cost was out                                                                    
of  the  state's  control.  Much   of  it  had  to  do  with                                                                    
bargaining unit agreements for cost  of living increases and                                                                    
health  care  cost  increases. There  were  other  bargained                                                                    
personal  services costs.  Since FY  15, the  department had                                                                    
reduced about 19 percent of its staffing.                                                                                       
                                                                                                                                
Ms.  Peter-Contesse conveyed  that the  other bulk  of DNR's                                                                    
expenditures  was in  the  contractual  line. Department  of                                                                    
Natural   Resources   spent    a   significant   amount   on                                                                    
firefighting,  air tanker  contracts, helicopter  contracts,                                                                    
flying field surveys for data  collection in the Division of                                                                    
Geological and  geo physical  services. The  department also                                                                    
paid  for core  services  costs such  as  leases, office  of                                                                    
information   technology,   risk   management,   and   human                                                                    
resources. She  reemphasized that  the bulk was  in personal                                                                    
and   contractual  services.   The  department's   traveling                                                                    
expenditures  had gone  steadily down  since FY  15. In  the                                                                    
previous day  she had looked  in the  actuals for FY  15, FY                                                                    
16, and  FY 17,  and between those  3 years,  the department                                                                    
was down  by 40  percent in  its actual  travel expenditures                                                                    
excluding  fire   activity.  Much   of  the   fire  activity                                                                    
expenditures  for travel  was  outside  of the  department's                                                                    
control and much of it was federally reimbursed.                                                                                
                                                                                                                                
3:18:35 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse  advanced  to slide  5:  "Appropriations                                                                    
within the  Department of Natural Resources  (GF Only)." She                                                                    
indicated  the   chart  showed  general  funds   by  results                                                                    
delivery  unit  (RDU).  She  relayed  that  the  green  line                                                                    
represented  the  Division of  Mining  Land  and Water,  the                                                                    
Division  of  Forestry,  fire activity,  fire  preparedness,                                                                    
forest  management,  and  the  Division  of  Geological  and                                                                    
Geophysical Surveys. She pointed  to the uptick beginning in                                                                    
FY 12, which  reflected an increase in funding  to cover the                                                                    
permitting backlog,  and some increases  through FY  15. The                                                                    
green  line  began  to  trend  down  later  in  FY  15.  She                                                                    
highlighted  the last  green triangle  reflecting an  uptick                                                                    
which  was   the  $1.125   million  fire   crew  contingency                                                                    
increase. The bump  in the blue line referred  to the A-Star                                                                    
program equaling  $7.3 million in reappropriated  funds from                                                                    
a capital project. The previous bump  in FY 15 was the AKLNG                                                                    
project.  The remaining  lines on  the  chart were  steadily                                                                    
going down. There  was a slight bump in the  Division of Oil                                                                    
and Gas in FY  19, and there was a small  increment in FY 19                                                                    
to cover  projects that  she would  discuss later  that were                                                                    
previously covered in the capital budget.                                                                                       
                                                                                                                                
3:20:31 PM                                                                                                                    
                                                                                                                                
Ms. Peter-Contesse moved to  slide 6: "Appropriations within                                                                    
the Department of Natural Resources  (All Funds)." The slide                                                                    
showed  all  funds  by  delivery  unit.  Fire  language  was                                                                    
represented by the top green  line inclining. The department                                                                    
privatized the Mount McKinley Meat  and Sausage Plants in FY                                                                    
18  which reflected  a decrease.  The department  eliminated                                                                    
about  $2.4  million  in empty  authority  to  decrease  its                                                                    
budget  for FY  19. The  department scrubbed  its budget  to                                                                    
ensure the  right amount  of allocation was  in each  of its                                                                    
divisions.                                                                                                                      
                                                                                                                                
3:21:37 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse  advanced  to slide  7:  "Department  of                                                                    
Natural Resources:  Division of Agriculture." She  wanted to                                                                    
give  the   committee  an  idea   how  the   department  had                                                                    
approached  the  presentation.  Every program  was  outlined                                                                    
with   funding  source   categories,  budgeted   and  filled                                                                    
positions, and other.  Each of the programs  was outlined in                                                                    
the department's  program guide.  She spoke  about positions                                                                    
and  relayed that  the data  in the  presentation was  as of                                                                    
December  15, 2017.  At the  time there  had been  81 vacant                                                                    
positions. Presently, there  were only 5 being  held open to                                                                    
meet  the  department's  vacancy  factor.  Many  of  the  81                                                                    
positions had been filled, others  were out for recruitment,                                                                    
and  some  had been  reclassified  through  the Division  of                                                                    
Personnel. The  department had considered  whether positions                                                                    
needed   to  be   filled   and  then   they   went  to   the                                                                    
commissioner's office for approval.                                                                                             
                                                                                                                                
