Legislature(2013 - 2014)HOUSE FINANCE 519
01/29/2014 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB266 || HB267 | |
| Fy 15 Governor's Budget Overview: Department of Labor and Workforce Development | |
| Presentation: Alaska Mental Health Trust Authority | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 266 | TELECONFERENCED | |
| += | HB 267 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HOUSE FINANCE COMMITTEE
January 29, 2014
1:31 p.m.
1:31:40 PM
CALL TO ORDER
Co-Chair Austerman called the House Finance Committee
meeting to order at 1:31 p.m.
MEMBERS PRESENT
Representative Alan Austerman, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Mark Neuman, Vice-Chair
Representative Mia Costello
Representative Bryce Edgmon
Representative Les Gara
Representative David Guttenberg
Representative Lindsey Holmes
Representative Cathy Munoz
Representative Steve Thompson
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Diane Blumer, Commissioner, Department of Labor and
Workforce Development; Paloma Harbour, Director,
Administrative Services Division, Department of Labor and
Workforce Development; Fred Esposito, Director, Alaska
Vocational Technical Center (AVTEC), Department of Labor
and Workforce Development; Gray Mitchell, Assistant
Commissioner, Department of Labor and Workforce
Development; Mike Barton, Chair, Board of Trustees, Alaska
Mental Health Trust Authority; Jeff Jessee, Chief Executive
Officer, Alaska Mental Health Trust Authority; Russ Webb,
Trustee, Alaska Mental Health Trust Authority.
SUMMARY
HB 266 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 266 was HEARD and HELD in committee for
further consideration.
HB 267 APPROP: MENTAL HEALTH BUDGET FY15
HB 267 was HEARD and HELD in committee for
further consideration.
FY 15 GOVERNOR'S BUDGET OVERVIEW:
DEPARTMENT OF LABOR and WORKFORCE DEVELOPMENT
PRESENTATION: ALASKA MENTAL HEALTH TRUST AUTHORITY
HOUSE BILL NO. 266
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, and making
reappropriations; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from
the constitutional budget reserve fund."
HOUSE BILL NO. 267
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program."
1:32:24 PM
^FY 15 GOVERNOR'S BUDGET OVERVIEW: DEPARTMENT OF LABOR and
WORKFORCE DEVELOPMENT
1:32:26 PM
DIANE BLUMER, COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, (DLWD) introduced herself.
Commissioner Blumer discussed the PowerPoint presentation,
"Alaska Department of Workforce Development" (copy on
file).
Commissioner Blumer presented slide 2, "Mission: Provide
safe and legal working conditions and advance opportunities
for employment."
Core Services:
-Protect Alaska's workers through statutory and
regulatory assistance and enforcement.
-Income replacement for injured, unemployed, and
permanently disabled workers.
-Workforce development to support Alaska hire and
economic development.
Commissioner Blumer looked at slide 3, "Organization
Chart." She explained that the slide did not represent the
standard organizational chart, but was outlined as a
functional organizational chart. She noted that the dark
blue areas provided departmental oversight, and the light
blue areas provided workforce development function. She
remarked that the Business Partnerships Division reached
out to business and industry to assist in design, policy,
and implementation of training and workforce development
programs. She explained that the Employment Security
Division had two components within the core services, so
she will refer to the division twice in the presentation.
She remarked that the Workers' Compensation Division
operated as a public labor exchange. She announced that the
Alaska Workforce Investment Board would be hosting a
reception that evening, and encouraged committee members to
attend. She stated that the Alaska Vocational Technical
Center (AVTEC) was the adult vocational training school in
Seward. The Vocational Rehabilitation Division had two
components. She furthered that there was staff that
assisted individuals with disabilities to obtain and
maintain employment. She explained that the brown areas
identified the Labor Standards and Safety Division, which
provided enforcement, training, and monitoring of the laws
governing occupational safety and health. She stated that
the green areas provided income replacement for those not
able to work, or are looking for work.
Commissioner Blumer highlighted slide 4, "Services by
Location." She remarked that the slide showed where DLWD
provided services across the state.
Commissioner Blumer discussed slide 5, "State and Private
Partnerships."
