Legislature(2009 - 2010)SENATE FINANCE 532

01/28/2009 10:00 AM Senate FINANCE


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10:15:10 AM Start
10:23:17 AM Overview: Alaska Mental Health Trust Authority Budget
10:46:43 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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+ Overview: TELECONFERENCED
Alaska Mental Health Trust Authority
Budget
                  SENATE FINANCE COMMITTEE                                                                                      
                      January 28, 2009                                                                                          
                         10:15 a.m.                                                                                             
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate  Finance Committee meeting                                                                   
to order at 10:15:10 AM.                                                                                                      
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Johnny Ellis                                                                                                            
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
                                                                                                                                
Laraine  Derr,  Board  Member,  Alaska  Mental  Health  Trust                                                                   
Authority;  Jeff  Jesse, Executive  Director,  Alaska  Mental                                                                   
Health Trust Authority.                                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
^Overview: Alaska Mental Health Trust Authority Budget                                                                        
                                                                                                                                
                                                                                                                                
 Presentation: Alaska Mental Health Trust Authority Budget                                                                      
                                                                                                                                
LARAINE  DERR,  BOARD  MEMBER,  ALASKA  MENTAL  HEALTH  TRUST                                                                   
AUTHORITY  explained  the  importance of  the  Alaska  Mental                                                                   
Health Trust. She introduced other trust members and staff.                                                                     
                                                                                                                                
Ms.  Derr   elaborated  that   Alaska  Mental  Health   Trust                                                                   
beneficiaries were people with  mental illness, developmental                                                                   
disabilities, chronic alcoholism,  or Alzheimer's disease and                                                                   
other dementia. She  explained that an overview  of the state                                                                   
regarding  the mental  health trust is  the Alaska  Scorecard                                                                   
(Copy on File).                                                                                                                 
                                                                                                                                
JEFF JESSE,  EXECUTIVE DIRECTOR,  ALASKA MENTAL HEALTH  TRUST                                                                   
AUTHORITY,  reviewed   the  scorecard  (Copy  on   File).  He                                                                   
described  the trust's  statutory obligation  to present  the                                                                   
status of the  mental health condition for Alaska.  He worked                                                                   
closely  with the Department  of Health  and Social  Services                                                                   
(DHSS) to develop  the scorecard, which makes  information on                                                                   
the  condition of  Alaska's mental  health easily  available.                                                                   
The DHSS  website gives more  detailed information  about the                                                                   
data listed in the scorecard.                                                                                                   
                                                                                                                                
Ms. Derr  pointed out  that several  different groups  advise                                                                   
the members and staff of the Alaska  Mental Health Trust. The                                                                   
groups  were detailed  in  the law  as  advisory groups  with                                                                   
boards  that  meet  and  bring  recommendations  forward.  In                                                                   
addition, the  trust utilized the commissioners  of DHSS, the                                                                   
Department of  Corrections (DOC),  the Department  of Natural                                                                   
Resources, and  the Department  of Revenue. She  acknowledged                                                                   
the Alaska  Brain Injury Network  and the Suicide  Prevention                                                                   
council for ongoing collaboration.                                                                                              
                                                                                                                                
Ms. Derr  stated that  the board  recently addressed  funding                                                                   
shortfalls. She  explained that  ordinarily, 4.25  percent of                                                                   
the investment in the trust is  portioned out, enabling grant                                                                   
distribution.  The budget  has been reduced  to $21  million.                                                                   
The  endowment  has  dropped $100  million  in  value,  which                                                                   
translates to a  $5 million reduction in available  funds for                                                                   
next year.                                                                                                                      
                                                                                                                                
10:23:17 AM                                                                                                                   
                                                                                                                                
Mr.   Jessee   referred   to   a   PowerPoint   presentation,                                                                   
"Continuing  our  formula for  success"  (Copy  on File.)  He                                                                   
revealed legislative priorities for FY10:                                                                                       
                                                                                                                                
   · Reauthorize adult dental Medicaid services                                                                                 
   · Establish regular and periodic schedule of rate reviews                                                                    
     for home and community-based services                                                                                      
   · Fund 10-year plan to reduce homelessness                                                                                   
   · Fund community-coordinated transportation systems                                                                          
                                                                                                                                
