Legislature(2003 - 2004)
03/17/2003 09:04 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 17, 2003
9:04 AM
TAPES
SFC-03 # 21, Side A
SFC 03 # 21, Side B
SFC 03 # 22, Side A
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:04 AM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Lyda Green, Co-Chair
Senator Robin Taylor
Senator Ben Stevens
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: KATHRYN DAUGHHETEE, Director, Division of
Administrative Services, Department of Law; EDDY JEANS, Manager,
School Finance and Facilities Section, Education Support Services,
Department of Education and Early Development; LINDA PEREZ,
Administrative Director, Division of Administrative Services,
Office of the Governor; LAURA GLAISER, Director, Division of
Elections, Office of the Lieutenant Governor; JANET CLARKE,
Director, Division of Administrative Services, Department of Health
and Social Services; JOHN BAUCHER, Project Manager, Online
Resources for the Children of Alaska (ORCA) Project, Department of
Health and Social Services; CHERYL FRASCA, Director, Office of
Management and Budget, Office of the Governor;
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
SB 100-APPROP: CAPITAL PROJECTS
The Committee heard overviews of the capital requests of the
Department of Education and Early Development, Department of Law,
Office of the Governor, and the Department of Health and Social
Services. The Committee also heard a general overview from the
Office of Management and Budget. The bill was held in Committee.
SENATE BILL NO. 100
"An Act making capital appropriations and reappropriations;
capitalizing a fund; making appropriations under art. IX, sec.
17(c), Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for an
effective date."
Department of Law
th
Dimond Courthouse - Recarpet 5 Floor
$44,000 general fund
Reference No.: 37955
Category: Law and Justice
Location: Juneau (Juneau/Downtown/Douglas)
Election District: Juneau/Downtown/Douglas
Estimated Project Dates: 07/01/2003 - 06/30/2005
One-time Project
th
The 5 floor of the Dimond Courthouse has not been recarpeted
in many years. Existing carpeting no longer adheres to the
backing in many areas and bubbles up creating significant
ripples in the carpet surface. Attempts to cut and reglue the
carpet have failed. The ripples create a safety hazard for
employees such that the carpet may have to be torn up exposing
bare concrete floors. At this time, the Dimond Courthouse is
not included in the Public Building Fund.
KATHRYN DAUGHHETEE, Director, Division of Administrative Services,
Department of Law, overviewed the explanatory statement. She noted
temporary repairs are currently made using duct tape.
Senator Hoffman asked the last time this building was recarpeted.
Ms. Daughhetee answered the building was recarpeted in 1995 at the
time the attorney general's office was consolidated.
Senator Hoffman asked the life expectancy of the existing
carpeting.
Ms. Daughhetee responded the carpeting should have lasted longer
and surmised that installation could be responsible for the undue
wear and tear. She noted carpeting installed at the same time on
other floors is wearing better.
Co-Chair Wilken asked the owner of the building.
Ms. Daughhetee replied the State, Department of Administration is
the owner of the Dimond Courthouse.
Co-Chair Green asked the activities conducted on the fifth floor.
Ms. Daughhetee answered "several sections of the attorney general's
office" are located on the fifth floor.
Oil and Gas Royalty Settlement Reopeners
$1,000,000 general fund
Reference No.: 31371
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2006
One-time Project
This project will partially fund the cost of outside legal
counsel and outside experts, and the State's cost of reopener
arbitrations as the State proceeds with the renegotiation and
arbitration of royalty issues.
Ms. Daughhetee read the Detailed Project Justification into the
record as follows.
The purpose of this funding request is to enable the State to
effectively resolve ongoing and threatened litigation
involving Alaska North Slope (ANS) oil and gas royalties owned
the State. All of the major oil companies retain private
counsel will versed in oil and gas issues to prosecute royalty
disputes against the State. This request is intended to allow
the Department of Law to also retain a small body of select
private counsel to assist in resolving ongoing disputes
regarding oil and gas royalties owned the State.
The major producers entered into royalty settlement agreements
with the State in the early 1990s. The agreements provide a
methodology for valuing ANS oil for royalty purposes and an
arbitration procedure for changing value methodology called a
reopener.
In the last year Law has successfully resolved a value
reopener against BP and a value and transportation reopener
against Phillips. A value and transportation reopener is
currently pending against Exxon. The State has been attempting
to obtain Exxon data necessary to prosecute the reopener to a
conclusion, but as of this date, Exxon has provided no data in
response to State requests. It is anticipated that, as in the
past, Exxon will retain a large number of outside counsel to
litigate this reopener with the State. In the last major oil
and gas proceeding with Exxon, it retained several separate
law firms and also utilized in-house counsel and staff to
litigate against the State. It is necessary that the State
have access to outside counsel in order to adequately deal
with the Exxon reopener, which is scheduled to restart in
March of 2003 on a very short time line.
In addition, Law anticipates two other reopeners against
various producers focused on transportation costs. The
producers are buying new double-hulled tankers to comply with
federal law (OPA 90). In connection therewith they are seeking
significantly increased transportation deductions. One
disputed issue is the treatment of tax benefits such as the
capital construction fund program, which allows producers to
obtain vessels with tax deferred dollars. At least one of the
producers has taken the position that the State is not
entitled to share in the tax benefits. This type of litigation
will require the retention of tax counsel and experts in
vessel financing and other issues.
In addition to outside counsel, expert advice and opinions are
essential to match the resources marshaled by the producers
and to advance the State's own position before an arbitration
panel and rebut the expert claims made by the producers.
Once the State or a producer gives notice that it is
exercising a reopener provision, the schedules and protocol in
the royalty settlement agreements must be followed. These
schedules do not follow the State's year-to-year annual budget
or appropriation time lines. The Department of Law's oil and
gas litigation budget has been reduced over time. The
Department of Law does not currently have sufficient funds to
handle the needs caused by the reopeners.
Co-Chair Green asked how this item is considered a capital project
rather than an operating budget item.
Ms. Daughhetee explained the funding for this activity would be
required for several years.
Department of Education and Early Development
Mt. Edgecumbe High School Exterior Renovations
$1,000,000 Alaska Student Loan Corporation (ASLC) dividend
Reference No.: 35855
Category: Education
Location: Sitka
Election District: Sitka/Wrangell/Petersburg
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-time Project
Removal and replacement of asbestos/lead paint siding and
adding insulation to improve energy efficiency in the Boy's
Dorm, Girl's Dorm, and Kitchen Dining Hall. These three
buildings are adjacent to one another and it is recommended
that all exterior renovation work be done at the same time to
reduce project costs.