State Partners
Veteran Services
-Department of Military and Veterans Affairs
Economic and Demographic Data Production
-Department of Health and Social Services
-Department of Commerce, Community and Economic
Development
-Department of Education and Early Development
Prisoner Reentry
-Department of Corrections
Training and Education Program Outcomes
-Department of Education and Early Development
-University of Alaska
-Commission on Postsecondary Education
1:38:23 PM
Commissioner Blumer specifically highlighted the issue of
training women. She stated that the numbers showed that the
recidivism rate for individuals who completed the Bridge to
Success course were 50 percent or less. She stated that the
program was working and was very beneficial.
Commissioner Blumer highlighted slide 6, "State and Private
Partnerships."
Private Partners
Training and Education
-Tribal Vocational Rehabilitation Programs
-Community Rehabilitation Programs
-Construction Education Foundation
-Alaska Works Partnership
-School Districts
-Association of General Contractors
-Home Building Associations
-Regional Training Centers
-Other Private Training Providers
-Employers
Private Sector Membership on Boards and
Commissions
Centers for Independent Living
Commissioner Blumer looked at slide 7, "Development
Challenges."
Maintaining services to Alaskans while managing:
A trained Alaskan labor force for new projects
Flat or declining federal revenue
Increasing operating expenses
PALOMA HARBOUR, DIRECTOR, ADMINISTRATIVE SERVICES DIVISION,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, discussed
slide 8, "Protect Workers." She remarked that one of the
department's core services was to promote safe and legal
working conditions for Alaskans. She explained that DLWD
achieved this goal through a combination of enforcement and
consultative efforts to both employers and employees. She
announced that one measure that the department uses to
track performance in this area is the Workplace Loss-time
Injury and Illness Rate per 100 employees. In FY 13 the
rate declined to 1.61 from 1.73 the previous year. She
pointed out that the rate was the second-lowest level
achieved in the last 12 years. She stated that the lowest
level was 1.60.
Ms. Harbour highlighted slide 9, "Income Replacement." She
explained that DLWD also provided income replacement to
injured, unemployed, and disabled Alaskans. She explained
that timely benefit payments to these individuals was
extremely important for providing some semblance of
stability, therefore DLWD focused on timeliness measures
when evaluating the performance of the program. In FY 13,
DLWD processed 91.7 percent of unemployment insurance
payments within 21 days, which exceeded the federal
benchmark of 87 percent. She pointed out that the
performance percentage increase also occurred during an 11
percent increase in the total number of claimants, from
just over 56,000 to 62,500 claimants.
1:43:26 PM
Ms. Harbour looked at slide 10, "Workforce Development."
She announced that the total number of resident workers in
Alaska, in 2011, was 331,081, which was an increase of
2,470 from 2010. She stated that 2012 resident worker
information would be available after the upcoming Friday.
Ms. Harbour displayed slide 11, "Workforce Development."
She explained that the graph represented the performance
measure for the Vocational Rehabilitation Program that
provided employment services for disabled Alaskans. She
stated that the services included the development of
individualized plans for employment. In FY 13, 598 of the
individuals that were exiting an individualized plan for
employment were employed upon exit. She stated that it
represented 64 percent of the individuals that exited an
individualized plan.
Ms. Harbour discussed slide 12, "Share of Total Agency
Operations.
The department's general fund budget grew by $26.5
million between FY 06 and the FY 15 governor's request
- an average annual growth rate of 7.1 percent
Growth since FY 09 has been $4.5 million (1.2 percent
growth rate).
The department continues to represent a small portion
of the overall statewide budget (six straight years of
decline).
Ms. Harbour looked at slide 13, "Total Funding Comparison
by Fund Group."
Between FY06 & FY15:
-Federal Funds remained relatively flat,
increasing by $1.4 million (1.5 percent)
-Other funds decreased by $1.4 million (6.2
percent)
-DGF increased by $7.9 million (30.9 percent)
-UGF increased by $18.6 million (117.8 percent)
Thus state funds have increased as a percentage of the
total
Ms. Harbour highlighted slide 14, "Line Item Distribution."
