Legislature(2017 - 2018)HOUSE FINANCE 519
02/16/2018 01:30 PM House FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB284 || HB285 || HB286 || HB321 | |
| HB176 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 284 | TELECONFERENCED | |
| += | HB 285 | TELECONFERENCED | |
| += | HB 286 | TELECONFERENCED | |
| += | HB 321 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 176 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 16, 2018
1:33 p.m.
1:33:24 PM
CALL TO ORDER
Co-Chair Seaton called the House Finance Committee meeting
to order at 1:33 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 Dan Ortiz
Representative Lance Pruitt
Representative Cathy Tilton
Representative Tammie Wilson
MEMBERS ABSENT
Representative Scott Kawasaki
Representative Steve Thompson
ALSO PRESENT
Pat Pitney, Director, Office of Management and Budget,
Office of the Governor; Neil Steininger, Chief Budget
Analyst, Office of Management and Budget, Office of the
Governor; Representative Adam Wool, Sponsor; Rob Earl,
Staff, Representative Adam Wool; Rich Etheridge, Juneau
Fire Chief, Juneau Fire Department; Kathie Wasserman,
Executive Director, Alaska Municipal League.
PRESENT VIA TELECONFERENCE
Scott Clough, Alaska Fire Chiefs, Portland, Oregon; Bill
Howell, Bethel Fire Department, Bethel; Jim Styers,
Fairbanks Fire Chief, Fairbanks; Alex Boyd, Anchorage Fire
Department, Anchorage; Margaret Brodie, Director of Health
Care Services, Department of Health and Social Services.
SUMMARY
HB 176 GROUND EMER. MEDICAL TRANSPORT PAYMENTS
HB 176 was HEARD and HELD in committee for
further consideration.
HB 284 APPROP: CAPITAL BUDGET
HB 284 was HEARD and HELD in committee for
further consideration.
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.
HB 321 APPROP: SUPPLEMENTAL OP.; FUND; AMENDING
HB 321 was HEARD and HELD in committee for
further consideration.
HOUSE BILL NO. 284
"An Act making appropriations, including capital
appropriations, supplemental appropriations,
reappropriations, and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
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."
HOUSE BILL NO. 321
"An Act making supplemental appropriations and other
appropriations; making an appropriation to capitalize
a fund; amending appropriations; and providing for an
effective date."
1:34:36 PM
PAT PITNEY, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, introduced herself.
NEIL STEININGER, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT
AND BUDGET, OFFICE OF THE GOVERNOR, reviewed the details of
the handout, "FY2019 Amendments to HB 286/ SB 144 / HB 284
/ SB 142 / HB 321 / SB 168" (copy on file):
Line 2:
CHIP Reauthorization
The United States Congress re-authorized the
Children's Health Insurance Program (CHIP) and the
reauthorization was signed into law on January 25,
2018. CHIP reauthorization maintains the 88% enhanced
federal match rate through federal fiscal year 2019,
starting in federal fiscal year 2020 the enhance match
rate will be stepped down over two years until it
reaches 65% in federal fiscal year 2021.
Line 5:
Reapprop for Newtok - Mertarvik Community Development
- NTE $960,000
The Newtok Village Council is coordinating with the
Denali Commission to bring critical housing to the
community of Mertarvik. This project will match
federal Denali Commission funds of $3.84 million to
refurbish, ship, and install 13 barracks available on
Joint Base Elmendorf-Richardson to Mertarvik. The
barracks will be converted into 4- bedroom residences
and will add to the current housing stock of eight
existing homes in Mertarvik.
Line 6:
Reapprop for Enhanced Rural Safety - Est $899,711
This provides additional funding to respond to the
rural public safety crisis and continues to advance
the goals of the State's Public Safety Action Plan.
The Governor is working with the Departments of Law
and Public Safety, as well as institutions and rural
leadership most directly involved and affected, and
will seek innovative solutions to rural public safety
needs. The funding is requested in the Governor's
Office to denote the priority of solving this issue
but also allows distribution to the department that is
most able to address the specific issue. Law, Labor,
Public Safety, and Commerce could each play a part in
addressing these pressing needs.
Representative Wilson asked if the funds were out of the
general funds (GF).
Mr. Steininger responded that they were reappropriation
dollars from the GF for a capital project.
Representative Pruitt wondered asked the original location
of the reappropriated funds.
Mr. Steininger replied that it was a reappropriation from
the Susitna-Watana project.
Mr. Steininger relayed that those were the total of
negative $7 million in GF through the supplemental request.
Vice-Chair Gara asked for clarification, and surmised that
they were amendments to the 2019 budget.
