Legislature(2009 - 2010)SENATE FINANCE 532
03/16/2009 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 75 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 16, 2009
1:40 p.m.
1:40:33 PM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 1:40 p.m.
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
Nancy Slagle, Director, Division of Administrative
Services, Department of Transportation and Public
Facilities; Frank Richards, Deputy Commissioner, Highways &
Public Facilities, Department of Transportation and Public
Facilities; Larry Dietrick, Director, Spill Prevention and
Response, Department of Environmental Conservation; Bill
Griffith, Program Manager, Division of Water, Department of
Environmental Conservation; Mike Maher, Director, Division
of Administrative Services, Department of Environmental
Conservation; Arnold Liebelt, Facilities Services Manager,
Finance and Management Services, Department of Health and
Social Services; Alison Elgee, Assistant Commissioner,
Finance and Management Services, Department of Health and
Social Services.
PRESENT VIA TELECONFERENCE
None
SUMMARY
SB 75 "An Act making and amending appropriations,
including capital appropriations, supplemental
appropriations, and appropriations to capitalize
funds; and providing for an effective date."
SB 75 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 75
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and appropriations to capitalize funds; and providing
for an effective date."
1:40:43 PM
Co-Chair Stedman noted that there were four large
appropriations with allocations left to cover in the
overview of SB 75, including Statewide Federal Programs,
reference number 6764, (pages 51-70); Airport Improvement
Programs, reference number 7470, (pages 71-147); Surface
Transportation Program, $32,610, (pages 148-229); and
Cruise Ship Related Projects, $47,718, (pages 230-241).
1:43:57 PM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES (DOT/PF)
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, introduced appropriation number 6764 (page 51),
$129 million for Statewide Federal Programs. The
allocations within the appropriation include statewide
transit systems, highway safety programs, commercial
vehicle enforcement programs, allocations used for federal
emergency projects, and contingency projects in the event
of cost overruns. Also included is $50,760,000 matching
funds for highway, aviation, and other projects.
Ms. Slagle described reference number 7470, the Airport
Improvement Program, which includes $316,730,000 in federal
receipt authority, $16,800,000 in International Airport
revenue funds, $24 million in international airport
construction bond funds, and $4,560,000 in passenger
facility charges (PFC) collected at international airports.
The Airport Improvement Program includes all projects that
the department believes will be funded under the program,
whether through the entitlement program or through
potential discretionary funds that the Federal Aviation
Administration (FAA) may provide to the state. The
international airport projects included those that have
been reviewed and approved by the Air Carriers Association.
1:46:49 PM
Senator Olson asked how much of the $316 million was going
to Anchorage and Fairbanks. Ms. Slagle did not know how
much was going to international airports. She pointed out
that a later presentation would specifically address
international airports.
Co-Chair Hoffman asked the current status of the Akutan
airport project.
FRANK RICHARDS, DEPUTY COMMISSIONER, HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, responded that the project was currently being
discussed with the FAA. He stated that there had been
potential for using economic stimulus funds for the
project, but a limit was being placed at $15 million per
airport; the cost of the Akutan project would be
approximately $70 million. The department was continuing to
look at funding options.
1:49:05 PM
Ms. Slagle continued with a $344 million appropriation for
the Surface Transportation Program (page 148, reference
number 32610). The amount is based on the departments
Statewide Transportation Improvement Program (STIP) and
covers road projects and statewide projects. Planning
activities are included as well as highway projects and
federal highway funds to the ferry system.
Senator Olson queried the status of a paving project at the
Barrow Airport. Mr. Richards believed the final phase of
the project would be underway the summer of 2009.
Senator Olson asked if the runway would be moved. Mr.
Richards responded that the runway change was already in
place.
Senator Olson asked if the project would open more lease
lots at the airport. Mr. Richards did not know.
Co-Chair Stedman queried the relationship between stimulus
funds and projects on the Dalton Highway. Mr Richards
responded that the two projects, milepost 274 to 289 and
the milepost 7 wayside, were regular STIP funded projects
and not included in the stimulus package. The projects on
the stimulus list were the milepost 175 to 197 project and
the culverts from milepost 260 to 321.