10:27:27 AM                                                                                                                   
                                                                                                                                
Mr.  Jessee  pointed  out that  trustees  search  for  viable                                                                   
solutions  to  these  issues.  The  board  has  a  deliberate                                                                   
process of approaching  mental health problems  in the state.                                                                   
The formula for success involves  first identifying the need,                                                                   
and then collaboration  with governmental  agencies, advisory                                                                   
groups,   non-profits,   service   providers,   philanthropic                                                                   
organizations,  and  the  private   sector.  The  group  then                                                                   
develops  specific outcome  goals,  measures, and  strategies                                                                   
that are tracked over time.                                                                                                     
                                                                                                                                
Mr. Jessee delineated five focus areas:                                                                                         
                                                                                                                                
   · Bring the Kids Home                                                                                                        
   · Affordable, Appropriate Housing                                                                                            
   · Disability Justice                                                                                                         
   · Workforce Development                                                                                                      
   · Beneficiary Projects Initiative                                                                                            
                                                                                                                                
Mr.  Jessee  stated that  the  Bring  the Kids  Home  program                                                                   
allows children housed in out-of-state  psychiatric treatment                                                                   
centers  to  receive   treatment  closer  to   home  with  an                                                                   
appropriate level  of care at  a cost of nearly  $40 million.                                                                   
The  results  are  proven  and  increase  exponentially  with                                                                   
community reinvestment.                                                                                                         
                                                                                                                                
10:31:26 AM                                                                                                                   
                                                                                                                                
Mr. Jessee elaborated that the  trust achieved credit for the                                                                   
$3.8 million Medicaid reduction  as a result of the Bring the                                                                   
Kids Home  program. The  reduction is  the result of  serving                                                                   
young beneficiaries in state.  He credited DHSS for help with                                                                   
the achievement.                                                                                                                
                                                                                                                                
Mr.  Jessee  discussed affordable,  appropriate  housing.  He                                                                   
maintained  that 3,500  Alaskans  are homeless  on any  given                                                                   
night. Families with children  are one of the fastest growing                                                                   
segments  of the homeless  population.  He stressed that  the                                                                   
problems   of  the   homeless   are  different   from   those                                                                   
individuals  in low income  housing. It is  not as  simple as                                                                   
placing beneficiaries  in an  apartment because  the homeless                                                                   
tend  to  have difficulty  strategizing  the  development  of                                                                   
their  financial security.  The  method of  combining a  home                                                                   
with support  services  allows housing  to become the  spring                                                                   
board  to  employment,  education,  and  a  secure  financial                                                                   
future.                                                                                                                         
                                                                                                                                
Mr.  Jessee acquainted  the committee  with  the Bridge  Home                                                                   
Pilot  project.  The  program  is funded  entirely  from  the                                                                   
trust.  He explained the  combination  of resources from  the                                                                   
Alaska  Housing  Finance  Corporation  (AHFC)  and  DHSS  The                                                                   
collaboration gives  individuals who have been in  and out of                                                                   
DOC  and  the  Alaskan  Psychiatric  Institute  (API)  stable                                                                   
housing environments  and support  services. Results  include                                                                   
reduced   incarceration   and   admissions   to   psychiatric                                                                   
institutions.                                                                                                                   
                                                                                                                                
10:35:12 AM                                                                                                                   
                                                                                                                                
Mr. Jessee  urged the  committee to  notice the ever  growing                                                                   
budgets  of DOC,  the courts,  and the  Department of  Public                                                                   
Safety (DPS).  He explained that certain  trust beneficiaries                                                                   
are  population  members  who   cycle  through  the  criminal                                                                   
justice system.                                                                                                                 
                                                                                                                                
Mr. Jessee stressed that the model is proven:                                                                                   
                                                                                                                                
   · Each $1 spent leverages $7 in other funds                                                                                  
   · 600 housing trusts operating in more than 30 states                                                                        
     using these components                                                                                                     
   · Investment in permanent, affordable housing                                                                                
   · Include supportive services and skills training                                                                            
                                                                                                                                
Mr. Jessee addressed disability  justice. He pointed out that                                                                   
DOC was the  single greatest mental health provider.  Until a                                                                   
recent study,  it was not  known how many beneficiaries  were                                                                   
in DOC.  The study showed that  42 percent of inmates  in DOC                                                                   
were trust beneficiaries.  If inmates with alcohol  linked to                                                                   
their criminal  behavior were added, then the  figure equaled                                                                   
over 90 percent.                                                                                                                
                                                                                                                                