1:38:36 PM
Mr. Steininger continued with the amendments:
Line 10:
Align Information Service Fund Receipts Replace
interagency receipts with Information Service Fund.
This is a technical adjustment to align the Office of
Information Technology's (OIT) budget with the most
appropriate fund source.
Line 11:
The one new Research Analyst I/II/III flex (Range
13/16/18) position will serve as a liaison to school
districts by providing technical assistance and
support for the additional data that will be
collected. In addition, this position will provide
more longitudinal and comparability data analysis
using existing and new datasets. This position will
work across divisions within the department and
increase the reporting capacity of the data management
team.
Line 12:
Add General Fund Program Receipt Authorization for the
Mt. Edgecumbe Aquatic Center In order for the state to
accept entrance fees, and other event fees, at the new
Mt. Edgecumbe High School (MEHS) Aquatic Center,
general fund program receipt (GF/PR) authorization
must be added to the MEHS Facility Maintenance budget
structure.
Representative Wilson looked at line 10, and queried the
total money in the Information Service Fund. She also
queried the age of the fund.
Ms. Pitney replied that the fund was set up around the
prior information technology organization, so the fund may
have been around for 15 years. She shared that there was an
oversight of having interagency receipt authority. She
remarked that the Information Services Fund was the same
type of money, but from an accounting change, there were
statutory rules that focused on the information technology
needs. She remarked that it was a technical accounting
change, because there was an inadvertent use of interagency
receipts. She shared that the number was the annual
anticipated operating cost.
Representative Wilson queried the total in the fund.
1:41:59 PM
Mr. Steininger continued with the amendments:
Line 13:
Establish Children's Services Safety Officer
The primary duties of the Safety Officer would include
safety policy development, workplace inspections,
accident investigations, training and coaching,
regulatory compliance, safety data management and
reporting, and workspace modification.
Line 14:
Security Guards for Kenai and Fairbanks Recent threats
and incidents has led to a growing concern for workers
safety. Security guards will be used to prevent crime,
maintain security, assist clients and employees, and
lead safety meetings and drills.
Representative Pruitt wanted to better understand the
structure of funding. He wondered if $129 was required for
matching.
Mr. Steininger replied that the Office of Children's
Services (OCS) had cost allocation plans. He shared that it
was not a direct matching requirement. He explained that
the collection of federal revenue was more dependent on the
types of children in care, and the types of activities
performed by the case workers and employees.
Representative Pruitt asked about the number of people that
would be hired.
Mr. Steininger responded that there would be one person in
the Safety Officer position; and the security guards in
Kenai and Fairbanks would be contracted through a security
firm.
Representative Pruitt wondered whether the $72,000 of
federal funds would be lost, should there be no GF funds.
Mr. Steininger replied that they would not be able to
collect the federal funds with the general funds.
Representative Wilson wondered how much authority was given
for the federal funds. She surmised that, because of the
complicated calculation, the state may not lose the federal
funding. She stressed that there was a maximum available to
each state, and Alaska may almost be at that maximum.
Ms. Pitney replied that five years prior, there were not as
many qualified families under the 4E. She explained that
the program had a much higher federal rate. She stated that
the request balanced it to what was eligible to fund, and
the balance of the state and federal funds. She remarked
that the federal funds were increasing over time, because
there was more eligibility in the 4E area versus those in
the GF.
Representative Wilson felt that it was about the number of
people enrolled in the program, and not about how many
positions were hired.
Ms. Pitney agreed. She stated that the request was a
balance of funding that would allow the contract for the
individuals, given the other commitments in that operation.
1:47:57 PM
Vice-Chair Gara understood that it was not federal money
that would be taken from other use. He felt that there was
room for additional federal funds, as the positions were
added.
Ms. Pitney agreed.
Co-Chair Seaton wondered whether it was a maintenance of
effort amount, rather than a direct federal match
percentage.
Ms. Pitney responded in the negative, and explained that it
was the amount covered in the contract amount.
Mr. Steininger continued with the amendments:
Line 15:
New Positions to Address Increased Caseloads
During FY2013 the average monthly caseload for an
eligibility technician was 569 while FY2017 is
estimated at 676. This is an increase of 18.80
percent. 41 additional positions would allow the
division to reduce the average monthly caseload per
technician and address the growing backlog.
Representative Wilson wondered whether the request was
within the same department that removed public assistance
to fund other workers.
Mr. Steininger replied that the adult public assistance
program was within the Division of Public Assistance. He
explained that the request was for Public Assistance field
services, which were people who determined eligibility for
programs like SNAP, Medicaid, and other similar programs.
Vice-Chair Gara shared that there were nearly a dozen
public assistance programs that the workers would
administer. He surmised that the request was related to the
federally funded or partially federally funded public
assistance backlog.