1:53:36 PM
Ms. Slagle turned to cruise ship related projects (page
230, reference number 44718), $16,680,000 in projects that
have been identified for utilizing cruise ship tax
revenues. The departments regional staff worked closely
with communities to identify potential projects that the
revenues could be used for. Projects most impacted by the
cruise ship industry were given highest priority.
Co-Chair Stedman referred to the process used for the funds
in past years and noted funds that were not yet
appropriated. He asked how the allocations were selected
and why money was left. Mr. Richards stated that he was not
aware of available funds related to the cruise ship tax. He
emphasized that the particular projects were chosen for
communities most directly impacted by the cruise ship
industry.
1:58:27 PM
Co-Chair Stedman noted that Sitka was not on the project
list, although up to three ships visited the community
daily. He requested a list of the projects reviewed. He
referred to a balance of available funds. Mr. Richards
replied that the department would be glad to share the list
of projects considered.
Senator Thomas asked if the department considered projects
in communities other than port communities. He noted that
Fairbanks gets tourism traffic from the cruise ships and
wondered how the department evaluated impact.
2:01:19 PM
Mr. Richards replied that the department considered
communities in the interior that received cruise ship
tourists, including along the Parks, Denali, Dalton, and
Taylor Highways. He explained that the definition of
appropriate use for the funds included any impacted
community.
Senator Thomas asked about funds that could be used in
areas off the road system that may not be directly
impacted. Mr. Richards replied that the project list in the
appropriation bill was compiled with the administration.
Senator Thomas asked if the longer list would be shared
with the committee. Mr. Richards responded in the
affirmative.
Co-Chair Stedman wanted the list to include the main ports
of Sitka, Ketchikan, Juneau, and Skagway. He noted a line
item for Ketchikan but none for Sitka. He wanted a longer-
term objective of developing a reasonable way to allocate
funds on-going, so that impacted communities could plan for
larger projects.
Ms. Slagle noted that the Office of Management and Budget
(OMB) would respond on the issue of the available funds.
2:04:30 PM
Ms. Slagle concluded with a request (page 241) for
$26,300,000 to take out sharp curves and correct drainage
and poor surface conditions on the Dalton Highway, milepost
9 to 11.
Mr. Richards explained that the project had been discussed
during the 2009 summer special session. He asked for
support for the project.
Co-Chair Hoffman asked how the revenue source was
determined for the project. Ms. Slagle replied that the
decision was made by governors office and not the
department.
Co-Chair Stedman noted a lack of continuity regarding some
of the fund sources, and that the committee would address
that.
2:06:12 PM
Senator Huggins mentioned a mid-November DOT/PF meeting in
Anchorage during which projects related to gas activities
were described. He asked for a copy of the list of items
compiled at the meeting. Mr. Richards informed the
committee that the department had completed a report with a
list of gasline related projects submitted to DOT/PF by
communities and other entities such as the Matanuska-
Susitna Borough and the Alaska Railroad Corporation.
Senator Huggins did not think the projects were integrated
into the current list. Mr. Richards responded that the
capital budget was developed in early and mid-fall; the
discussion with the communities took place after the budget
was submitted. The budget package included the Dalton
Highway project, which the department had deemed gasline
ready.
Senator Huggins pointed out that the department scheduled
the meetings for November, not the communities. He
expressed disappointment that the meeting was scheduled
after the communities could make application for the list,
and accused the department of deception.
2:08:21 PM
Mr. Richards summarized that the general fund portion of
the capital budget was approximately $93.5 million, with a
great reliance on federal programs for highway, aviation,
and transit.
Co-Chair Stedman commented that the budget included
approximately $729 million in federal funds and $234
million in state funds, for a total of around $942 million.
He noted that the totals did not include the economic
stimulus package.
2:09:22 PM AT EASE
2:12:24 PM RECONVENED
DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC)
LARRY DIETRICK, DIRECTOR, DIVISION OF SPILL PREVENTION AND
RESPONSE, DEPARTMENT OF ENVIRONMENTAL CONSERVATION,
detailed item number 46946, $750,000 for the Oil and
Hazardous Substance First Responder Equipment and
Preparedness project. He explained that funds from the
response fund would go for first responder equipment at the
local level. The department cannot be in all communities;
it works to empower communities through formal response
agreements and provides equipment and training. The
equipment includes oil spill response equipment tailored
for each community according to local resources and needs.