3:24:04 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton  asked  for  clarification  that  the  five                                                                    
positions  were being  held open  to  meet the  department's                                                                    
vacancy   factor.  Ms.   Peter-Contesse  responded   in  the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Representative Neuman  thought he just heard  the department                                                                    
was justifying  adding additional  PCNs to clarify  the cost                                                                    
of   personnel.  Ms.   Peter-Contesse  did   not  understand                                                                    
Representative  Neuman's   question.  Representative  Neuman                                                                    
thought he had heard that  the department was adding PCNs to                                                                    
cover additional costs.                                                                                                         
                                                                                                                                
Co-Chair Seaton interjected that  the question was about not                                                                    
having enough  funding to fill  the positions. He  asked Ms.                                                                    
Peter-Contesse  to  provide  additional information  in  the                                                                    
finance  subcommittee about  the  vacancy  factor and  about                                                                    
having to  leave positions open. Ms.  Peter-Contesse replied                                                                    
affirmatively.                                                                                                                  
                                                                                                                                
3:26:02 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse  continued  to review  the  Division  of                                                                    
Agriculture  allocations. The  division had  9 programs,  33                                                                    
PCNs, and  it had seen a  25 percent reduction in  UGF since                                                                    
FY 15. The division had  eliminated 12 positions, 27 percent                                                                    
of  its  positions.  The  division   had  no  increments  or                                                                    
significant decrements  in FY 19.  However, there was  a new                                                                    
program  in   place  in   the  FY   19  budget,   the  State                                                                    
Agricultural Veterinarian, which was  funded by monies being                                                                    
moved   from  different   areas  within   the  Division   of                                                                    
Agriculture.  The   program  did   not  require   a  funding                                                                    
increment  and   the  department  was  not   requesting  new                                                                    
positions.  The  department  had a  very  specific  overview                                                                    
planned  for  the Division  of  Agriculture  in the  finance                                                                    
subcommittee on February 14, 2018.                                                                                              
                                                                                                                                
3:27:09 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton  let  members know  that  the  subcommittee                                                                    
schedules could be  found online, and the  meetings would be                                                                    
recorded on legislative television.                                                                                             
                                                                                                                                
Ms.  Peter-Contesse continued  to  slide  8: "Department  of                                                                    
Natural  Resources: Division  of Mining,  Land, and  Water."                                                                    
She reported  that the division  was the largest  within the                                                                    
department with  18 programs and  206 positions.  There were                                                                    
23  vacant positions  as of  December  15, 2017.  Currently,                                                                    
those positions were filled, in  recruitment, part of budget                                                                    
cuts in  FY 19 and would  remain vacant for the  rest of the                                                                    
year,  or  they  were  in  the  Division  of  Personnel  for                                                                    
classification.  The division  had  seen  a significant  UGF                                                                    
reduction since FY 15, 66  percent. It was also the division                                                                    
that had generated  a significant amount of  revenue for the                                                                    
State  of   Alaska.  Over  the   past  several   years,  the                                                                    
department  had   done  large   fund  source   changes.  The                                                                    
division's  DGF had  increased  72 percent.  In  FY 19,  the                                                                    
division was  anticipating an additional $1  million in fund                                                                    
source change which would come  from new revenue rather than                                                                    
revenue  that was  currently over  collected and  lapsing to                                                                    
the  general fund.  It was  a net  positive for  the general                                                                    
fund assuming the  division collected the revenue  in FY 19.                                                                    
The Division of Mining, Land,  and Water was reducing UGF In                                                                    
FY 19 by $532,000 and 3 PCNs.                                                                                                   
                                                                                                                                
3:29:43 PM                                                                                                                    
                                                                                                                                
Ms. Peter-Contesse  skipped slide 9: "Department  of Natural                                                                    
Resources:   Division    of   Mining,   Land,    and   Water                                                                    
(Continued)."                                                                                                                   
                                                                                                                                