The majority of funding in FY15 is in the following
line items:
Personal Services: 46 percent
Grants: 32 percent
About 54 percent ($31.5 million) of the grants funding
is in the Business Partnerships appropriation (with
the
majority housed in two allocations):
$23.4 million in Business Services
$3.2 million in the Construction Academy
Ms. Harbour highlighted slide 15, "Budgeted Positions."
Between FY06 and FY15 the total number of budgeted
positions decreased by 115.
Reduction in positions is due to flat or declining
base operating federal funds and the expiration of
onetime federal grant funds.
Ms. Harbour discussed slide 16, "FY 2015 Budget Request:
$185,080.9" She stated that the chart showed the
department's FY 15 budget, which totaled $185 million. It
included $95 million in federal funds, $44.4 million in
UGF, $34.1 million in DGF, and $21.8 million in other
funds. She announced the department's budget by core
services: 7 percent for Protect Workers, 29 percent for
Income Replacement, and 64 percent for Workforce
Development.
1:48:49 PM
Ms. Harbour looked at slide 17, "Governor's Budget
Overview."
FY2015 Operating Budget
Departmentwide Long Term Vacant Position deletions
$975.5 total reduction for deleting 20 positions
including 10 vacant for more than two years
Departmentwide uncollectible receipt authority
reduction
$4,900.0 Fed/Other reduction to reflect decreased
receipt collection due to federal sequestration
Employment Security Division (ESD)
$125.0 DGF increase in Training and Building fund
receipts for support of Job Centers
Business Partnerships (DBP)
$159.6 UGF decrease by deleting one vacant
Gasline position
TVEP funding distribution change
$47.6 DGF increase to distribution amounts based
on available fund balance
Ms. Harbour discussed slide 18, "Governor's Budget
Overview."
FY2015 Capital Budget
Heavy Equipment/Diesel/Pipe Welding Relocation
Phase 2 of 3
-$8,000.0 this phase, $15,000.0 all three
phases, replaces a training facility with
safety issues
Deferred Maintenance
-$1,000.0 UGF for reducing the backlog of
maintenance needs on the Alaska Vocational
Technical Center's (AVTEC) aging
infrastructure
Public Access Network
-$170.0 UGF for development of a public
access network across statewide Job Centers
1:53:33 PM
Ms. Harbour highlighted slide 19, "Ten Year Plan-General
Funds Only."
The department's general fund budget grew by $26.6
million between FY06 and the FY15 Governor's Request
an average annual growth rate of 7.1 percent.
Growth since FY10 has been $4.0 million (1.2 percent
growth rate).
The department's ten year plan equates to an average
annual growth rate of 1.0 percent.
Ms. Harbour discussed slide 20, "Ten Year Plan- All Funds."
She explained that the red line represented the ten-year
plan, which showed a growth rate of 0.4 percent. If one
were to look at all funds over nine years, there would be a
growth rate of 1.9 percent. If one would look at all funds
over five years, there would be a negative 1 percent growth
rate. She likened that percentage to the fluctuations in
federal funds. The reason for the department's ten-year
plan showed a relatively flat rate was because DLWD did not
anticipate federal funds to grow.
Co-Chair Stoltze remarked that the private sector was not a
part of the department's process. He felt that the private
sector should be considered when determining workforce
development in every area. Commissioner Blumer replied that
DLWD had embarked on outreach to various industries. She
remarked that private industry did not always have the
luxuries to provide detailed outlines and financial needs,
but pointed out that she had recently made steps to
coordinate efforts with the private sector, because some
companies had felt neglected.
Co-Chair Stoltze wondered if the private sectors concern
over possible neglect was justified. Commissioner Blumer
replied that she could not comment.
1:58:56 PM
Co-Chair Stoltze remarked that Commissioner Blumer had
improved the relationship with the private sector. He felt
that DLWD could do even more to develop a relationship with
the private sector, in order to enhance training and job
placement.
Vice-Chair Neuman queried the cost per student at AVTEC.
Commissioner Blumer did not know.
Vice-Chair Neuman queried the cost of the welding program.
Commissioner Blumer deferred to Mr. Esposito.
