Legislature(2003 - 2004)
03/18/2003 09:02 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 18, 2003
9:02 AM
TAPES
SFC-03 # 23, Side A
SFC 03 # 23, Side B
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:02 AM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Lyda Green, Co-Chair
Senator Con Bunde, Vice-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Ben Stevens
Senator Robin Taylor
Also Attending: JANET CLARKE, Director, Division of Administrative
Services, Department of Health and Social Services; SHARLEEN
GRIFFIN, Budget/Finance Manager, Division of Administrative
Services, Department of Corrections; JOHN CRAMER, Director,
Administrative Services Division, Department of Military and
Veterans Affairs; ED FISHER, Deputy Commissioner, Department of
Labor and Workforce Development; JOELLEN HANRAHAN, Director,
Division of Administrative Services, Department of Labor and
Workforce Development; DOUG WOOLIVER, Administrative Attorney,
Office of the Administrative Director, Alaska Court System
Attending via Teleconference: From an Offnet Site: TED KINNEY,
Facilities Manager, Division of Administrative Services, Department
of Corrections; CHARLES FINCH, Facility Manager One, Hiland
Mountain Correctional Center, Department of Corrections; From
Anchorage: RHONDA MCLEOD, Fiscal Manager, Office of the
Administrative Director, Alaska Court System
SUMMARY INFORMATION
SB 100-APPROP: CAPITAL PROJECTS
The Committee heard overviews of the FY 04 capital request projects
from the Department of Health and Social Services, the Department
of Corrections, the Department of Military and Veterans Affairs,
the Department of Labor and Workforce Development, and the Alaska
Court System. 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."
This was the second hearing for this bill in the Senate Finance
Committee.
Department of Health and Social Services
[Note: The Department of Health and Social Services' presentation
is a continuation from the March 17, 2003 meeting.]
Mental Health Transitional Housing
$ 1,000,000 Alcohol Education and Prevention Funds
Reference No.: 38368
Project Type: Renovation and Remodeling
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Phased Project - new
Funding will provide for an array of housing options to
support recovery sustainability for a high-risk chronic
alcoholic and substance-abusing population. This array ranges
from an intensive on-site support services to minimal off-site
group support and case management.
Mental Health Bill
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, specified that this
Mental Health project would provide funds to non-profit
organizations to develop transitional housing for the State's high-
risk, chronic alcoholic population with the goal of providing an
environment where these individuals could remain sober until they
were able to secure permanent housing. She stated that projects of
this nature have proven success, and she noted that the Alaska
Mental Health Trust Authority supports this project.
Co-Chair Wilken asked whether the funding identified for this
project is restricted funding or whether it could be used for
general fund purposes.
Ms. Clarke responded that while the Alcohol Education and
Prevention Funds are not dedicated funds, its documentations
specify that the Legislature "may appropriate the dollars to
certain purposes." Therefore, she stated that this language allows
the funds to be used for alcohol prevention and treatment programs.
Mental Health Fairbanks Detoxification Unit Expansion and
Renovation
$ 1,000,000 Alcohol Tax Funds
Reference No.: 38366
Project Type: Renovation and Remodeling
Category: Health/Human Services
Location: Fairbanks (Fairbanks/Fort Wainwright)
Election District: Fairbanks/Fort Wainwright
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
This project will provide capital funding to expand
detoxification services in the Fairbanks area to those unable
to obtain medical detoxification services due to the current
limited capacity. This population is largely composed of
Mental Health Trust beneficiaries under the Chronic Alcoholism
with Psychosis criteria.
Mental Health Bill
Ms. Clarke informed that this project would be used to renovate and
increase the bed capacity in an existing Fairbanks facility from
the current ten to twenty "to better meet the needs of the
community." She understood that the community of Fairbanks proposed
this request to the Alaska Mental Health Authority and recommended
that the recently enacted Alcohol Tax Fund be the funding
mechanism. Furthermore, she noted that the current facility serves
1,000 individuals per year, and that the new facility would be able
to provide services to 1,800 a year. She noted that the Alaska
Mental Health Trust Authority supports this project.
Senator Hoffman asked whether the Alaska Mental Health Trust
Authority has developed a list of projects that would be supported
by the Alcohol Tax Fund.