EDDY JEANS, Manager, School Finance and Facilities Section,
Education Support Services, Department of Education and Early
Development testified this project is included in a capital
improvement master plan drafted by an architectural team on behalf
of the Department.
Co-Chair Green asked if this project was not included in the bond
package for school construction and renovation that was passed by
voters the previous year.
Mr. Jeans answered it was not included.
Yuut Elitnaurviat People's Learning Center - Phase 1
Construction
$1,000,000 ASLC dividend
Reference No.: 36594
Category: Education
Location: Bethel
Election District: Bethel
Estimated Project Dates: 07/01/2003 - 06/30/2008
Phased Project
The Yuut Elitnaurviat People's Learning Center in Bethel is
requesting State support for construction of a vocational
training center to serve the Yukon-Kuskokwim Delta Region.
Phase I construction is estimate to cost $16.3 million.
Various funding partners, including the Bureau of Indian
Affairs FY 02 $1.0 million and the USDA-Rural Development $2.0
million pending.
Mr. Jeans stated that this request is to allow leverage of federal
funds from the federal sources. He informed that "various partners"
in the region have agreed to assume the operational costs of the
center once it is completed.
Co-Chair Wilken noted that although the funding source of this item
is listed as student loan dividends, it is actually a reduction in
the amount the Alaska Student Loan Corporation pays to the general
funds. He then asked the local contribution, and also requested a
five-year cash flow report on how this facility, once constructed,
would be funded. He compared this facility to a similar project
located in Nome and discussed the previous legislative session.
Office of the Governor
LINDA PEREZ, Administrative Director, Division of Administrative
Services, Office of the Governor, presented the requests.
AccuVote - Payment 6 of 6
$387,789 general fund
Reference No.: 6712
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/1998 - 06/30/2004
Phased Project
The Division of Elections purchased the new statewide vote
tabulation system, AccuVote, with a six-year lease purchase
plan. The payments began in FY 99, with the final payment due
in FY 04. This request is for the system's final annual
payment.
Senator Taylor asked if this system is compatible with federal
Americans with Disabilities Act (ADA) requirements.
LAURA GLAISER, Director, Division of Elections, Office of the
Lieutenant Governor, testified that these units are not ADA
compliant, and that separate capital request has been submitted to
purchase ADA compliant units to supplement the existing machines.
Pacific Coastal Salmon Recovery Fund
$21,857,000 federal receipts
Reference No.: 33647
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-going Project
The federal fiscal year 2003 (FFY03) appropriations
legislation contains funding for the Pacific Coastal Salmon
Recovery Fund. A total of $115 million was appropriated for
the states of Alaska, Washington, Oregon and California.
Coordination of the fund is through the respective Governor's
offices. The Alaska portion of the federal FY 03 appropriation
is $21.857 million. The Alaska portion of this funding comes
to the State through a Memorandum of Understanding designating
Alaska Department of Fish and Game as the program manager.
Co-Chair Wilken noted the Department of Fish and Game would give a
complete presentation on this item at a later meeting.
Senator Taylor wanted to know why this item is included in the
Office of the Governor budget.
Ms. Perez understood the original federal legislation appropriated
the funds to the governor's offices of each state involved.
Elections Reform Under the Federal Help America Vote Act
(HAVA)
$5,000,000 federal receipts
Reference No.: 38524
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2006
Improve the administration of elections in accordance with the
Help America Vote Act.
Ms. Perez informed that $5 million is the minimum payment amount
available to a state under Title 1 of HAVA, and that funds would be
available through federal fiscal year 2005.
Co-Chair Wilken asked if this $5 million could be used to fund
request items 6712 and 34852. He also asked the requirements of
Title 3 of HAVA.
Ms. Glaiser summarized that Title 3 requires five-percent in state
matching funds. She stated it was determined to list this item
separately as there is still question as to whether the State would
be reimbursed for the approximately $2 million in payments made for
the AccuVote purchases.
Co-Chair Wilken asked if it would be possible that the other items
could be paid with this HAVA funding.
Ms. Glaiser was unsure, but noted that if those projects were paid
from general funds and reimbursed these HAVA funds would be
available for other purposes.
Co-Chair Wilken ascertained the AccuVote projects meet the HAVA
qualifications, asked for further review of the matter.
Electronic Filing of Public Official and Legislative Financial
Disclosure Statements and Lobbying Activity Reports
$450,000 general funds
Reference No.: 37940
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2006
One-time Project
Funds will be used for consulting services for design,
development and testing of a web-enabled filing system for the
electronic filing of public official and legislative financial
disclosure statements, and lobbying activity reports.
Ms. Perez outlined the request.
Co-Chair Wilken asked if the Alaska Public Offices Commissions is
transferred to the Division of Elections, as requested by the
Governor, whether these funds would be transferred with the
program.
Ms. Perez affirmed.
Early Voting and Accessible Voting Equipment
$298,600 general funds
Reference No.: 34852
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2004
One-time Project
Purchase additional ballot tabulation units/accessible voting
equipment for disabled voters and "Early Voting". This request
includes additional ballot tabulation units for overcrowded
precincts and Early Voting. Accessible units are to be made
available in several voting locations for the next election
cycle. The Division of Elections' goal is to have at least one
accessible voting unit in each optical scan precinct.
Ms. Perez outlined this request.
Americans with Disabilities Act Compliance Projects
$500,000 general funds
Reference No.: 6391
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2006
On-going Project
This project continues the removal of physical barriers to
persons with disabilities within state-owned facilities as
required by Title II of the Americans with Disabilities Act,
Public Law 101-336. Funding covers the cost of design, project
administration, and construction. Aside from the legal
requirements, removal of physical barriers will negate the
need for temporary program modifications, which are currently
required of the facilities' occupants. Office of Management
and Budget allocates available funding to the Department of
Transportation [and Public Facilities] for State facility ADA
compliance projects based upon DOT's prioritized project list.
The requested FY 04 funds will continue work from the
statewide priority list.
Ms. Perez outlined this request.
Co-Chair Wilken noted this item has been regularly funded since
1993 and he asked for details on proposed renovations.
Ms. Perez would provide the information to the Committee.
Co-Chair Wilken also wanted to know the consequences if this item
were not fully funded at the current level.
Ms. Perez indicated she would research the matter.
