Legislature(2009 - 2010)HOUSE FINANCE 519
01/29/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Budget Overviews: Department of Administration | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
HOUSE FINANCE COMMITTEE
January 29, 2009
1:32 p.m.
CALL TO ORDER
Co-Chair Hawker called the House Finance Committee meeting
to order at 1:32:51 PM.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Richard Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
None
ALSO PRESENT
Annette Kreitzer, Commissioner, Department of
Administration; Eric Swanson, Director, Division of
Administrative Services, Department of Administration; Kevin
Brooks, Deputy Commissioner, Department of Administration;
Pat Galvin, Commissioner, Department of Revenue; Ginger
Blaisdell, Director, Division of Administrative Services,
Department of Revenue; Jerry Burnett, Deputy Commissioner,
Division of Treasury, Department of Revenue; Chris
Christensen, Staff Counsel, Alaska Court System; Larry Cohn,
Executive Director, Alaska Judicial Council, Alaska Court
System; Marla Greenstein, Executive Director, Alaska
Commission on Judicial Conduct, Alaska Court System; Talis
Colberg, Attorney General, Department of Law; Dave
Blaisdell, Director, Division of Administrative Services,
Department of Law; Craig Tillery, Deputy Attorney General,
Department of Law; Mr. Richard Svobodny, Deputy Attorney
General, Criminal Division, Department of Law
PRESENT VIA TELECONFERENCE
Larry Cohn, Executive Director, Alaska Judicial Council,
Alaska Court System; Marla Greenstein, Executive Director,
Alaska Court System
SUMMARY
^Budget Overviews: Department of Administration
Department of Revenue
Alaska Court System
Department of Law - Civil
1:34:28 PM
ANNETTE KREITZER, COMMISSIONER, DEPARTMENT OF ADMINISTRATION
introduced the Department of Administration staff.
Co-Chair Stoltze asked if Mr. Jones was the Procurement
Officer for the state. Ms. Kreitzer said he was.
Ms. Kreitzer drew attention to a brochure that gives a short
description of the various divisions within the Department.
She pointed out that the Department has three main parts:
divisions that maintain an arm's length relationship with
the state, divisions that provide centralized services, and
public facing agencies. The one main function of the
Department is to save the state money by centralizing
services so that payroll, mailroom, personnel, and computer
services are not replicated across every department.
Ms. Kreitzer listed the boards and commissions with an arm's
length relationship to the Department. The purpose of the
boards and commissions is to provide services related to
personnel.
Ms. Kreitzer explained the Department's role in centralized
services.
1:39:45 PM
Representative Joule asked about APOC reporting requirements
for the Violent Crimes Compensation Board. He wondered if
too much information is being required from potential board
applicants. Ms. Kreitzer related that work was being done
on how reporting requirements were being handled.
Ms. Kreitzer talked further about centralized services and
its involvement with labor relations. She referred to a web
site relating to recruitment and retention. She listed
services provided by the Office of Administrative Hearings,
and Risk Management. She referred to the Department's
brochure about state contracts and outreach by the Division
of General Services. She spoke highly of the Department's
outreach programs.
1:42:59 PM
Ms. Kreitzer highlighted the Department's public agencies.
Co-Chair Stoltze commented on a problem with too many public
defenders in Bethel. Ms. Kreitzer said she had not heard
that comment.
1:44:48 PM
Ms. Kreitzer commented on FY09 goals and accomplishments.
She reported that Phase 3 of the VOIP phone installation has
been completed, decommissioning the PBX's that were struck
by lightning. The Online Checkbook is now online. The
Active Directory has begun rolling out, the next step in the
Microsoft Exchange roll-out that began in 2007. The Linny
Pacillo Parking Garage has been completed. The Palmer State
Office Building will be ready for occupancy on October 1,
2009. Computer security initiatives, including HB 65, are
in process. Recruitment and retention issues are being
addressed through labor contracts, service steps, and the
Working Group Report.
Co-Chair Hawker observed that the state has made great
improvements in technology the last several years. Ms.
Kreitzer commented on the progress of technology. She noted
the load related to the PFD filings.