FRED ESPOSITO, DIRECTOR, ALASKA VOCATIONAL TECHNICAL CENTER
(AVTEC), DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT,
agreed to provide that information. He stated that there
were various factors that went into determining the cost of
tuition per student.
Vice-Chair Neuman recalled that the cost of tuition was
approximately $23,000 for a six week program. Mr. Esposito
replied that the number was not accurate. He explained that
the combination welding program was made up of two parts.
He stated that the first part was an 18 week program of
structural welding, and the second part was a 14 week
program of pipe welding. He stressed that the tuition
depended on the program.
2:04:17 PM
Vice-Chair Neuman queried the ratio of state funding to
pupil funding. He wondered if it was 25 to one. Mr.
Esposito agreed to provide that information.
Vice-Chair Neuman wondered how the departments worked
together. He specifically queried the efforts to get people
to work, so there is not an increase in applications for
public assistance. Commissioner Blumer replied that there
were various programs that focused on different areas and
people in the state.
Vice-Chair Neuman stressed that more people needed to get
jobs in the state. He specifically wondered if there was a
systematic approach to examining areas of high
unemployment, or areas of high need of public assistance to
develop job training programs. Commissioner Blumer replied
the department examined those statistics and partnered with
many communities and private entities to put Alaskans to
work.
Co-Chair Stoltze wondered if Mr. Esposito came to Juneau to
assist the commissioner in the presentation. Commissioner
Blumer replied that Mr. Esposito was in Juneau for the
Alaska Workforce Investment Board meeting.
Representative Holmes looked at slide 10, and noted the
number of resident workers over time. She wondered how
Alaska Hire was faring as a percentage of the total
workforce. Commissioner Blumer deferred to Ms. Harbour.
Ms. Harbour responded that the non-resident worker count
totaled 83,488 in 2011, for an overall percentage of 20.1
percent of the workforce. She furthered that it had been
around 19 and 20 percent for the last several years.
Representative Holmes surmised that the workforce had been
steady, and staying roughly the same over the years. Ms.
Harbor agreed.
2:09:29 PM
Representative Gara remarked that he had understood that
there was a massive expanse of workers in the Cook Inlet
that came from outside of Alaska. He wondered how people
were getting trained to perform the jobs in the Cook Inlet.
He queried the efforts to fill those jobs with Alaskan
workers. Commissioner Blumer responded that the department
had been meeting with people in the Kenai. She stated that
there was an expectation of training for employment; and
remarked that the jobs become available and training could
not be completed as quickly as the jobs become available.
She stated that there were meetings to produce more workers
more quickly.
Representative Gara wondered if the efforts would make a
significant impact. He also wondered if there was a strong
effort to train the rural workers in Alaska. Commissioner
Blumer responded that there was a strong effort to train
Alaskans. She furthered that the grantees were encouraged
to train and employ Alaskans. She stated that the Job
Service Center in Kenai was very involved and engaged with
industry. She remarked that there had been strong focus on
the Kenai to determine what was needed and how to get the
Alaskans to work. She felt that many people in Kenai were
not utilizing the job center, so the job center had
recently engaged in outreach programs, independent visits,
and participating in many of the functions to learn the
actual needs of the Job Center in Kenai. She stressed that
the department was currently engaging in as much outreach
as possible.
2:15:53 PM
Co-Chair Austerman wondered if there should be more
training centers. Commissioner Blumer replied that there
should be more targeted training programs.
Representative Munoz remarked that the governor's education
proposal included a dual credit requirement for
institutions that receive Technical Vocational Education
Program (TVEP) money. She understood that UA already
provided dual opportunities for high school and post-
secondary education. She wondered how the regional training
centers would meet the requirement, and wondered if AVTEC
had formulated a plan to make programs available to high
school students. Commissioner Blumer responded that the
department would work closely with the regional training
centers. She explained that some training centers had
developed digital course work. She believed that, with
participation of the school districts, training centers,
and other departments AVTEC could provide some training for
high school students. She hoped to have a program similar
to the Running Start Program that Washington recently
enacted.
Mr. Esposito furthered that there were efforts by AVTEC to
provide high school level training via distance delivery.
He remarked that it was dual credited in most cases where
the school district allowed.