Mr. Steininger replied in the affirmative.
Representative Pruitt felt that the goal was to have an
influx of people to eliminate the backlog. He felt that 41
positions was more than what would be needed in the long-
term. He wondered whether the intent was to reduce the
numbers, or whether 41 was expected in perpetuity.
Ms. Pitney responded that there was a period of time as the
backlog grew, when the Alaska Mental Health Trust Authority
(AMHTA) filled several positions on a temporary basis to
help address the backlog. She stated that there was more
progress than the current situation. She anticipated that
the positions would be needed in the short-term, of three
to five years. She furthered that, if there were systems
and simplifications of processes, there would be room for
savings. She did not anticipate that the positions would
only be one or two years.
1:54:47 PM
Representative Pruitt asked how the total numbers would
change in terms of percentages. He wondered if the
department had any openings in the department.
Ms. Pitney answered that the department had openings at
present, with 6 to 7 percent increase. The vacancy rate was
higher than expected. The department needed to hire
vacancies and filling the 41 positions.
Representative Guttenberg thought it was great that the
department was getting back to adequate numbers He asked
if the department was doing anything else to ensure they
stay a long time.
Ms. Pitney did not have specifics on the particular
department.
Representative Tilton asked about the considerations taken
up in the subcommittee process.
Ms. Pitney replied that any additions in the budget were
scrutinized at a tedious level. She stressed that there had
been several reviews of the department.
2:00:54 PM
Vice-Chair Gara stated that the department wanted
additional positions. He stated that the department had
lower paying employees work overtime, which led to a 40
percent burnout rate within the first year.
Mr. Steininger continued:
Line 16:
Alaska Geospatial Council
The Alaska Geospatial Council has been funded by a
capital project that will exhaust all funds by March
2019. This allows the council and its services to
continue through the end of FY2019.
Ms. Pitney added that the last capital project started at
the end of 2015. She explained that the council began in
the early 2000s to bring the department mapping resources,
needs, and priorities under one statewide umbrella. She
stated that the request put it through the next year, with
anticipation that it would continue.
Representative Guttenberg queried the purpose.
Ms. Pitney answered that there were 3 to 4 main costs. She
explained that there was a contract with a mapping provider
that leverages money from the federal government. She
stated that it was about $400 thousand spent on an annual
basis
Mr. Steininger relayed that the total of operating
amendments was $2.652 million in UGF; $2.334 million in
federal funds; and $250,000 in DGF.
2:05:54 PM
Mr. Steininger continued with the amendments:
Line 19:
FY2019 Transfer Balance of the Mining Loan Fund No new
loans have been made from the mining loan fund since
1986 and no appropriations have been made from the
fund since FY2004. As such, the balance of this fund
is available to be transferred to the general fund.
Line 20:
FY2019 Transfer Balance of the Alternative Energy
Conservation Revolving Loan Fund No new loans are
being made from the alternative energy conservation
revolving loan fund and no appropriations have been
made from the fund since FY2004. As such, the balance
of this fund is available to be transferred to the
general fund.
Line 21:
FY2019 Transfer Balance of the Investment Loss Trust
Fund (Shows as Revenue) The balance of the investment
loss trust fund (AS 27.09.010) as of June 30, 2019,
estimated to be $2,298,862, is appropriated to the
general fund.
Line 22:
FY2019 Transfer Investment Earnings on Bond Proceeds
of the Northern Tobacco Securitization Corp (Shows as
Revenue) The amount of investment earnings on the bond
proceeds of the Northern Tobacco Securitization
Corporation as of June 30, 2019, estimated to be
$231,773, is appropriated to the general fund.
Line 23:
FY2019 Transfer Balance of The Municipal Capital
Project Matching Grant Fund (Shows as Revenue) The
balance of the Municipal Capital Project Matching
Grant Fund (AS 37.06.010) as of June 30, 2019,
estimated to be $253,500, is appropriated to the
general fund.
Line 24:
FY2019 Transfer Balance of The Unincorporated
Community Capital Project Matching Grant Fund (Shows
as Revenue) The balance of the Unincorporated
Community Capital Project Matching Grant Fund (AS
37.06.020) as of June 30, 2019, estimated to be
$646,200, is appropriated to the general fund.
Representative Pruitt wondered whether all of the items
were sunsetting.
Ms. Pitney replied that the only program that was not
sunsetting was the Norther Tobacco Securitization; and the
Investment Loss trust fund. She stated that those were
funds that were available to be deposited.;
Representative Pruitt acknowledged the work of
Representative Tilton.