Department of Health and Social Services
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services
Child Protection Information System - Phase 3
$1,884,500 federal receipts
$1,884,500 G/F Match
Reference No.: 6816
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
State-match required
Phased-underway Project
This project continues efforts for the development of an
information system to protect the children of Alaska and the
safety of front-line Division of Family and Youth Services
(DFYS) workers and to increase worker productivity. DFYS is in
the final development phase of the Online Resources for the
Child of Alaska system, and this request is critical for its
completion. Failure to meet all the goals of the planning
documents, including submission of required adoptions and
foster care data to the Administration for Children and
Families (ACF), could result in the Department having to
return over $4.5 million to the federal government.
Ms. Clarke noted supplemental information has been compiled and
available for review.
Ms. Clarke told of the contractor, American Management System's
success rate in implanting upgrades in other states with minimal
conversion difficulties.
Ms. Clarke overviewed the expenditure outline contained in the
detailed backup information and informed that a 50 percent match is
provided for funds the State expends for this project.
Ms. Clarke stressed Alaska is one of the last states to develop a
case-management system for family and youth services. She stated
that because of this, Alaska could learn from other state's
conversion efforts. She said that some states did not provide
adequate funding for training and conversion of data expenses, and
therefore funds for those activities are included in this request.
Senator Hoffman asked the number of positions that could be
eliminated given the systems automation.
Ms. Clarke responded that this has not been determined as of yet.
She was able to assure that better and timelier information would
be available and detailed the abilities of supervisors to review
caseworker actions and decisions.
Co-Chair Wilken asked for further explanation of the warning that
failure to meet goals could result in a loss of federal funding.
Ms. Clarke told of efforts of the federal government to provide a
"carrot on a stick" to provide incentives. She explained that the
50-percent federal funding match is available; however, if the
State fails to continue to make progress in updating its system,
funds already appropriated would have to be repaid.
Co-Chair Wilken asked if the funding match has always been 50
percent.
Ms. Clarke stated that for a short time the federal match was 70
percent and Alaska attempted to take advantage of the higher
percentage when it was available.
Co-Chair Wilken referenced travel expenses for ORCA personnel to
attend training. He asked if it would be more cost effective for
trainers travel to the "students".
JOHN BAUCHER, Project Manager, Online Resources for the Children of
Alaska (ORCA) Project, Department of Health and Social Services,
testified that both methods would be employed, as well as a web-
based training approach to reduce costs.
Ms. Clarke furthered this project would transition child protection
operations from a "paper intensive system" to an online case
management system. She stated that other states have asserted that
the cultural change of this process to the workforce could not be
fully appreciated.
Co-Chair Wilken asked if this issue is addressed in the recent
federal review audit of the program.
Ms. Clarke affirmed.
Co-Chair Wilken requested explanation of the 11 project positions
required to "backfill".
Mr. Baucher spoke of the change from a "maintenance mode to
building the capabilities to support a system" and therefore skills
such as database administration would be required. He added that
three of the proposed positions are field social workers, one is a
financial specialist another a licensing specialist, and the
remaining to operate a help desk/support system.
Ms. Clarke continued that some project staff would be transferred
"from the field" to ensure the system is developed appropriately to
field practice.
Co-Chair Wilken asked if these would be temporary positions.
Ms. Clarke affirmed.
Co-Chair Wilken asked if the staff proposed for these positions is
knowledgeable in the new database system.
Mr. Baucher responded the staff would be trained.
Co-Chair Wilken asked for an explanation of the "backfill permanent
staff" justification for the temporary positions.
Ms. Clarke replied these positions would be necessary to ensure
that "all the regular work continues".
Co-Chair Wilken asked the date the project would be completed.
Mr. Baucher answered September 2004.
Co-Chair Wilken asked if therefore no budget requests for this item
would be made for FY 05.
Mr. Baucher affirmed.
Senator Hoffman asked for clarification that operational
maintenance costs would require four positions.
Ms. Clarke affirmed that analysis programmer and data specialist
positions would be necessary to maintain the system, although the
social worker and licensing specialists positions would return to
regular duties.
Nome Youth Detention Facility Construction - Phase 2
$3,900,000 general funds
Reference No.: 35722
Category: Law and Justice
Location: Nome
Election District: Bering Straits
Estimated Project Dates: 07/01/2003 - 06/30/2008
Phased-underway Project
Expansion of the Nome Youth Facility (NYF) to 12 detention
beds and renovation of the existing structure is needed. NYF
has received tremendous community and regional support as a
community detention program. Increasing the capacity to twelve
beds will reduce the placement of youth outside of the region.
Marginal original construction and minimal maintenance,
exacerbated by the arctic climate, have left the structure in
need of complete renovation.
Ms. Clarke pointed out this is the final project in the
Department's 1997 Master Plan. She reminded that in FY 01 the
legislature appropriated funds for planning and design.
Ms. Clarke informed that the facility was constructed in 1981 and
has been impacted by the Arctic weather conditions and inadequate
maintenance. She referenced a pamphlet titled, "NYF Development
Program" [copy on file], noting similar information is prepared for
all communities with a youth facility; as such projects are
sometimes controversial. She assured no controversy exists with the
location of the facility in Nome. She furthered that the architect
firm employed to plan this renovation project have maximized cost
savings.
Co-Chair Wilken asked the funding source of the FY 01
appropriation.
Ms. Clarke replied that interest earned from a separate account was
appropriated by the legislature for this project.
Senator Taylor was incredulous that this building is near collapse.
He spoke to an inadequate heating unit and asked how poorly the
facility was originally designed or maintained.
Ms. Clarke agreed with Senator Taylor's observations. She stated
that the facility was closed in the 1980s as a result of budget
reductions, and at that time adequate consideration of maintenance
requirements in the event of reopening the facility was not given.
She furthered that since construction, more has been learned about
construction in arctic conditions. She admitted the original
heating unit should have lasted 30 years, although it is currently
22 years old.
Ms. Clarke stressed this is important facility and important to the
juvenile justice system statewide.
Co-Chair Wilken asked about debt financing rather than general fund
financing of this project.
Ms. Clarke replied this was discussed in previous years; however
the amount is less than usually considered for debt financing. She
suggested this project could be combined with other projects to
reach an acceptable amount.
Federal Health Insurance Portability and Accountability Act
Compliance - Phase 2
$828,150 federal receipts
$828,150 G/F match
Reference No.: 35721
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
State Match Required
Phased-underway Project
The Health Insurance Portability and Accountability Act
(HIPAA) was enacted by the federal government in 1996.
Deadlines for compliance with regulations concerning
electronic transmissions, privacy and security of patient and
health care information will be set over the next five years.