Representative Munoz wondered if there were major school
districts that do not participate in the program. She
wondered if there was a way to get the school districts
involved in the program. Mr. Esposito responded that AVTEC
was working 12 mostly rural school districts, and felt that
the digital learning network could enhance the partnership
with high schools.
Representative Munoz wondered what the $8 million for
project would be directed. Mr. Esposito responded that the
project was a three phase project: phase 1 was currently
underway to replace the diesel shop; and phase 2 would
replace the heavy equipment shop.
2:19:54 PM
Representative Guttenberg looked at slide 8. He remarked
that this was a nice trend downward, and he asked for more
information about the protection of workers.
GRAY MITCHELL, ASSISTANT COMMISSIONER, DEPARTMENT OF LABOR
AND WORKFORCE DEVELOPMENT, responded that it was a
combination effort with the private sector. He remarked
that the Alaska workers' compensation costs were the
highest in the nation. He stated that the department had
produced a program through consultation and training, which
had a very positive impact.
Representative Guttenberg wondered where the most effective
places that the reduction in lost time accidents. He asked
what the outline would look like, if it were broken down by
industry. Mr. Mitchell responded that there was a focus on
three primary industries: construction; transportation and
warehousing; and seafood processing. He stated that those
three categories had historically had higher than average
illness and injury rates in the work sites. He shared that
there had been tremendous improvements in construction, and
transportation and warehousing. He announced that the
previous year saw a flat result in seafood processing, but
if that number was compared to the last decade it had come
a long way. The department was focusing additional efforts
on seafood processing through a partnership with one of the
largest seafood processors in Alaska to develop a training
course that was designed specifically at the hazards
related to seafood processing.
Representative Wilson stated that she had written down the
members' questions, so those issues would be addressed in
subcommittee.
2:26:02 PM
Representative Costello remarked that there were work ethic
issues that some young workers faced. She wondered if the
department had people that were specifically assigned to
assisting high school students in how to perform in the
workplace. Commissioner Blumer responded that there were
career counselors that did not work in the schools, but
rather visited the schools.
Representative Costello wondered if she could connect the
department to a principal in her district in order to
coordinate a meeting with a career counselor. She stated
that the school currently had a volunteer to assist in
career counseling.
Vice-Chair Neuman shared that, according to Legislative
Finance, the unregulated general fund tuition ratio at
AVTEC was approximately 70 percent UGF and 30 percent
tuition. He furthered that UA was approximately $1 tuition
for every $1.28 in UGF. He remarked that there had been
discussions with UA regarding considerations of moving
AVTEC to UA's oversight. He wondered if the department had
ever engaged in conversations with UA about moving AVTEC to
UA. Commissioner Blumer replied that she had not engaged in
conversations with UA regarding that issue. She remarked
that AVTEC was currently reviewing their tuition rates to
compare them with other training centers to determine if
there was a program by program tuition increase. She felt
that some of the rural students found AVTEC more community,
because it was not an intimidating environment.
2:31:08 PM
^PRESENTATION: ALASKA MENTAL HEALTH TRUST AUTHORITY
2:32:03 PM
MIKE BARTON, CHAIR, BOARD OF TRUSTEES, ALASKA MENTAL HEALTH
TRUST AUTHORITY, introduced the PowerPoint presentation,
"Alaska Mental Health Trust Authority Presentation to House
Finance Committee; January 29, 2014" (copy on file).
Mr. Barton looked at slide 2, "Trustees."
Mike Barton, chair
Laraine Derr, vice chair
Paula Easley, secretary
William Doolittle, MD
Mary Jane Michael
Larry Norene
Russ Webb
Mr. Barton highlighted slide 3, "Trust Beneficiaries." He
outlined the Alaskan trust beneficiaries: 34,479 with
mental illness; 12,784 with developmental disabilities;
21,000 with chronic alcoholism or substance abuse disorder;
5,000 with Alzheimer's disease and related dementia; and
11,900 with a traumatic brain injury.
Mr. Baron displayed slide 4, "Guiding Principles."
