Legislature(1999 - 2000)
10/27/2000 01:00 PM Senate BUD
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
JOINT COMMITTEE
LEGISLATIVE BUDGET AND AUDIT
October 27, 2000
1:00 P.M.
MEMBERS PRESENT
Representative Gail Phillips, Chair
Representative Con Bunde
Representative Eric Croft
Representative Gary Davis (present by teleconfernce)
Representative Gene Therriault
Representative Eldon Mulder (alternate)
Senator Randy Phillips, Vice Chair
Senator Al Adams
Senator Rick Halford
Senator Gary Wilken (present by teleconference)
Senator Drue Pearce (alternate)
MEMBERS ABSENT
Senator Sean Parnell
COMMITTEE CALENDAR
APPROVAL OF MINUTES - August 18, 2000
PRESENTATION-TELECOMMUNICATIONS SERVICES
REVISED PROGRAM RECEIPTS
EXECUTIVE SESSION
AUDIT REPORTS
OTHER COMMITTEE BUSINESS
WITNESS REGISTER
PAT HARTLEY, Legislative Assistant
to Representative Gail Phillips
345 W. Sterling Highway, Suite #102 B
Homer, Alaska 99603
Telephone: (907) 235-2921
DAVID TEAL, Director - (Testified via Teleconference)
Division of Legislative Finance
State Office Building, Sixth Floor
Juneau, Alaska 99811
Telephone: (907) 465-3002
POSITION STATEMENT: Introduced the RPL's.
PAT DAVIDSON, Director
Division of Legislative Audit
State Office Building, Sixth Floor
Juneau, Alaska 99801
Telephone: (907) 465-3830
POSITION STATEMENT: Addressed Audit Reports
KAREN MORGAN, Acting Director
Chief Technology Officer
Information Technology Group Department of Administration
PO Box 110206
th
5 Floor, State Office Building
Juneau, AK 99811-0206
Telephone: (907) 465-2220
POSITION STATEMENT: Spoke to the Telecommunication Services
LARRY WALSH
Information Technology Group
Department of Administration
PO Box 110206
th
5 Floor, State Office Building
Juneau, AK 99811-0206
Telephone: (907) 465-2220
POSITION STATEMENT: Spoke to the Telecommunication Services
FRED ESPOSITO, Director - (Testified via Teleconference)
Alaska Vocational Technical Center
Department of Education and Early Development
PO Box 889
Seward, Alaska 99664-0889
Telephone: (907) 224-3322
POSITION STATEMENT: Testified on RPL 05-1-0617
KAREN REHFELD, Director - (Testified via Teleconference)
Division of Administrative Services
Department of Education and Early Development
th
801 W 10 Street, Suite #200
Juneau, Alaska 99801-1894
Telephone: (907) 8650
POSITION STATEMENT: Testified on RPL 05-1-0617
JANET CLARKE, Director - (Testified via Teleconference)
Division of Administrative Services
Department of Health and Social Services
PO Box 110650
Juneau, Alaska 99811-0650
Telephone: (907) 465-3082
POSITION STATEMENT: Testified on RPL 06-1-0137 & 06-1-0145
JEFF JESSEE, Executive Director - (Testified Teleconference)
Alaska Mental Health Trust Authority
Department of Revenue
th
550 W. 7 Avenue, Suite #1820
Anchorage, Alaska 99501
Telephone: (907) 269-7963
POSTION STATEMENT: Testified on RPL 06-1-0144 & 41-1-0031
TOM LAWSON, Director - (Testified via Teleconference)
Division of Administrative Services
Department of Community & Economic Development
P.O. Box 110803
Juneau, Alaska 99811-0803
Telephone: (907) 465-2505
POSITION STATEMENT: Testified on RPL 08-1-0061
PAT POLAND, Director
Division of Community and Business Development
Department of Community & Economic Development
th
550 W. 7 Avenue, Suite #1790
Anchorage, Alaska 99501-3510
Telephone: (907) 269-4580
POSITION STATEMENT: Testified on RPL 08-1-0061
DEBORAH TENNYSON, Local Government Specialist
Dillingham Regional Office
Department of Community & Economic Development
P.O. Box 790
Dillingham, Alaska 99576-0290
Telephone: (907) 842-5135
POSITION STATEMENT: Testified on RPL 08-1-0061
MARK BARKER, Supervisor
Fire Service Training
Department of Public Safety
5700 E. Tudor Road
Anchorage, Alaska 99507-1225
Telephone: (907) 269-5789
POSITION STATEMENT: Testified on RPL 12-1-0083
ACTION NARRATIVE
TAPE 00-8, Side A
CHAIR GAIL PHILLIPS called the Joint Committee on
Legislative Budget and Audit meeting to order at 1:00 P.M.
on October 27, 2000. Members present at the call to order
were Representatives Gail Phillips, G. Davis, Therriault,
Mulder and Senators Randy Phillips, Adams, Halford, Pearce
and Wilken via teleconference.