Ms. Clarke responded yes, that the Authority has developed a list
of projects that it recommends being funded by the Alcohol Tax
Fund. She noted that this list, as compared to the list of projects
contained in Governor Frank Murkowski's budget proposal, could be
provided to the Committee.
Co-Chair Wilken asked the Department to supply Committee members
with a copy of the list.
Co-Chair Green asked whether the projects identified by the Alaska
Mental Health Authority were determined after consultations with
such entities as the Department of Health and Social Services
consulted and the Alcohol and Substance Abuse Council.
Ms. Clarke responded that the Alaska Mental Health Authority
developed a comprehensive proposal after consulting with a variety
of entities, including the Department, various councils and
advisory boards, and the Governor Tony Knowles Administration,
which was in place last fall when the Authority addressed these
projects. She pointed out that Governor Frank Murkowski consulted
the Authority's list in making his proposed budget determinations.
Co-Chair Green asked whether the Department's new director, Joel
Gilbertson, has had an opportunity to review and comment on the
requests.
Ms. Clarke stated that Governor Murkowski reviewed the proposals
and made decisions.
Senator Hoffman asked for clarification regarding whether the
Alaska Mental Health Trust Authority must review projects that
would be funded by the Alcohol Tax Fund.
Ms. Clarke responded that the legislation does not require project
review by the Alaska Mental Health Trust Authority.
Co-Chair Wilken asked whether other similar detoxification
facilities provide services in the State. Furthermore, if there
were others, he requested the Department to provide the Committee
with a list of who operates them and how they are funded. In
addition, he asked who would operate the Fairbanks facility upon
completion of its renovation project.
Ms. Clarke replied that there are similar facilities operating in
the State. She could not recall the operators of the Fairbanks
facility.
Co-Chair Wilken asked whether Missions and Measures information
exists within the Department of Health and Social Services
regarding how to measure the success of detoxification programs.
Ms. Clarke responded that, rather than having a specific measure
regarding individual projects, the Department has "broad measures"
regarding alcohol programs related to chronic and binge drinking
and alcohol consumption. She noted that research has been conducted
on different models of treatments and their effectiveness.
Co-Chair Wilken expressed that rather than "just building a bigger
revolving door," consideration should be given to supporting
projects that have proven results as opposed to continuing to
enable "those that are taking advantage of the system."
Co-Chair Green shared that in a recent Senate Health and Social
Services (SHSS) separate committee meeting, this issue was also
addressed and it was determined that inadequate missions and
measures exist to address the issue. She furthered that the
development of Missions and Measures regarding the evaluation of
alcohol programs has been identified as a goal of the SHSS.
Mental Health Substance Abuse Treatment Facilities for Women
and Children
$ 500,000 Alcohol Tax Fund
Reference No.: 35712
Project Type: Construction
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
This project will fund additional facilities for Women with
Children programs that will allow women in substance abuse
treatment to remain with their children during recovery.
Currently, there are more than 60 women on wait lists in
Alaska for this type of treatment. This request will eliminate
the wait list and make future waits more manageable.
Mental Health Bill
Ms. Clarke shared "that women who are dependent on alcohol or other
drugs are at risk of or may have already lost custody of their
children." She stated that the Department's "greatest waitlist
issue" results from the fact that separate facilities are required
in order to allow women to keep their children with them while they
participate in the treatment program. She stated that this project
would provide housing accommodate approximately seven to ten women
and approximately 14 to 20 children. She noted that this funding
would serve to unify families rather than requiring children to be
in the custody of the Division of Family and Youth Services (DFYS)
while their parent is awaiting or receiving treatment. She noted
that the Alaska Mental Health Trust Authority endorses this
project.
Co-Chair Wilken clarified that the Alaska Mental Health Trust
Authority has reviewed this project and included it in their Mental
Health Trust legislation. In addition, he concluded that the
Authority has identified the Alcohol Tax Fund as the project's
funding mechanism.
Ms. Clarke responded that is correct.
Co-Chair Wilken asked whether the Trust would have identified
Mental Health Trust receipts or other funding sources were the
recently enacted Alcohol Tax Fund source unavailable.
