Legislature(2011 - 2012)SENATE FINANCE 532
03/05/2012 02:00 PM Senate FINANCE
| Audio | Topic |
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| Start | |
| SB160 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 160 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 5, 2012
2:08 p.m.
2:08:52 PM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 2:08 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
Senator Bert Stedman, Co-Chair
ALSO PRESENT
David Stone, Deputy Commissioner, Department of Labor and
Workforce Development; Bryn Keith, Director Of
Administrative Services, Department of Labor and Workforce
Development; William Streur, Commissioner, Department of
Health and Social Services; Laura Baker, Deputy Director,
Finance and Management Services, Department of Health and
Social Services; Doug Wooliver, Deputy Administrative
Director, Alaska Court System;
SUMMARY
SB 160 BUDGET: CAPITAL
SB 160 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 160
"An Act making and amending appropriations, including
capital appropriations and other appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
2:09:36 PM
Department of Labor and Workforce Development
DAVID STONE, DEPUTY COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, introduced himself and Bryn Keith
for the record.
BRYN KEITH, DIRECTOR OF ADMINISTRATIVE SERVICES, DEPARTMENT
OF LABOR AND WORKFORCE DEVELOPMENT, discussed the
Department of Labor and Workforce Development's capital
requests.
RN 48826
Heavy Equipment Shop/Diesel Shop/Pipe Welding Relocation
$6,000,000.
Brief Summary and Statement of Need:
This request will fund the first phase of the Alaska
Vocational Technical Center's (AVTEC) Heavy Equipment
Shop/Diesel Shop/Pipe Welding Relocation project. The
funding will be used to construct an 8,000 square foot
steel fabricated heavy equipment shop, including site
preparation and utility hook-ups. The new shop will
facilitate the relocation of the heavy equipment technology
portion of the diesel/heavy equipment technologies program
from the existing building which has life, safety, code and
ADA deficiencies. The diesel/heavy equipment technologies
program supports the department's mission to advance
opportunities for employment by producing 45 trained
Alaskans per year with a nearly 100 percent job placement.
Ms. Keith added that the request was the first of two and
that it would be used for phase 1 of the project; an
additional $6 million would be requested in FY 14 for the
completion of phases 2 and 3. The new steel heavy equipment
shop would replace an existing facility that housed AVTEC's
current diesel/heavy equipment technologies program. The
current structure was built in the early 1970s and had been
deemed sub-standard in two separate engineering reviews.
RN 54490
Job Center Computer Replacements
$917,500.
Brief Summary and Statement of Need:
This funding will provide a three-year statewide inventory
replacement of aging computers used in job centers and
operations of the Employment and Training Services (ETS)
component, as well as servers and printers. The project
includes public access computers located in job centers.
Existing computers are obsolete and do not meet employment
and training service delivery needs. ETS has foregone
computer replacement of this nature for several years
because available funds have been needed for other
operational costs. Through the job center network, ETS
supports the department's mission to advance opportunities
for employment by providing direct employment and training
services to Alaskans.
Ms. Keith related that phased in over a three-year period,
the request would replace 342 public access computers, 263
staff computers, 19 servers, and 51 printers. She added
that a computer would be replaced based on its age and
overall working condition.
RN 51795
Fairbanks Pipeline Training Center Construction and
Equipment Purchase
$1,000,000.
Brief Summary and Statement of Need:
The Fairbanks Pipeline Training Center (FPTC) is a
public/private partnership that prepares Alaskans for work
in the high-demand oil/gas and construction industries.
This request will increase the training capacity of the
state by expanding and improving infrastructure at FPTC.
The funding will provide a grant to the FPTC to be used in
combination with other funds toward constructing and
equipping FPTC's central training facility. Equipment will
include classroom and instruction equipment. The Fairbanks
Pipeline Training Center supported the department's mission
by preparing Alaskans for jobs.
Ms. Keith indicated that the department anticipated that $5
million in additional funding would be needed to complete
the training facility. She concluded that the request's
funding would provide space for offices, classrooms, and
shops; it did not include funding for tables, chairs,
equipment, etc.
RN 48821
Deferred Maintenance, Renewal Repair and Equipment-AVTEC
$1,000,000.
