Legislature(1997 - 1998)

04/02/1997 09:12 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                          2 April 1997                                         
                            9:12 a.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-97, #72, Side 1, (000 - 589)                                             
           72, Side 2, (589 - 000)                                             
                                                                               
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Bert Sharp,  Co-chairman, convened  the  meeting at                 
  approximately 9:12 a.m.                                                      
                                                                               
                                                                               
  PRESENT                                                                      
                                                                               
  In  addition  to Co-chairman  Sharp,  Senators  Phillips and                 
  Adams  were  present when  the  meeting convened.   Senators                 
  Donley, Parnell  and Torgerson arrived  respectively shortly                 
  thereafter.  Co-chair Pearce was absent.                                     
                                                                               
  ALSO  ATTENDING:   Janet  Clarke,   Director,  Division   of                 
  Administrative  Services, Department  of  Health and  Social                 
  Services; Kevin rooks, Director,  Division of Administrative                 
  Services,  Department  of  Fish  and  Game;  Wayne  Regelin,                 
  Director, Division  of Wildlife Conservation,  Department of                 
  Fish and Game;  Nico Bus,  Budget Co-ordinator, Division  of                 
  Administrative   Services,   Department   of  Military   and                 
  Veterans'  Affairs;  Mike   Greany,  Director,  Division  of                 
  Legislative  Finance; aides  to committee members  and other                 
  legislators.                                                                 
                                                                               
  via teleconference:  Jeff Jessee, Executive Director, Alaska                 
  Mental Health Trust Authority from Anchorage.                                
                                                                               
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
                                                                               
       SENATE BILL NO. 107                                                     
                                                                               
       "An  Act   making  and   amending  capital   and  other                 
  appropriations      and to capitalize  funds; and  providing                 
  for an effective date."                                                      
                                                                               
  Co-chair Sharp convened the meeting  and noted the only bill                 
  to be heard today was SB 107.                                                
                                                                               
  Janet Clarke, Director, Division of Administrative Services,                 
                                                                               
                                                                               
  Department of Health and Social Services was invited to join                 
  the committee.  She  said that the Johnson Youth  Center was                 
  top priority  for the  Department.   An aerial  view of  the                 
  Johnson  Center  was provided  for  the committee  to follow                 
  along as explained by Ms. Clarke.  It was built in 1980 near                 
  Bartlett Memorial Hospital.  Senator  Phillips asked why the                 
  Johnson Youth Center was a priority and not McLaughlin.  Ms.                 
  Clarke responded by saying there  was severe overcrowding in                 
  all facilities, including McLaughlin.  However,  the Johnson                 
  Youth  Center   was  top   priority  for   several  reasons,                 
  including:  1.  for all Southeast Alaska the Department only                 
  had an 8-bed facility;  2.   children who need long-term bed                 
  space  from  Southeast Alaska  must  go to  other facilities                 
  which exacerbates the overcrowding;  3.   the closer to home                 
  a child is detained the  family is more able to  be involved                 
  and  this  reduces recidivism;   4.   all  necessary support                 
  capabilities are in place at the  Johnson Youth Center.  She                 
  continued to explain the lay-out of the Center.  The support                 
  facility  was  built  in  anticipation  of having  a  20-bed                 
  addition built.  It was built  based on the McLaughlin Youth                 
  Center design.   Even though  the bed space  at the  Johnson                 
  Youth  Center  was only  8 beds,  it  has been  operating at                 
  double capacity for a couple of years.  In January 1997 they                 
  hit an all time high of twenty-six at the Center.   She said                 
  the Department  would be  happy to  arrange a  tour for  the                 
  committee to  observe the very  small living  space and  how                 
  awful it was to  have to crowd over  twenty children into  a                 
  space built for  eight.  Management capabilities  are almost                 
  impossible.  The  situation is occurring at  all facilities.                 
  She referred to  a ten-year plan  of how the department  saw                 
  growth  being accommodated  in youth  facilities around  the                 
  State.  It also included additional beds at McLauglin, a new                 
  facility  in  Mat-Su,  Ketchikan  and  Kenai.   She  further                 
  explained the design of the facility based on the design for                 
  McLaughlin.    Expanding  the  Johnson  Youth  Center  would                 
  alleviate  overcrowding  at  other  facilities.    Something                 
  definitely needs to be done about this crisis.                               
                                                                               