Ms. Clarke affirmed that other funding sources would have been
specified; however, she noted that the Office of the Governor has
endorsed the use of this new funding source in this manner. She
commented that the Legislature has the authority to allow or
disallow this funding mechanism to be used to support projects in
the Mental Health Trust Authority legislation.
Public Health Laboratory Legal Settlement
$ 76,000 Statutory Designated Receipts
Reference No.: 37717
Project Type: Deferred Maintenance
Category: Health/Human Services
Location: Anchorage (Lore/Abbott)
Election District: Lore/Abbott
Estimated Project Dates: 07/01/2003 - 06/30/2008
One-Time Project
This project allows receipt of legal settlement fees that
occurred during the construction of the Public Health
Laboratory in Anchorage.
Ms. Clarke commented that the supporting funds for this project
were received as the result of a legal settlement relating to an
issue pertaining to the construction of the new Public Health
Laboratory in Anchorage. She noted that the settlement specifies
that these funds must be used to support a project at that
laboratory.
Department of Corrections
Deferred Maintenance, Renewal and Replacement, Renovation and
Repairs, and Miscellaneous Projects
$ 2,000,000 general funds
Reference No.: 36788
Project Type: Deferred Maintenance
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003- 06/30/2008
On-Going Projects
The Department of Corrections is responsible for maintaining
133 state-owned buildings (over 1.3 million square feet and
$431/6 Million in replacement value). The majority of these
buildings are over 20 years old with 10% exceeding 40 years of
age. Maintenance must be done annually to keep the facilities
operating safely and securely.
SHARLEEN GRIFFIN, Budget/Finance Manager, Division of
Administrative Services, Department of Corrections informed the
Committee that she would be available to answer questions.
TED KINNEY, Facilities Manager, Division of Administrative
Services, Department of Corrections, testified via teleconference
from an offnet site in Anchorage and reviewed the variety and
condition of the Department's facilities. He explained that the
Department's deferred maintenance requests were determined by a
four-step evaluation process that: identified a total Department
deferred maintenance need of approximately $20 million; determined
that $11.1 million of those were essential needs; determined that
$4.6 million of those were critical needs; and lastly, determined
that of those, three projects amounting to $3.5 million, would fit
within the State's "budget constraints."
Mr. Kinney stated that included in Request No. 36788 are numerous
small, deferred renewal and renovation projects. Continuing, he
noted that, where possible, inmate labor would be used to assist in
accomplishing the projects. However, he continued, contractors
would be required to address specialized project components. He
referred to the $5 million project list that accompanies this
request, and noted that, in the time since this list was developed
in November 2002, additional projects have been identified due to
such things as breakage. He stated that, typically, the list is
updated each April and, dependent on the authorized funding
appropriation, specific projects would be identified.
Co-Chair Wilken asked whether the identified projects are listed in
priority order.
Mr. Kinney responded that they are not. He affirmed that specific
projects would be identified upon completion of the State's budget
appropriation process.
Correctional Institutions Roof Repairs and Siding Replacement
$ 1,455,000 general funds
Reference No.: 35773
Project Type: Construction
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Phased Project - New
This project funds the review, repair, and replacement of
building roofs and siding at Cook Inlet Correctional Center,
Fairbanks Correctional Center, Hiland Mountain Correctional
Center, Wildwood Correctional Center, and Yukon-Kuskokwim
Corrections Center.
Mr. Kinney stated that while the Department has identified
approximately $5 million in total roof repair projects, the most
crucial needs are listed in this request. Again, he noted that
inmate work crews would address small projects; however, he stated
that such things as metal roof replacement would require
professional contractors. He shared that the Cook Inlet facility
has extensive roof issues that have allowed water to accumulate in
water fixtures. He shared details of other facilities' projects,
and he noted that, while this funding request would address the
initial engineering analysis or project phase, some projects would
be continuing into future repair requests.
Correctional Institutions Water System Repairs and Replacement
$ 450,000 general funds
Reference No.: 37815
Project Type: Deferred Maintenance
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2007
Phased Project -New
Repair and replace water systems at Cook Inlet Correctional
Center, Hiland Mountain/Meadow Creek Correctional Center, and
Spring Creek Correctional Center.
Mr. Kinney explained that this request would allow for the
replacement and repair of water systems that would provide further
efficiencies and offset possible dangers caused by flooding or
water contamination.