Substantial monetary and civil penalties can be imposed as a
result of non-compliance. The Department is compelled to
implement in-depth impact analysis and requirements
assessments for its health care programs, operations, computer
systems and policies and procedures. It is anticipated that
both small and large-scale modifications to systems,
operations and policies and procedures will be required.
Ms. Clarke reminded that the legislature appropriated funds for
this program the previous session. She spoke of the federal
regulations the Department must comply with to ensure the privacy
and security of patient information. She indicated the Department
planned several specific projects to meet the requirements phased
over five years.
Ms. Clarke explained the funding requested for FY 04 is to address
patient information contained in data systems outside of the
Medicaid data system. She exampled the "maternal child family
health arena" as containing confidential information, which the
Department must secure.
Co-Chair Wilken asked if the entire project would be completed at
the conclusion of FY 05.
Ms. Clarke answered this is correct, although the Department must
continue to comply with the HIPAA requirements, although capital
funding would not be necessary.
Co-Chair Wilken asked if missions and measures were drafted to
model the success of this investment.
Ms. Clarke replied that specific missions and measures had not been
developed, as the focus has been compliance with the federal
mandate.
Senator Hoffman asked about additional annual operational costs
after FY 05.
Ms. Clarke predicted there would be additional expenses, but that
they would be absorbed within the regular budget appropriation. She
stated that once the systems are in place, different procedures
would be necessary but would not require additional funding. She
noted employees accessing the secure information would be required
to log off of computers when leaving their workstations.
Deferred Maintenance, Renewal, Replacement and Equipment
$800,000 federal receipts
$600,000 G/F match
Reference No.: 31862
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2008
State Match Required
On-going Project
Funds deferred maintenance at 37 State-owned buildings with a
replacement value of $250 million, along with selected leased
facilities, including urgent immediate repair, renovation and
equipment needs. Delay in funding will cause additional
deterioration of the Department's facilities. Urgent repairs
and deferred maintenance cannot be delayed without adversely
affecting the State's investment in its facilities.
Ms. Clarke noted this is an annual request, and admitted the
Department would prefer additional funds than the amount available.
She referenced a list of proposed projects included in the backup
documentation.
Ms. Clarke pointed out that federal funds could not be used for all
of the projects.
Ms. Clarke directed attention to a handout titled "Department of
Health and Social Services, FY 2004 Deferred Maintenance Capital
Request" [copy on file]. She overviewed the photographs showing
damaged facilities in need of repair or replacement.
SFC 03 # 21, Side B 09:51 AM
Senator Taylor asked about the proposed lock replacement at the
Nome Youth Facility.
Ms. Clarke assured that the locks would not be installed only to be
demolished during renovation of the entire facility.
Senator Taylor asked why the locks are not included in the
renovation project.
Ms. Clarke stressed the need to secure the facility immediately,
whereas the renovation project would take several years to
complete.
Co-Chair Wilken appreciated that the proposed projects are
prioritized.
Ms. Clarke explained the prioritization based on fire, life and
safety concerns.
Co-Chair Green asked about some of the proposed projects to program
facilities and asked if the buildings were State-owned or owned by
non-profit organizations.
Ms. Clarke replied that the Assets Building is State owned. She
informed that the State funded the construction of the facility in
the form of a grant to a non-profit organization, which later
became insolvent and the building was transferred to State
ownership. She noted that a non-profit organization currently
occupies the building, which the State maintains to protect its
investment into the facility.
Co-Chair Green asked the amount of rent paid by the non-profit
organization.
Senator Taylor questioned apparent duplication of requests, such as
a proposed project for shower replacement in the Nome Youth
Facility. He asked if this is in the event the larger renovation
project is not funded.
Ms. Clarke agreed. She reassured that projects would not be
undertaken only to be demolished. She indicated that some proposed
project lists were complied independently and stated they would be
reviewed to eliminate duplications. She qualified that funding for
the major renovation is uncertain and that the smaller repairs are
necessary.
Senator Taylor requested that the smaller projects be included in
the major renovation project.
Office of Management and Budget
CHERYL FRASCA, Director, Office of Management and Budget, Office of
the Governor, gave an overview of the entire Governor's capital
budget request. She read into the record a handout titled, "FY 04
Proposed Capital Budget Highlights, Senate Finance Committee
Overview, March 17, 2003" [copy on file], as follows.
Total Spending: $1.4 billion
General Funds $134 million
Federal Funds $1 billion (71%)
Other State Funds $268 million
FY 04 Proposed Compares to FY 03:
Total Spending $168 million higher
General Funds $25 million higher
Federal Funds $56 million higher
Other State Funds $41 million higher
Biggest Share of Capital Budget Pie: DOT/PF
Total Funds: $825 million (59% of capital budget)
Federal Funds $695 million
General Funds Match $62 million
General Funds $25 million
Other State Funds $43 million
General Fund Support of Maintenance, Equipment, New
Facilities:
Deferred/maintenance projects $22.3 million
Equipment repair/replacement $3.2 million
New facilities:
Nome Youth Facility $3.9 million
Ketchikan Public Safety Bldg $2.5 million
Chandalar Maintenance Station $4.4 million
Selected Project Highlights
Economic Development
· Brooks Range Oil and Gas Reservoir Data $50,000 GF
Acquisition and analysis of baseline data needed for
increased private sector gas exploration and development
on State and native corporation lands in the Brooks Range
foothills.
· Oil and Gas Exploration, Development
and Permit Streamlining $737,700 FF
Increase development activity from small to moderate
sized firms by providing extensive public information on
existing wells via the Internet; also streamline
permitting process to reduce start-up time to help lower
the entry costs for new producers
· North Slope Tundra Travel Analysis $250,000 FF
Potential to increase winter work season for production
activities by determining resistance of tundra to
disturbance due to wintertime cross-country travel; goal
is to provide production activity but also ensure
environmental protection of the tundra surface
· Industrial Development
and Community Access Roads $10 million GF
These funds would support reconnaissance engineering and
preliminary environmental studies necessary to advocate
access roads serving communities and resource
development. This advance engineering and environmental
work would accelerate these projects, as construction
funding is made available. Additional funding is being
sought from multiple sources including Denali Commission,
federal earmarks, and changes in other federal programs
that could assist in road development.