Representatives Bunde and Croft arrived later during the
meeting.
APPROVAL OF MINUTES
CHAIR PHILLIPS noted that the first order of business would
be the approval of the minutes from the Legislative Budget
th
and Audit Committee meeting held August 18, 2000.
SENATOR PHILLIPS MOVED to approve the minutes and asked for
unanimous consent. There being NO OBJECTION, the minutes
were approved and adopted.
PRESENTATION - TELECOMMUNICATION SERVICES
KAREN MORGAN, Acting Director, Chief Technology Officer,
Information Technology Group, Department of Administration,
introduced Larry Walsh from the Department of Administration
involved with the program.
LARRY WALSH, Information Technology Group, Department of
Administration, voiced his appreciation to be able to
testify before the Committee on the scope of this major
project.
KAREN MORGAN provided an overview of the handout, "Overview
of the State of Alaska Telecommunications Partnering Project
- A Comprehensive Solicitation for Telecommunications
Services". [Copy on File].
Ms. Morgan pointed out that the handout would address the
size of the project, reasons that the State has undertaken
the project, structure, participating agencies, objectives,
scope, timeline and anticipated success factors.
The project is large and will amount to approximately $22
million dollars. Currently, the State spends about $22
million dollars annually on telecommunications. That amount
includes long distance costs, satellite transport costs,
network, Internet services and many other items.
Ms. Morgan noted that the Department of Administration began
changing the present system about a year and half ago. She
enumerated reasons that the Department chose to undertake
the project:
· Partner with one prime contractor for end-to-end
communications;
*Simplify procurement of telecommunications
services and products;
*Reduce contract/vendor management
complexity; and to
*Increase access to advanced
telecommunications services that are readily
available on the market.
· To obtain cost effective telecommunications
services; and
· Encourage vendor build-out of high speed, advanced
telecommunications services to non-state entities
and residents through:
*Recognition of the State's role as an
anchor-tenant; and
*Offering access to state telecommunication
microwave (SATS) assets to vendors through a
competitive process.
Ms. Morgan pointed out that the State hired a consultant;
the Gardner Group Consulting Firm was hired in January 2000
and has worked closely with the Department of Administration
in developing the requested proposal. Ms. Morgan listed the
participating agencies that had been consulted:
· All the Executive Branch Agencies
· Alaska Court System
· Alaska State Legislature
· University of Alaska
· Permanent Fund Corporation
· Alaska Railroad.
SENATOR R. PHILLIPS asked if Alaska Industrial Development
and Export Authority (AIDEA) and the Alaska Housing Finance
Corporation (AHFC) had been contacted.
KAREN MORGAN explained that they had been interviewed and
that they have the option to "buy" from the contract. She
listed the primary objectives of the project, which would
expand Alaska's telecommunications partnership to the
private sector:
· Support the communications requirements of client
agencies including the integration of rural
locations;
· Accommodate enhanced communications services and
bandwidth growth rates;
· Minimize cost by leveraging existing systems and
resources;
· Maintain flexibility to incorporate new
products/solutions as they emerge;
· Identify the most cost effective approach to
provide superior, statewide telecommunications
services.
Ms. Morgan commented that the current State's procurement
process is not quick. The Department is hoping to build
more flexibility in the system.
Ms. Morgan itemized the mandatory requirements for the scope
of the request for proposal (RFP). She indicated that the
requirements had been listed in "bundles".
· Bundle 1 - Wired telephony services including
basic and enhanced local services; long distance
and toll free services and audio teleconferencing.
· Bundle 2 - Data Network Services including the WAN
connectivity and Internet access.
· Bundle 3 - Video services including video
teleconferencing.
· Bundle 4 - Paging services including statewide
paging systems and the private vendor provided
paging.