1:47:19 PM
Representative Austerman requested more information about
the FY09 budget. Ms. Kreitzer offered to provide written
information. She added that information on the Department's
large projects can be found on their web page.
Co-Chair Hawker asked for information about the FY10 budget.
ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION, pointed out that there are
significantly fewer increments in the FY10 budget.
1:49:21 PM
Mr. Swanson reported on an increase in the Leases budget, in
interagency receipts, for $1,745,000.
Mr. Swanson explained an increase in the Facilities
component of $2.2 million.
Mr. Swanson highlighted one decrement in the Satellite
Infrastructure component.
Co-Chair Hawker summarized that the Department is removing
excess authority and it is not a $900,000 reduction in the
Public Broadcasting budget. Mr. Swanson agreed.
1:51:28 PM
Mr. Swanson talked about an increment of $652,600 in the DMV
component.
Mr. Swanson pointed out that he has not mentioned salary
adjustments, which occur throughout the budget.
Co-Chair Hawker asked about the Group Health Insurance
increment. Mr. Swanson reported that there were $5.1
million in benefit systems receipts. The Department
anticipates a new third-party administrator contract at the
start of FY10 which would incur new costs.
Co-Chair Hawker asked if it is a statewide contract. Mr.
Swanson replied that it was, with the exception of the Union
Health Trust.
1:53:31 PM
Representative Gara asked how the hiring freeze impacts the
Public Defender Agency request for additional support staff.
Ms. Kreitzer replied that every division seeking to hire new
employees will have to request a waiver, each of which would
be looked at individually. She said she has supported
support staff in the Public Defender Agency in the past.
Representative Gara wondered if more support staff is
needed. Ms. Kreitzer pointed out that more support staff
has been added as requested.
1:57:08 PM
Representative Gara asked what proposals are in place for
support staff this year. Ms. Kreitzer maintained that
adequate support staff have been included in the FY10
budget. She offered to discuss specific concerns with
Representative Gara.
Representative Gara pointed out a lack of adequate Public
Defender Agency office space. Ms. Kreitzer reported that
the Department has been working on this problem.
1:59:30 PM
Co-Chair Stoltze asked if Mr. Steiner was online. Ms.
Kreitzer said he was not. Co-Chair Stoltze spoke highly of
Mr. Steiner and praised the Public Defender Agency. Ms.
Kreitzer agreed.
2:01:17 PM
Co-Chair Hawker asked about the methodology behind the
Department's approach to HB 125.
Mr. Swanson addressed the 10-Year Plan. He spoke of areas
with expensive capital items, the Office of Public Advocacy
(OPA), the Public Defender Agency (PDA) and the Enterprise
Technology Services (ETS) agency. He described those areas
as being more difficult to control regarding spending due to
growth rate being dependent on the level of case loads.
Other departments show modest growth. He projected a 6
percent annual increase for OPA and PDA. He discussed how
new technology impacts ETS's budget and projected an annual
increase of 7 percent in its operating budget.
2:05:13 PM
Ms. Swanson shared his experience of working on the 10-Year
Plan and the recent changes in the economy. He expected
that the plan will need to be frequently revisited. It is a
snapshot and a work in progress requiring periodic updating.
Co-Chair Hawker asked how the collaboration between the
Department and the Office of Management and Budget has been
going. Mr. Swanson said OMB has been very helpful.
Co-Chair Hawker noted the difficulty of understanding the
acronyms within the Department. Mr. Swanson explained that
Non-PBF refers to non-public building fund facilities. Co-
Chair Hawker asked that the acronyms be explained in
documents in the future.
2:09:25 PM
Representative Gara asked about the salary review process
timeframe. Ms. Kreitzer said that the geographic
differential study is the first step. It will be completed
by the end of January.
KEVIN BROOKS, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, reported on the salary surveys and the
timeline.
Representative Gara pointed out that some of the salaries
were low and wondered if they could be paid out at a higher
level. Ms. Kreitzer shared the work done in this area.
2:12:12 PM
Representative Gara pointed out that Mr. Steiner reported
that he could use more support staff. Ms. Kreitzer said she
may not have authorized more staff as quickly as some would
like.
Representative Gara agreed with Mr. Stoltz's statement on
the good job Mr. Steiner has done, as well as the job his
predecessor did.