Examples of equipment provided include boom recovery
skimmers, fast tanks, field detection gear, and hazardous
material gear. He provided specific examples of equipment
used.
Mr. Dietrick turned to reference number 33826, Contaminated
Sites Cleanup, $5 million from the response fund to be used
for assessment, cleanup, and monitoring of 31 sites.
BILL GRIFFITH, FACILITY PROGRAMS MANAGER, DIVISION OF
WATER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained
that the divisions two capital appropriation requests
would assist in protecting public health in Alaska by
increasing the number of rural households with basic
sanitation services, and assist communities with existing
systems to address aging infrastructure, community growth,
and regulatory compliance.
Mr. Griffith explained the first appropriation, reference
number 41376, $91,666,660 for the Village Safe Water and
Wastewater Infrastructure Projects. There are multiple
allocations for statewide water and wastewater capital
improvement projects. Funding for the request is made up of
$52,125,000 in federal receipts, $14,410,598 in general
fund match, $25 million in general funds, and $500,000 in
statutory designated funds. Seventy-three allocations
include 12 planning projects for $1.25 million, 56 projects
on the three-year priority list for $75.6 million, 3 design
and construction projects not included on the three-year
priority list for $4.3 million, $500,000 in statutory
designated receipt authority, and $10 million in federal
receipt authority for projects funded by the Denali
Commission and the Indian Health Service. Mr. Griffith
reminded the committee that the three-year priority list
was established according to federal funding requirements
and must be used to fund large multi-year projects.
2:18:36 PM
Co-Chair Stedman added that there was $25 million in
general funds and an additional $14,000 in general fund
match, with a total of $39 in state funds. He asked what
was not selected from the three-year priority list of items
and how much additional state money would be required to
complete all the items. He asked if the three-year priority
list would change over time.
Mr. Griffith reported that there was approximately $256
million in estimated project cost on the three-year
priority list. The department hoped to accomplish around
$75 million worth of work on the list in the coming year.
He added that communities have an opportunity to apply each
year for project funds that may place them on the three-
year priority list, if the projects are large and multi-
year. Therefore, projects could be added over the coming
year; however, few projects have been added in recent years
as the department hopes to complete the projects already on
the list.
2:20:52 PM
Mr. Griffith described the second appropriation, reference
number 46714, $23,189,396 for Municipal Water, Sewage and
Solid Waste Facilities Grants. The appropriation consists
of 16 allocations for individual projects to be funded
solely with state general funds. The projects are municipal
matching grant projects; a portion of the costs will be
paid by grant recipients, which consist of larger cities.
Projects included on the list must be requested by
communities and scored and prioritized using the state
municipal matching grant questionnaire process.
Co-Chair Stedman returned to the safe water projects and
asked if the Kodiak item would still be first on the
priority list in another year. Mr. Griffith answered that
the list would be different each year; communities re-
submit projects based on current needs and funding
resources.
Co-Chair Stedman asked for an overview of how the list
changes from year to year, and referred to an additional
$60.7 million in requests from communities. Mr. Griffith
estimated that roughly half the list changes from year to
year because projects might be funded through grants,
loans, or federal appropriations; needs or regulatory
requirements might change.
Co-Chair Stedman asked a question regarding an item.
MIKE MAHER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, responded that
the item represented Alaska Housing Finance Corporation
receipts and that the funding source was proposed by OMB.
2:24:55 PM
Co-Chair Stedman requested details regarding the general
fund match and the general fund designation related to
village safe water infrastructure. Mr. Maher thought the
match was a little over $14 million. The governor added $25
million in straight general funds in an effort to keep the
level of funding for the program at roughly 40 percent.
Co-Chair Stedman referred to the Ketchikan project
allocation (page 92) for $1.4 million, and commented that
the funds might be insufficient to complete the project. He
asked if the administration supported funding the project
sufficiently.
Mr. Griffith asked for clarification. Co-Chair Stedman
stated that the request is short $363,310, according to a
letter from the borough manager. He read from the letter
and asked the administrations stance. Mr. Griffith
answered that the department absolutely supports the
project. He offered to get further clarification regarding
the shortage. The department is working with other federal
funding agencies and looking at other potential sources to
complete the project. He noted that the project is large
and complex; the water line extension to Mountain Point is
tied in with water treatment plan improvements and has a
number of different phases.