Senator B. Stevens asked whether the Environmental Protection
Agency (EPA) and the Department of Environmental Conservation (DEC)
ruling that classifies the Hiland Mountain/Meadow Creek
Correctional Center (HMCC) as a Class A well water system that is
"under the influence of surface water," is a recent ruling.
CHARLES FINCH, Facility Manager One, Hiland Mountain Correctional
Center, Department of Corrections, clarified that the ruling was
issued approximately five years ago. He informed that Eagle River
floods on a regular cycle and poses a danger to the Center's
shallow surface wells.
Co-Chair Wilken asked whether another water system might be
available to HMCC.
Mr. Kinney responded that a subdivision is located near the
facility and that there are plans to build a new Eagle River high
school in the area.
Co-Chair Wilken asked, therefore, whether HMCC could tie into the
local public water utility system.
Mr. Kinney disclosed that the project would consist of constructing
a water line connection that would enable HMCC to tie into the
public water system.
Co-Chair Wilken noted that the backup material references two
phases of the project. He asked whether additional phases would be
required to complete this endeavor.
Mr. Kinney responded that the two phases consist of constructing a
line from the facility to the public system and constructing an on-
premise line. He stated that both phases are included in the
request.
Co-Chair Wilken clarified that the total HMCC project expense would
be $400,000.
Mr. Kinney concurred.
Senator Olson asked why the Department is requesting shingled
roofing rather metal roofing, which is less labor intensive and
more durable for the Hiland Mountain Correctional Center roof
repairs identified in request no. 35773.
Mr. Kinney responded that the Department has experienced situations
with metal roofing whereby snow accumulations on the sloped metal
roof have avalanched down onto sidewalks. Therefore, he voiced the
preference to allow snow to remain on the roofs and gradually melt
rather than allowing it to slide off or "dam up" in the roof
valleys. Furthermore, he mentioned that the correctional center has
a number of flat-roofed buildings that must be resurfaced. He
summarized that shingled roofs would be a better solution in the
Hiland area.
Senator Hoffman questioned the $300,000 FY 05 request that is
specified in the back up material regarding water system repairs
and replacement, Reference No. 37815.
Mr. Kinney responded that the $300,000 request reflected for FY 05
pertains to the replacement of the water systems at the Cook Inlet
Pretrial Facility and the Spring Creek Correctional Center, as
identified on page 2 of the back-up material.
In response to further questioning from Senator Hoffman, Mr. Kinney
voiced the understanding that Co-Chair Wilken's question regarding
the FY 04 request pertained to whether the water system project at
HMCC would require additional phases beyond Phases 1 and 2.
Co-Chair Wilken asked why the roof repair request, Reference No.
35773, and the water system repair/replacement request, Reference
No. 37815 are being submitted separately from the deferred
maintenance, renewal and replacement request, Reference No. 36788.
Mr. Kinney responded that in developing the budget, the Department
identified a number of "specialized projects" such as fire alarm
repairs, roof repairs, sewer system repairs, and security fencing
repairs. He stated that these projects are "large dollar values"
and the department determined that they should be stand-alone
projects. He agreed that, in many respects, these projects could be
consolidated into a single project; however, he voiced that the
Department desired these projects to be highlighted.
Department of Military and Veterans Affairs
Army Guard Facilities Deferred Maintenance
$ 710,000
$310,000 Federal Receipts
$400,000 General Funds
Reference No.: 34009
Project Type: Deferred Maintenance
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
With 245 buildings and 107 various locations, and average age
of the buildings is approximately 30 years old, deferred
maintenance and renewal and replacement are a high priority.
Preventative maintenance is performed on schedule, yet
building components have a limited life thus renewal and
replacement is required.
JOHN CRAMER, Director, Administrative Services Division, Department
of Military and Veterans Affairs read the request analysis. He
noted that while page two of the back-up material depicts the list
of facilities that would benefit from this funding, the list is not
in priority order,
Air Guard Facility Deferred Maintenance
$ 150,000 General Funds
Reference No.: 34007
Project Type: Deferred Maintenance
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
Continued maintenance of existing Air National Guard
Facilities at Eielson Air Force Base and Kulis Air National
Guard Base is required. Maintenance/repair projects are
considered deferred after one year without repair. The amount
requested is consistent with the DMVA goal of reduced deferred
maintenance by at least 5% each year.