  Co-chair Sharp commented briefly, noting  the hearing was on                 
  teleconference.    He  asked if  the  facilities  were being                 
  hardened up due  to the hardened  up nature of the  juvenile                 
  criminals.  Ms.  Clarke indicated that a  security study had                 
  been done on the  Johnson Youth Center.  There  are existing                 
  funds that would  be used for gates or other  barriers.  The                 
  main concern was of others coming too close to the facility.                 
   There had  never been  a break-out  from the Johnson  Youth                 
  Center.  She continued on to the next project being Deferred                 
  Maintenance,  Renewal, Replacement and Equipment.  She noted                 
  the   department   has  its'   own  problems   for  deferred                 
  maintenance, same as  other departments.  Roof  repairs need                 
  to  be  undertaken on  six facilities.    The main  areas of                 
  concern for  deferred maintenance were youth  facilities and                 
  the public health facilities.  Co-chair Sharp asked if there                 
  was  required match for federal funds.  Ms. Clarke indicated                 
                                                                               
                                                                               
  there was a  required match.   She said  there was no  match                 
  specifically  for juvenile  detention  youth facilities  but                 
  there was for public health facilities and nurse centers.                    
                                                                               
  The next component was  Welfare Reform System Modifications.                 
  It was a  $2.9 million general  fund project and $1  million                 
  federal participation.  The Department was  in the middle of                 
  changing eligibility  determination on mainframe  system and                 
  they need PC based systems.   A more user friendly, flexible                 
  system would be  available for case  managers.  This  system                 
  would allow the caseworkers to develope more  individualized                 
  self-sufficiency  plans.    Senator Adams  asked  about  the                 
  recommendations from the technology  subcommittee chaired by                 
  Senator Parnell.   Senator Parnell  said there  subcommittee                 
  was still working out recommendations.                                       
                                                                               
  Ms. Clarke  continued  on  to  the next  issue  of  $200,000                 
  (technology  issue)  to enable  the  Division of  Family and                 
  Youth Services to  be able to  link to APSIN (Alaska  Public                 
  Safety Information Network).   This was a  recommendation at                 
  the Governor's Conference on Youth and Justice that the link                 
  be developed so  information could be  shared.  This  amount                 
  would go to purchase limited software to accomplish that.                    
                                                                               
  Co-chair Sharp indicated  that next on  the list was  Mental                 
  Health  and  noted that  Jeff  Jessee, Alaska  Mental Health                 
  Trust   Authority  was   available  via   teleconference  in                 
  Anchorage.   Ms. Clarke  introduced the  projects under  the                 
  mental health bill and gave a brief description of each.                     
                                                                               
  1.   Client  Data Integration Project:   A  data integration                 
  plan was developed by  the Department in order to  assist in                 
  determining  developmental  and  disabled clients  receiving                 
  help from medicaid.   Their  request was  for $375,000  with                 
  $187,500 coming  from GF sources  and would also  be matched                 
  dollar  for  dollar  by  the   Alaska  Mental  Health  Trust                 
  Authority.   They as a partner  in the project  also want to                 
  know more about their beneficiaries and want integrated data                 
  be  pursued.    As a  result  of  mutual  interest the  data                 
  integration plan, done internally,  two main recommendations                 
  were made:   1.  establish  data warehouse;   2.   establish                 
  council to set  data standards to track  individuals.  There                 
  were also further recommendations  on confidentiality.   Ms.                 
  Clarke  passed  out  a  supplemental  handout  to  committee                 
  members  regarding  the  operational  data  systems.     The                 
  department feels the system will be useful as budgets become                 
  tight.  Resources can be targeted, high cost individuals can                 
  be  assessed who  are using  all of  the  systems and  it is                 
  believed the Department,  Mental Health Trust Authority  and                 
  the Legislature  will have  better access  to information.                   
  Co-chair Sharp asked how the  various sources of data coming                 
  into the warehouse would be directly connected or updated by                 
  batch (weekly, monthly or quarterly basis).   Or would it be                 
  simultaneous updating  from the various processor  sites for                 
                                                                               
                                                                               
  the clients.  Ms. Clarke indicated that  it would be done on                 
  a once-a-month basis.                                                        
                                                                               