The Department has identified 5 priority resource roads
that would benefit from early engineering and
environmental effort. The four that lack funding include:
1) the road and bridge to Nuiqsut (opens NPR-A [National
Petroleum Reserve-Alaska] oilfield development)
2) Foothills road from Dalton Hwy to Nuiqsut (opens state
oil leases in foothills region of Brooks Range)
3) Glacier Creek road near Nome (opens the Rock Creek
mine and nearby areas)
4) Yukon River port near Holy Cross and road to Poorman
and McGrath (supports Donlin Creek mine and many nearby
gold fields)
Community Access Roads: The Department has identified
several priority community access roads that currently
lack other funding sources, including:
1) Seldovia to Port Graham with ferry at Jackelof Bay
2) Williamsport to Pile Bay (connects Cook Inlet to Lake
Illiamna villages)
3) Yukon River Highway (links several villages between
Manley Hot Springs and Nome)
4) Chena Hot Springs to Circle Hot Springs Road
5) Chignik Connectors (links Chignik to Chignik Lagoon
and Chignik Lake villages)
6) Naknek to South Naknek bridge and road.
· Navigable Waters Assertions $188,700 GF
For preparation and filing of applications with BLM
[federal Bureau of Land Management] for "Recordable
Disclaimers of Interests" that will clear State title to
certain navigable waters; except to file for several
hundred rivers within the next year as part of this
project. This is in response to January 2003 US Interior
Department revised regulation to allows filing of these
requests to resolve land title issues with the Federal
government
· Forest Productivity Improvement in
Southern Southeast Alaska $100,000 GF
Sustain a long-term timber supply to value-added
processors in SE Alaska by thinning young, overstocked
stands
· Nearshore Marine Research Studies $998,000 FF
Conduct stock assessment and research as prerequisite to
development fishery management plans for sustainable
fisheries on previously unexploited or lightly exploited
marine resources in order to foster economic development
of coastal communities
· Harbor Construction $8.25 million GF/Match
Haines Harbor design ($100,000); Wrangell Heritage Harbor
construction ($4 million); St. Paul Harbor and navigation
improvements ($4.15 million)
· Pre-Harvest Geoduck PSP Testing $250,000 GF
Monitoring, data collection to improve marketability as a
live fishery
· Regional Learning Center (Yuut Elitnaurviat
People's Learning Center) $1 million GF
Phase 1 - vocational education center to serve Yukon-
Kuskokwim Delta Region
· Capital Matching Grants Program $15 million GF
General Funds supplants AIDEA [Alaska Industrial
Development and Export Authority] dividend as fund source
Public Safety and Health
· Statewide Illegal Drug and Alcohol use $2 million FF
Community policing approach to fight alcohol and drug
abuse in rural areas
· Alaska Land Mobile Radio $680,000 GF
Continue process of converting Federal, State, and local
emergency communications systems so all jurisdictions
will be able to communicate with each other
· Community water/sewer projects $108 million
o Village Safe Water $84 million (+14 m above FY 03)
o Municipal matching grants $24 million
Senator Taylor asked if $600,000 represents the total amount of
requested capital budget funds for the Alaska Land Mobile Radio
(ALMR) project, or whether additional requests would be found
within the Department of Public Safety and other agencies to
purchase equipment to interact with the ALMR project.
Ms. Frasca stated the amount indicated in the overview represents
funding requested for the Department of Military and Veterans
Affairs. She stated she would research the matter, noting capital
budget requests have been submitted for the Emergency Medical
Services for the Code Blue project.
Senator Taylor told of efforts of the previous session on this
project and the Knowles Administration's withdrawal of all ALMR
funding requests despite entering into a contract for the project.
Ms. Frasca noted the departments have additional funding requests
not mentioned in her overview.
Co-Chair Wilken asked if AIDEA dividend funds for FY 04 would be
possible.
Ms. Frasca replied that legislation would be necessary to amend the
definition of net income on which the dividends are based. She
relayed discussions were held with AIDEA before the legislative
session and it was determined that in the "environment of Enron",
redefinition of the basis in which dividends are paid would be
unadvisable. Enron was the major energy corporation whose officers
are alleged to have falsified accounting procedures to misrepresent
the amount of debt and earnings of the organization. She stated
the intent is to fund the FY 04 capital budget without AIDEA
dividend funds and offset the loss with general funds.
Co-Chair Wilken asked if the matter of redefining net income for
AIDEA would be considered in the future.
Ms. Frasca responded that the expectation is an AIDEA dividend paid
to the State in FY 05.
Co-Chair Wilken asked if US Congressman Don Young were successful
in renewing TEA-21 funds, whether the appropriation would pass
through the Denali Commission.
Ms. Frasca explained two funding sources would occur; the TEA-21
funds which would be appropriated through the Department of
Transportation and a separate program that would receive
transportation-related funds through the Denali Commission. She
assured the funds appropriated to the Denali Commission would not
"take the place of our regular entitlement".
Co-Chair Wilken asked if the Village Safe Water projects are
contained in the Department of Environmental Conservation budget.
Ms. Frasca affirmed.
Co-Chair Wilken requested a complete list of projects proposed
under this item.
Ms. Frasca stated the Department of Community and Economic
Development would provide the information.
Senator Hoffman recalled that economic development was the
"cornerstone" of Governor Murkowski's State of the State Address.
Senator Hoffman asked when revenue from the proposed economic
development projects would be generated to the State's general
fund.
Ms. Frasca responded it is "highly unlikely" revenues would be
realized in the "immediate future", pointing out the time required
to develop the projects. She stressed the importance of beginning
the projects now rather than waiting, remarking "it's worth it in
the long term".
Senator Hoffman asked if the investments proposed in the FY 04
capital budget would generate revenue within the next five years.
Ms. Frasca replied that private sector "activity" is required. She
offered to discuss with the Department of Transportation and Public
Facilities, the partnerships proposed and in place, and the time
frame for completion of the road projects. She stated that
additional funds from alternate funding sources would be necessary
and that construction dates are unknown.
Department of Health and Social Services (cont.)
Pioneers' Homes Deferred Maintenance, Renewal and Repair
$1,000,000 general funds
Reference No.: 37934
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-going Project
Funding is requested for Fire and Life Safety problems and for
deferred maintenance and structural repairs of Pioneers' Homes
throughout the State. All projects listed in this request are
considered Category 1. Category 1 issues relate to Fire and
Life Safety and other integrity of emergency, electrical, and
other building systems that without resolution place residents
and staff at risk of harm.
Ms. Clarke noted these facilities had been managed by the
Department of Administration and that the Department of Health and
Social Services is attempting to assume operating duties and
maintenance requirements.