Mr. Cramer commented that the request's back-up material lists the
top ten needs for each of the two bases.
Co-Chair Wilken observed that the State would be responsible for
approximately $800,000 in total funding for the projects specified
in the back-up material, as opposed to the federal total obligation
of approximately $3.2 million. He noted the "high degree of federal
leveraging" in the Department's requests.
Mr. Cramer specified that the State would be responsible for
approximately 25 percent of a projects' cost with the federal
responsibility being approximately 75 percent. He noted that the
State would pay its portion of the funding to the federal
government as a reimbursement.
Facilities Spill Prevention Control and Countermeasures
$ 125,100
$108,800 Federal Receipts
$ 16,300 G/F Match
Reference No.: 32563
Project Type: Health and Safety
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
State Match Required
All facilities with a fuel tank over 660 gallon capacity, or
total combined capacity over 1,320 gallons, require a Spill
Prevention Control and Countermeasures (SPCC) plan under the
Clean Water Act. The SPCC plans must be reviewed and updated
every 3 years by a licensed engineer. State and military
facilities are not exempt under this Act.
Mr. Cramer read the analysis. He noted that the fuel tank locations
and related expenses are identified in the back-up material.
Senator Taylor surmised that the amount being charged for each
inspection is identical because the State has contracted the job
out to a contractor.
Mr. Cramer responded no, that the $5,000 per tank expense is an
estimate. Furthermore, he clarified that a contract is awarded for
each location.
Senator Taylor asked whether the purpose of the contract is to have
an engineer re-certify that a tank is compliant.
Mr. Cramer agreed.
Co-Chair Wilken noted that non-compliance would result in $10,000-
a-day fine. He asked whether the compliance date is imminent.
Mr. Cramer voiced the understanding that the date is imminent;
however, he noted that the Department does not designate that this
request is an urgent manner.
Co-Chair Wilken asked that the in-compliance timeline be provided
to the Committee.
Federal Scout Readiness Centers Energy Projects
$ 153,300
$148,700 Federal Receipts
$ 4,600 G/F Match
Reference No.: 32560
Project Type: Construction
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
On-Going Project
Sites are selected based on the number of Guardsmen at the
site and the anticipated energy savings generated by the
upgrade. Current projects consist of installing direct digital
controls to maximize heating efficiency, replacing hot water
boiler, repair ceiling by increasing insulation and downsizing
hot water tanks.
Mr. Cramer read the summary. He pointed out that the back-up
material identifies the locations that would be addressed.
Co-Chair Wilken observed that as a result of the State spending
$4,600, the federal government would be contributing $148,700.
Federal Scout Readiness Centers Construction
$ 1,700,000 Federal Receipts
Reference No.: 6913
Project Type: Construction
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2002 - 06/30/2008
On-Going Project
The National Guard Bureau provides for the construction of
three new Federal Scout Armories in Alaska per year. While the
federal funding is available and the need exists, we will
continue with the program and request federal authority from
the State. The three locations for FY 04 are Kwigllingok,
Alakanuk, and Quinhagak.
Mr. Cramer read the summary.
Co-Chair Wilken stated that the State would be responsible for
maintaining and operating these centers once they are built;
however, he understood that the forthcoming expense would receive a
four-to-one federal match.
Mr. Cramer concurred.
Co-Chair Wilken asked the number of Centers that have been
constructed using this funding mechanism.
Mr. Cramer voiced uncertainty to the number.
Department of Labor and Workforce Development
Unemployment Insurance Tax System Replacement
$ 2,000,000 Federal Receipts
Reference No.: 37678
Project Type: Information Systems
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2004
On-Going Project
The Unemployment Insurance Tax unit collects/accounts for the
quarterly employer/employee UI tax contributions, which supply
the UI Trust Fund for benefit payments. Completing this
project to replace the 1982 version of the tax system
currently in use will increase the reliability of the Tax
system and because it will be compatible with other systems
will result in the elimination of the need to maintain and
support the storage of redundant data.
ED FISHER, Deputy Commissioner, Department of Labor and Workforce
Development, informed that Ms. Hanrahan would present the
Department's capital project budget requests.