2:09:20 PM
Mr. Steininger continued with the amendments:
Line 28:
Fairbanks PM2.5 Nonattainment Area Voluntary Heating
Device Change Out Program
This project continues a voluntary heating device
change-out program for residents in the Fairbanks
North Star Borough's fine particulate matter (PM2.5)
serious nonattainment area. The program is aimed at
minimizing particulate matter emissions and improving
air quality in the Borough. The Borough has the
highest recorded levels of PM2.5 in the nation.
Federal grant funds have been applied for from EPA
through the Targeted Air Shed Program.
Line 29:
Seismic Data Collection
Recent federal government actions opened the 1002 area
of the Arctic National Wildlife Refuge (ANWR) to oil
and gas leasing, exploration and development.
Availability of seismic data will improve interest in
exploring for oil and gas within the 1002 area. This
funding allows the state to work with other interested
parties to provide seismic data which will enhance
state revenue from lease sales and decrease time to
drilling and production.
Line 30:
National Petroleum Reserve - Alaska Impact Grant
Program This request amends the original Governor's
FY2019 capital budget request by adding $10,233,376
for a new requested total of $11,611,722. This change
is due to updated revenue estimates for FY2019, which
results in FY2019 National Petroleum Reserve - Alaska
(NPR-A) recommended awards to communities being higher
than the estimate provided in the original Governor's
FY2019 capital request. The NPR-A program provides
grants to communities for public facilities and
services. Priority is given to those communities
directly or severely impacted by the leases and
development of oil and gas within the NPR-A. Funding
comes from the federal government as a share of the
funds received on leases issued within NPR-A.
Line 31:
North Slope Borough - Monitoring Waterfowl in the NPR-
A This request amends the original Governor's FY2019
capital budget request by adding allocation level
funding of $337,550.00. This change is due to the
timing of approval of individual National Petroleum
Reserve Alaska grants. This project provides support
to the North Slope Borough Department of Wildlife
Management to monitor population trends in waterfowl
that will build upon a study that has been ongoing for
over fifteen years. This grant will fund labor, fringe
benefits, contractual, materials, supplies, freight,
travel, and 25% administration.
Line 32:
North Slope Borough - Area-Wide Air Quality Study This
request amends the original Governor's FY2019 capital
budget request by adding allocation level funding of
$1,187,500. This change is due to the timing of
approval of individual National Petroleum Reserve
Alaska grants. The purpose of this project is to
collect base line data on air quality in areas that
are currently not developed by oil and gas industry.
This grant will fund labor, fringe benefits,
contractual, material, supplies, travel, and 25%
administration.
Line 33:
North Slope Borough - Monitoring Nearshore Fish and
their Habitats in the NPRA This request amends the
original Governor's FY2019 capital budget request by
adding allocation level funding of $562,500. This
change is due to the timing of approval of individual
National Petroleum Reserve Alaska grants. This
project provides support to the North Slope Borough
Department of Wildlife Management (DWM) to conduct
studies on the abundance and health of nearshore
fisheries in the NPR-A region. DWM will work with
local subsistence fisherman and collect samples across
lagoon and nearshore subsistence waters to assess the
abundance and distribution of fishes and characterize
their biological and physical habitat.
Line 34:
City of Nuiqsut - Youth Center Operations and
Maintenance This request amends the original
Governor's FY2019 capital budget request by adding
allocation level funding of $267,826. This change is
due to the timing of approval of individual National
Petroleum Reserve Alaska grants. This project is to
continue operations and maintenance of the youth
center. Grant funds are requested for labor, fringe
benefits, supplies, freight, maintenance, repairs,
fuel oil, communications, utilities, cultural camps,
and special events.
Line 35:
City of Nuiqsut - Local Government Operations and
Maintenance This request amends the original
Governor's FY2019 capital budget request by adding
allocation level funding of $949,203. This change is
due to the timing of approval of individual National
Petroleum Reserve Alaska grants. This project will
provide continued funding for local government
operations and maintenance for the city of Nuiqsut.
Grant funds are requested for labor, fringe benefits,
office equipment purchase, materials, supplies,
travel, maintenance, communications, utilities, fuel
oil, and insurance.
Line 36:
City of Wainwright - Youth Program This request amends
the original Governor's FY2019 capital budget request
by adding allocation level funding of $289,272. This
change is due to the timing of approval of individual
National Petroleum Reserve Alaska grants. This
project will continue the Youth Program established in
2005, which provides a safe and drug-free environment
with adult supervision for youth ages 6-18 years old.
Grant funds will be used for labor, fringe benefits,
insurance, contractual services, recreational
materials, supplies, utilities, communication, and
building maintenance and repairs.