Mr.  Jessie  offered  the  possibility   of  reinvesting  the                                                                   
dollars  spent on  DOC and  the  courts into  a portfolio  of                                                                   
evidence-based  practices to  keep beneficiaries  out of  the                                                                   
system. He  explained the link  between the ten year  plan to                                                                   
end homelessness  and other  programs to  improve on  some of                                                                   
the  high cost  centers  in the  state  budget. He  suggested                                                                   
early screening, identifying beneficiaries  as they enter the                                                                   
criminal  justice  system, and  the  creation  of an  initial                                                                   
discharge plan.                                                                                                                 
                                                                                                                                
10:39:23 AM                                                                                                                   
                                                                                                                                
Mr. Jessee identified  significant results for  the Anchorage                                                                   
Mental Health Court. Misdemeanors  were reduced by 17 percent                                                                   
and new  felonies were  reduced by 16  percent. He  shared an                                                                   
experience  about replacing  trust funds  with mental  health                                                                   
funds  and  objected  to  the  idea  that  a  crime  must  be                                                                   
committed for a beneficiary to receive treatment.                                                                               
                                                                                                                                
Mr. Jessee  spoke about the  need for workforce  development.                                                                   
He  stressed that  without a  well  maintained and  qualified                                                                   
workforce, all of  the good intentions and funding  are to no                                                                   
avail. The University  of Alaska and the Department  of Labor                                                                   
and Workforce  Development have  helped identify  methods for                                                                   
recruiting people  to work in  these programs.  Rural Alaskan                                                                   
students  are encouraged  to  choose health,  and  especially                                                                   
mental health, related careers.  He explained the benefits of                                                                   
training people from smaller communities  around the state as                                                                   
behavior  health  aids  and  village  based  counselors  with                                                                   
funding sources such as Medicaid.  He stressed the importance                                                                   
of   addressing   underlying   problems  faced   by   smaller                                                                   
communities.                                                                                                                    
                                                                                                                                
10:43:23 AM                                                                                                                   
                                                                                                                                
Mr. Jessee  outlined the  goals for  workforce strategies  in                                                                   
FY10:                                                                                                                           
                                                                                                                                
   · Support student loan repayment strategies for health                                                                       
     professionals                                                                                                              
   · Support increments for University of Alaska health                                                                         
     programs                                                                                                                   
  · Researching a psychiatric residency program in Alaska                                                                       
   · Finalizing plans for a PhD psychologist internship                                                                         
     program in Alaska.                                                                                                         
                                                                                                                                
Mr.   Jessee  discussed   the   Trust  Beneficiary   Projects                                                                   
Initiative.  He  explained  that the  initiative  was  wholly                                                                   
funded by the trust and he was  not asking for general funds.                                                                   
He  stated  that he  did  not  intend  for people  to  become                                                                   
dependant  upon  government programs  to  maintain  recovery;                                                                   
beneficiaries can  support each other. The  initiative spends                                                                   
over $1 million  per year in trust funds to  aid consumers in                                                                   
supporting themselves.  The trust funds a number  of peer-run                                                                   
programs  and   drop  in  centers/clubhouses   for  community                                                                   
education  and  advocacy.  He  believed  that  peer  to  peer                                                                   
support  is a  cost effective  component  of a  comprehensive                                                                   
mental health program for the state.                                                                                            
                                                                                                                                
Mr.  Jessee  elucidated  that  the  initiative  has  over  27                                                                   
beneficiary grantees  since 2006.  The program is  rigorously                                                                   
evaluated  for   results.  He   anticipated  coming   to  the                                                                   
committee with positive results.                                                                                                
                                                                                                                                
Senator   Elton  requested   further  information   regarding                                                                   
savings to  the state  in departments such  as DPS,  DOC, and                                                                   
the  courts. Mr.  Jessee  stated that  he  would provide  the                                                                   
requested information. He admitted  that court system and DPS                                                                   
costs are difficult to calculate.                                                                                               
                                                                                                                                
10:46:43 AM                                                                                                                   
                                                                                                                                
Senator  Huggins asked  about the  trust's relationship  with                                                                   
DOC.   Mr.  Jessee   replied   that  the   relationship   had                                                                   
significantly improved and that  work with DOC had been close                                                                   
and positive.  He stated that  the relationship was  the best                                                                   
that it had been in some time.                                                                                                  
                                                                                                                                
Senator Ellis requested letters  of support for SB32 the rate                                                                   
review  bill. Mr.  Jessee stated  that he would  be happy  to                                                                   
help.                                                                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:49 AM.                                                                                          

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