JOELLEN HANRAHAN, Director, Division of Administrative Services,
Department of Labor and Workforce Development stated that this
request would complete the installation of an updated tax system.
She informed that replacement of the 1982 system that is currently
in use would reduce extra programming staff time which is required
to address the old system's frequent crashes and results in down
time. Furthermore, she asserted that the new system would function
more reliably, would provide the ability to increase integration
between Department's systems, would reduce current redundancy
measures, and would bring the system in compliance with federal
standards. She stressed that were the Department to continue with
the antiquated 1982 system, a crisis situation could result.
Senator Taylor asked whether assurances have been taken to ensure
that the system is compatible with other State computer systems.
Ms. Hanrahan responded that system interfaces are being designed in
order to assure compatibility with other systems such as the Court
computer systems.
Senator Taylor appreciated the fact that the current system must be
replaced; however, he urged the Department to verify that the
system would be compatible and would be able to integrate
information with other agencies' systems. He voiced that inter-
agency computer communication is an important issue.
Co-Chair Wilken noted that the back-up material specifies this as
an on-going project; however, he pointed out that no funding is
specified after FY 04.
Ms. Hanrahan stated that the project would be completed in FY 04.
Co-Chair Wilken asked whether allocating one million dollars in FY
04 and one million dollars in FY 05 could be an option.
Ms. Hanrahan stated that splitting the allocation into two fiscal
years would disrupt the project's schedule with contractors and in-
house staff.
SFC 03 # 23, Side B 09:49 AM
Electronics Data Interchange Expansion to the Worker's
Compensation Computer System Phase 2
$ 70,000 Workers Safety
Reference No.: 38481
Project Type: Information Systems
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2004
Phased Project - Underway
This project will enable the program to produce statutorily
required reports as well as allow the electronic filing of
payment reporting. New programming will provide insurance
companies and employers the opportunity to submit required
information directly into the workers compensation information
handling system.
Ms. Hanrahan explained that approval of this request would allow
the Department to continue the second phase of converting Workers
Compensation (WC) reports to an electronic filing program, which
she asserted would result in a decrease in paperwork. In addition,
she stated that this conversion would enable the Department to
interchange information with other states in order to compare and
study WC cases as a means of addressing "the costs that are driving
WC premiums." She stated that the Department handled approximately
20,300 WC cases in FY 02 and she noted that each case is handled
when it is opened, changed, and terminated.
Co-Chair Wilken asked how the Workers Safety account is funded.
Ms. Hanrahan explained that the Workers Safety account is funded by
the premiums paid to the Division of Insurance by insurance
companies and adjusters.
Co-Chair Wilken asked whether another phase of this project would
be requested in FY 05, and whether it, too, would be funded by the
Workers Safety account.
Ms. Hanrahan responded that an additional component of the WC
process would be requested in FY 05, and she assured that it too
would be funded by the Workers Safety account.
Employment Service Statewide Equipment Replacement
$ 500,000 Federal Receipts
Reference No.: 37677
Project Type: Information Systems
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2006
One-Time Project
The purpose of these federal funds are to purchase much needed
equipment for 22 statewide Employment Service Job Center
offices. The equipment is for the general public and ES staff
and the list includes computers, printers, copiers, and fax
machines. Most of the equipment is used by the public for
finding a job and the existing equipment is outdated and slow.
Purchasing this equipment will benefit employees, job seekers
and ES staff. Employment Service operating programs have been
flat funded for nine years and cannot afford this new
equipment for the public service job centers. This request
uses a portion of the $14.8 million in Reed Act monies
deposited in Alaska's UI Trust Fund account in March 2002.
Ms. Hanrahan stated that most of the requested equipment would be
located in State Job Centers to enhance the ability of individuals
seeking employment to find jobs. She stated that this updated
equipment would be installed over a three-year period and would
replace current equipment, which has not been replaced since
approximately 1998.
Senator Bunde questioned the $1,500 expense per each requested fax
machine, as, he attested, lower priced machines are available.
Ms. Hanrahan believed that the requested fax machines are "heavy
duty" units as opposed to individual low-volume machines.
Senator Bunde asked the rationale for providing fax machines for
public use at the Centers. Furthermore, he asked whether the
Department has developed a schedule of equipment replacement and
maintenance, as he asserted, the request for equipment replacement
is intensive.