Co-Chair Hawker reminded the Department that the revenue
forecast should be taken into consideration when revising
the plan. Ms. Kreitzer said that is being considered.
2:15:17 PM
PAT GALVIN, COMMISSIONER, DEPARTMENT OF REVENUE, spoke of
FY09 budget expectations being low, based on the revenue
forecast. He described the Department of Revenue's
structure. He concluded that, in the short term, the budget
is fairly stable and flat. There are a few budget items
that merit attention. He pointed out that in the Tax
Division, the current information system needs upgrading.
He described the impact of the oil tax on the current
system. There is a capital budget item for that.
Co-Chair Hawker recalled last year's discussion about the
lack of need for a new information system. Commissioner
Galvin explained that it became a matter of sustainability
of the system.
2:22:55 PM
GINGER BLAISDELL, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, reported that in last
year's budget a capital appropriation of $3.9 million was
authorized to begin the new tax management system. Three
new master auditor positions were funded and filled. There
is a request for a fourth auditor in the FY10 budget. There
were two contract auditors funded to train the master
auditors in oil and gas tax issues.
2:24:37 PM
Ms. Blaisdell reported that the Treasury Division
implemented a new federal cost allocation plan. A few
adjustments in the FY10 budget will reflect this change.
Commissioner Galvin spoke of an audit which led to
improvements and is reflected in the FY10 budget as net
zero.
Ms. Blaisdell reported that the PFD Division has moved into
their new location in Anchorage. More than 612,000 PFD
applications have been submitted to date, with another
10,000 in process. She mentioned the charitable check off
program in the PFD.
2:27:17 PM
Ms. Blaisdell reported on the Child Support Services
Division budget. Co-Chair Hawker commented that the
Division has the single largest growth factor. Ms.
Blaisdell explained that it is actually not a growth factor,
but the use of general fund dollars instead of receipt
supported services funds. There are currently not as many
people on the public assistance rolls; however, there are
child support cases that need attention.
Co-Chair Hawker asked what funds were used for that.
JERRY BURNETT, DEPUTY COMMISSIONER, DIVISION OF TREASURY,
DEPARTMENT OF REVENUE, explained how child support
collection works. When a person is on a Temporary
Assistance to Needy Families (TANF) program, and is due
child support, the state gets the child support funds
instead of the person. About 47 percent of that, on a state
managed TANF case, stays with the state and the rest goes to
the federal government as Title 4A funds. Receipt supported
services are the state portion of those collections. In
addition to a dramatic decrease of TANF child support cases,
several years ago the state went to more tribal-managed
TANF, which are 100 percent federal funds.
Co-Chair Hawker called it a supplanting problem. Mr.
Burnett agreed.
2:29:40 PM
Ms. Blaisdell pointed out that the Federal Economic Stimulus
Package might also have an impact on Child Support Services.
Co-Chair Hawker asked about the resource rebate program with
zero funding in it. Commissioner Galvin emphasized that it
was a one-year program.
Ms. Blaisdell explained an attempt to put carry forward
language into the supplemental bill for appeals related to
the resource rebate program. Co-Chair Hawker pointed out
that the mechanics would be consistent with the PFD, which
the rebate was tagged onto.
2:31:23 PM
Representative Joule inquired about the effect of the
resource rebate program on rural, versus urban, recipients.
Vice-Chair Thomas asked how much of the rebate went back to
child support. Mr. Burnett offered to provide the numbers.
Representative Crawford said that last year the wording was
changed so that children of incarcerated adults would be
eligible for child support. Mr. Burnett informed the
Committee that it has not happened yet, but it was included
in the budget and should begin this year.
Representative Gara asked how out-of-state foster care deals
with the PFD. Mr. Burnett offered to find out.
Representative Gara requested more information about the PFD
and out-of-state placement.
2:35:22 PM
Ms. Blaisdell reported on Administration and Support, which
also has a flat budget for FY09 and FY10. The Gas
Development Authority is moving along with many contracts.
It has a $5 million capital project request to fund right-
of-way and beginning engineering and design. The Mental
Health Trust Authority falls under the Department of
Administration, and has recently done a presentation before
the Committee. Co-Chair Hawker noted upcoming meetings
involving the Alaska Housing Finance Authority and the
Alaska Permanent Fund Corporation.
