Legislature(2003 - 2004)

02/11/2003 09:03 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                         February 11, 2003                                                                                    
                              9:03 AM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-03 # 2, Side A                                                                                                              
SFC 03 # 2, Side B                                                                                                              
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Gary Wilken convened  the meeting at approximately 9:03 AM.                                                            
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Con Bunde                                                                                                               
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
Senator Ben Stevens                                                                                                             
                                                                                                                                
Also Attending:   SENATOR RALPH SEEKINS;  SENATOR TOM WAGNOR;  CRAIG                                                          
HOLT, Director  of State  and Local Issues,  Enterprise Application                                                             
Planning,  Unisys Corporation,  CHERYL FRASCA,  Director, Office  of                                                            
Management and Budget, Office of the Governor.                                                                                  
                                                                                                                                
Attending  via  Teleconference:     There  were  no  teleconference                                                           
participants.                                                                                                                   
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
     Presentation by Mr. Craig Holt, Government Consultant                                                                      
     Accountability in Government: Measuring Results                                                                            
                                                                                                                                
Senator Wilken  noted the purpose  of this hearing is to  review the                                                            
missions and  measures approach to  funding government. He  reminded                                                            
that the  Legislature began  considering this  practice five  to six                                                            
years prior and passed  legislation to implement it three years ago.                                                            
                                                                                                                                
Senator  Wilken  read  a statement  of  Mr.  Holt's  credentials  as                                                            
follows.                                                                                                                        
                                                                                                                                
     Mr. Holt's primary area of focus with Unisys Global Public                                                                 
     Sector includes IT [information technology] Assessment,                                                                    
     Integration,  and Strategy. He  has been a catalyst  for change                                                            
     in  the public sector  for over  15 years and  has worked  in 4                                                            
     different government  agencies under three different governors.                                                            
     Craig  has  held positions  such  as  Director  for  Management                                                            
     Information,   Assistant   Director  for   Customer   Services,                                                            
     Managing   Director  for  Productivity   Services,   and  Chief                                                            
     Information Officer.                                                                                                       
                                                                                                                                
     In  November 1995,  Mr. Holt  founded a  management  consulting                                                            
     practice,   and  developed  it  into  a  multi-million   dollar                                                            
     enterprise  before  being  acquired  by  Andersen's  Office  of                                                            
     Government   Services  in  March   2000.  Unisys  subsequently                                                             
     acquired this unit in June 2002.                                                                                           
                                                                                                                                
     Mr.  Holt has provided  IT and other  management services  to a                                                            
     wide  variety of clients  include[ing]  the U.S. Federal  Trade                                                            
     Commission  (FTC), National Security  Agency (NSA),  Washington                                                            
     D.C.  -  Department  of  Public  Works,  State  of New  York  -                                                            
     Department  of Taxation  and Finance,  City  of San Jose  (CA),                                                            
     City of Seattle  (WA), City and County of San  Francisco, State                                                            
     of  Alaska  House  Finance Committee,  [State  of]  Colorado  -                                                            
     Department   of  Transportation,  State   of  Montana  -  Human                                                            
     Resources Department,  and Auditor General of British Columbia.                                                            
     Mr.  Holt  also   provides  Strategic  Consulting   to  elected                                                            
     officials at the State, City and County levels.                                                                            
                                                                                                                                
     Craig has been the  recipient of numerous awards throughout his                                                            
     career,  most  notably  the Superior  Civilian  Service  Award,                                                            
     Vision  and Innovation  Award, Investing  in People Award,  and                                                            
     National Excellence Award for Managing for Results.                                                                        
                                                                                                                                
CRAIG  HOLT,  Director   of  State  and  Local  Issues,   Enterprise                                                            
Application  Planning,  Unisys  Corporation,  noted  the  "level  of                                                            
maturity",  with regard to  the matter  of results-based  budgeting,                                                            
has increased  over the past several  years. His presentation  cited                                                            
pages  in  the  handout  titled  "State  of  Alaska  Senate  Finance                                                            
Committee Mission(s)  and Measure(s)  February 11-12, 2003,  Juneau,                                                            
Alaska" [copy on file] as follows.                                                                                              
                                                                                                                                
     Shifting from INPUTS to Outcomes                                                                                           
     [Illustration  representing  money and  resources on the  left,                                                            
     decision-makers  in the middle,  and healthy families,  natural                                                            
     resources and technology or education on the right.]                                                                       
                                                                                                                                