  2.  Hope Cottage Intermediate Care:   This was another joint                 
  project with the Mental Health Trust Authority.  The request                 
  was for $480,000; $240,000 from  AHFC corporate receipts and                 
  $240,000 from the  Mental Health  Trust Authority  receipts.                 
  The  Harborview facility and the five  units at Hope Cottage                 
  were the State  of Alaska  Intermediate Care Facilities  for                 
  the Mentally Retarded  (ICFMR).  Hope Cottage  believed that                 
  they should complete  the closure of their  five large homes                 
  in consistency with the closure of Harborview.   Last summer                 
  they agreed to decertify the five large group homes and move                 
  the clients into smaller, local  homes in local communities.                 
  This is  a large  risk for  Hope Cottage to  take on,  since                 
  Alaska is the only state that does not have these particular                 
  facilities any more.  The facilities serve those individuals                 
  with  developmental disabilities.    The project  will  fund                 
  phase II and phase III of  Hope Cottage's effort to complete                 
  the whole decertification.   In response to  a question from                 
  Co-chair Sharp, Ms. Clarke indicated that the  homes were in                 
  Southcentral Alaska.  Co-chair Sharp  continued and asked if                 
  the monies were  for closure purposes  or would be used  for                 
  any enhancement  projects.   Ms. Clarke  said perhaps  there                 
  would be some enhancement if a facility were to be purchased                 
  and  it would need improvement for  sprinkler systems or ADA                 
  alterations.   The facilities are private, non-profit.                       
                                                                               
  3.  Mental Health  Competitive Grants:  This was  a $300,000                 
  request for mental health competitive  grants for all mental                 
  health beneficiaries the trust authority serves for facility                 
  modifications.    These would  be  awarded on  a competitive                 
  basis.   $150,000 would be  from AHFC receipts  and $150,000                 
  from  the  Mental Health  Trust  Authority.   Co-chair Sharp                 
  asked  if  AHFC  ever  made  the  funds  available  for  the                 
  particular  purpose before.   Ms.  Clarke  said she  was not                 
  aware and perhaps Mr. Jessee could respond.                                  
                                                                               
  4.   American Disability  Act Improvements:   She noted when                 
  the ADA came into fruition several years ago there was a lot                 
  of work done to get the sense of what the need was for State                 
  buildings.  Department of Transportation  and the Department                 
  of  Health  and  Social Services  with  Mental  Health Trust                 
  Authority  monies conducted surveys.  She  noted there was a                 
  report  available  if the  committee  was interested.   Both                 
  studies  were similar  and the  one from  the  Department of                 
  Transportation is  currently in  use.    $250,000  is funded                 
  totally from Mental  Health Trust  Authority receipts.   The                 
  projects will be competitively awarded.                                      
                                                                               
  5.   Competitive Grants  for Equipment  Purchase:   This was                 
  another  Mental Health  Trust Authority  project matched  by                 
  themselves.   It was  for competitive  grants for  equipment                 
  purchases.  $75,000 was from GF  and $75,000 from the Mental                 
                                                                               
                                                                               
  Health Trust  Authority.    It  would also be  competitively                 
  awarded.    It  was  noted  there  was  a  severe  need  for                 
  specialized equipment.                                                       
                                                                               
  6.  Special Needs  Housing Programs:   This project has been                 
  funded  for  the past  three  years.   These  were  all AHFC                 
  corporate receipts.   This project has been  very successful                 
  in helping the  State with  de-institutionalization.  In  FY                 
  '95  the  funds were  focused  on helping  individuals being                 
  relocated into  communities from  API.   In FY  '96 and  '97                 
  Harborview  has  been  focused  on.   Homes  in  Valdez  and                 
  Anchorage have been funded in order to move individuals from                 
  API  into their  local  communities.    For the  future  the                 
  department will continue to use this as a means to allow the                 
  individuals with special needs, mental health beneficiaries,                 
  achieve independence.  Being able  to live independently and                 
  not in a  large group institution saves a lot of money.  She                 
  noted  the four  beneficiary groups  included; developmental                 
  and disabled individuals, mentally ill,  Alzheimer patients,                 
  the elderly  and chronic  alcoholics with  psychosis.    Co-                 
  chair Sharp asked  who would administer the  distribution to                 
  the  ultimate  users  of  the  $1.8  million.    Ms.  Clarke                 
  indicated that the  department would  continue to work  with                 
  Alaska  Housing Finance  Corporation staff  in developing  a                 
  joint request for proposals that would meet both their needs                 
  and the  department's needs.   However,  the department  had                 
  taken most of  the lead in responsibility  for administering                 
  the request for proposals and grant  management.  There is a                 
  joint RFP so  that individuals  only have to  deal with  one                 
  administrative unit.   The Harborview  program up until  now                 
  has  been  very individualized.    In response  to continued                 
  questions from Co-chair Sharp, Ms.  Clarke indicated that in                 
  some  cases  there were  purchase of  homes  that had  to be                 
  modified  and  in other  cases  some homes  were  built with                 
  special  modifications.    It  has  been  a  combination  of                 
  projects  tailored  to  the specific  individual.   Co-chair                 
  Sharp further asked  what happened  to the investments  into                 
  the  modifications.    Ms. Clarke  said  they  have security                 
  arrangements  on  the  properties.    Deeds  of  trust  were                 
  initiated on the properties for  20 - 25 years so the  State                 
  would continue their interest in the titles for the specific                 
  properties.    It  would  not  just  be turned  over  to  an                 
  individual.  Ms. Clarke indicated that her testimony at this                 
  point was completed.                                                         
                                                                               