Ms. Clarke listed design and engineering for structural
modifications for the Ketchikan Pioneers Home as the highest
priority project at a cost of $176,100. She informed that an
initial engineering survey has been conducted, which identified
structural deficiencies. She stated the proposed project would be
the first phase and that the Department would later request
additional funds for the construction portion. She remarked that
although the building is deemed safe for occupancy, serious
concerns exist that high winds might compromise the structural
integrity of the building.
Ms. Clarke then told of the main entry door upgrade proposed for
the Palmer Pioneers Home to replace two heavy exterior doors that
could not be opened by an infirm person.
Ms. Clarke continued with the Anchorage Pioneers Home Fire Alarm
System Renovation proposed project at a cost of $597,800. She
stated that during a building survey conducted in 2001 for a
ventilation project, it was discovered that the existing fire alarm
system was obsolete, unreliable and subject to numerous faulty
alarms. She shared that false alarms cause problems at the
Anchorage Pioneer Homes, given that a high percentage of residents
become "easily confused".
Ms. Clarke described the Juneau Pioneers Home Fire Alarm and
Emergency Lighting System Upgrades. She explained the existing fire
alarm system is independent and only recognizes that smoke or fire
is present in a large group of rooms, rather than specifying an
exact location. She furthered that the system lacks adequate
detectors, horns, strobes, etc.
Ms. Clarke listed the final proposed project as $42,000 for the
Anchorage Pioneers Home Wireless Emergency Call System
Installation. She informed that the existing system is obsolete and
frequently fails to receive emergency calls.
Co-Chair Wilken requested the funding history for this item as
previously appropriated to the Department of Administration.
Ms. Clarke responded that she would compile the information.
Co-Chair Wilken asked if the proposed projects are listed according
to priority.
Ms. Clarke affirmed.
Co-Chair Wilken asked if the fire alarm and emergency lighting
project in the Juneau Pioneers Home is to address a code violation
or rather a "convenience upgrade."
Ms. Clarke indicated she would research the matter.
Safety and Support Equipment for Public Health Nurses,
Probation Officers and Social Workers
$431,000 federal receipts
$259,500 G/F Match
$140,500 general funds
Reference No.: 32446
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
State Match Required
On-going Project
Project provides funds for critical equipment needed by the
Department to enhance security, improve program efficiency and
replace aging or dysfunctional equipment for the Department's
statewide operations. Older or unsuitable vehicles have been
identified as the most dangerous equipment and as a priority
for replacement. There is an urgent need for this equipment so
that Family and Youth Service social workers, Juvenile Justice
detention and probation officers and Public Health nurses can
perform their duties safely and effectively. Failure to fund
some equipment purchases will mean that they may not be able
to do their job or that they may be placed in danger.
Ms. Clarke included vehicle maintenance and security cameras
located in Juvenile Justice facilities as some of the safety and
support equipment projects. She added that a mobile clinic van for
public health nurses, recently made available, would also be
purchased with the requested funds. She stated this would be
located in the Fairbanks area for service to communities assessable
by road to Fairbanks.
Senator Taylor asked if the Department purchases or leases the
vehicles.
Ms. Clarke replied the vehicles are purchased through the State
equipment fleet.
Senator Taylor noted the Department of Transportation and Public
Facilities performs all maintenance on these vehicles and charges
back the Department of Health and Social Services. He asked the
hourly rate assessed.
Ms. Clarke was unsure.
Senator Taylor cited the amount "several years ago" was $75 per
hour. He suggested that if the vehicles were leased under a "wet
lease" agreement, dealerships would perform maintenance at no
charge to the State as well as provide another vehicle for use
during the time the State vehicle is being serviced.
Co-Chair Wilken understood the current administration would
research the viability of leasing vehicles.
Emergency Medical Services Ambulances and Equipment Statewide
- Match for Code Blue Project
$425,000 G/F Match
Reference No.: 33797
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
State Match Required
On-going Project
This request will provide funding to match federal dollars and
other funding to purchase ambulances and other emergency
medical equipment needed in rural Alaskan communities.
Ms. Clarke noted the legislature has funded this project for many
years. She listed other funding sources utilized to purchase these
vehicles, including the US Department of Agriculture, the Rasmussen
Foundation and the Denali Commission.
Ms. Clarke informed that some of the requested funds could be for
communities to access the Alaska Land Mobile Radio project. She
indicated a detailed listing of all Code Blue projects could be
made available to the Committee.
Co-Chair Wilken clarified this request for matching funds would
facilitate over $2 million for emergency services across the State.
Ms. Clarke affirmed.
Juneau Public Health Center Heating and Ventilation Upgraded -
Phase 2
$142,066 federal receipts
$647,191 G/F Match
Reference No.: 32451
Category: Health/Human Services
Location: Juneau (Juneau/Downtown/Douglas)
Election District: Juneau/Downtown/Douglas
Estimated Project Dates: 07/01/2003 - 06/30/2008
State Match Required
Phased - underway Project
This facility has no ventilation system and the heating system
is on the verge of failure. The legislature provided funds in
FY 2002 for the design of a new heating and ventilation
system. The legislature provided funds in FY 02 for the design
of a new heating and ventilation system. A detailed evaluation
conduced by Southeast Energy Consulting found that the heating
and ventilation system at the Juneau Public Center is out of
compliance with the 1991 and 1994 Uniform Building Code
requirements. This request would provide funding to replace
the current heating system and to provide a new ventilation
system.
Ms. Clarke informed that the State purchased this facility in 1991
from a private physician at what appeared to be a "very good deal"
at the time, given that the State was leasing space. However, she
stated it has since been learned that some upgrades had not been
made.
Ms. Clarke referenced a handout titled, "Department of Health and
Social Services, Juneau Public Health Center Heating and
Ventilation System Upgrades" [copy on file], which details the
project.
Ms. Clarke noted this is the third year of this request and she
expressed appreciation for the design funds appropriated in FY 01.
She pointed out that this project could begin immediately, once
funds were appropriated.
Fairbanks Public Health Center Repair and Back-up Generator
$46,800 federal receipts
$229,450 general funds
Reference No.: 37687
Category: Health/Human Services
Location: Fairbanks (City of Fairbanks)
Election District: City of Fairbanks
Estimated Project Dates: 07/01/2003 - 06/30/2008
State Match Required
One-Time Project
This request will provide funding to make major repairs and to
buy a reliable back-up generator for the Fairbanks Public
Health Center.
Ms. Clarke stated this request reflects a collaborative effort with
the Fairbanks local government contributing some major maintenance.