Line 37:
City of Wainwright - Local Government Operations This
request amends the original Governor's FY2019 capital
budget request by adding allocation level funding of
$499,251. This change is due to the timing of approval
of individual National Petroleum Reserve Alaska
grants. This project is to provide continued
operations and maintenance necessary to successfully
operate the local government of Wainwright. Grant
funds will go towards labor, fringe benefits,
insurance, contractual services, communications,
utilities, travel, materials, supplies, and
maintenance and repairs.
Line 38:
North Slope Borough - Monitoring Fish in the Colville
River for Presence of Water Mold (Saprolegnia) This
request amends the original Governor's FY2019 capital
budget request by adding allocation level funding of
$187,500. This change is due to the timing of approval
of individual National Petroleum Reserve Alaska
grants. This project will monitor broad whitefish,
especially for presence of mold, on the Colville River
by recording catch from subsistence caught specimens
and deploy real-time data loggers to monitor
temperature on the river in six locations from break-
up to October. Grant funds will pay for labor, fringe
benefits, contractual services, materials, supplies,
freight, travel, and 25% administration.
Line 39:
City of Atqasuk - Local Government Operations and
Youth Program This request amends the original
Governor's FY2019 capital budget request by adding
allocation level funding of $393,061. This change is
due to the timing of approval of individual National
Petroleum Reserve Alaska grants. This project is to
supplement the operations and maintenance costs
necessary to successfully operate the local government
of Atqasuk and provide continued services to
residents, including the Youth Program. Grant funds
will pay for labor, fringe benefits, insurance,
professional services, travel, utilities,
communications, maintenance and repairs, materials,
and supplies.
Line 40:
City of Nuiqsut - Kisik Center Maintenance Project
This request amends the original Governor's FY2019
capital budget request by adding allocation level
funding of $192,035. This change is due to the timing
of approval of individual National Petroleum Reserve
Alaska grants. This project will repair the Kisik
Community Center HVAC system, as well as fund general
maintenance to the facility such as electrical,
plumbing, and mechanical. Grant funds will be used for
contractual services and building materials.
Line 41:
City of Anaktuvuk Pass - Local Operations and
Community Center Upgrades This request amends the
original Governor's FY2019 capital budget request by
adding allocation level funding of $571,535.44. This
change is due to the timing of approval of individual
National Petroleum Reserve Alaska grants. This
project is to support the general operations and
renovation activities of the city of Anaktuvuk Pass,
enabling the city to continue to build capacity for
effective and efficient local government operations
during a period of increased NPR-A related oil and gas
development.
Line 42:
North Slope Borough - Community Winter Access Trails
(CWAT) This request amends the original Governor's
FY2019 capital budget request by adding allocation
level funding of $3,576,798. This change is due to the
timing of approval of individual National Petroleum
Reserve Alaska grants. This project is to establish
the North Slope Borough Winter Access Trails, develop
permits, agreements, protocol with regulatory agencies
and industrial users that will allow for local
community use. Grants funds are requested for
contractual services, equipment purchase, materials,
supplies, freight, travel, contingency and 25%
administration.
Line 43:
City of Utqiagvik - Repair of the City of Utqiagvik's
Shop Subfloor and BCI Support This request amends the
original Governor's FY2019 capital budget request by
adding allocation level funding of $160,000. This
change is due to the timing of approval of individual
National Petroleum Reserve Alaska grants. This
project is to replace the old shop floor by installing
BCI support and all new subfloors at the city's
maintenance shop. Grant funds are requested for
contractual services, materials, supplies, and
freight.
Line 44:
City of Utqiagvik - Local Government Operations This
request amends the original Governor's FY2019 capital
budget request by adding allocation level funding of
$1,890,000. This change is due to the timing of
approval of individual National Petroleum Reserve
Alaska grants. This project is to continue operations
including city council, administration cost,
maintenance department, business licensing, Department
of Motor Vehicles, taxicab regulation services,
alcohol registration services, concessions,
scholarship expenses, and recreational activities.
Line 45:
City of Utqiagvik - Purchase of New John Deere Loader
This request amends the original Governor's FY2019
capital budget request by adding allocation level
funding of $400,000. This change is due to the timing
of approval of individual National Petroleum Reserve
Alaska grants. This project will be used to purchase a
loader. Grant funds are requested for equipment
purchase and freight.
Line 46:
City of Utqiagvik - Purchase of New Tent for Existing
Hockey Facility This request amends the original
Governor's FY2019 capital budget request by adding
allocation level funding of $147,690. This change is
due to the timing of approval of individual National
Petroleum Reserve Alaska grants. This project is to
purchase a tent cover for the hockey and curling
facility. Grant funds are requested for material,
supplies, and freight.