2:36:23 PM
Representative Austerman asked if the new technology system
would allow for a timely CORE Report. Commissioner Galvin
offered to find out.
Co-Chair Hawker asked about the Treasury Division's response
to the recent problem with accessing liquid assets. He
asked if there had been any changes in the market recently.
Mr. Burnett reviewed the changes in how securities are sold.
They were once called inexpensive capital. Currently, it is
not certain that the student loan corporation could go to
the market and borrow money and make student loans for next
year. It may be that the state will need to offer
assistance.
Mr. Burnett reported that Alaska Housing also had a problem
with their variable rate last summer. They can now access
that market. The cost of borrowing money has gone up. The
interest rate for a recent sale of bonds by the Mat-Su
Borough was close to 6 percent on tax exempt debt.
2:41:01 PM
Representative Fairclough asked if the Retirement Board
would be before the Committee at a future date. Co-Chair
Hawker said they were not scheduled. Commissioner Galvin
said that could be arranged.
Representative Fairclough asked about retiree pension
obligation shortfall numbers in the current market. She
wondered if the current shortfall was between $6 billion and
$10 billion and if the buy down plan was still working.
Mr. Burnett reported that recently the retirement funds have
lost value and the unfunded liability has grown. It is
possible that there could be an opportunity to take
advantage of the lower cost to borrow money.
Co-Chair Hawker reported that there is a retirement fund
update coming up next week.
Representative Fairclough wondered how far the state should
go into debt to pay down a future potential liability.
Commissioner Galvin assured that the situation would be
looked at carefully. He described the current market
situation and the need to proceed slowly.
Co-Chair Hawker opined that the GO Bonds were in a similar
holding pattern. Commissioner Galvin reported that the
market is opening up for those. Co-Chair Hawker pointed out
that the bonds authorized last year have not been issued.
Mr. Burnett suggested it was possible that the full value
would not be issued.
2:47:02 PM
Co-Chair Hawker summarized that the Department had not been
compromised in its ability to meet state obligations and the
state credit rating has remained solid. Mr. Burnett agreed
that the credit rating had not been compromised, there was
very good liquidity, there were no cash flow issues, and
Alaska still has a great deal of money in the bank.
Co-Chair Hawker asked if the Department was planning to
forego all wage increases over the next ten years.
Commissioner Galvin replied that was no need to grow the
Department and some services would maintain at a flat level.
Commissioner Galvin continued that there is a single pot of
federal money that all states draw from. Which states
receive money cannot be predicted. He hoped there would be
gains in efficiency within the Department.
2:50:07 PM
Commissioner Galvin said he did not see any additional tax
or revenue growth in the budget.
Co-Chair Hawker pointed out that the model shows that the
state never runs into a liquidity problem. He wondered if
the projections would change if withdrawals from the
reserves were made.
Commissioner Galvin thought the Department was going to be
dependent on the nature of fiscal choices made. Use of more
of the Permanent Fund or implementing a new tax system would
have an affect on the budget. The budget forecast does not
try to anticipate new policy calls. He stated that the core
issue is "what is the fiscal response that we're going to
implement".
Co-Chair Hawker looked forward to having that discussion.
2:52:37 PM
CHRIS CHRISTENSEN, STAFF COUNSEL, ALASKA COURT SYSTEM,
introduced his staff. He commented that this was the first
department overview before the House Finance Committee in
over five years. He pointed out that even though the
Judicial Branch of the government is only 1.5 percent of the
state's general fund operating budget, more private citizens
move through the Alaska Court System than any other
government entity. There are 718 permanent, full-time
employees. He described the different aspects of the Court
System.
Mr. Christensen explained that Alaska's judicial structure
is unique in that there is a unified judiciary; there are no
county or municipal courts. It is a cheaper and more
efficient way to provide a justice system.
2:55:17 PM
Mr. Christensen related that funding for the Courts comes
exclusively from the legislature. The director of the Court
System is a constitutional officer. The Court System's
budget differs from the executive branch in that it contains
no discretionary functions; everything is mandated by law or
by the Constitution. The Court System's work is reactive in
nature; it does not initiate work. The Court System has no
discretion to refuse work and must, by law, meet deadlines.