She informed that State public health nurses solely occupy the
facility and of the transfer of the facility to State ownership.
She stated the transfer is the result of the local government's
determination that the functions were not within its core mission.
In acquiring the facility, she pointed out "major maintenance
issues" must be "corrected".
Ms. Clarke furthered that the facility has no backup generator and
she told of vaccines destroyed within minutes of a power outage due
to temperature sensitivities. She emphasized the facility operates
as a regional hub of vaccine storage for the northern portion of
the State.
Co-Chair Wilken asked whether the Golden Valley Electric
Association (GVeA) has been contacted on this matter. He indicated
the GVEA would be installing a backup battery system and
anticipated a decrease in the number of power outages in the
Fairbanks area.
Residential Child Care Grantee Capital Needs
$30,587 federal receipts
$30,587 G/F Match
$169,413 general funds
Reference No.: 33815
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
State Match Required
One-Time Project
Provides for capital funds to Residential Child Care grantees
in FY 04 and beyond for deferred maintenance, ADA upgrades,
remodeling and equipment needs for in-state residential youth
care facilities. The Department of Health and Social Services
is also pursuing funding from private foundations, including
the Rasmussen Foundation.
Ms. Clarke spoke to the State's responsibility for ensuring that
children, who are in State custody, are housed in safe "grantee"
facilities.
Co-Chair Wilken exampled Kids Are People, Inc., one of the grantees
and the proposed $59,000 deferred maintenance project and asked if
the State would fund this project at a non-State owned or operated
facility because the children house there are wards of the State.
Ms. Clarke affirmed most of the grantees have a majority of
residents who are in State custody. She qualified that the
facilities also house some children who are not in State custody.
Ms. Clarke assured a process would be undertaken to prioritize the
requests, noting the list included in the backup material is a
"wish list" of all requests submitted by grantees.
Co-Chair Wilken requested clarification of the three funding
sources. He asked if the general fund match appropriation, taken
from the general funds is to indicate the federal matching fund
requirement is met.
Ms. Clarke affirmed.
Senator Taylor pointed out these are not State-owned facilities and
that the State has contracted with organizations to house children
in State custody.
Ms. Clarke agreed the facilities are owned and operated by non-
profit organizations, known as grantees. She stressed that the
State has some responsibility in maintaining the viability of the
grantees because if they did not exist, the State would be required
to provide housing directly.
Senator Taylor questioned the State providing funds to improve and
rebuild privately owned structures.
Ms. Clarke emphasized that the State is not rebuilding any
facilities rather the funds would be utilized to undertake repairs
and make some improvements. She reminded that the legislature has
awarded grants to non-profit organizations that provide State
services in the past.
Senator Taylor referenced one request and questioned the "pressing
need" to replace three canoes and sea kayaks for a facility located
in Juneau.
Ms. Clarke reiterated the Department would prioritize the requests.
The remaining items are included in HB 76 and relate to mental
health issues.
MH [Mental Health] Treatment Based Special Needs Housing
Program
$250,000 Alaska Housing Financing Corporation (AHFC) dividend
$150,000 Mental Health Trust Authority Authorized Receipts
(MHTAAR)
Reference No.: 37901
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Mental Health Bill
This program provides funding to develop special needs Trust
beneficiary housing that is treatment based, and thus cannot
be funded under AHFC because of statutory limitations.
Ms. Clarke indicated the other special needs housing items are
included in the Alaska Housing Finance Corporation (AHFC) budget.
Ms. Clarke stated this program is intended to allow Trust
beneficiaries to stay in home-like atmospheres rather than be
institutionalized.
Co-Chair Wilken characterized the AHFC dividend as general funds
since the dividend is annually deposited into the general fund for
appropriation.
Ms. Clarke affirmed.
Co-Chair Wilken asked for identification of any MHTAAR funded
capital projects that would require future State funding for
operation or maintenance expenses.
MH Deferred Maintenance and Accessibility Improvements
$333,300 MHTAAR
Reference No.: 33670
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-going Project
Mental Health Bill
This program makes capital funds available on a competitive
basis to Mental Health Trust service provider agencies for
deferred maintenance and accessibility improvements for
program facilities.
Ms. Clarke pointed out that although matching general funds are
typically utilized to partially fund this program, none are
included in the FY 04 Governor's recommendation.
Ms. Clarke explained these projects address maintenance needs of
mental health treatment facilities and are utilized for a variety
of purposes, including ADA compliance and upgrades. She noted all
mental health beneficiaries are eligible to receive funding under
this program. She pointed out that an extensive prioritization
process is undertaken by the Department to identify the most
critical needs.
Co-Chair Wilken asked for a definition of GF/MH as listed as a
funding source on some of the items.
Ms. Clarke explained this is designation of general funds that are
utilized for mental health-related expenditures and are included in
the Mental Health appropriation. She stated that the MHTAAR funds
are those funds administered by the Mental Health Trust Authority
and proposed for certain projects, subject to legislative
authorization through the mental health appropriation legislation.
She emphasized that every item included in this legislation have
been reviewed and endorsed by the Trust Authority. She noted that
the MHTA assumed a certain amount of GF/MH funds would be available
to supplement the MHTAAR funds proposed for the projects; however,
the Governor has chosen to recommend against the general fund
appropriations.
Senator B. Stevens pointed out several projects would not require a
general fund appropriation for FY 04, but indicate future general
fund requirements of approximately $1.5 million. He asked if
approval of these projects would "bind" future legislatures to fund
the projects.
Ms. Clarke answered it would not, as the legislature would make
funding decisions annually. She asserted that the Trust Authority
has "worked well" with the legislature to provide MHTAAR funds to
match general funds in past projects and would continue to do so.
Senator B. Stevens clarified that the legislature would not be
charged with under funding or undercutting the projects if funding
were not appropriated the following year.
Ms. Clarke replied that the projects are undertaken individually,
based on the amount of funds available. She detailed the request
for proposal (rfp) process to determine which projects would be
addressed.
Senator Taylor asked if the MHTAAR funds are receipts generated by
the Trust from its land and resource base.
Ms. Clarke affirmed.
MH Essential Program Equipment Grants to Service Providers
$250,000 MHTAAR
Reference No.: 33672
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-going Project
Mental Health Bill
The request will provide capital equipment grants through the
competitive request for proposal process for agencies
providing services, activities and programs for Mental Health
Trust beneficiaries.
Ms. Clarke indicated the same rfp prioritization process is applied
to projects funded through this item. She listed therapeutic
equipment, general office equipment, and telepsychiatry equipment,
as examples.