Ms. Hanrahan stated that the equipment specified in this request
would be installed over a three-year period. She reminded that this
project would be funded by the employment services program job
centers, a federal program which itself has been flat-funded for
nine years. She stated that the State did not develop an equipment
replacement program due to the flat-funding status; however, she
stated that specific equipment replacement funding has become
available due to the incorporation of federal Reed Act funding.
Senator Bunde suggested that the Department incorporate funding on
an annual basis to, for example, replace one $1,500 fax machine a
year, rather than waiting several years for a large funding source
like this to become available to replace antiquated equipment.
Co-Chair Wilken clarified that this request seeks a one-year
authority to support a plan to replace equipment over a three-year
period.
Ms. Hanrahan voiced that this request would allow the Department to
receive a one-year authorization to spend one million dollars to
replace equipment over a three-year period.
Co-Chair Wilken asked the testifier to explain the federal Reed Act
funding program.
Ms. Hanrahan explained that the Reed Act is a federal program that
was enacted in 1954. She explained that this Act allows the federal
government to return money to the states when the balance in three
separate federal accounts reaches a certain maximum level. She
stated that while the maximum level has been increased over time,
the monies in the accounts have accumulated and have allowed for a
distribution of Reed Act funds. She stated that the State received
notification regarding the Reed Act funding distribution in FY 02.
Co-Chair Wilken surmised therefore, that this would account for the
$14.8 million that the State received in the Unemployment Insurance
Trust Fund.
Ms. Hanrahan concurred.
Co-Chair Green equipment asked for clarification that this funding
would provide computers, printers, copiers, and fax machines for
the general public and for the Employment Service staff. She asked
whether the equipment would be concentrated in a public use area or
whether staff would be provided with separate equipment.
Ms. Hanrahan responded that equipment would be provided for public
use in the Job Center's resource area and that separate equipment
would be provided to staff.
Co-Chair Green asked whether the Reed Act funding could be used to
support other State projects.
Ms. Hanrahan responded that the funds could be used, were the State
to choose to do so, for payments of benefits. Additionally, she
noted that the funds could be used to fund computer projects such
as the one requested here, and for the administration of the
State's Unemployment Insurance (UI) program. She clarified that
specific guidelines for fund usage accompany the allocation, and
she noted that the federal government "has encouraged" that this
Reed Act distribution be utilized to upgrade states' computer
systems for employment and unemployment services.
Co-Chair Green asked whether this request is the only FY 04 request
that would utilize Reed Act funds.
Ms. Hanrahan responded that in addition to this request, the
aforementioned Tax System Replacement project, Reference No. 37678,
would also use Reed Act funds as its funding source.
Senator Hoffman noted that the back-up information for the
equipment replacement request specifies that, "this request uses a
portion of the $14.8 million in Reed Act monies deposited in
Alaska's UI Trust Fund account in March 2002." He requested that
the Department supply the Committee with a list of the projects
that have been identified to be funded with this money.
Ms. Hanrahan stated that a list of projects would be provided,
although she clarified that a complete plan has not, of yet, been
identified. She stated that while the funding was received in 2002,
other than these two FY 04 requests, the use of these funds has
been limited to a single $3 million FY 03 appropriation that funded
a Web-based labor exchange system.
Senator Hoffman asked how much Reed Act funding would be available
were this request authorized.
Ms. Hanrahan specified that $3 million of the $14.8 million has
been allocated.
Senator Taylor asked when the State received the $14.8 million. He
surmised that receipt of the funds must have occurred in FY 02,
before the FY 03 budgetary process was finalized.
Ms. Hanrahan stated that the Reed Act funds were received in FY 02
while the Legislature was in session.
Senator Taylor asked whether the State anticipates receiving
additional Reed Act funding in FY 03.
Ms. Hanrahan responded that an FY 03 distribution of Reed Act money
is not anticipated; however, she stated that Congress could address
this during their forthcoming budgetary legislation.
Co-Chair Wilken requested the Department to provide the Committee
with its allocation plan for the remainder of the Reed Act funds.
Alaska Court system
Statewide Remodeling Projects
$ 950,000 General Funds
Reference No.: 37743
Project Type: Renovation and Remodeling
Category: Law and Justice
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Renovation projects to increase staff efficiency, improve
access for the public and increase efficiency of conducting
court business (particularly accommodation for improved
technology).