Mr. Christensen said that there are timeframes in place for
civil cases that can cause conflicts in a court with a heavy
caseload. Last fiscal year the Court System received
155,000 new cases and resolved almost as many old cases.
The case load in FY09 increased by 1.6 percent. He stated
that felony filings in FY04-FY08 increased by 30 percent.
In Anchorage during that same time period, the felony filing
rate increased by 75 percent. This is because more crimes
committed are resulting in arrests. Anchorage plans to add
33 police officers by April 2009. Many people convicted are
repeat offenders. As long as the state grows, the Court's
caseload will grow. Personnel costs make of about 79
percent of the Court System's budget. Attempts to unionize
all employees are being made and Mr. Christensen felt that
would be more expensive overall.
3:01:16 PM
Mr. Christensen continued to describe problems within the
Court System in Anchorage. It is possible that next year a
new Superior Court judge may be requested.
Mr. Christensen brought attention to the fact that the Court
System may have a supplemental request for $390,000 for
increased costs relating to utilities and service contracts.
Energy cost increases this year have put a strain on the
Court System. He said they are always looking for ways to
save money.
Mr. Christensen reported that there is currently a 30-day
hiring freeze for all employees, which is a problem for the
Court System. He said clerical jobs must be filled at all
times in order for the work to be accomplished.
Co-Chair Hawker asked if the hiring freeze was the Court
System's idea. Mr. Christensen said it was.
Mr. Christensen shared that the Court System has 44 courts.
A small court cannot afford to leave one or two positions
vacant.
Mr. Christensen discussed highlights of FY09. The Anchorage
jury system has been revamped in order to be more efficient.
A private sector contractor is being used for jury
notification, saving money in jury costs.
3:04:03 PM
Mr. Christensen mentioned the use of calling cards in
offices as an effort to save money. He listed several
small, but effective, ways to save money.
Mr. Christensen discussed significant, on-going projects.
"No Dark Courtrooms" is an effort to get more staff into the
courtrooms. He felt there should be an extra body in the
courtroom in order to be sure that court procedures are
covered. Co-Chair Hawker asked which budget that appeared
in. Mr. Christensen said it was in the operating budget.
3:07:41 PM
Mr. Christensen reported on the judicial vacancy rate. As
the crime rate has increased, more of an effort is being
made to fill these vacant judge positions. There is a
request for funding of $639,000 to reduce the vacancy rate
to zero.
Mr. Christensen spoke of a request for a judge in Anchorage
and in Juneau in the future.
Co-Chair Hawker asked for information about the past request
for four court facilities.
3:10:09 PM
Representative Salmon asked about HB 9 implications. Mr.
Christensen reported that there is a large body of data from
other states regarding death penalty expenses. There will
be a Court System fiscal note when the bill is heard.
Mr. Christensen reported on expanded court facilities. Six
new judges were added during the Murkowski administration.
Capital money was provided to expand the size of the
courthouses in Kenai and in Palmer, which should be up and
running soon. Co-Chair Hawker asked if the financing was
adequate. Mr. Christensen said some corners were cut.
3:12:22 PM
Mr. Christensen addressed the Judiciary branch's 10-Year
Plan. He noted how difficult it was to develop the Plan.
Many factors can affect case load: state of the economy,
laws enacted by the legislature, federal mandates, and
municipal policies.
3:15:13 PM
Co-Chair Hawker summarized the process used to establish the
10-Year Plan; status quo, with cost-of-living and population
factored in. Mr. Christensen reported that for FY11, the No
Dark Courtrooms initiative was factored in, as well as the
possible addition of two Superior Court judges, plus a 2.75
percent inflation factor recommended by OMB.
LARRY COHN, EXECUTIVE DIRECTOR, ALASKA JUDICIAL COUNCIL,
ALASKA COURT SYSTEM, described the three main areas of
responsibility of the Judicial Council. He mentioned the
Criminal Justice Working Group, which was funded by the
legislature to improve the criminal justice system. He
spoke of a goal to implement a system to electronically
share discovery materials. Another goal is to identify
cost-effective ways to reduce criminal recidivism.