Ms.  Peter-Contesse scrolled  to  slide  10: "Department  of                                                                    
Natural Resources: Division of  Forestry." She reported that                                                                    
the Division  of Forestry had  3 components and  9 programs.                                                                    
The   division   had   2  fire-fighting   components,   fire                                                                    
preparedness  and fire  activity.  The  third component  was                                                                    
forest management. The  division had experienced significant                                                                    
reductions until  the previous  year. She indicated  that 36                                                                    
percent of  UGF was  cut specifically in  forest management.                                                                    
There was  a 31  percent reduction  in PCNs.  In FY  19, the                                                                    
department  was   not  proposing   any  reductions   in  the                                                                    
governor's budget  for the Division of  Forestry. There were                                                                    
21 vacancies  as of  December 15,  2017. The  vacancies were                                                                    
seasonal  fire positions  that would  be filled,  were being                                                                    
recruited,  or were  filled since  December. She  noted that                                                                    
the table did not include  $1.25 million in fire contingency                                                                    
language.                                                                                                                       
                                                                                                                                
3:31:08 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse  spoke  to   slide  11:  "Department  of                                                                    
Natural   Resources:  Office   of  Project   Management  and                                                                    
Permitting." The  division had 5 programs  and experienced a                                                                    
9  percent UGF  reduction since  FY 15  and 5  positions had                                                                    
been eliminated.  She reported  that in FY  19, there  was a                                                                    
$47,000 UGF cut planned for the division.                                                                                       
                                                                                                                                
Ms.  Peter-Contesse   reviewed  slide  12:   "Department  of                                                                    
Natural   Resources:   Division   of   Parks   and   Outdoor                                                                    
Recreation." The  division had 2 components  and 6 programs.                                                                    
The division had experienced reductions  of 52 percent since                                                                    
FY  15  and  a  17  percent  increase  in  DGF  for  program                                                                    
receipts. The  Division of Parks and  Recreation was another                                                                    
division that  had been increasingly relying  on the revenue                                                                    
it generated and  looking for ways to  increase revenue. The                                                                    
division had eliminated 25 positions  since FY 15. The major                                                                    
change in  the budget for FY  15 was a $500,000  fund source                                                                    
change  from new  revenue  that  the department  anticipated                                                                    
collecting once the new fee  regulations were in place prior                                                                    
to FY 19. She mentioned  that the boating safety fund source                                                                    
change  from other  to DGF  was not  included in  the dollar                                                                    
amounts. She  did not have  the information at the  time she                                                                    
created the tables.                                                                                                             
                                                                                                                                
3:32:52 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse advanced  to  slide  13: "Department  of                                                                    
Natural Resources:  Support Services Division."  She relayed                                                                    
that  the division  handled the  back-end  functions of  the                                                                    
department along  with the recorder's  office. There  were 3                                                                    
programs within  the division.  There had  been a  5 percent                                                                    
UGF reduction since FY 15 and  a 24 percent reduction in DGF                                                                    
in  the  recorder's  office during  that  same  period.  She                                                                    
elaborated  that  the  program had  experienced  significant                                                                    
cuts yet had not  negatively impacted the division's ability                                                                    
to  generate additional  funds.  Overall,  the division  had                                                                    
reduced  positions  by approximately  62  since  FY 15.  She                                                                    
reported  that   27  positions  were  deleted   from  the  3                                                                    
programs.  Some positions  had  been  transferred to  Shared                                                                    
Services of  Alaska, and 25  positions had  been transferred                                                                    
to  the  Office  of  Information  Technology.  However,  the                                                                    
division still  had the budget  to pay for the  positions in                                                                    
the  programs.  She  continued to  discuss  the  allocations                                                                    
within the  division. She reported  a $50,000 UGF cut  and a                                                                    
cut of 1 position.                                                                                                              
                                                                                                                                
3:34:34 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse  turned  to  slide  14:  "Department  of                                                                    
Natural Resources:  Other Components."  She reported  that a                                                                    
group  of  other   components  included  the  commissioner's                                                                    
office, the public information center,  the Exxon Valdez Oil                                                                    
Spill Settlement (EVOSS) trustee  council office, the mental                                                                    
health  trust   land  office,  the   facilities  maintenance                                                                    
component,   and   the    interdepartmental   charge   backs                                                                    
component.  She indicated  that the  major reduction  in the                                                                    
components was a $125,000 cut  in the facilities maintenance                                                                    
component  as  a result  of  consolidating  1 floor  of  the                                                                    
Atwood  Building in  Anchorage. The  department was  pleased                                                                    
with the savings outcome.                                                                                                       
                                                                                                                                