Improve the lives of beneficiaries
-Education of the public and policymakers on
beneficiary needs
-Collaboration with advocates
-Maximize beneficiary input into programs
prioritize services for beneficiaries at risk of
institutionalization
-Useful and timely data for evaluation
-Include intervention and prevention components
-Provision of reasonably necessary beneficiary
services based on ability to pay
Mr. Barton discussed prioritizing principles. He noted that
useful and timely data for the beneficiary services was
crucial.
2:34:02 PM
Mr. Barton discussed slide 5, "Advisors and Partners."
Advisory Board on Alcoholism & Drug Abuse
Alaska Mental Health Board
Governor's Council on Disabilities & Special Education
Alaska Commission on Aging
Commissioners of:
-Health and Social Services
-Revenue
-Natural Resources
-Corrections
Alaska Brain Injury Network
Statewide Suicide Prevention Council
Alaska Court System
Mr. Barton looked at slide 6, "Trust Cash Assets - FY 13."
He listed the various components of cash assets managed by
the Permanent fund.
Mr. Barton discussed slide 7, "Trust Resource Portfolio."
He noted that the pie chart on the right displayed the need
to develop the minerals on the 45 percent.
Mr. Barton outlined slide 8, "FY 15 Available Income." He
stated that the prior year payout was not utilized. The
average income generated by the trust land office added to
a payout of over $26 million.
Mr. Barton highlighted slide 9: "Established Trust Focus
Areas."
Promoting change in systems to better serve Trust
beneficiaries in a cost effective manner
-Bring the Kids Home
-Disability Justice
-Housing
-Beneficiary Projects
-Workforce Development
2:39:06 PM
JEFF JESSEE, CHIEF EXECUTIVE OFFICER, ALASKA MENTAL HEALTH
TRUST AUTHORITY, introduced himself.
Mr. Jessee discussed slide 10, "Bring the Kids
Home…Investing Wisely." He noted that the contributions
from different departments allowed the trust to use the
funds previously used out of state to be used in Alaska
instead. The role of the trust was as to generate the
necessary capital. He noted that the program working in
other locations were then utilized in Alaska. He stated
that FY 15 was the last year of Bring the Kids Home
Program. He recalled that the Alaska Youth Industry was the
pilot program that identified certain issues. He stated
that upcoming data regarding expenditures could allow for
early intervention.
Co-Chair Stoltze stated that Lyda Green was the leader of
the effort.
Mr. Jessee agreed and provided further history of the
movement.
Mr. Jessee explained slide 11, "Disability Justice:
Investing Wisely?" He stated that the slide was presented
to the legislature in January, 2009. He remarked that the
dotted line in blue represented what would occur if the
legislature did not make any changes to behavioral health
issues. The red dotted line represented what would be done,
if there was an investment in a series of strategies to
"turn the curve" to reduce recidivism. He announced that
the legislature was currently following the blue line.
Mr. Jessee highlighted slide 12, "Clinical Characteristics
Trust Beneficiaries in the Department of Corrections"
(DOC). He announced that 42 percent of inmates in the DOC
were trust beneficiaries; 38 percent of all inmates could
qualify as beneficiaries, solely because of their alcohol
diagnosis; and 26 percent of all inmates could qualify as a
beneficiary based on their mental health diagnosis. He felt
that the slide provided a picture of the scope of dual
diagnosis, because there were many inmates who had both
mental health and substance abuse problems.
2:45:45 PM
Mr. Jessee discussed slide 13, "Trust Beneficiaries
Recidivism and Length of Stay." He stated that trust
beneficiaries stayed longer in DOC and recidivate at a
higher rate than those that were not trust beneficiaries.
He stressed that he wanted to work with the legislature to
turn the curve around.
Mr. Jessee highlighted slide 14, "Housing."
Bridge Home program targeting people exiting Alaska
Psychiatric Institute or Dept. of Corrections through
intensive community outreach project demonstrated
success in lowering these costs
Mr. Jessee stressed that the trust could not fund what it
took to take the larger programs to their full potential.
2:50:01 PM
Mr. Jessee looked at slide 15, "Supporting Existing
Infrastructure."