Mr. Cohn focused on one area of the budget - judicial
selection. It is cost effective to do the work in a time-
efficient way. There have been many judicial vacancies
recently and more are expected in the future. There have
been more applications for those vacancies due to an
increase in salary. The budget has remained the same over
the past 20 years, with the exception of adjustments for
inflation and a request for six new judgeships. In FY08 a
supplemental budget was requested for the first time in more
than 20 years. The Judicial Council is seeking an increment
to process seven judicial vacancies a year. There are no
requests for personal services funds.
3:22:37 PM
MARLA GREENSTEIN, EXECUTIVE DIRECTOR, ALASKA COURT SYSTEM,
reported on judicial conduct and ethics complaints. She
spoke of a disciplinary hearing concerning a judge in Bethel
resulting in a need for a supplemental request for FY09 for
$33,200. She reported that an operating budget line of
$36,000 is kept to allow hiring of special counsel when
needed. That amount was exceeding due to the cost of the
disciplinary hearing.
Ms. Greenstein spoke of a minor increment request in
personal services for $3,600. Co-Chair Hawker offered to
consider that request.
3:27:40 PM
Representative Gara asked about Judge Cummings' suspension.
Ms. Greenstein explained that the term "suspension" refers
to a six-month suspension, not removal. Representative Gara
asked if the agency had the power of removal. Ms.
Greenstein said they did. Representative Gara thought a
permanent suspension was warranted. Ms. Greenstein pointed
out that the ruling was public record and she explained how
to access it.
Co-Chair Stoltze spoke of the model system for the selection
and retention of judges. He wondered why the suspension was
not upheld. Ms. Greenstein corrected that their agency is
not the bar association. She clarified how a judge is
evaluated.
3:31:10 PM
TALIS COLBERG, ATTORNEY GENERAL, DEPARTMENT OF LAW,
introduced members of the Department of Law and described
its organization. He explained the breakdown of the
Criminal Division and the Civil Division. The 13 sections
of the Civil Division are for addressing the needs of the
citizens in Alaska.
Co-Chair Hawker thanked Attorney General Colberg for making
Mr. Sniffen, an Assistant Attorney General, available last
summer for the investigation of gasoline prices.
3:37:22 PM
Mr. Colberg related the responsibilities of various sections
in the Department. Co-Chair Hawker said that the Department
of Law is Alaska's largest law firm. Mr. Colberg emphasized
that when the agency is broken down into individual cases it
can be overwhelmed by large entities in court cases. He
opined that when one of the agencies - Public Safety, Public
Defenders, Court System - get out of balance, the others are
affected. Any incremental change in one department affects
the other departments. He gave an example in Dillingham.
3:41:52 PM
Mr. Colberg continued to highlight sections within the
Department. He mentioned the role of the Natural Resource
Section and termed the Oil and Gas Section a revenue
generator within the Department. Opinions, Ethics, and
Appeals are combined and work on projects such as the
Kensington Mine appeal. Regulatory and Public Affairs deals
with utilities.
Mr. Colberg pointed out in the Criminal Section, the Office
of Special Prosecution and Appeals, which has a small, but
incredibly successful Cold Case office in Juneau.
Mr. Colberg voiced appreciation for last year's legislation
that increased salaries. He described quality of life
adjustments such as a new flex time schedule, parking
improvements in Anchorage, and a new badge system.
3:45:39 PM
Co-Chair Hawker noted the small request in the FY10 budget.
Mr. Colberg thought it was realistic. He did not want to
see decreases in the budgets of agencies that the Department
interacts with.
3:47:26 PM
Co-Chair Hawker asked Mr. Colberg to describe the
Department's 10-Year Plan. Mr. Colberg said the Plan
assumed a parallel level playing field with other agencies.
He discussed the impact of the gasline and how it could
relate to the Department's budget. For example, there is an
expectation of increased crime similar to the pattern
related to the pipeline era. There might be a drop
initially in requests regarding oil and gas. Unexpected
events may cause a large fiscal impact. The gasline impacts
can be projected.