3:35:44 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse scrolled  to  slide  15: "Department  of                                                                    
Natural Resources:  Division of  Oil and Gas."  The division                                                                    
had 10 programs.  The division had experienced  a 17 percent                                                                    
UGF reduction  and a cut of  28 positions or 22  percent cut                                                                    
in PCNs. The department was  not proposing any reductions in                                                                    
the Division of Oil and Gas  for FY 19. The department had 2                                                                    
increment  requests. The  first was  a one-time  request for                                                                    
$250,000  for reservoir  studies  contractual services.  The                                                                    
second increment  was for  $250,000 to  the base  budget for                                                                    
reservoir  studies software  licensing.  The  two items  had                                                                    
been paid for out of the  capital budget for many years. She                                                                    
indicated  they  were  more  appropriate  in  the  operating                                                                    
budget.  Most of  the capital  budget  was swept  in FY  18.                                                                    
There was enough in the  capital budget for the current year                                                                    
to  cover the  costs,  but  they would  need  to  go in  the                                                                    
operating budget to continue the reservoir work.                                                                                
                                                                                                                                
3:36:54 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt asked  Ms. Peter-Contesse  to restate                                                                    
the increments.  Ms. Peter-Contesse relayed that  there were                                                                    
two pieces  regarding reservoir studies on  the North Slope.                                                                    
The  first   increment  of  $250,000  was   for  contractual                                                                    
services to  do reservoir  studies, a  one-time item  for FY                                                                    
19.  The department  had highly  technical software  that it                                                                    
maintained  for its  staff in  the oil  and gas  division to                                                                    
assist with  reservoir studies.  The software  licensing was                                                                    
$250,000 per year and was a base budget increment.                                                                              
                                                                                                                                
3:37:54 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse advanced  to  slide  16: "Department  of                                                                    
Natural  Resources: Division  of Geological  and Geophysical                                                                    
Surveys."  The division  had 7  programs.  The division  had                                                                    
experienced significant reductions, 36  percent since FY 15.                                                                    
The division  had eliminated 11  positions. The  only change                                                                    
the  department  was  proposing   for  the  division  was  a                                                                    
$200,000 fund  source change from  new revenue  from seismic                                                                    
data sales.                                                                                                                     
                                                                                                                                
3:38:30 PM                                                                                                                    
                                                                                                                                
Ms.  Peter-Contesse  turned  to  slide  17:  "Department  of                                                                    
Natural  Resources:  Five-Year   Health  Care  Trends."  She                                                                    
highlighted the  top right-hand corner  where it  stated the                                                                    
employer  health  contribution  UGF was  down  $2.4  million                                                                    
since FY  14. The main  reason for  the change was  that the                                                                    
fund  sources  had  changed significantly.  Previously,  the                                                                    
department was  48 percent funded  by UGF, but now  was only                                                                    
38 percent funded by UGF.  She indicated that the department                                                                    
had control  of one particular area,  worker's compensation.                                                                    
The  department   had  reduced  its   worker's  compensation                                                                    
charges  by  approximately  $500,000  over  the  previous  5                                                                    
years.  She reported  that DPS,  DOC, DOT,  and DNR  had the                                                                    
highest  worker's compensation  rates, as  these departments                                                                    
had high risk  jobs. The department prided  itself on having                                                                    
a  healthy  fire crew.  They  did  a significant  amount  of                                                                    
training,  physical   fitness,  and  safety   training.  She                                                                    
pointed out that the department  had held steady in terms of                                                                    
the total percentage of the budget  between FY 14 and FY 19.                                                                    
She  had  looked  at  the  total  percent  of  the  personal                                                                    
services  budget,  and  again  the  DNR  percentage  was  16                                                                    
percent. The average cost per  position was equal to $16,000                                                                    
to  $17,000  per  year  per  employee.  She  reviewed  other                                                                    
efforts  provided   by  the  agency  to   encourage  healthy                                                                    
lifestyles.                                                                                                                     
                                                                                                                                
3:41:42 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton asked  if she  could provide  the committee                                                                    
with the numbers she read  off. Ms. Peter-Contesse responded                                                                    
affirmatively.                                                                                                                  
                                                                                                                                