DOUG WOOLIVER, Administrative Attorney, Office of the
Administrative Director, Alaska Court System stated that a portion
of this request would authorize the Department to negotiate a long-
term lease and remodel of the Department of Military and Veterans
Affairs Kotzebue Armory as an alternative to the current Courthouse
facility there. He stated that the existing Courthouse is thirty
years old and "has significant problems," such as a poorly
ventilated heating system and inadequately small jury rooms. He
stated that remodeling the existing facility is prohibited by small
site size and the fact that alternate space would be unavailable
during the remodeling effort. Furthermore, he advised that were
action not taken in regards to the Armory, finding alternate,
adequate space in the community would be limited. He stated that
the Court's lease expense would serve to offset the current
expenses the Department of Military and Veterans Affairs has in the
routine upkeep of the Armory building.
Co-Chair Wilken noted that although the total of this FY 04 request
amounts to $950,000, the testimony pertains to the $225,000 portion
of the request that is earmarked for the Kotzebue Courthouse. He
specified that $225,000 was allocated toward Courthouse design in
the FY 03 funding, and he asked whether that work is concluded.
Mr. Wooliver responded that the design money has been "set aside"
in anticipation that the Armory remodeling/lease authorization
would be approved.
Senator Taylor asked the identity of the owner of the Courthouse.
Mr. Wooliver replied that while the State currently owns the
Courthouse facility, the Department would like to transfer the
title to the City of Kotzebue once the Court vacates it in order to
avoid continuing maintenance expense.
Senator Taylor asked whether the State built or purchased the
Courthouse building.
Mr. Wooliver voiced uncertainty regarding the specifics of the
initial purchase.
Court Security Projects
$ 1,100,000 General Funds
Reference No.: 37744
Project Type: Health and Safety
Category: Law and Justice
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
This request includes projects to provide for physical and
data security.
Mr. Wooliver informed the Committee that this project has been
included in the Department's capital requests for three years, and
he stated that the goal of making Court facilities "more secure" is
the Department's "number two priority," as he advised that
Courthouses are becoming "more and more dangerous." Furthermore, he
communicated that most Courthouse security concerns arise from
"angry litigants" involved in the increasing number of domestic
violence and family law cases as opposed to the national
misconception that most Courthouse violence involves criminal
cases. He communicated that few courts have the necessary security
to protect front line staff and litigants. Additionally he noted
that not specified in the request is a $75,000 operating budget
match that would provide for additional contract personnel to
conduct screening in the Kenai Courthouse. He stated that other
increased security components would include: improved screening
equipment; building access control systems; alarms; bulletproof
judge bench areas; and other things that would not require an
increase in personnel were the $75,000 operating budget match not
forthcoming.
Senator Hoffman referenced the testimony that allowed that this is
the third time this request has been submitted to the Committee,
and he asked whether any harmful incidences have occurred during
the previous two years.
Mr. Wooliver stated that a list of incidences would be supplied.
Senator Hoffman asked whether any specific situations could be
shared.
Mr. Wooliver stated that this information would be provided.
Co-Chair Wilken asked whether any federal homeland security funding
might be available to support security upgrades.
RHONDA MCLEOD, Fiscal Manager, Office of the Administrative
Director, Alaska Court System testified via teleconference from
Anchorage and stated that these types of projects do not qualify
for federal homeland security funding.
Senator Taylor voiced acceptance that concerns do exist; however,
he noted that the Department's lack of specific incidents indicates
that the situation might not be as imperative as portrayed. He
questioned why some Court facilities have metal detectors and
others do not, and he noted the lack of substantial security in the
Capitol Building. He stated that other State entities, such as the
Child Support Enforcement Agency in Anchorage that has installed
thick bulletproof glass, are concerned about security. He professed
that the State should be user-friendlier. He avowed that the State
could not afford this legislation, and he asserted that this
situation should be addressed as an overall "general policy call."
As an attorney, he shared personal knowledge of the situation; but
he asserted that the Legislature should endeavor to develop a
policy regarding what, where, and when security measures should be
implemented.
The bill was HELD in Committee.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 10:17 AM.
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