DAVE BLAISDELL, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF LAW, spoke of potential increases in
the 10-Year Plan. There is a population growth assumption
of 10 percent. Growth is generally found in personal
services. There is not currently an inflation factor, but
it will be added. There is an overhead projection for each
PCN of approximately $7,200.
Mr. Blaisdell noted that the capital budget was harder to
project. There are increasing security issues and changing
IT needs.
Co-Chair Hawker asked about physical space needs. Mr.
Colberg said that in Palmer the Valley Hospital will be
finished and the Department of Law can move in. Dillingham
has no interview facility. Larger offices are in pretty
good shape.
Co-Chair Hawker asked about the parking issues in Anchorage.
Mr. Colberg replied that most of the problems have been
resolved. Co-Chair Hawker thought there might be physical
facility issues to consider.
3:54:43 PM
CRAIG TILLERY, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW,
spoke of added space in Anchorage offices. Mr. Colberg
highlighted problems in Sitka. Mr. Tillery said Kenai has
problems.
MR. RICHARD SVOBODNY, DEPUTY ATTORNEY GENERAL, CRIMINAL
DIVISION, DEPARTMENT OF LAW, said that Bethel also has
facility issues.
Mr. Colberg commented that there is not much room to make
cuts because "cuts means staff" in the Department of Law.
He pointed out that the long-range plan presumes an absence
of federal funds which will be problematic in the future for
the Criminal Division, which is dependent on federal
funding.
3:58:24 PM
Mr. Blaisdell said there was about $3 million of federal
funding in the FY10 budget. Co-Chair Hawker asked if more
federal money was available if the Department applied for
it.
Mr. Svobodny explained that some of the federal money was
one-time, earmarked money. Other funds were through
Violence Against Women statutes, which look like they will
continue to be funded. In the pending stimulus bill there
are funds for law enforcement and prosecution.
Co-Chair Hawker asked for an explanation of the Byrne Grant.
Mr. Svobodny replied that the Byrne Grant is a formula
funded grant program for all states. The year before last,
Alaska received $600,000 from the grant. Some of the money
went to the Department of Law to fund a unit that dealt with
alcohol addiction programs. The legislature approves the
funds and then a committee decides how it will be spent.
Two years ago it was $600,000 and last year there wasn't any
money. There could be $15 million in the stimulus package.
Co-Chair Hawker asked what the parameters surrounding the
funds are. Mr. Svobodney said they are for policing and
prosecuting.
4:01:53 PM
Co-Chair Stoltze explained how Byrne-funded programs
affected the Mat-Su area. He welcomed a discussion of any
of the Department's issues.
Co-Chair Hawker noted that he has his eye on the stimulus
packet. He requested specific information as it becomes
available.
Mr. Colberg offered to do so.
4:04:18 PM
Representative Gara questioned the number of staff needed
in-house and how many should be contracted out. He wondered
if hiring in-house would result in savings.
Mr. Colberg replied that there were past discussions as to
how many lawyers could be hired at Alaskan rates for Oil and
Gas litigation. One problem is that costs could change
considerably. Another problem is that the Alaska pay scale
does not attract the specialists required. On the surface
there could be several in-house lawyers at a cheaper price,
but the pay scale may not attract the expertise needed.
Also, there are different pay scales for different classes
of lawyers.
Mr. Colberg summarized that it is a complicated discussion.
Representative Gara appreciated how difficult it was, but
requested hearing about any recommended cost savings.
ADJOURNMENT
The meeting was adjourned at 4:08 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AJC selection expenses.pdf |
HFIN 1/29/2009 1:30:00 PM |
|
| Commission on Judical Conduct.doc |
HFIN 1/29/2009 1:30:00 PM |
|
| COURTS.pdf |
HFIN 1/29/2009 1:30:00 PM |
|
| DOA.pdf |
HFIN 1/29/2009 1:30:00 PM |
|
| Overview Law - 10 yr plan.pdf |
HFIN 1/29/2009 1:30:00 PM |
|
| DOA Chart.PDF |
HFIN 1/29/2009 1:30:00 PM |
|
| REVENUE 10 year plan with Corporations.pdf |
HFIN 1/29/2009 1:30:00 PM |
|
| Ltr to HseFin 2-11-09.pdf |
HFIN 1/29/2009 1:30:00 PM |