· Bundle 5 - Cellular Services.
· Bundle 6 - Satellite Transport Services.
· Bundle 7 - Support Services which would include
the network monitoring and management; centralized
help desk for problem resolution and inter service
coordination, and integrated data security.
· Bundle 8 - SATS-microwave system including
management and operations and maintenance and
repair.
· Bundle 9 - Satellite telephony services.
· Bundle 10 - Satellite earth-station maintenance
and repair.
Ms. Morgan advised that the timeline was aggressive and
noted that the events and the milestones had been listed in
the handout.
SENATOR R. PHILLIPS asked the number of responses received
to date.
KAREN MORGAN clarified that the proposals were not due until
th
December 15, 2000. She pointed out that there were over
eight typed pages of questions and noted that there has been
a lot interest. She emphasized that one state contractor
would not be able to meet all the State's needs.
CHAIR GAIL PHILLIPS advised that it had been mandatory that
all the agencies be included.
KAREN MORGAN stressed that it was mandatory that all
agencies buy services from the contract with the exception
of those agencies that are precluded from statute at this
time. She indicated, it is anticipated that the evaluation
th
will be completed by February 15, 2001, and that the
th
contracts will be awarded by March 15, 2001. It is
expected that the implementation phase will take up to
ninety days.
Ms. Morgan listed the key success factors:
· A cost effective approach to accommodate increased
demand for new services;
· A genuine desire to form a strategic partnership;
· Careful consideration of current and future needs;
· Willingness to consider alternative approaches;
· Adequate resource commitment;
· Awareness of impact in rural communities;
· Appropriate consideration for affected State
employees; and
· Sensitivity to unintended consequences.
CHAIR GAIL PHILLIPS requested that Ms. Morgan provide an
update of the project at the next scheduled Legislative
Budget and Audit (LBA) meeting.
REVISED PROGRAMS (RPLs)
DAVID TEAL, Director, (Testified via Teleconference),
Division of Legislative Finance, explained the RPLs before
the Committee.
RPL Number: 04-1-0017
Department of Revenue
ASPIB Bank Custody and Management Fees
WITHDRAWN
RPL Number: 05-1-0617
Department of Education and Early Development
Alaska Vocational Technical Center Operations
$275.0 Statutory Designated Program Receipts (SDPR)
DAVID TEAL explained that the original request was for $150
thousand dollars, however, that fund source is not eligible
for LBA consideration. The Office of Management and Budget
(OMB) resubmitted the request for statutory designated
program receipts. He noted that the $150 thousand dollars
would have been combined with the $125 thousand dollars that
was already budgeted for that type project.
Mr. Teal explained that the purpose of the funding would
provide Alaska Vocational Technical Center Operations
(AVTEC) use of the funds from the First Alaskans Foundation
(formerly AFN Foundation) to provide two education and
training programs for construction/management training and
foundation skills.
Without the additional authority, AVTEC cannot provide the
services during the current school year. AVTEC was not
aware of the availability of the funds during the previous
legislative session. He added that grants were applied for
in July 2000 and that the award had been made in August
2000. Existing positions would be used to deliver the
services to comply with the grants.
SENATOR WILKEN asked if the money was restricted for use by
Native students only.
FRED ESPOSITO, Director, Alaska Vocational Technical Center,
Department of Education and Early Development, Seward,
Alaska, (Testified via Teleconference), stated that the
Native Alaskans are targeted for these funds, but that they
were not exclusionary. He noted that the funds would be used
in rural Alaska and would be targeting all students,
recruiting them into the programs. Regardless, all
interested parties will be enrolled into the programs.
SENATOR WILKEN asked about the receipt-supported services.
He questioned if there had been discussion to change those
to statutory designated program receipts.
DAVID TEAL acknowledged that was correct and that receipt
supported services was one of the fund sources that would
affect HB 418, which would convert several funds to other
groups. The Department was unaware that those services were
not eligible for LBA consideration.
SENATOR R. PHILLIPS asked if there was adequate space for
all applicants.
FRED ESPOSITO replied that there is additional classroom
space available and room to provide the services.
SENATOR R. PHILLIPS asked if there were any other similar
groups associated with AVTEC.
FRED ESPOSITO explained that there are certain situations
where other groups will contract with AVTEC to provide
services for other constituents.
SENATOR R. Phillips questioned the selection criteria used.