2:11:42 PM
Representative Wilson asked about line 28. She wondered
whether the $4 million would allow the borough to look for
the grant, or whether there was another grant for the
changeout program of $4 million awaiting an appropriation.
Ms. Pitney responded that it was not in hand but was
eminent.
Representative Wilson asked whether it had the same
restrictions.
Ms. Pitney agreed to provide that information.
Co-Chair Seaton asked that
HB 284 was HEARD and HELD in committee for further
consideration.
HB 285 was HEARD and HELD in committee for further
consideration.
HB 286 was HEARD and HELD in committee for further
consideration.
HB 321 was HEARD and HELD in committee for further
consideration.
2:13:44 PM
AT EASE
2:14:18 PM
RECONVENED
HOUSE BILL NO. 176
"An Act relating to medical assistance reimbursement
for ground emergency medical transportation services;
and providing for an effective date."
2:14:18 PM
REPRESENTATIVE ADAM WOOL, SPONSOR, explained HB 176. He
stated that the bill allowed reimbursement to local fire
departments and emergency medical transport providers to
get more fully reimbursed when transporting a Medicaid
payment. He stated that, currently, the maximum
reimbursement was $400 for an ambulance ride, but the
service cost more than $400 to the departments. He stated
that it allowed for the Department of Health and Social
Services (DHSS) to apply for reimbursement from the federal
government. He explained that many states had similar
allowments. He noted that currently, the response services
were only compensated a fraction of the cost, so this bill
allowed for 50 percent more of the funding.
Representative Wilson queried more information about the
numbers.
Representative Wool replied that $600 was mission. He
stated that the provider would send in $300 to the state;
the state would apply and receive $600 from the federal
government; and $600 would be returned to the department,
with a net of $300.
Representative Wilson asked who was paying for the other
$400.
Representative Wool responded that Medicaid paid for the
$400. He stated that typically Medicaid was paid for with
50 percent from the state and 50 percent from the federal
government.
Representative Wilson surmised that $1000 would be charged
for the ambulance. The first $400 would come from the state
Medicaid program. She stated that, once the other $600 was
sent, the state would pay an additional $300 and another
$300 from the federal government. She wondered whether the
$600 totally came from the federal government.
Representative Wool replied that the entire $600 would come
from the federal government. He deferred to other
testifiers for more information.
2:20:38 PM
ROB EARL, STAFF, REPRESENTATIVE ADAM WOOL, returned to the
example of the $1000 ambulance ride. He explained that the
first $400 would be paid through state Medicaid, which was
funded divided in half between the state and federal
government. He stated that there would be a $600 non-
reimbursed cost, so the provider would submit their non-
federal match of $300 to DHSS. He explained that DHSS would
then receive $300 from the federal government, and would
return the entire $600 to the provider. Therefore, the
provider would net $300.
Representative Wilson wondered about the 20 percent
administrative fee.
Mr. Earl responded that the administrative fee could be up
to 20 percent of the entire transport cost.
Representative Wilson wondered whether there was a cap, so
the department could not go higher than 20 percent.
Mr. Earl replied that there was a state plan amendment that
DHSS would apply for federal Medicaid. He stated that, at
that state, the 20 percent was able to be added to the
provider's costs. Then they could apply for the larger
reimbursement.
Representative Guttenberg felt that the example "low-balled
the cost." He queried a maximum allowable amount for
reimbursement. He wondered whether there was a need to
include medivac air transport.
Representative Wool reported that they would be adding air
and water transport to the bill. He stated that Alaska had
many remote areas. He did not believe that there was a
maximum allowable reimbursement, because the transport of
longer hauls was expensive.
2:25:10 PM
Vice-Chair Gara supported the concept of the bill. He felt
that the fiscal note showed that of the $21 million annual
cost to the state, $11 million would come directly from the
federal government and the other $10 million would be some
form of statutory designated receipts. He queried the state
cost of the bill.
Representative Wool responded that the $21 million was not
a cost, rather it was a net gain to the state. He stated
that $11 million of that gain was from the federal
government, and $10 million was from the providers.
Co-Chair Seaton asked for a bubble flow chart. He thought
it would make it easier to follow the numbers. He asked for
an example to be included.
Representative Wool agreed to provide that information.
Representative Grenn wondered whether there would be a
change in percentage depending on a cost change.
Representative Wool believed there was no change in the
percentage based on cost of service.
Representative Pruitt wondered whether there was a general
fund expenditure.
Representative Wool responded affirmatively. He indicated a
person to manage the program would be paid for with GF
dollars.
Representative Pruitt remarked that the Anchorage Fire
Department would send the state $300, which would be
submitted to the federal government, and the full $600
would be returned to the fire department. He surmised that
the concept was that the fire department would receive $300
from the federal government. He wondered why the federal
government would want to participate in the program.