Behavioral health infrastructure is fragile
-Meyers and Stauffer study
-Behavioral health systems assessment
Grant reductions threatening stability
-Grants used to support Medicaid billing due to
lack of adequate reimbursement rates
-Grants intended for people without Social
Security/ Medicaid but are not able to cover
these services
-Organizations are not able to make it based on
current reimbursement methods and rates
Mr. Jessee discussed slide 16, "Safety net failure costs."
Cost of loss of key safety net service agencies in
communities is high
Fairbanks behavioral health agency closure:
10 Fairbanks residents relocated to Anchorage due
to lack of available services
Lost 5 units of housing for people with mental
illness (approximately 35 rooms/apartments)
42 jobs lost; prior employees lost accrued leave
and health coverage
700 people receiving services prior to closure of
old organization. Current number served approx.
300
More than $350,000 to re-start services (new
training and legal checks for retained staff,
supplies, mentor staff of new organization,
transfer of records, software licenses, etc.)
Mr. Jessee highlighted slide 17, "New Emphasis on: Long-
term Services and Supports."
Challenges
Population increases straining our long term
supportive services and safety net
Maintaining quality social services locally and
over time (workforce, financing challenges)
Preliminary strategies
Participate with DHSS' strategic planning efforts
Development of a statewide plan for services to
individuals with Alzheimer's disease and related
dementia
Support of lower cost services statewide (home-
based
care)
Mr. Jessee looked at slide 18, "New Emphasis on:
Beneficiary Employment."
Improving opportunities for:
Integrated employment and competitive wages
Self-sufficiency
Education & awareness
Mr. Jessee presented a video that highlighted the
importance of employing trust beneficiaries.
2:56:47 PM
Mr. Jessee shared that many employers had come to him to
express how well the trust beneficiaries were performing in
the work place.
Mr. Jessee looked at slide 19, "Current Projects."
Beneficiary Projects Initiative has made great
strides supporting peer support organizations and
workforce opportunities for beneficiaries across
Alaska
Microenterprise Grants
FY13- 24 grant recipients awarded totaling
$86,229 with an additional $112,429 in
leveraged funds
Mr. Jessee highlighted slide 20, "New focus on impacts of
alcohol and substance abuse."
Private/public partnership
Alignment with:
Recover Alaska
Mat-Su Health Foundation
-substance abuse and trauma emphasis
Alaska Wellness Coalition
- positive community norms campaign
Alaska Resiliency Partnership
Empowering Hope
3:01:57 PM
Mr. Jessee discussed slide 21, "Annual cost of alcohol in
Alaska: $1.2 billion economic impact." He remarked that the
McDowell Group had recently conducted a study on the annual
cost of alcohol to Alaska. They determined that the cost
was $1.2 billion in economic impact. He stressed that $670
million of that was considered lost productivity in the
work place. He felt that encouraging people to stop
overindulging in alcohol would have a very positive effect
on Alaska's economy.
Mr. Jessee looked at slide 22, "New focus on impacts of
alcohol and substance abuse."
Solutions must be comprehensive
Prevention
Harm reduction
Expansion of access to treatment
-Increased access
-Same day access & other efficiencies
-Patient Centered Medical Home
Enhanced tribal partnerships
Environmental strategies
-Title 4
Mr. Jessee highlighted slide 23, "Investing Wisely."
Complex Behavioral Collaborative
Prevent inappropriate and costly institutional
placements (API, correctional facilities, and
out-of-state placements)
Build capacity and expertise within the state to
serve individuals with complex behavioral needs
who have multiple disabling conditions
3:07:16 PM
Mr. Jessee discussed slide 24, "Outcomes of CBC."
FY 13: 14 participants discharged
FY 13: 76 percent participants avoided institutional
care
FY 14: 86 percent of FY funded
Mr. Jessee looked at slide 25, "FY 15 GF/ MH
Recommendations." He remarked that every recommendation was
intended to gain control of long-term spending. He stated
that the requests included the Complex Behavior
Collaborative; mental health clinical positions in DOC; and
traumatic and acquired brain injury case management. He
understood the frustration related the development of
programs and transferring the program funding to the GF. He
remarked that the slide represented the total request to
move from Mental Health funding to GF.