FRED ESPOSITO noted that if a student was interested in
applying, they would call the AVTEC admissions office and
request information and/or an application for enrollment.
SENATOR HALFORD noted that if the program is totally funded
by AFN, they should be the ones who decide who is chosen.
He questioned if the Committee intended to indicate that
private individuals or a minority group could not contract
with a State entity to provide a service for that group.
REPRESENTATIVE G. DAVIS agreed that the record had gotten
complicated.
REPRESENTATIVE BUNDE inquired why the issue was being
debated as the money belongs to a private organization.
CHAIR GAIL PHILLIPS explained that it is money that is going
into a State public institution.
KAREN REHFELD, Director, Division of Administrative
Services, Department of Education and Early Development,
Juneau, Alaska, (Testified via Teleconference), offered to
answer any questions of the Committee.
REPRESENTATIVE BUNDE asked the "rush" for the funding. He
asked if it could wait until the new legislative session.
KAREN REHFELD commented that if the request was not
addressed at this time, the services would not be offered
this school year.
SENATOR RANDY PHILLIPS MOVED to approve RPL #05-1-0617.
CHAIR GAIL PHILLIPS asked that a roll call vote be taken on
the MOTION.
IN FAVOR: Representatives Therriault, Bunde, G. Davis,
Croft, Chair Phillips
Senators Adams, R. Phillips, Halford, Wilken,
Pearce
OPPOSED: 0
Representative Mulder and Senator Parnell were not present
for the vote.
The MOTION PASSED (10-0).
RPL Number: 06-1-0137
Department of Health and Social Services
Energy Assistance Program
$2,954.5 Federal Funds
DAVID TEAL explained that these funds would be used as a
special emergency supplement made available in response to
sharp increases in heating fuel costs and to the western
Alaska fisheries disaster. Residents of communities
affected by the fish disaster may receive as much as $2,000
per household. The funds would be used to increase the
number of households that can receive assistance up to
8,600. Last winter 7,300 households received an average
grant amount of $643 dollars.
Mr. Teal noted that the funds are available immediately and
are 100% federally funded. The Department seeks authority
to disburse funds to the Energy Assistant Program receipts
quickly in order to pay for this winter's fuel.
Denial of the RPL could delay receipt of the federal funds
available to low income Alaskans for heating fuel cost
relief. However, previous years' payment patterns and the
FY01 to date expenditures indicate that the already approved
expenditure authority of $5.5 million dollars could suffice
through March 2001. April has traditionally been the
highest expenditure month and current authorization will not
last through April.
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, (Testified via
Teleconference), commented that she would answer specific
questions of the Committee regarding the RPL.
SENATOR R. PHILLIPS asked where the 1,300 households were
located.
JANET CLARKE advised that those households were located in
the areas in Alaska that are not served by the tribal
grantees. The program is statewide. She believed that over
half of the numbers were located in the Anchorage area. The
funds would be used primarily for the heating assistance
program, not for weatherization. To qualify for the
program, a family would need to be low income and
responsible for paying heating costs, either directly or
indirectly through their rent. Low income would be
determined by 150% of the Alaska poverty level which depends
on the household size. A family of three with an annual
income of $26,000 dollars or less would qualify.
REPRESENTATIVE THERRIAULT asked if there was a compelling
reason for the Department to take action now. He believed
that last year's supplement could carry the program through
March.
JANET CLARKE reiterated that the request was a larger amount
than last year and management of the federal funds is
causing concern. The first funds would be used for the
elderly and disabled. The first payment is scheduled for
st
November 1 in the amount of $650 thousand dollars. There
is federal authority to cover that expenditure, however, the
State does not have the federal receipts at this time for
the grant award, which is not unusual. Program managers
prefer to have the cash in order to pay the bills, as that
is better business policy.
REPRESENTATIVE BUNDE asked if federal or State law had
declared the Western Alaskan fisheries disaster.
JANET CLARKE replied that it was a disaster declared by
Governor Knowles.
REPRESENTATIVE BUNDE inquired if a person did not live in a
disaster area, would they receive a larger portion of funds.
JANET CLARKE replied that the 8,600 figure was the number of
households, not the amount received.
(Tape Change, LBA 00-8, Side 2).
JANET CLARKE indicated that the recipients typically have
high fuel costs. The $643 dollars would be an average
statewide figure. The grants in Anchorage and Mat-Su are
typically lower as they have natural gas heat. The grants
average from $200 dollars to $2500 dollars under the regular
program.