Representative Wool replied that the example was correct.
He stated that there was something in federal law that
required the federal government to make those payments.
Representative Pruitt wondered whether the other states
required the local community to go through the state to
access the federal money; or would the state take on the
role to request all. He queried the number of states that
had the program, and how the models compared to the bill.
Representative Wool replied that California, Washington,
Montana, Nevada, Texas, and Florida had similar programs in
place. He furthered that Oregon, Nebraska, Kansas, and
Illinoi had pending programs. He deferred to Mr. Clough for
more states' information.
2:32:44 PM
SCOTT CLOUGH, ALASKA FIRE CHIEFS, PORTLAND, OREGON (via
teleconference), stressed that the program was not a new
program. He shared that it was an entitlement program that
was part of Title 19 of the Social Security Act. He stated
that every state participated in the program in some form.
He shared that the concept was in effect in Alaska. He
remarked that there was no limit to the program, in the
reimbursement section. He stated that as an entitlement
program, it was a cost-based program. He shared that other
Medicaid programs had an upper payment limit (UTL), but the
UTL was tied to cost in this program. He used California as
an example, and remarked that the cost per transport in the
larger cities were approximately $500 to $600. He stated
that, conversely, there were remote areas in California
that saw transport costs of $4000 to $5000 on the federal
program. He stressed that the cap was the cost of the
transport service. He noted that the program was an
opportunity for the local government to share in the
federal government's Medicaid program. He shared that, if
an agency had a $1000 cost of transport, they would
currently receive Medicaid funds from the state for $400.
He furthered that there was an uncompensated cost of $600.
He shared that, instead of the state participating in
federal financial participation, local government would be
allowed to participate in federal financial participation
at the same rate. He remarked that 50 percent of the
uncompensated cost was the non-federal share was the
partnership of the fire department and the federal
government. He stated that the federal government would
match the 50 percent.
2:37:50 PM
Mr. Clough shared that the program was voluntary and the
individual local government providers were asking to
participate. Therefore, there could not be an expenditure
to the state. He shared that the state may need to hire a
full-time equivalent (FTE) employee for program oversight,
but the cost of that hire must be paid for by the
participating parties. He stressed that there would never
be exposure to the GF. He agreed to provide some
illustrations to help describe the 20 percent. He stressed
that the state had the right to charge a fee for the
services, because the program was voluntary. He explained
that the fee was arbitrary as it related to the cost of the
charge. He stated that Indiana charged 27 percent and
California charged 20 percent. He stated that the 20
percent fee was a cost associated with the ambulance
transport.
2:41:58 PM
RICH ETHERIDGE, JUNEAU FIRE CHIEF, JUNEAU FIRE DEPARTMENT,
stressed that fire departments across the state were seeing
unprecedented calls for service and decreasing revenues. He
stressed that the call volume in the Juneau Fire Department
increased 16 percent the year prior, and the year prior it
increased 14 percent. He furthered that the call volume had
already increased 10 percent from the year prior, so there
was no expectation of flattening the call volume. He shared
that the bill would help to make up the debt portion of the
budget. He remarked that he estimated that Juneau would
receive approximately $500,000, which was enough money to
put another ambulance into service.
2:45:18 PM
Co-Chair Seaton queried the percentage of Medicaid runs,
compared to the total.
Mr. Etheridge responded that Medicaid runs were
approximately 25 percent of the call volume. He furthered
that smaller communities with larger Medicaid population,
the Medicaid runs could be 80 percent or 90 percent of
their call volume. He shared that the Juneau Fire
Department saw approximately 5000 incidents per year, and
80 percent of those 5000 incidents were medical calls.
Co-Chair Foster OPENED Public Testimony.
KATHIE WASSERMAN, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL
LEAGUE, spoke in support of the bill. She stressed that the
bill allowed for the municipalities to access needed funds
through other avenues. She shared that the money was
revenue neutral, so there would be no cost to the state.
Vice-Chair Gara shared that he did not recall receiving an
email from his community on their stance on the bill. He
noted that each communities' tax caps were different. He
wondered whether the bill would raise the revenue to the
municipality, if Anchorage were to leverage $3 million.
Ms. Wasserman answered that she thought it most communities
would put the money in their general fund, and then pass it
to the fire department to cover those costs.
Vice-Chair Gara stressed that he was a cosponsor of the
bill.
Representative Wilson felt that the bill would be positive
for every community. She assumed that the City of Anchorage
would apply the money to their general fund, because the
city "took care of their police departments and fire
stations." She stated that it was different than the
Fairbanks North Star Borough, because there were "fire
service areas." She wondered whether there was that
distinction in the bill.