  Co-chair  Sharp  asked  that  Mr.  Jeff  Jessee,   Executive                 
  Director,  Alaska Mental  Health Trust  Authority offer  his                 
  comments on the foregoing.                                                   
                                                                               
  Jeff Jessee,  Executive Director, Alaska Mental Health Trust                 
  Authority  testified via teleconference  from Anchorage.  He                 
  noted two  specific components  not with  the Department  of                 
  Health and Social Services.                                                  
                                                                               
                                                                               
  1.   Competitive  Grant for  Beneficiary  Transportation and                 
  Vehicles:   This was  a $150,000  capital increment  through                 
  Department of  Transportation and  Public Facilities  who is                 
  the administering agency.  He said the trustees were looking                 
  at special needs transportation.  Individual, non-profits or                 
  local  governments could  purchase accessible vans,  but the                 
  use  was  restricted  to  the  clientele of  the  particular                 
  agency, creating  cost inefficiencies.  Vehicles are sitting                 
  for  large  amounts  of  time,  maintenance,  operating  and                 
  insurance costs  are maximized.   The  Trust Authority   has                 
  worked  with the  Department  of Transportation  and  Public                 
  Facilities,  including  leveraging  some  federal  funds  to                 
  develope  an  integrated   transportation  plan  for   local                 
  communities.      The   program   assists   communities   in                 
  inventorying  the  transportation  resources they  have  for                 
  individuals  with  special  needs,  look  at  how  they  can                 
  develope   centralized   maintenance,  dispatch,   pool  for                 
  liability insurance purposes and a reduction of  benchmarks.                 
  Those they  were looking  at were  the number  of trips  per                 
  vehicle per day,  trying to increase the  utilization of the                 
  vehicles that were  purchased; and  decreasing the cost  per                 
  trip  for each  individual served.   They do  recognize some                 
  communities were  not ready for such integration.  There was                 
  also expectation that  some of  the funds would  be used  to                 
  purchase  vans  to replace  aging vans  or to  meet existing                 
  needs.                                                                       
                                                                               
  2.  Completion or Renovation to the Sitka and Palmer Pioneer                 
  Homes  Dementia Units:   This  was under  the Department  of                 
  Administration.    It  was  a  matching program  to  upgrade                 
  treatments and facilities to  deal with Alzheimer's disease.                 
  The  $105,000  was   the  amount  needed  to   complete  the                 
  renovations.                                                                 
                                                                               
  (Tape #72 switched to side 2.)                                               
                                                                               
                                                                               
  Mr. Jessee further  continued saying  the trustees feel  the                 
  project  is  important  because  it  insures  public  policy                 
  development  around  the  mental   health  program  and  the                 
  expenditure of funds  for the  development of that  specific                 
  program, whether they be general  funds, trust funds or AHFC                 
  funds,  are  part  of  an  overall  public  policy  strategy                 
  developed jointly  between the  entities.   Rather than  the                 
  trust trying to  fund some  things, the Legislature  funding                 
  some other  things,  that  may not  be  integrated  or  even                 
  compatible, they feel  that approaching these projects  in a                 
  matching way is very effective in keeping us all moving down                 
  the same track.                                                              
                                                                               
  He commented on  the ownership  of either the  modifications                 
  facilities  or  other  things being  done  with  the capital                 
  money.  This  was an  issue of significant  interest to  the                 
  trustees.  In FY  '97 they funded the entire  Chugiak Senior                 
                                                                               
                                                                               
  Day Care Center, a  capital project.  The issue of  who owns                 
  the facilities  is very important.   because both  the State                 
  and  the Trust Authority  have invested  very large  sums of                 
  money in the projects.                                                       
                                                                               