SENATOR ADAMS MOVED to approve RPL #06-1-0137. There being
NO OBJECTION, it was approved.
RPL Number: 06-1-0143
Department of Health and Social Services
General Community Mental Health Grants
$64.2 MHTA Authorized Receipts
DAVID TEAL explained that the RPL requests authority to
receive and expend $64,200 of Mental Health Trust Authority
Authorized Receipts (MHTAAR) to support the continuation of
itinerant counseling services for deaf and hearing impaired
consumers in rural areas throughout the State. The program
had been scheduled to end at the close of FY00. The Arc of
Anchorage felt that the program was critical to addressing
the needs of deaf citizens in rural Alaska and asked that
MHTA consider continuing funding for two more years while
the Arc of Anchorage manages the program and obtains other
funding to make it financially self-sufficient.
He added that it is expected that all funding would be spent
in the grant line in the General Community Mental Health
Grants component. The FY02 budget request will reflect the
need for increased MHTAAR grant funding for services. Mr.
Teal noted that according to the Department, no GF/MH are
currently allocated for these services and no GF/MH would be
replaced in FY01 or FY02.
If the program does not acquire financial self-sufficiently
by FY03, 35.0 GF/MH and 65.0 GF/MH in FY04 may be requested.
He added that no new positions would be requested as part of
the request.
REPRESENTATIVE THERRIAULT questioned if there had been any
indication given that the entity would expect GF/MH funds in
the future. He noted his support for the request, however,
stressed that it should not indicate future support.
SENATOR ADAMS MOVED to approve RPL #06-1-0143. There being
NO OBJECTION, it was approved.
RPL Number: 06-1-0144
Department of Health and Social Services
Governor's Council on special Education
& Developmental Disabilities
$95.8 MHTA Authorized Receipts
DAVID TEAL commented that the funds would be used for the
continuation and completion of two projects authorized in
the Council's FY00 budget. The Alaska Mental Health Trust
Authority (AMHTA) for continuation in FY01 has approved both
projects. Both projects are designed to address barriers
that keep people with disabilities from working.
The purpose of the employment initiatives project ($47.5) is
to develop and implement a program to provide vocational
service providers with the tools to assist disabled persons
to secure and keep employment without negatively impacting
their long-term support and health care requirements. The
project specifically addresses lack of knowledge or use of
work incentive programs and lack of comprehensive vocational
services.
Mr. Teal continued, for those who are eligible, the
Developmental Disabilities Medicaid Waiver System broadens
some income restrictions and provides a much broader range
of services than are available under the general Medicaid
program. An independent study of the waiver system was
completed in 1999 that identified methods to improve the
efficiency of the DD Medicaid Waivers and additional ways to
maximize federal receipts to provide community based
developmental disability services. The requested funds
($48.3) would be used to complete implementation of some of
the study recommendations such as streamlining the billing
process, conducting a management review and time study of
the waiver procedure, and preparing a "desk manual" for use
by community programs.
REPRESENTATIVE BUNDE asked where the funds would lapse.
DAVID TEAL advised that these were FY00 monies that were
being carried forward into FY01. The funds would lapse back
to Mental health.
JEFF JESSEE, Executive Director, Alaska Mental Health Trust
Authority, Department of Revenue, Anchorage, (Testified via
Teleconference), reiterated that these were FY00 dollars
being moved forward for the project. If the dollars are not
approved, they would lapse back into the trust fund, which
would cause an interruption to the project.
REPRESENTATIVE THERRIUALT acknowledged support of past
actions taken by the trust.
SENATOR ADAMS MOVED to approve RPL #06-1-0144. There being
NO OBJECTION, it was approved.
RPL Number: 06-1-0145
Department of Health and Social Services
Governor's Council on Special Education &
Developmental Disabilities
$300.0 Federal Receipts
DAVID TEAL noted that the request was the same component as
the above request with different fund sources. The funding
would be used to better meet the needs of working people
with disabilities and complement existing Alaska Works
activities to address the major barriers that keep people
with significant disabilities from working. The barriers
include fear of losing health benefits, financial
disincentives, general lack of knowledge or use of existing
work incentive programs, lack of comprehensive vocational
services, fragmented services and limited work
opportunities.