Representative  Thompson mentioned  that in  2012 DNR  had a                                                                    
backlog  of over  800 permit  applications. The  legislature                                                                    
felt that the  issuance of permits resulted  in people going                                                                    
to work, therefore, $3.8 million  was added to the budget to                                                                    
help  with  processing of  those  permits.  The backlog  was                                                                    
addressed, but  when the department gave  the legislature an                                                                    
update  there were  about 200  new applications  that needed                                                                    
processing.   He   asked   about  the   status   of   permit                                                                    
applications presently.                                                                                                         
                                                                                                                                
Ms.  Peter-Contesse responded  that the  current number  was                                                                    
938. She  believed that  the backlog at  the time  was about                                                                    
2,000. She was uncertain about  the total number in 2012. As                                                                    
of December 2017,  the number was 938. The  year before that                                                                    
the number was  about the same at 950.  While the department                                                                    
had decreased  the backlog  significantly, it  had sustained                                                                    
additional  cuts  to  the budget  but  was  holding  steady.                                                                    
Although the  number of permit  applications to  process was                                                                    
decreasing, it  was not decreasing significantly.  She could                                                                    
get the director to follow-up.                                                                                                  
                                                                                                                                
Representative   Thompson  confirmed   he  would   like  the                                                                    
information. He  also wanted to  know the length of  time it                                                                    
took applicants to receive a permit.                                                                                            
                                                                                                                                
Representative  Guttenberg was  concerned  with the  state's                                                                    
responsibility  regarding  the  permitting process.  He  was                                                                    
aware  that  in  the  process   applicants  were  asked  for                                                                    
addition items  and information.  Mr. Wiggin  responded that                                                                    
there was a permitting process  in the Oil and Gas division.                                                                    
The  department had  encouraged  industry  clients to  visit                                                                    
DNR's  office if  they had  any problems  or questions.  The                                                                    
department was cognizant of the  fact that some people might                                                                    
not understand all  the pathways to get  the correct permits                                                                    
needed for  oil and gas or  for land. He offered  to discuss                                                                    
it further in the finance subcommittee.                                                                                         
                                                                                                                                
3:45:58 PM                                                                                                                    
                                                                                                                                
Representative Pruitt  had questions  about funding  for the                                                                    
geological center  as a  result of  legislation a  couple of                                                                    
years  prior. He  asked  about money  shifting  from UGF  to                                                                    
industry  partner  participation.  He   was  hoping  for  an                                                                    
estimated percentage. He also  asked about potential changes                                                                    
in the  Division of Parks  and Outdoor Recreation.  He asked                                                                    
about  the division's  direction regarding  changes and  the                                                                    
percentage shift in fees.                                                                                                       
                                                                                                                                
3:47:01 PM                                                                                                                    
                                                                                                                                
Ms. Peter-Contesse  replied that the Division  of Geological                                                                    
and  Geophysical  Surveys  had  about  $329,000  in  program                                                                    
receipt authority in FY 18  which would increase to $529,000                                                                    
with a  funds source change  in FY 19. The  department hoped                                                                    
the  seismic  data  revenue  would   fill  the  bucket.  She                                                                    
encouraged Mark Wiggin to comment on the topic.                                                                                 
                                                                                                                                
Mr.  Wiggin responded  that the  department had  approximate                                                                    
relative seismic fees. It had issued  a total of 8 data sets                                                                    
with many more  in the docket that would be  coming out that                                                                    
were  shot between  the 2006  and 2016  period. He  reported                                                                    
there  were 12  additional sets  that would  be released  in                                                                    
2018.  He anticipated  an accumulation  of receipts  through                                                                    
the seismic program.                                                                                                            
                                                                                                                                
3:48:22 PM                                                                                                                    
                                                                                                                                
Representative  Ortiz  drew  attention to  the  Division  of                                                                    
Forestry on slide  10. He asked about the  location of state                                                                    
foresters and  whether there had  been an  overall reduction                                                                    
in state  forester positions. If  so, he wondered if  it had                                                                    
had an  impact in terms  of the ability of  timber companies                                                                    
to develop the timber  resource. Ms. Peter-Contesse deferred                                                                    
to the director of the Division of Forestry.                                                                                    
                                                                                                                                