Mr. Holt  informed that,  in general, finance  committees and  chief                                                            
financial officers  focus most energy  on determining the  amount of                                                            
funds available for allocation,  i.e. inputs. He emphasized that the                                                            
committee members are responsible  for considering the inputs, "then                                                            
invest them  for outputs". He cautioned  against investing  too much                                                            
energy into the inputs.                                                                                                         
                                                                                                                                
Mr. Holt  continued  that the issue  of inputs  and outputs  becomes                                                            
further  complicated  as  agencies  present  specific  programs.  He                                                            
stated that the Committee  must consider the programs in the context                                                            
of how they affect the desired outcomes and results.                                                                            
                                                                                                                                
Mr. Holt approved of the  part-time status of legislators in Alaska;                                                            
however, he stressed  the necessity for efficiencies  in the limited                                                            
time the Legislature is  in session. He therefore noted that if most                                                            
time is  utilized "trying  to understand  the framework" of  various                                                            
programs, time could not be devoted to achieving results.                                                                       
                                                                                                                                
     Why Agency Mission(s) are IMPORTANT!                                                                                       
                                                                                                                                
     "Virtually  all  of  the results  that  government  strives  to                                                            
     achieve  require the concerted  and coordinated efforts  of two                                                            
     or more  agencies. However, mission  fragmentation and  program                                                            
     overlap are widespread and programs are not always well-                                                                   
     coordinated."                                                                                                              
     -David M. Walker, Comptroller General of the United States,                                                                
     2/10/99                                                                                                                    
                                                                                                                                
Mr. Holt expressed  that the challenge  of the Committee  Members is                                                            
to implement "integrated  approaches to the results you're trying to                                                            
accomplish."                                                                                                                    
                                                                                                                                
Senator Bunde  relayed a  statement commonly  made by Senator  Dyson                                                            
regarding  "people  who fight  over  their victims."  Senator  Bunde                                                            
asserted  that the  legislature encounters  this  mindset and  asked                                                            
whether the speaker had suggestions in overcoming this dilemma.                                                                 
                                                                                                                                
Mr. Holt  emphasized  the need  to maintain  focus  on the  intended                                                            
result of the  funding, such as safer communities,  better families,                                                            
reduction  in substance  abuse,  etc. He  surmised  that this  would                                                            
change  the priority  from  who  "takes credit"  for  providing  the                                                            
service and  instead give priority  to ensuring healthier  Alaskans.                                                            
He furthered that the Legislature  should also determine whether the                                                            
State is the  only party providing  each service. He explained  that                                                            
if  it is  determined  that  more than  one  entity is  providing  a                                                            
service efforts  should be made to  coordinate those activities.  He                                                            
qualified  that the Legislature  is not  the appropriate  government                                                            
branch to actually implement the coordination.                                                                                  
                                                                                                                                
     Structure-Program Focus                                                                                                    
     [Organizational Chart showing Homeland Security Agency                                                                     
     alignment]                                                                                                                 
                                                                                                                                
Mr. Holt detailed the hierarchy  of the 175,000-person organization.                                                            
He pointed out that the  Federal Bureau of Investigations (FBI), the                                                            
Central  Intelligence  Agency  (CIA),  the  U.S.  Coast  Guard,  the                                                            
Immigration  and Naturalization Service  (INS), and other  agencies,                                                            
are not  specified in  this pyramid.  Instead, he  noted, the  chart                                                            
states the intended results.  He asked how the success of border and                                                            
transportation security would be measured.                                                                                      
                                                                                                                                
Senator Bunde  responded that "hopefully" failures  would not be the                                                            
measurements.                                                                                                                   
                                                                                                                                
Mr.  Holt  agreed  and  stressed  the  simplicity  of  missions  and                                                            
measures  should be "intuitive";  not include  every activity  of an                                                            
agency,  but rather  "what we hope  to accomplish".  He stated  that                                                            
once an  effective mission  statement is  established, policies  and                                                            
investment  decisions   could  be  considered  as   they  relate  to                                                            
achievement of the goals.                                                                                                       
                                                                                                                                