The overall goals of the project would be to improve
Alaska's current Medicaid buy-in program and ensure an array
of Medicaid services that most directly support working
Alaskans with disabilities. According to the Department,
over two thirds of Alaskans with disabilities are
unemployed, sixty percent of those individuals have
indicated a desire to work. Although one third of Alaskans
with significant disabilities are working, they are more
likely to work part-time than full-time. Nearly half of the
individuals said they would like to work more hours if that
option were available to them.
Mr. Teal highlighted the budgetary issues. He noted that
the total amount of the federal grant from the Health Care
Financing Administration (HCFA) was available through
December 2004 in the amount of $2.1 million dollars.
$300,000 was requested for the remainder of FY01 and an
increment would be requested in the FY02 budget. There
would be no impact on the general fund and that the project
would end when the federal funding ends. Six new employees
would be hired and continued funding would be requested in
the Council's FY02 budget. He concluded that there was no
anticipated impact on indirect cost recovery or fees for
services.
JANET CLARKE responded to a question by Representative G.
Phillips. She stated that the funds would be 100% federally
funded positions and that they would go away at some point.
SENATOR ADAMS MOVED to approve RPL #06-1-0145. There being
NO OBJECTION, it was approved.
RPL Number: 06-1-0146
Department of Health and Social Services
Community Mental Health Grants
WITHDRAWN
RPL Number: 08-1-0046
Department of Community & Economic Development
Alaska Aerospace Development Corporation
$17,7.0 Federal Receipts
DAVID TEAL advised that the request included three projects,
one for a long-range safety system. The system would track
a launch vehicle once it is outside the immediate range.
Though the Primary Range System would be located at the
Kodiak Launch Complex (KLC), the Department is looking at
locations along the Alaska coastline to locate the system.
The second project would be funding for the infrastructure
improvements and equipment required to support the needs of
potential KLC users. The expenditures could range from
tools to a security system. The last of the projects would
be monies for a communication system. The expenditures
would be necessary to support launches in 2001 and 2002.
The expenditures are intended to be for purchases of
equipment and for contractual services for installation.
REPRESENTATIVE THERRIAULT mentioned that the State has been
successful in accessing the Kodiak launching structure by
using federal dollars. The State then gets the authority to
use the equipment for private contractors.
REPRESENTATIVE MULDER MOVED to approve RPL #08-1-0046.
There being NO OBJECTION, the RPL was approved.
RPL Number: 08-1-0060
Department of Community & Economic Development
Community & Business Development
WITHDRAWN
RPL Number: 08-1-0061
Department of Community & Economic Development
Community and Business Development
$7,000.0 Federal Receipts
DAVID TEAL explained that the request would address funds
for a federal disaster declaration. Due to an 86% reduction
in the Opilio crab harvest, Secretary Daley declared a
federal commercial fishery failure of Opilio crab for
communities in the Pribilof Islands and East Aleutian area
of the Bering Sea. Department of Community & Economic
Development has applied for funds available from the U.S.
Department of Commerce, National Marine Fisheries Service
(NMFS) under Section 312 of the Magnuson-Stevens Fishery
Conservation and Management Act.
The Pribilof Island and East Aleutian Bering Sea Disaster
Grant consists of three components designed to address the
commercial fishery failure. The projects are a community
grants program, a loan program and a coordinated response
partnership project. The Department would administer the
program by establishing sub grants with local communities,
tribal councils, and non-profit entities in the regions by
providing loans to fishermen and by establishing the
coordinated response partnership project.
Mr. Teal continued, funding was not anticipated until after
the disaster declaration which occurred at the end of the
last legislative session. The projected date for receipt of
the federal funds was October 2000 and if the RPL is
delayed, funds to the affected communities and fisherman
would be delayed.
REPRESENTATIVE THERRIAULT asked if the $127,167 dollars was
existing general fund authorization which had been re-
routed.
TOM LAWSON, Director, Division of Administrative Services,
Department of Community & Economic Development, Juneau
(Testified via Teleconference), stated that it was funds
already earmarked for rural areas of the State and that it
was being rerouted.
REPRESENTATIVE THERRIAULT asked if these employees would
receive new work duties or would they instead quantify some
of the expenditures to use as the match.
PAT POLAND, Director, Division of Community and Business
Development, Department of Community & Economic Development,
replied that they would have responsibilities for serving
the communities becoming more focused on particular aspects.