  Mr. Jessee also responded to a very controversial component,                 
  the Americans  With Disabilities  Act Modification.   It  is                 
  entirely funded through  Trust income even though  many feel                 
  that  these modifications are  a State  responsibility since                 
  they do grant  funds to the providers.  The reason the Trust                 
  agreed to put  the money forward  was because the State  had                 
  not been doing  anything to  meet the vast  majority of  the                 
  Americans With  Disabilities Act  issues  that are  pending.                 
  Mostly these are  very basic kinds of  access modifications,                 
  i.e.;  a  ramp  to  get  into  a building,  doors  that  are                 
  wheelchair accessible.  The final controversial component he                 
  commented on  was the Special  Needs Housing Program.   They                 
  were in  the  process  of  hiring  a  contractor  to  assist                 
  trustees to  make  better  use of  Trust  income  with  AHFC                 
  funding  capacity   to  access   housing   for  low   income                 
  beneficiaries   and   their  families.      They   want  the                 
  beneficiaries to be  able to lead  independent lives in  the                 
  community and not  be dependent on governmental  services or                 
  expenditures   from either the general  fund or the Trust.                   
  It has been learned that the  provision of affordable, safe,                 
  accessible housing is often very  much the difference, along                 
  with   health   coverage,   in  getting   individuals   with                 
  disabilities to live a more independent life.                                
                                                                               
  Co-chair Sharp asked  Mr. Jessee's comments on  the $460,000                 
  contract with the Department of Natural Resources for mental                 
  health capital  trust land  office.   Mr.  Jessee said  they                 
  contracted  with  the  Department of  Natural  Resources  to                 
  basically provide our  management of  the trust  lands.   In                 
  doing so, the land office periodically comes upon parcels of                 
  trust  land  which  need enhancement  to  become marketable.                 
  That may include  laying out a subdivision  project, looking                 
  at  timber  areas  and developing  strategic  sale  program,                 
  perhaps  additional funds to  get trust assets  in a posture                 
  that revenue can be maximized through management by the land                 
  office.  The  capital appropriation  was designed to  enable                 
  the land office  to seek professional services  or otherwise                 
  enhance  the  assets and  develope  them so  revenue  can be                 
  maximized  from them.  It was  also mentioned that committee                 
  members could  see in  the supplemental  budget $150,000  in                 
  capital appropriation  to the land  office specifically  for                 
  API.  This is to take a specific look at where  the land and                 
  building issues stand at the  facility in order to  develope                 
  an  implementation  package by  the  time the  trustees make                 
  budget recommendations in  August and September in  order to                 
  get the project underway once again.                                         
                                                                               
  Co-chair  Sharp  thanked  Mr.  Jessee  and  there  being  no                 
  questions by committee members  he introduced the Department                 
                                                                               
                                                                               
  of Fish and Game.                                                            
                                                                               
  Kevin Brooks, Director, Division of Administrative Services,                 
  Department  of  Fish  and  Game  was  invited  to  join  the                 
  committee.       He  briefly  explained  the  following  ten                 
  projects  included in  the Governor's Capital  Budget; three                 
  from  the  general  fund  totalling  $785,000  and  the  ten                 
  projects in total equal $4.125 million.                                      
                                                                               
  1.  Statewide Facilities  Repair, Maintenance & Replacement:                 
  This  was  $400,000  general fund  and  is  the department's                 
  number one priority.  There are over forty facilities around                 
  the  State,  including  bunkhouses,  offices,  laboratories,                 
  cabins,   workshops,   warehouses   coming  under   deferred                 
  maintenance.    He  noted  an  alphabetical listing  of  the                 
  projects that was attached to the request.                                   
                                                                               
  2.    Fisheries  Resource  Assessment  Vessels  &   Aircraft                 
  Maintenance and Repair:   He noted this was the department's                 
  second   priority  and  was  for  the  commercial  fisheries                 
  management  and  development  division  in   the  amount  of                 
  $275,000 general fund.   The division operates  six research                 
  vessels and  four aircraft.    The request  was specifically                 
  for  the  vessels  to  be maintained  in  a  safe  operating                 
  condition.                                                                   
                                                                               