     Key Concept: Mission Statement                                                                                             
                                                                                                                                
     SHOULD;                                                                                                                    
          Briefly state WHY department exists,                                                                                  
           Highlight UNIQUE contribution of department,                                                                         
          Unify the core services/service group                                                                                 
          Be memorable and usable                                                                                               
                                                                                                                                
     SHOULD NOT;                                                                                                                
          Be list of everything we do,                                                                                          
          Include statements of values,                                                                                         
          Include "qualifiers" of who, how well, how good,                                                                      
          Contain language that is vague and unclear.                                                                           
                                                                                                                                
Mr.  Holt gave  an example  of  the National  Aeronautic  and  Space                                                            
Administration  (NASA), stating that  despite the recent  tragedy of                                                            
the Space  Shuttle  Columbia explosion,  this  agency's mission  has                                                            
once been to  "get man to moon and  back safely". He noted  that the                                                            
goal was very  clear, despite the challenges in reaching  that goal.                                                            
He told  of a NASA  custodian who  in responding  to a journalist's                                                             
inquiry of  his job description  quoted "get  a man to the  moon and                                                            
back safety".  Mr. Holt relayed that under further  questioning, the                                                            
custodian  explained that if  an astronaut  were to slip on  a dirty                                                            
hallway floor,  or otherwise  be distracted  by an unclean  facility                                                            
prior to  a mission,  that astronaut's  ability  to perform at  full                                                            
capacity could be hampered.                                                                                                     
                                                                                                                                
Mr. Holt  stressed the need  for the mission  statement to  be clear                                                            
and concise  so all members  of an organization  could remember  and                                                            
follow it. He predicted  that if the NASA mission statement had been                                                            
superfluous,   the  custodian  would  have  been  unclear   how  his                                                            
performance  affected  the  mission of  the  agency. He  noted  that                                                            
mission   statements  should   not  contain   value  statements   or                                                            
qualifiers.                                                                                                                     
                                                                                                                                
     Example "Mission Statements"                                                                                               
                                                                                                                                
     BAD Mission Statement                                                                                                      
     In partnership with  the citizens of Alaska, protect the public                                                            
     from  repeat  offender crime  by  using the  best correctional                                                             
     practices  available  to provide  a continuum  of appropriate,                                                             
     humane, safe  and cost effective confinement,  supervision, and                                                            
     rehabilitation  services.  The Department  will  carry out  its                                                            
     responsibility  while  respecting  the  rights of  victims  and                                                            
     recognizing the dignity inherent in all human beings.                                                                      
                                                                                                                                
     GOOD Mission Statement                                                                                                     
     The  mission  of the  Department  of  Natural Resources  is  to                                                            
     develop,  conserve, and  maximize the  use of Alaska's  natural                                                            
     resources consistent with the public interest.                                                                             
                                                                                                                                
Mr. Holt remarked  that an indicator  of a bad mission statement  is                                                            
one that contains  "more commas and periods than words".  He pointed                                                            
out that  in the  above  example, "protect  the  public from  repeat                                                            
offender crime"  is all that is necessary  for an effective  mission                                                            
statement.  He  stated  that  although  providing  "a  continuum  of                                                            
appropriate,  safe and cost effective  confinement" and "respecting                                                             
the rights  of victims and recognizing  the dignity inherent  in all                                                            
human beings"  are important,  these are  actually value  statements                                                            
and should not be included in the mission statement.                                                                            
                                                                                                                                
Mr. Holt also assured that  the process of achieving the goal should                                                            
not  be  included  in  the  mission  statement.  He  reiterated  the                                                            
Legislature's responsibility  is to ensure that the intended results                                                            
are  clear  and  that  the  investments  made  are  achieving  those                                                            
results.                                                                                                                        
                                                                                                                                
Mr. Holt identified  the key phrase in the "good"  mission statement                                                            
as "with the public  interest". He expressed this  mission statement                                                            
"forces  relevancy", explaining  that the  Legislature, as  leaders,                                                            
must determine  the  public's interest.  He furthered  that as  time                                                            
passes  and  the  "rate  of  change  increases  dramatically",   the                                                            
importance  of  the  Legislature's   duty  to  identify  the  public                                                            
interest increases.                                                                                                             
                                                                                                                                
     Council on Domestic Violence & Sexual Assault                                                                              
                                                                                                                                
     Previous Assumption:                                                                                                       
     The  CDVSA  was working  to  decrease  the number  of  Domestic                                                            
     Violence & Sexual assaults in Alaska.                                                                                      
                                                                                                                                