He clarified that there would be no shifting of money from
one entity to another.
REPRESENTATIVE MULDER questioned why new State employees
would be added.
PAT POLAND explained that the Department was there to
basically administer the response to the relatively new
federal program, the Magnuson-Stevens Fishery. As a
consequence of that, there tends to be a high degree of
oversight and more accountability asked for in order to
monitor the expenditures. He mentioned that it would be a
36-month program and that the two new positions would "go
away" at the end of the first six months.
REPRESENTATIVE THERRIAULT voiced confusion with the hiring
of new employees.
PAT POLAND stated that the portion of the funding coming out
of the match would come out of the salaries paid to the
State employees. The two new hired persons would be paid
for separately.
SEANATOR PEARCE asked about the federal government
administrating the program (comments inaudible).
PAT POLAND replied that the federal government does not view
itself as a granting agency. There is concern that
substantial amounts of money would end up elsewhere if the
project were turned over to the feds.
DEBORAH TENNYSON, Local Government Specialist, Dillingham
Regional Office, Department of Community & Economic
Development, mentioned that there was a definite interest by
Senator Stevens to have the funds goes to the regions that
were heavily impacted. He intended that the funds be
administered by the State of Alaska.
SENATOR WILKEN asked if the qualification criteria had been
established.
DEBORAH TENNYSON advised that the local match must be non-
federal funds. There is an opportunity for involvement with
private enterprise. The local corporations and regional
corporations may be able to provide some of the match. The
match can be either cash or in-kind. In response to Senator
Wilken, Ms. Tennyson stated that it is not anticipated that
general fund monies would be used to seek the match.
REPRESENTATIVE CROFT (comments inaudible).
PAT POLAND noted that it was anticipated that a loan program
would result. About forty of the participants live in
Alaska and the others are in the states of Washington and
Oregon. The programs would be a very low interest loan
program.
DEBORAH TENNYSON added that interest would be a low as one
could imagine.
SENATOR R. PHILLIPS asked if individuals would be receiving
any money.
PAT POLAND clarified that the permit holders would be
eligible to apply for up to $1500 dollars.
SENATOR HALFORD pointed out that the overwhelming portion of
the program would be for projects in the communities. He
stressed that the permit holders were a very small piece of
the package in a $7 million dollar program.
SENATOR PEARCE interjected that there are 140 permit holders
and that only 40 of them live in Alaska. She asked if those
40 permit holders living in the State would be eligible to
qualify for more than the $1500 dollars.
PAT POLAND responded that the same opportunity would be made
available to everyone. He added that the in-state permit
holders were not always residents of the particular
communities from which they fish around the State.
DEBORAH TENNYSON maintained that only about five of the
permit holders were residents of their specific areas.
SENATOR ADAMS MOVED to approve RPL #08-1-0061.
SENATOR PEARCE OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Representatives G. Davis, Croft, G. Phillips
Senators Adams, Halford, Wilken
OPPOSED: Representative Therriault
Senators R. Phillips, Pearce
Representatives Bunde and Mulder and Senator Parnell were
not present for the vote.
The motion PASSED (6-3).
RPL Number: 11-1-0302
Department of Fish and Game
Special Projects
$124,465 Statutory Designated Program Receipts (SDPR)
DAVID TEAL testified that the requested funding would
provide additional statutory designated program receipt
authority for non-federal wildlife conservation grant
projects. The Department underestimated the amount of
contractual money that they would receive. Without the
funds, the project could be interrupted for a full year.
SEANTOR R. PHILLIPS MOVED to approve RPL #11-1-0302. There
being NO OBJECTION, it was adopted.
RPL Number: 12-1-0083
Department of Public Safety
Fire Service Training
$119,600 Federal Receipts
DAVID TEAL explained that the requested funding would
encompass two projects: $94.0 dollars of the funds would be
used to conduct training for local emergency response
agencies for anti-terrorism; and $25.0 dollars would be used
for grants for fire training.
CHAIR GAIL PHILLIPS asked if the fire training would be done
in Kenai.
MARK BARKER, Supervisor, Fire Service Training, Department
of Public Safety, commented that the training could be done
at the prison-training center in Kenai, however, the
Department is planning on doing it throughout the State at
each location.
SENATOR ADAMS MOVED to approve RPL #12-1-0083. There being
NO OBJECTION, it was adopted.