JOHN  "CHRIS"   MAISCH,  DIRECTOR,  DIVISION   OF  FORESTRY,                                                                    
DEPARTMENT  OF   NATURAL  RESOURCES   (via  teleconference),                                                                    
answered   that  the   division   had  positions   scattered                                                                    
throughout  the  state  in area  offices.  For  example,  in                                                                    
Southeast  Alaska,   there  were  foresters   in  Ketchikan,                                                                    
Juneau,  and Haines.  The division  had taken  a 35  percent                                                                    
reduction in  funding and staff  in the  forestry management                                                                    
portion   of  the   division.  Southeast   Alaska  was   hit                                                                    
especially hard.  The division had  about half the  staff in                                                                    
Southeast  Alaska than  what  it  had had  since  FY 16.  He                                                                    
confirmed that  the program had  been slowed by the  lack of                                                                    
capacity. However, the  division was doing its  best to meet                                                                    
the needs of the industry.                                                                                                      
                                                                                                                                
Representative  Ortiz  for  an explanation  of  the  Tongass                                                                    
challenge cost  share agreement and good  neighbor authority                                                                    
programs.  Mr. Maisch  replied that  they  were two  federal                                                                    
programs in which  the division was assisting  the US Forest                                                                    
Service with  management activities in the  Tongass National                                                                    
Forest, on  federal lands. The  inventory program  helped to                                                                    
look at  young growth and  accurately inventory the  type of                                                                    
timber  available to  do timber  projects. The  division was                                                                    
doing a significant  amount of work under  the good neighbor                                                                    
authority to  do so. The  division had its first  large sale                                                                    
in the current year on federal  land. The state had done all                                                                    
the work.  The division was  reimbursed for all  the related                                                                    
costs and hired back some of  the laid off foresters to help                                                                    
with the related work.                                                                                                          
                                                                                                                                
Representative  Ortiz  asked  where  the  timber  sale  took                                                                    
place. Mr. Maisch  replied that it was  on Kosciusko Island,                                                                    
just  North of  Prince of  Whales. It  generated about  $2.6                                                                    
million in sales and about 3  million feet of timber. It was                                                                    
a  very important  sale  for the  industry  in the  upcoming                                                                    
year.                                                                                                                           
                                                                                                                                
Representative  Pruitt asked  for  an answer  to his  second                                                                    
question. Ms.  Peter-Contesse deferred  to Ethan  Tyler. The                                                                    
question  had to  do with  information about  the change  in                                                                    
fund sources  to the Division of  Geological and Geophysical                                                                    
Surveys and the expected percentage of change.                                                                                  
                                                                                                                                
Representative  Pruitt clarified  that he  wondered how  the                                                                    
shift  would take  place in  terms of  the total  percentage                                                                    
coming from  fees. He  wanted someone to  speak to  what the                                                                    
fee  changes would  be  such as  commercial  fee changes  or                                                                    
changes for private individuals.                                                                                                
                                                                                                                                
ETHAN  TYLER, DIVISION  DIRECTOR,  STATE  PARKS AND  OUTDOOR                                                                    
RECREATION,   DEPARTMENT    OF   NATURAL    RESOURCES   (via                                                                    
teleconference), responded that the  division was looking at                                                                    
several different ways to increase  revenues coming into the                                                                    
state  park  system.   Currently,  the  division's  revenues                                                                    
covered about 51 percent of  its operational costs. The goal                                                                    
of the  division was to  raise the percentage rate  to about                                                                    
60 percent.  He suggested that  the division was  looking at                                                                    
initiating some pricing consistencies  within the public use                                                                    
cabin  system,   increased  usage   in  the   parks  through                                                                    
promotions, special use permit  fees, and increasing some of                                                                    
the areas where fees could be charged.                                                                                          
                                                                                                                                
Co-Chair Seaton reviewed the agenda for the following day.                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
3:53:50 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:53 p.m.                                                                                          

Document Name Date/Time Subjects
FY2019 DOC Overview House Finance 1-30-18.pdf HFIN 1/30/2018 1:30:00 PM
HFIN - DOC Budget Overview
DPS H FIN Dept Overview 01_30_18 FINAL.pdf HFIN 1/30/2018 1:30:00 PM
HFIN - DPS Budget Overview
SLA2018 HFin Budget Overview.pdf HFIN 1/30/2018 1:30:00 PM
HFIN - DNR Budget Overview
Department of Natural Resources Program Guide updated Jan 2018.pdf HFIN 1/30/2018 1:30:00 PM
HFIN - DNR Budget Overview Supporting Document
DPS Responses to 013018 House Finance Committee Questions.pdf HFIN 1/30/2018 1:30:00 PM
DPS Rsponse Qs HFIN Budget Overview
SLA2018 HFin Budget Overview with notes.pdf HFIN 1/30/2018 1:30:00 PM
DNR HFIN overview Notes