MH Adult Day Facility Modifications
$125,000 MHTAAR
Reference No.: 37929
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2008
Phased Project
Mental Health Bill
The Adult Day Facility Dementia Design project in FY 02 funded
a contract for a design architect to analyze each of the 12
Adult Day programs to better accommodate the health and safety
needs of persons with dementia. Recommendations were developed
unique to each program and the subsequent Adult Day Facilities
Modifications project was continued with reduced funding in FY
03. This funding request will assist in completing the
required modifications.
Ms. Clarke this was funded in past through the Department of
Administration. She stated that funding would be awarded through a
competitive process limited to the 12 facilities. She noted the
amount of this request is "considerably less than what was
envisioned originally," as the Trust had recommended matching
general funds.
MH Integrating Cultural Resources into ADRD Programs and
Environments
$87,500 MHTAAR
Reference No.: 37908
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-going Project
Mental Health Bill
The goal of this research project is to advance the
understanding of culture and the ways it can be used for
planning enhanced programs and environments for persons with
Alzheimer's Disease or Related Disorders (ADRD). This is a
follow-up to the FY 02 Adult Day Dementia Design and FY 03
Adult Day Modifications projects previously supported by the
Trust.
Ms. Clarke stated this project is intended to ensure the ADRD
programs are operated utilizing "culturally relevant approaches".
SFC 03 # 22, Side A 10:39 AM
Ms. Clarke offered experts on this project to answer any questions.
Senator Taylor asked if this project would study the impact of
Norwegian culture in the treatment of ADRD patients in Petersburg.
Ms. Clarke understood this project relates to the communities of
Kodiak and Bethel. She qualified the Department has recently
assumed responsibility for this project and has limited knowledge
of the matter.
Senator Taylor requested additional information.
MH Vehicle and Housing Modifications for Families or
Individuals
$300,000 MHTAAR
Reference No.: 33671
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-going Project
Mental Health Bill
This project provides housing and vehicle modification funds
for people with special needs. Vehicle modification funds are
for individuals with developmental disabilities or special
needs for their families for modifications to make their
vehicles accessible.
Ms. Clarke stated funding for these projects would allow persons
with disabilities to remain in their homes and could potentially
reduce State expenses in providing special housing. She listed
ramps, doorway widening and kitchen and bathroom modifications as
examples of projects undertaken by this program.
Ms. Clarke noted vehicle modification would be utilized in those
communities where no adequate public transportation is available.
She suggested modifications could be less expensive than purchasing
new vehicles.
Senator Olson asked if the vehicle modification program applies to
privately owned vehicles or vehicles utilized by service providers.
Ms. Clarke was unsure and understood the funds could be utilized
for both privately owned and program utilized vehicles.
Senator Olson asked if funds are provided to individuals based on
financial need.
Ms. Clarke replied the individuals must have a disability to
qualify and that the Department would review each situation to
determine the need for modified housing or vehicles.
Senator Olson pointed out that some individuals with disabilities
are financially able to cover these expenses.
Ms. Clarke stated she would research the matter.
MH Safe Harbor Addition
$300,000 MHTAAR
Reference No.: 37893
Category: Health/Human Services
Location: Anchorage (Downtown/Rogers Park)
Election District: Downtown/Rogers Park
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Mental Health Bill
This project would expand the capacity of programs like the
Safe Harbor Inn, a non-profit motel in Anchorage that
successfully provides safe, affordable lodging for homeless
families and persons with mental and physical disabilities as
a transition to permanent housing.
Ms. Clarke stated the Safe Harbor Inn has been successful in
providing transitions to permanent housing. She informed the
facility operates at full capacity and the Department intends to
expand the service to provide additional transitional housing.
MH Repair and Replacement of Village-Based Counselors' Offices
$75,000 MHTAAR
Reference No.: 37894
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Mental Health Bill
Offices for rural mental health/substance counselors are in
deplorable and non-therapeutic condition. This project would
augment inadequate capital funding available from DHSS through
their rural facilities needs assessment process.
Ms. Clarke overviewed this request.
MH Replacement of Rural Community Mental Health Centers
$250,000 MHTAAR
Reference No.: 37895
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Mental Health Bill
Local community mental health center (CMHC) facilities in
rural Alaska are often physically substandard and
therapeutically inappropriate. This project will provide
matching funds for replacement of local CMHC facilities with
priority accorded to proposals with funding partnerships.
Ms. Clarke stated this item would address structural integrity of
the local facilities. She qualified the amount requested would not
allow for construction of new facilities.
Ms. Clarke understood the Trust Authority envisioned receiving
general funds for this item.
Co-Chair Wilken requested a list of the highest priority facilities
and identified repairs needed.
MH Consumer Designated and Managed Projects
$131,300 MHTAAR
Reference No.: 34042
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Mental Health Bill
Provides capital funds to assist mental health consumers in
setting up consumer run programs. Qualified proposals would
secure other funding.
Ms. Clarke informed that historically these funds have been
allocated to non-profit organizations that are "consumer run and
organized". She stated the program has been successful.
MH Micro Enterprise Funds
$75,000 MHTAAR
Reference No.: 34043
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
Mental Health Bill
Provides funds to purchase start-up equipment and working
capital for beneficiaries who want to be self-employed; for
service providers to establish small businesses to employ
beneficiaries; and for private enterprises interested in
expanding their businesses in exchange for hiring
beneficiaries.
Ms. Clarke noted this item reflects a recommendation of the
Governor's Council on Disabilities and Special Education. She
furthered that the majority of the businesses targeted in this
program are small with start-up costs of less than $10,000 and are
"seldom" eligible for most grant and loan programs. She stated this
would provide incentive to hire beneficiaries.
MH Provider Resource Sharing and Coordination
$150,000 MHTAAR
Reference No.: 34039
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-going Project
Mental Health Bill
Funds will be used to pilot recommendations at the local or
regional provider level and provide resources to make changes
at the State level (i.e. regulatory changes).
Ms. Clarke stated this project is intended to promote efficiencies
and reduce overhead expenditures of non-profit service providers.
Senator Taylor spoke of the high cost of liability insurance for
non-profit providers and expressed intent that more funds be
utilized for providing services rather than for insurance expenses.
He indicated the State is self insured and mentioned that indemnity
could be extended to the organizations and that organizations could
contribute to this expense.
Ms. Clarke stated she would research the matter.
Senator Olson requested additional information demonstrating the
success rate of the Micro Enterprises Fund program, Reference No.
34043.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 10:53 AM
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