RPL Number: 41-1-0031
Alaska Court System
Trail Courts
$75.0 MHTA Authorized Receipts
DAVID TEAL pointed out that the request was for case
management funding for the Court Coordinated Resources
Project. The services would be provided in conjunction with
the Department of Corrections. The program has been running
for about a year with no funding and the Court System argues
that there are a substantial number of potential
beneficiaries not receiving services because of the limited
resources.
JEFF JESSEE interjected that this project resulted from a
spontaneous effort put forth by Judge Stephanie Rhoades in
Anchorage. The group was unsuccessful in receiving a Bureau
of Justice grant. He pointed out that this would become the
third Mental Health Board in the country.
SENATOR ADAMS MOVED to approve RPL #41-1-0031. There being
NO OBJECTION, it was approved.
EXECUTIVE SESSION
SENATOR PHILLIPS made a motion, in accordance with Title 24
and 44, to move to Executive Session for the purpose of
discussing audit reports, which are held confidential by
law. There being NO OBJECTION, the Committee went into
Executive Session at 2:50 P.M.
CHAIR GAIL PHILLIPS requested that Pat Davidson (Legislative
Auditor) and Pat Hartley (Legislative Budget and Audit
Legislative Assistant) attend the Executive Session.
The Committee resumed Open Session at 3:15 P.M.
(Tape Change, LBA 00-9, Side 1).
AUDIT REPORTS
SENATOR R. PHILLIPS MOVED that the final audits on the
agenda be released to the public:
· OG/Alaska Human Rights Commission
· DEED/DLWD-Little Davis Bacon Act
· DCED/AEA/AIDEA-4 Dam Pool
· DFG/Board of Fish-Selected Operational Practices
There being NO OBJECTION, the four final audits were
released to their respective Departments for public view.
SENATOR R. PHILLIPS MOVED that the following preliminary
audits be released for agency response:
· DOR/AHFC Interest Rates
· DOR/AHFC Demolition
· DCED/Board of Veterinary Examiners
· DCED/Board of Public Accountancy
· DCED/Board of OT/PT
· DCED/Board of AELS
· DCED/Board of Barbers and Hairdressers
· DEC/Board of Storage Tank Assistance
· DNR/FY00 Departmental
· DOTPF/AMHS FY00 Departmental
· DOC/AK Correctional Industries
There being NO OBJECTION, the preliminary audits were
released to the respective agencies for further work.
AUDIT REQUESTS
PAT DAVIDSON, Director, Division of Legislative Audit,
advised that the first audit request came from
Representative John Harris. The request asks for a review
of the grants issued to Deltona Community Corporation by the
Department of Community & Economic Development through the
unincorporated community capital project matching grant
program (AS 37.06.020).
The second audit was submitted by Senator Dave Donley
requesting a review of compliance with AS 22.05.140(b). The
statute requires that salary warrants may not be issued to a
justice of the Supreme Court until the justice has filed an
affidavit that no matter referred to the justice for opinion
or decision had been uncompleted or undecided by the justice
for a period of more than six months.
CHAIR GAIL PHILLIPS asked if there was objection to
undertaking the audit requested by Representative Harris.
There being NO OBJECTION, the audit investigation was
accepted.
CHAIR GAIL PHILLIPS asked if there was any objection in
moving forward with the audit request submitted by Senator
Donley. There being NO OBJECTION, the audit investigation
was accepted.
OTHER COMMITTEE BUSINESS
thst
CHAIR GAIL PHILLIPS noted that on November 20 & 21, the
Committee would be taking a "boarding school information
trip" to St. Mary's and McGrath. She asked if any members
of the Committee were interested in participating in that
excursion and that if so, they should contact her office.
Chair Phillips advised that there had been concern voiced by
David Teal that the Office of Management and Budget (OMB)
had been combining various projects into one request. She
questioned if Committee members thought that direction
should be sent to OMB that each RPL to be a separate item.
REPRESENTATIVE BUNDE recommended that the RPL's should
clearly interrelated.
CHAIR GAIL PHILLIPS agreed and asked that Mr. Teal forward
that instruction on to OMB.
Chair Gail Phillips added that there would be a meeting
th
scheduled for December 6.
SENATOR WILKEN stated that date would be difficult for him
to participate.
ADJOURNMENT
CHAIR GAIL PHILLIPS adjourned the meeting at 2:40 P.M.
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