     The Discovery:                                                                                                             
     1. A vast majority  of the funding for CDVSA was being spent on                                                            
        increased space in shelters for victims of domestic                                                                     
        violence.                                                                                                               
     2. The   focus   was  on   warehousing  victims   rather   than                                                            
        prevention.                                                                                                             
                                                                                                                                
Mr.  Holt commented  that  although  the  sheltering of  victims  is                                                            
worthwhile, given the limited  amount of federal funds available for                                                            
the Council's  activities, the assumption  of decreasing  the number                                                            
of assaults  could not be  achieved. He suggested  that the  mission                                                            
could be  changed to focus  on providing  more shelters, but  warned                                                            
that this  would create  a "no win"  scenario,  as the core  problem                                                            
would not be addressed.                                                                                                         
                                                                                                                                
Mr. Holt stressed  that investments  must be made in prevention.  He                                                            
qualified  that  this  would  decrease  the amount  of  funding  for                                                            
shelters  and  that there  would  be a  period  of time  before  the                                                            
prevention efforts reduce  the number of victims requiring services.                                                            
However,  he advised that  other service  providers, such as  faith-                                                            
based organizations,  could "step  in here as a bridging  strategy".                                                            
                                                                                                                                
     Correctional Industries                                                                                                    
                                                                                                                                
     Previous Assumption:                                                                                                       
     Correctional  Industries was set up to train  inmates with work                                                            
     skills that they could  use upon release form the Department of                                                            
     Corrections.                                                                                                               
                                                                                                                                
     The Discovery:                                                                                                             
     1. Most  inmates in the program  were not going to  be released                                                            
        until they were well past the age of useful employment.                                                                 
     2. The  program  was  severely  restricted  in  what  types  of                                                            
        industries it could engage in, thereby limiting it's                                                                    
        ability to give inmates marketable job skills.                                                                          
                                                                                                                                
Mr.  Holt  interpreted  the  first  discovery,  noting  the  inmates                                                            
recruited into the program  are "career criminals", or those serving                                                            
a life sentence.   He informed the Members that the  reasoning is to                                                            
avoid  a high  turnover  of trained  workers.  He stressed  this  is                                                            
typical, as correctional  industries are operated  as a business and                                                            
thus requiring a stable workforce.                                                                                              
                                                                                                                                
Mr. Holt furthered that  the funds are not utilized to train inmates                                                            
who would likely  be released and  subsequently require employment,                                                             
but that the  funds are used to teach  skills for which there  is no                                                            
job market. He  explained that prison industry legislation  is often                                                            
enacted under  encouragement from the business community  to prevent                                                            
competition  for the private sector.  Therefore, he summarized  that                                                            
this  program  effectively   trains  inmates,  who  would  never  be                                                            
released, to perform jobs that are not available.                                                                               
                                                                                                                                
Mr. Holt expressed that  although the current process has merits, it                                                            
should not be considered rehabilitation or job training.                                                                        
                                                                                                                                
     What's IMPORTANT to measure?                                                                                               
                                                                                                                                
     Result: The intended "outcome" of the effort.                                                                              
                                                                                                                                
     NOT Activities: The things done to accomplish the "outcome".                                                               
                                                                                                                                
     EXAMPLE - JOBS Training                                                                                                    
                                                                                                                                
     Result = Person gets a Job                                                                                                 
                                                                                                                                
     Activities =  Person's case is established                                                                                 
                     Person is trained                                                                                          
                     Person receives child care assistance                                                                      
                     Person is taught interviewing skills                                                                       
                                                                                                                                
Mr. Holt noted  all the activities are important;  however, the goal                                                            
remains to get person a job.                                                                                                    
                                                                                                                                
Mr. Holt relayed an incident  involving a large municipal government                                                            
and his  unsuccessful efforts  to implement  a results-based  budget                                                            
approach  to  the  human  resources   department.  He  told  of  two                                                            
operating  divisions  within the  agency  and the  unwillingness  to                                                            
coordinate   efforts  and   resources  to   provide  childcare   for                                                            
participants  during both  the period of  receiving job training  as                                                            
well as  once employment  is obtained. He  surmised that due  to the                                                            
hardship  on participants  to obtain  childcare  through the  agency                                                            
once they begin  working, many would opt to leave  their employment.                                                            
He remarked that  the agency representatives blame  the participants                                                            
for the failures of the program.                                                                                                
                                                                                                                                