2:28:36 PM
Co-Chair Stedman commented that he wanted to move forward
with projects that could be completed.
2:29:32 PM AT EASE
2:31:58 PM RECONVENED
DEPARTMENT OF HEALTH AND SOCIAL SERVICES (DHSS)
ARNOLD LIEBELT, FACILITIES SERVICES MANAGER, FINANCE AND
MANAGEMENT SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, began with the highest priority item, the Johnson
Youth Center Renovation and Remodel, Phase One. The project
expected to meet safety and security needs. He explained
that the department had put together a long-term plan in
2007 to address safety and security deficiencies at the
four oldest youth facilities, the Johnson, McLaughlin,
Bethel, and Fairbanks facilities. He directed the committee
to a report outlining the needs of the facilities and
detailed money that had been received and improvements that
had been made.
Mr. Liebelt added that the current request would further
the long-term plan by funding the first of three phases of
improvements to the Johnson Youth Center, including a
complete rehabilitation of the existing eight-bed detention
unit.
ALISON ELGEE, ASSISTANT COMMISSIONER, FINANCE AND
MANAGEMENT SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, described the next priority request as the
Medicaid Management Information System Completion. The
department has been developing a new information system for
several years. The request is based on an approved project
budget submitted to the federal government totaling
approximately $46 million. Recently, the department has
discovered that the federal government had disallowed
approximately $4.5 million of the total project cost for
federal reimbursement because of an earlier failed attempt.
The total project is still anticipated to require the
original project budget amount; however, the federal
receipts that will not be received must be replaced with
general funds. In addition, the difference between the
project budget and the original appropriations must be made
up. She reported that the project is on schedule to be
completed in May 2010.
2:36:28 PM
Mr. Liebelt turned to reference number 31862, Non-Pioneer
Home Deferred Maintenance Renovation, Repair and Equipment,
for $2,203,000, listed in priority order.
Mr. Liebelt described reference number 37934: $2 million in
general funds for the Pioneer Home Deferred Maintenance
project. The project is for six Alaska pioneer homes,
listed in priority order.
Co-Chair Stedman queried the expected condition of the
buildings after the on-going maintenance was completed. Mr.
Liebelt answered that the answer depends on the type and
use of the building. The oldest home is the Sitka Pioneer
Home; the newer buildings are in better shape. The 24-hour
facilities, such as the youth facilities and pioneer homes,
require higher use. The public health centers and labs and
the behavior health centers tend to wear better. He
described criteria used to establish the priority list.
Mr. Liebelt turned to reference number 32446, $1.1 million
for Safety and Support Equipment for Probation Officers and
Front Line Workers. The request is department wide and
would benefit the Division of Juvenile Justice, the Office
of Childrens Services, the Division of Public Assistance,
and the Division of Senior and Disabilities Services. He
noted that the request is made annually and is for one-time
types of equipment needed to serve clients and continue
operations.
2:38:51 PM
Mr. Liebelt discussed reference number 46898, $474,300 for
Production Printer Replacement. The item would provide for
a heavy-use production printer with a three-year
maintenance contract for the Division of Public Assistance.
Each month the printer generates approximately 70,000
client notifications, 10,000 identification cards, and
hundreds of medical authorizations. The current printer is
nearly defunct.
Mr. Liebelt described reference number 46905, Online
Resources for the Children of Alaska (ORCA), Enhancements
to Meet Federal Requirements. The Office of Childrens
Services has 29 offices; the request would implement one
centralized state-wide intake office. In addition, the
request would include funding to collect required
information to track children transitioning from foster
care.
Mr. Liebelt moved to reference number 46911, $500,000
general funds for Public Health Disaster Preparedness to
purchase equipment and supplies in case of a disaster.
Mr. Liebelt covered reference number 39148, $41,400 for E-
Grants, the departments web-based management solution. E-
Grants is currently capable of generating various data, but
there are missing components, including one for completing
online applications. An electronic depository for all
records connected with applications would also be created.