3:12:41 PM
Co-Chair Stoltze welcomed the trustees. He asked
specifically about the legalization of marijuana, and how
it might impact the mental health board. Mr. Barton
responded that there would probably be no impact on the
mental health board.
Co-Chair Stoltze wondered if there was a way that the board
planned to address the possibility of marijuana
legalization. Mr. Barton replied that the trustees had not
discussed the issue of marijuana, but felt that it could
fall under the category of substance abuse.
Representative Costello remarked that there were many
hearings, and appreciated the efforts of the Bring the Kids
Home Campaign.
Representative Gara remarked that there were individual
substance abuse treatment provider results, but requested
an overall need for substance abuse treatment. He queried
the capacity to treat those individuals who were already in
treatment. Mr. Jessee responded that the Behavioral Health
Systems Assessments would eventually provide that
information.
3:17:43 PM
RUSS WEBB, TRUSTEE, ALASKA MENTAL HEALTH TRUST AUTHORITY,
stated that there were no definitive answers. He shared
that many people were seeking treatment as a result of the
criminal justice system. He announced that there was,
virtually, a waiting list for everyone that was seeking
treatment. He shared that there could be a point when
someone is allowed to seek treatment rather than jail time,
and those individuals had a very high incentive to seek
treatment. He remarked that there was often a six-month
wait to enter treatment, so those individuals may have two
or three more offenses.
Representative Gara wondered if the Behavioral Health
System Assessments would provide a blueprint on how to
eliminate the wait-lists for those that desire treatment.
Mr. Webb responded that the goal was to provide much more
definitive answers. He remarked that the Mental Health
Trust was working hard to obtain the best information for
all Alaskans that seek behavioral health treatment.
Representative Gara looked at slide 25, and asked for more
information about the Early Intervention for Young Children
program. He also wondered if 38 percent of all incarcerated
people had an alcohol abuse problem. Mr. Jessee stated that
38 percent of incarcerated people would qualify as trust
beneficiaries, because of their alcohol addiction.
Representative Gara wondered how that was different than an
alcohol problem. Mr. Jessee responded the percentage of
people who were incarcerated because of an alcohol-involved
crime was much higher. He explained that a criminal who
commits a crime while under the influence of alcohol may
not have an alcohol addiction; so therefore, they would not
be a trust beneficiary.
Mr. Jessee explained that the Early Intervention for Young
Children program was intended to help day cares and
preschools hold on to the children that had high Adverse
Childhood Experience scores; have behavioral problems;
and/or were at risk of expulsion.
3:22:58 PM
Co-Chair Stoltze wondered how the impact of changing some
drug laws to misdemeanors would affect the board. Mr.
Barton replied that the trustees had not discussed that
impact specifically, but remarked that it would be a part
of the focus area. He stated that it would be discussed in
the area of substance abuse.
Mr. Webb furthered that the interest is the same whether
the crime is a misdemeanor or felony. He stated that the
difference may be what kind of person was convicted of the
crime. He stressed that, in his experience, whether a
person was convicted of a misdemeanor or a felony had no
impact on their choice to seek treatment.
Co-Chair Stoltze wondered if there was a greater incentive
to seek treatment if the drug crime were considered a
felony. Mr. Webb responded that he had been a probation
officer, and in his experience, a person responded the same
regardless of the level of the sentence.
Representative Edgmon felt that there would be many
questions regarding the marijuana and other drug issues.
HB 266 was HEARD and HELD in committee for further
consideration.
HB 267 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
3:28:14 PM
The meeting was adjourned at 3:28 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AMHTA Presentation HFIN 1-29-14.pdf |
HFIN 1/29/2014 1:30:00 PM |
|
| DOLWD Overview HFIN.pdf |
HFIN 1/29/2014 1:30:00 PM |
DOL Overview HFIN |
| HFIN DOLWD 1-29-14 Hearing Response.pdf |
HFIN 1/29/2014 1:30:00 PM |
Responses DOL Overview |
| AVTEC funding ratios (02-06-14 update).pdf |
HFIN 1/29/2014 1:30:00 PM |
DOL Responses Overview |
| AVTEC Costs per student.pdf |
HFIN 1/29/2014 1:30:00 PM |
DOL Responses Overview |