Mr. Holt informed that  this problem remains unsolved as the parties                                                            
claimed to not have the  "political will" to implement the necessary                                                            
changes.                                                                                                                        
                                                                                                                                
     "Balanced Set" of Measures                                                                                                 
     [Illustration of a scale containing money on one side and                                                                  
     productive citizens on other side. The balance of the scale is                                                             
     labeled "How Well".]                                                                                                       
                                                                                                                                
                                                                                                                                
Mr. Holt detailed the chart.                                                                                                    
                                                                                                                                
AT EASE                                                                                                                         
                                                                                                                                
Mr.  Holt  qualified   that  the  balance  between  efficiency   and                                                            
effectiveness   could  be  unequal,  depending  upon   the  services                                                            
invested in. He stated  that efficiencies could be more important in                                                            
some programs and effectiveness more important in others.                                                                       
                                                                                                                                
Mr. Holt emphasized the  importance of completing the "cycle" rather                                                            
than just enabling clients,  particularly in human services programs                                                            
such as rehabilitation  programs. He stated that clients should have                                                            
the ability to  maintain employment for a sufficient  period of time                                                            
after completion of a job-training program.                                                                                     
                                                                                                                                
     "Balanced": JOBS Program                                                                                                   
                                                                                                                                
     Program: Welfare to Work                                                                                                   
                                                                                                                                
     Efficiency:                                                                                                                
          Cost per client that gets a job.                                                                                      
                                                                                                                                
     Effectiveness:                                                                                                             
        · Average time to move from Welfare to Work                                                                             
        · % of clients placed above minimum wage                                                                                
        · % of "repeat" clients                                                                                                 
                                                                                                                                
Mr. Holt commented, "You  don't need a whole lot of measures but you                                                            
need important ones."                                                                                                           
                                                                                                                                
Mr. Holt  shared that  in another  state, the  job training  cost is                                                            
$18,000  for each  participant.  He stated  that this  might not  be                                                            
efficient,  but the effectiveness  of securing  employment  could be                                                            
more important.                                                                                                                 
                                                                                                                                
     Cascading Alignment-Example                                                                                                
     Office of Alcohol and Substance Abuse                                                                                      
                                                                                                                                
     Department:                                                                                                                
        · % Clients who improve after leaving treatment                                                                         
                                                                                                                                
     Program Measures:                                                                                                          
        · % of clients who improve in their vocational status 6                                                                 
          months after leaving treatment.                                                                                       
        · % change in clients not returning to Criminal Justice                                                                 
          System.                                                                                                               
                                                                                                                                
     Service Measures:                                                                                                          
         · % of programs achieving substantial compliance.                                                                      
         · % of clients successfully completing treatment.                                                                      
                                                                                                                                
Mr. Holt opined,  "It's one thing to get a job, it's  another to get                                                            
a job that sustains an income that keeps them off of welfare."                                                                  
                                                                                                                                
Mr. Holt  continued describing  the $18,000  per client program.  He                                                            
relayed that he  asked the success rate of this program  in terms of                                                            
the length  of time that clients maintained  employment.  He learned                                                            
that  no  such  measurements  were  available  because  all  federal                                                            
funding for  the program was eliminated  six weeks after  the client                                                            
completed the training.                                                                                                         
                                                                                                                                
Mr. Holt commented,  "…certain systems are set up  to show a certain                                                            
type of success."                                                                                                               
                                                                                                                                
     Key Questions for POLICY MAKERS                                                                                            
                                                                                                                                
     1. What is your mission?                                                                                                   
     2. How do agency Programs contribute to the Mission?                                                                       
     3. Who are the customers of their Programs?                                                                                
     4. What are the Program Outcome Performance Measures?                                                                      
     5. How did you do last year?                                                                                               
     6. What do you intend to do differently this year?                                                                         
     7. What are your strategies/priorities for this next year?                                                                 
     8. Which measures are you going to use to validate and monitor                                                             
        the state's investment?                                                                                                 
     9. Is there duplication between agencies?                                                                                  
     10. Are other options viable to accomplish these outcomes?                                                                 
                                                                                                                                