2:42:29 PM
Mr. Liebelt turned to reference number 42837, an annual
request for $425,000 general funds to match Code Blue
Project funds from regional Emergency Medical Services.
Co-Chair Stedman commented on the success of the Bring the
Kids Home project. Mr. Liebelt detailed item 38923 for the
program. The requested $2.2 million would match $2.2
million expected from the Denali Commission and would be
used for construction.
Mr. Liebelt described reference number 33443, Emergency
Medical Services Emergency Communications. He responded in
the negative to a question from Senator Huggins regarding
fund sources. Mr. Liebelt detailed that the $190,000
request for general funds would cover assessment, repair,
and replacement costs for the existing legacy systems of
the VHF radio base stations and repeaters.
2:44:50 PM
Mr. Liebelt explained reference number 33670, $750,000 for
Mental Health Deferred Maintenance and Accessibility
Improvements. The request, which has been asked for in
years past, is a capital grant program. Capital funds are
awarded to non-profit agencies serving trust beneficiaries
for large deferred maintenance accessibility projects.
Mr. Liebelt turned to reference number 33671, $1,050,000
for Mental Health Housing, Home Modification and Upgrades
to Retain Housing. The project awards capital funds through
a competitive process to non-profit agencies that in turn
awards grants to individuals. Up to $15,000 is awarded for
modifications to owner-occupied homes (up to $12,000 for
non-owner occupied).
Ms. Elgee described item 47611 for Health Insurance
Portability and Accountability Act (HIPAA) Updated
Electronic Transaction Standards. The department proposes
to update while it is still operating under the Legacy MMIS
system in order to receive federal funds for capital
project upgrades. The federal government will participate
90 percent in the upgrades under the existing legacy
system; the department does not believe the rate would be
as high at a later date.
Ms. Elgee presented five information technology (IT)
projects included under a governors office appropriations
structure that was slightly different than past years.
• Reference number 46920: Personal Information
Protection Data Encryption. The project is designed to
meet HIPAA standards for internal information within
the state system and would allow the department to
encrypt the data while it is moving through the
system.
• Reference number 46944: Behavioral Health Data Sharing
Partnership Project, an expansion of the scope of the
Alaska Information Management System. The project
would allow the Division of Behavioral Health to
increase its ability to make database decisions to
move forward in performance-based funding by allowing
the division to interface with existing systems such
as electronic medical records and the court and
corrections systems.
• Reference number 46918: $1,337.400 for a HIPAA
compliance project. The department anticipates
continuing the project until 2013, when it hopes to be
in federal compliance. She pointed out that failure to
comply could result in extreme financial penalties.
2:49:53 PM
• Reference number 46921: $409,000 for the Disaster
Recovery Project, which would provide a failsafe for
the departments IT system in the event of a natural
disaster. The project would assess the critical IT
systems already operating and implement a plan for
providing function during an emergency.
• Reference number 46904: Contract Management Automation
System. The project would be similar to E-grants.
Senator Thomas asked for clarification regarding the HIPAA
requirements. Ms. Elgee answered that every aspect of
business that includes private health records is subject to
HIPAA compliance. The departments project is designed for
health records within the purview of the Department of
Health and Social Services. Senator Thomas expressed
concerns about future requirements. Ms. Elgee referred him
to the HIPAA compliance coordinator.
2:53:47 PM
SB 75 was HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 2:53 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DEC Rural Sanitation Historical Approps 1.26.09.pdf |
SFIN 3/16/2009 1:30:00 PM |
SB 75 |
| DEC Muni Match List FY2010.pdf |
SFIN 3/16/2009 1:30:00 PM |
SB 75 |
| DEC Rural Sanitation Needs.pdf |
SFIN 3/16/2009 1:30:00 PM |
SB 75 |
| DEC VSW & Muni Match Prgs.pdf |
SFIN 3/16/2009 1:30:00 PM |
SB 75 |
| DEC VSW Fed Rept Authority.pdf |
SFIN 3/16/2009 1:30:00 PM |
SB 75 |
| DEC VSW List FY2010.pdf |
SFIN 3/16/2009 1:30:00 PM |
SB 75 |
| DEC Water and Sewer Service Rates 2 6 2009.pdf |
SFIN 3/16/2009 1:30:00 PM |
SB 75 |