  3.  Statehood Defense:  This  was $110,000 general funds for                 
  a  project  in the  Commissioner's  office.   The department                 
  provides technical assistance  to the  Department of Law  in                 
  statehood  defense litigations.   We participate in Columbia                 
  Basin  Salmon  Recovery projects  which  includes increasing                 
  efforts towards  potential and dangerous  species listing of                 
  salmon resulting  from dams  in the  Pacific Northwest.   He                 
  further referred to several sub-projects within the request.                 
  Co-chair Sharp  asked if this  was mainly personnel  and Mr.                 
  Brooks indicated that it  was about three-fourths  personnel                 
  and the rest  was related to the citizen's advisory council.                 
  Both councils are supported by  the department and have been                 
  very effective in Washington, D.C. concerning changes in the                 
  Magnuson  Act  and  other   federal  legislation.    Senator                 
  Phillips asked  why this  was considered  a capital  project                 
  versus an operating  since three-fourths of it  is personnel                 
  and  not  structures and  buildings.   Mr.  Brooks  said the                 
  department had attempted in the past to include this request                 
  in the operating budget however it was not accepted.  It was                 
  not in the Governor's FY '98 request.  Senator Phillips said                 
  it seemed to not be a  very high priority.  Mr. Brooks  said                 
  it was not in the operating  budget primarily because it was                 
  a separate, specific project.  Co-chair Sharp asked if there                 
  was a capital component  for this project funded last  year.                 
  Mr. Brooks said  there was and  last year, along with  other                 
  numerous projects  the administration  included this  one in                 
  the operating budget.  On closing date of the session it was                 
  deleted.  It  has, however, been in the budget since FY '93.                 
                                                                               
                                                                               
    It has been stripped  down to a bare bones effort  at this                 
  point.  There is no new capital or operating for FY '97.                     
                                                                               
  4.  Maintain Research Survey and  Support Aircraft:  This is                 
  for wildlife conservation.   Seventy-five percent is federal                 
  funds and twenty-five percent  is Fish and Game funds.   The                 
  division operates six aircraft and he  noted his comments to                 
  coincide with  the previous project.    He did say there was                 
  also a $2  million charter  that was used  during the  year.                 
  Co-chair  Sharp  asked if  this  was used  only  by Wildlife                 
  Conservation and Mr. Brooks indicated that was correct.                      
                                                                               
  5.    Survey  and  Catalog  All  Anadromous  and  High Value                 
  Resident Fish Streams:  Mr. Brooks  said that under Title 15                 
  the  department was  required to  catalogue  anadromous fish                 
  streams.  Currently  there are  fifteen thousand streams  in                 
  the catalogue, which is estimated to be fifty percent of the                 
  total fish bearing streams.   The department could basically                 
  renew efforts to  get remaining fish streams  catalogued and                 
  would primarily affect  the Upper  Cook Inlet area.   It  is                 
  important to accomplish  this because  of the Department  of                 
  Transportation and certain  road and logging concerns.   Co-                 
  chair Sharp asked  if this was  AIDEA monies and Mr.  Brooks                 
  indicated that it was.                                                       
                                                                               
  6.   Sikusuilaq Hatchery  Contaminated Site  Clean-Up:   The                 
  department operated a  hatchery in  North Kotzebue up  until                 
  two years ago.  It was on  a lease site and a diesel leakage                 
  and soil  contamination has been  identified.  The  State is                 
  responsible for the contamination and must clean up the site                 
  and return  it to  it's  original state.   Senator  Phillips                 
  asked  if  this  was  a  private  hatchery  and  Mr.  Brooks                 
  indicated that the State constructed  and owned the hatchery                 
  but it was built  on private land.  They were  involved in a                 
  long-term land lease with the owner.  Senator Phillips asked                 
  if the State  was responsible for  this and Mr. Brooks  said                 
  the Sate  was.  Senator Phillips also asked if the State had                 
  any other  hatcheries and Mr.  Brooks said there  were three                 
  other hatcheries under the Sport Fish division.  In response                 
  to further  concerns of  Senator Phillips,  Mr. Brooks  said                 
  that at all of  the sites above-ground tanks were  being put                 
  in, containment dikes  around the tanks, and  the technology                 
  and planning on the projects has been improved.                              
                                                                               
  7.   Public Access  Development (sport fish):   This project                 
  totals $2.2 million; seventy-five percent federal aid  funds                 
  and twenty-five percent Fish and Game funds.  It is required                 
  that twelve and half percent of the  available federal funds                 
  be used  for public access development projects.   These are                 
  specifically  for boat  ramps and  launch sites in  order to                 
  enhance access for sport fishing  around the State.  Senator                 
  Torgerson asked if  after the  access was  developed was  it                 
  transferred to the Division of Parks to operate.  Mr. Brooks                 
  said   they  often   work   with   the  local   governments,                 
                                                                               