Ms. Wasserman replied that each community would participate
differently in the program.
2:50:24 PM
BILL HOWELL, BETHEL FIRE DEPARTMENT, BETHEL (via
teleconference), testified in support of the legislation.
He stated that the bill would match what the fire
department had as its discretionary budget. The department
had a conservative estimate of a cost of $1,200 per
ambulance run, and they were losing money annually from
Medicaid runs. He remarked that the Bethel Fire Department
provided an important public service and were looking at
ways to provide training and keep the service going. He
asked the committee to pass the legislation.
2:53:01 PM
JIM STYERS, FAIRBANKS FIRE CHIEF, FAIRBANKS (via
teleconference), spoke in favor of the bill. He detailed
that the bill would impact the city and its citizens. The
state's budget situation was trickling down and impacting
municipalities. He was fully supportive of the bill.
2:55:32 PM
ALEX BOYD, ANCHORAGE FIRE DEPARTMENT, ANCHORAGE (via
teleconference), spoke in support of the bill. He announced
that the Anchorage Fire Department was seeing a 38 percent
increase in transports. He stated that, currently, they
were answering 28 thousand transports in the City of
Anchorage. The costs were going up while the support was
going down.
Representative Pruitt asked if Mr. Boyd saw any impact
based on the tax cap.
Mr. Boyd responded that he was unfamiliar with how the
collection of the funds would impact the tax cap, but felt
that there may potential to relieve the tax encumbrances by
alleviating some of the potential bond propositions.
Representative Pruitt had not heard this information from
anyone in the community. He did not want to unknowingly
cause any other challenges.
2:58:44 PM
Co-Chair Foster CLOSED Public Testimony.
Co-Chair Foster asked that amendments be turned into his
office by the following Tuesday.
Co-Chair Seaton asked if Ms. Brodie was available for
questions.
Co-Chair Seaton wondered whether the program treated
regular Medicaid patients and Medicaid expansion patients
in the same manner.
MARGARET BRODIE, DIRECTOR OF HEALTH CARE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES (via
teleconference), responded that the patients were treated
the same. She furthered that the department received a
higher federal match for the Medicaid expansion population.
Co-Chair Seaton wondered whether there would be a higher
match for the Medicaid expansion client in the program.
Ms. Brodie replied that there would not be a charge of 50
percent regardless of the client. She stated that there
would be an examination of the claims, and then there would
be an appropriate match request.
Co-Chair Seaton queried the percentage for the match
portion for the transport for the Medicaid expansion
patients.
Ms. Brodie responded that the department would apply the
same match requirements as the original claim paid out.
Representative Guttenberg wondered how the bill would apply
across the state, because of the different systems of
emergency medical transport.
Ms. Brodie replied that it would be anyone who provided the
match for the unpaid share. She stressed that all the
entities already enrolled in the Medicaid program, and met
all the other requirements.
3:03:35 PM
Representative Guttenberg indicated that the concern was
the tax cap for various communities. He surmised that there
would not be a detrimental effect of every entity, should
they not file for the program.
Ms. Brodie agreed.
Vice-Chair Gara noted that the only state cost was for the
administrative position, which would be reimbursed by fees.
Ms. Brodie relayed that there were no state funds, because
the match would be provided through the fees.
Vice-Chair Gara indicated there had been some testimony
that the fee could be capped at a lower amount. He noted
that the department would not charge more than was needed
for the position.
Ms. Brodie replied in the affirmative. She stated that the
department would only charge the amount of the costs, which
were currently 0.28 percent.
Representative Wilson understood that the bill did up to 20
percent.
Ms. Brodie responded, "That's correct."
HB 176 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster relayed the agenda for the following
meeting on Monday, February 19, 2018.
ADJOURNMENT
3:06:03 PM
The meeting was adjourned at 3:06 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DHSS Review WDR-HB176-2-6-18.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 176 |
| HB176 Sponsor Statement 2.13.18.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 176 |
| HB176 Additional Documents - HB 176 GEMT Summary 2.13.18.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 176 |
| HB176 Supporting Documents - LTRs of Support 2.13.18.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 176 |
| Combined_Budget_Amendments_Detail_Backup_2-13-18.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 284 HB 286 |
| HB 286 HB 284 FY2019 Combined Amendment Summary and Detail.pdf |
HFIN 2/16/2018 1:30:00 PM |
|
| HB 286 HB 284 FY2018_Supplemental_Summary_Feb_13.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 284 HB 286 |
| HB 286 HB 284 FY2019_Amendment_Summary_Feb_13.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 284 HB 286 |