Mr. Holt  recommended  the Committee  and Agencies  "should be  very                                                            
comfortable in answering" these questions.                                                                                      
                                                                                                                                
Mr.  Holt  pointed  out  the questions   are "sequence  dependant",                                                             
explaining  that if  the mission  could  not be  agreed upon,  other                                                            
action  must be stopped  until  agreement is  reached. He  qualified                                                            
that disagreement  would occur; however if the mission  could not be                                                            
agreed upon, the programs would not matter.                                                                                     
                                                                                                                                
     Linking Department Mission/Outcomes                                                                                        
     EXAMPLE ONLY                                                                                                               
     [Graph listing departments vertically, Senate Priorities                                                                   
     horizontally, and indication of programs.]                                                                                 
                                                                                                                                
Mr. Holt noted  this graph identifies  which programs contribute  to                                                            
each priority.                                                                                                                  
                                                                                                                                
Mr. Holt informed this  graph determines whether programs align with                                                            
the identified  priorities.  He  furthered that  Committee  Members'                                                            
could then  decide if adequate effort  is invested into a  priority.                                                            
                                                                                                                                
Mr. Holt  then pointed out  that the Performance  Measures  shown on                                                            
the graph reflect, "how  well your priority is being accomplished, "                                                            
despite what departments  are involved. He explained, "It allows you                                                            
just to  say 'are  you making  progress on  your priorities'  versus                                                            
just making  progress within an agency"  and emphasized,  "That is a                                                            
fundamental difference in view."                                                                                                
                                                                                                                                
     PIT FALLS (Lessons from the "Pit")                                                                                         
                                                                                                                                
     Focus is to improve - not keep score. Resist the urge to                                                                   
     "judge" the numbers too quickly.                                                                                           
                                                                                                                                
     Build in a quarterly review process, and be ready to make mid-                                                             
     course corrections.                                                                                                        
                                                                                                                                
     Same process does NOT equal same "content" - there will be                                                                 
     disagreement on agency mission/program.                                                                                    
                                                                                                                                
     Most Financial Systems "count things" and will probably have                                                               
     to be modified, to provide results based information.                                                                      
                                                                                                                                
      Remember - no one wins - if poor investments are made!                                                                    
                                                                                                                                
Mr.  Holt stressed  the  need to  focus  on improvement  instead  of                                                            
scorekeeping,   particularly  because  of  the  difficult   economic                                                            
climate. He warned that  keeping score "doesn't do anything", giving                                                            
an analogy of identifying  faulty products at the end of an assembly                                                            
line                                                                                                                            
                                                                                                                                
Mr. Holt recommended  addressing this  matter as a challenge  to the                                                            
departments to  provide the best possible return on  the investment.                                                            
He also  cautioned against  making significant  changes only  once a                                                            
year, preferring quarterly reviews and adjustments.                                                                             
                                                                                                                                
Mr.  Holt next  addressed  the differences  in opinions  that  would                                                            
occur  with   the  change  in  gubernatorial   administrations.   He                                                            
remarked, "Just because  you're using the same process does not mean                                                            
you will completely agree on the content."                                                                                      
                                                                                                                                
Mr. Holt  compared  the House  and Senate  Finance  Committees  to a                                                            
corporation's  board  of  directors,  in  that  the  Committees  are                                                            
responsible for the investments made.                                                                                           
                                                                                                                                
CHERYL FRASCA, Director,  Office of Management and Budget, Office of                                                            
the  Governor,  expressed  the Administration   anticipates  working                                                            
together  with  the   Legislature  on  the  missions   and  measures                                                            
framework.  She  told  of  an  action  plan  under   preparation  to                                                            
implement the  intentions made by  Governor Murkowski in  the recent                                                            
State of  the State address.  She expressed  that the results  based                                                            
budget approach  would be utilized  to achieve the Administration's                                                             
goals.                                                                                                                          
                                                                                                                                
                                                                                                                                
SFC 03 # 2, Side B 10:13 AM                                                                                                     
                                                                                                                                
                                                                                                                                
Co-Chair  Wilken recalled  that Ms. Frasca  was associated  with the                                                            
inception of the missions and measures methodology for Alaska.                                                                  
                                                                                                                                
Ms. Frasca affirmed and told of her experiences ten years prior.                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Gary Wilken adjourned the meeting at 10:14 AM                                                                          

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