                                                                               
  municipalities  and  boroughs and  they  will often  run the                 
  sites.  They  are not transferred  to the Division of  Parks                 
  and the Department of Natural Resources is not running them.                 
  There are  concession agreements to  cover operating  costs.                 
  In further response to Senator Torgerson, Mr. Brooks said he                 
  would provide  a list  of enhancements.   Senator  Torgerson                 
  said he was particularly interested  because he mentioned at                 
  the last  committee meeting that  the Division of  Parks was                 
  threatening to shut down ten  campgrounds and eight accesses                 
  to boat launches.   He  suggested the committee get together                 
  with Department of Fish  and Game and the Division  of Parks                 
  and decide what was going to be built and what was  going to                 
  be  maintained.  Mr. Brooks said  he would provide a list as                 
  requested.    The  Department of  Fish  and  Game  does work                 
  closely with the  Department of Natural Resources.   Senator                 
  Phillips concurred with the request of Senator Torgerson and                 
  asked the list  be provided to  all committee members.   Mr.                 
  Brooks indicated that it was a federal requirement that each                 
  site  developed has access and  all precautions are taken to                 
  make  sure  they can  be  maintained  in an  ongoing  basis.                 
  Senator Torgerson suggested  that some  of that strategy  be                 
  transferred  over  to the  Division  of Parks.    Mr. Brooks                 
  continued.                                                                   
                                                                               
  8.  Hunter Education Electronic Shooting System:  This was a                 
  request for $80,000; $40,000 federal  funds and $40,000 Fish                 
  and Game funds.   It would purchase two  portable electronic                 
  firearm training systems.  He said  the system was also used                 
  by  the  military.    It  fires  a light  beam  rather  than                 
  ammunition  and enables the  hunter education instructors to                 
  teach  in  a safe  environment.    In   response  to Senator                 
  Phillips, the department would purchase two of these systems                 
  to  be  located at  Rabbit Creek  Rifle  Range and  would be                 
  available statewide.                                                         
                                                                               
  Mr.   Wayne   Regelin,   Director,  Division   of   wildlife                 
  Conservation  was  invited  to  join   the  committee.    He                 
  explained further the electronic shooting  system.  They are                 
  encompassed in a trailer and can  be moved around.  Once the                 
  facility  is built  in Fairbanks there  will be  one located                 
  there.                                                                       
                                                                               
  9.  Sport Fish Hatchery  Repair, Renovation and Maintenance:                 
  This was for  $200,000; 75% federal  funds and 25% Fish  and                 
  Game  match.   It  was separated  from  the main  repair and                 
  maintenance requests because it was specifically related  to                 
  the sport fish  hatcheries at Elmendorf  and Ft. Rich.   Co-                 
  chair Sharp asked  that it  be confirmed the  project was  a                 
  critical one, specifically the fish transport equipment.  He                 
  was concerned because the  Clear hatchery was to be  closed.                 
  Mr. Brooks said he would provide the requested information.                  
                                                                               
  10.  South Denali Wildlife Studies:   This was for $160,000;                 
  $80,000 Fish and  Game funds  and $80,000 AIDEA  funds.   He                 
                                                                               
                                                                               
  said wildlife gathering activities would be studied near the                 
  head waters of the Tok-Susitna River and the Denali National                 
  Park.  Denali was  the proposed site for a  visitors' center                 
  and the department wanted to make sure of the least possible                 
  impact  to the  wildlife population  in the area.   Co-chair                 
  Sharp asked  if this was all  State Fish and Game  funds and                 
  Mr. Brooks indicated that it was  license fees.  Mr. Regelin                 
  said federal aid funds were not included because  these were                 
  primarily impact-related studies.   Since  this was a  short                 
  term project there  were adequate funds with  the Department                 
  of Fish  and Game.   No  separate contract  would be  set up                 
  through the federal aid project.  It  was required by law to                 
  match  1  -  3.    Presently  it  was  at  50/50  which  was                 
  overmatched.    Mr. Brooks  said the department  was drawing                 
  down the maximum allowable federal dollars under the federal                 
  aid contracts.                                                               
                                                                               
  Co-chair Sharp thanked Mr. Brooks and  Mr. Regelin.  He then                 
  introduced the Department of Military and Veterans' Affairs.                 
                                                                               
  Nico  Bus, Budget  Co-ordinator, Division  of Administrative                 
  Services, Department of Military  and Veterans' Affairs  was                 
  invited to  join the committee.   He reviewed  the following                 
  projects.                                                                    
                                                                               
  1.  Youth at Risk:  This was a $1 million request project to                 
  set up a like  Anchorage program for the Bethel area to deal                 
  with the Yukon-Kuskokwim  youth.  This  project would be  in                 
  connection with the  Youth Conservation  Corps.  They  would                 
  also  request  federal  funding  for  this   pilot  project.                 
  Senator Torgerson asked  how many  youth this would  involve                 
  and Mr. Bus  said this would be on a smaller scale involving                 
  about  40  - 50  youth.    He  indicated  that it  would  be                 
  approximately $20,000  - $25,000  start up  costs.   Senator                 
  Torgerson  asked  how   much  federal   funding  was   being                 
  requested.  Mr. Bus said that  $500,000 was requested.  They                 
  would look  at facilities  available either  to purchase  or                 
  lease.    For $1  million  a  facility could  not  be built.                 
  Senator Phillips  asked why  Bethel was  chosen rather  than                 
  Southeast, Barrow or the  Aleutian Chain.  Mr. Bus  said the                 
  Bethel area was chosen in order to serve better the youth in                 
  areas  other than urban Alaska.  They are trying to keep the                 
  youth in the Bethel area, their familiar surroundings.                       
                                                                               
  2.  National Warning System Upgrade:  This would convert the                 
  Division of Emergency  System communication capability  with                 
  twenty-seven  communities.    The overall  project  was  for                 
  $220,000 to convert nine projects and  allow them to do data                 
  communications  and  transfer  files.     It  would  provide                 
  software for those nine communities.                                         
                                                                               
  3.    Juneau  Armory and  Organizational  Maintenance  Sh op                 
  Design  and Construction:  This was  $120,000 for the Juneau                 
  Armory.  This  was the last part of the site preparation and                 
                                                                               
                                                                               
  design  phase.  The Juneau  Armory presently consists of two                 
  buildings which  are on  Mental Health  land property.   The                 
  land exchange  was  just completed  with  the City  and  the                 
  armory site would be moved to Mile 7.                                        
                                                                               
  4.  Deferred  Maintenance:  This was  $100,000 for emergency                 
  repairs.    There  was a  significant  back-log  in deferred                 
  maintenance  and  this  amount  would  be the  bare  minimum                 
  needed.                                                                      
                                                                               
  5.  Fairbanks Armory Expansion:  This was basically the same                 
  as the Juneau Armory.  It  was $100,000 for site preparation                 
  and $600,000 for engineering.                                                
                                                                               
  6.    Bethel  Army  Aviation  Operating Facility,  Phase  II                 
  Construction:  This  was for  $125,000 for site  preparation                 
  and  construction  phase  with  corresponding  increase   of                 
  federal  funds  of $4.6  million.   Senator  Torgerson asked                 
  about the matching federal funds  $600,000 for Fairbanks and                 
  only $125,000 for Bethel.  Mr. Bus said this was a different                 
  facility  and concerned also  the kind  of operation  of the                 
  facility.  He  further noted this  project was in phase  II.                 
  $6.3 million  was already  on the  books  for this  project.                 
  They do not anticipate coming back  next year and asking for                 
  more GF funds on this project.                                               
                                                                               
  7.    Emergency Wireless  Communication:   It  would provide                 
  emergency communication independent  of commercial or  state                 
  networks.   Presently commercial operators are depended upon                 
  to provide  telephone services.   This  project would  spend                 
  $157,300 to  purchase four  wireless repeater  receivers and                 
  would  allow   independence  in  case   of  emergency   from                 
  commercial  operators.   They  would  be centralized  at one                 
  headquarter to provide this independent service.                             
                                                                               
  8.   Ft.  Rich Combined  Support  for Maintenance  Shop  and                 
  Facilities:  The  facility currently  located on Tudor  Road                 
  would be moved  to Fort Richardson.   This was $1.5  million                 
  State funds and $11.4 million federal funds.                                 
                                                                               
  (Tape #72 changed to #73.)                                                   
                                                                               
  9 & 10.   Ft. Rich Army Storage Building Design and Wasilla:                 
  The last  two projects were  100% federal funded  project to                 
  replace  the storage buildings.   Ft. Rich  was $835,000 for                 
  three buildings and Wasilla was $275,000 for one building.                   
                                                                               
  Co-chair  Sharp thanked Mr.  Bus.  He  reviewed the schedule                 
  for tomorrow indicating  that 9:00 a.m. tomorrow  morning HB
  58 would be heard followed by SB 107.                                        
                                                                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
                                                                               
  Co-chair Sharp  adjourned the  meeting at  10:45 a.m.  until                 
  tomorrow morning at 9:00 a.m.                                                
                                                                               
                                                                               

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