Brief Summary and Statement of Need:
This project will provide deferred maintenance funding at
Alaska Vocational Technical Center's (AVTEC) 16 buildings
in Seward. Specific projects related to this request
include general facility maintenance, mold mitigation,
replacement of failing ventilation and dust removal
systems, hazardous materials abatement in the First Lake
facility, and the replacement of two underground fuel tanks
with above ground tanks. Through training, AVTEC supports
the department's mission to advance opportunities for
employment.
Ms. Keith related that AVTEC's 16 buildings in Seward
represented over 200,000 square feet of shops, labs,
classroom, etc. and explained that many of the structures
were built in the 1950s and 60s. The requested $1 million
would cover basic deferred maintenance at the Seward
campuses of AVTEC.
2:14:05 PM
Senator Thomas felt that the Fairbanks Pipeline Training
Center was a useful facility and that it had about the best
record of placement in the construction industry. He
inquired if the $1 million would finish a particular aspect
of the facility or if it simply got something started. He
indicated that his inclination would be to put more money
into the project initially in order to avoid partially
completed facilities. Ms. Keith responded that the funding
would begin the next phase on the central facility and that
it was estimated that an additional $5 million would be
needed to complete that component in the pipeline training
center.
Senator Thomas further inquired if the $1 million would
start something that would not be finished and usable by
the time the $1 million was expended. Ms. Keith replied
that the component would be functional, but that it would
not be at its optimal level of completion with a $1 million
investment.
Department of Health and Social Services
WILLIAM STREUR, COMMISSIONER, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES, introduced Laura Baker and stated that she
would speak to the majority of items.
LAURA BAKER, DEPUTY DIRECTOR, FINANCE AND MANAGEMENT
SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
discussed the department's capital requests.
RN 54191
Bethel Youth Facility Expansion - Phase 1
$10,000,000.
Brief Summary and Statement of Need:
Bethel Youth Facility (BYF) is in need of extensive
renovation and construction. This capital request will
provide for the pre-construction work of four new detention
beds for a total of twelve, upgraded treatment beds,
additional probation space, expanded medical space, a
vehicle sally port, a small gymnasium and a secure outdoor
recreation area. This first phase will complete the design,
address site issues and will assist in the removal of the
Yukon Kuskokwim Health Corporation's Keyes Building that is
in too close proximity to Bethel Youth Facility.
Ms. Baker stated there had been a study performed on the
Division of Juvenile Justice's (DJJ) four oldest facilities
in 2007 and that it was determined that the BYF needed to
be worked on. In addition, there was property that was
adjacent to the BYF that the department wished to obtain in
order to allow for expansion and security. She pointed out
for the committee's reference that the total estimated cost
of the project was $19,025,400 over two phases.
RN 50814
International Classification of Diseases Version 10 - Phase
2
$4,707,000.
Brief Summary and Statement of Need:
This is request is to fund phase 2 of a Center for Medicare
and Medicaid Services (CMS) approved project in the amount
of $9,714,712 to comply with federal standards for
electronic health interactions with the provider community.
This establishes standardized formats for exchange of data
between computer systems. By using this updated standard,
Alaska Medicaid eliminates the risk of federal penalties
for failure to comply with the law. The International
Classification of Diseases-10 (ICD-10) code sets provide a
standard coding convention that is flexible, providing
unique codes for all substantially different health
conditions.
Ms. Baker related that the item was a federal receipt and
general fund match request and that out of the $4.707
million, $3.8 million would be federal receipts.
2:18:24 PM
Commissioner Streur stated that the international
classification of diseases was going through an upgrade. He
related that the department had been operating under ICD-9
for close to 25 years, but was moving to ICD-10. He
explained that changing to ICD-10 would increase the number
of disease classifications from 13,000 to 68,000. He
explained that the healthcare field had been discussing
ICD-10 since 1996 and that although it continued to move
forward, he was unsure when it would be completed. He
explained that the federal government was prioritizing
rushing ICD-10 and that the Department of Health and Social
Services had upgraded its systems the prior year. He opined
that the new classification system was the next step in
improving the state's healthcare system and making it more
available and versatile for better disease identification.
RN 42837
Emergency Medical Services - Match for Code Blue Project
$450,000.
Brief Summary and Statement of Need:
The Code Blue Steering Committee was formed to identify
need for and purchase critical Emergency Medical Services
(EMS) equipment and ambulances for EMS agencies around the
state, particularly in rural locations. This year a total
of $450,000 is required to match federal, local and private
funds to be allocated for all seven EMS regional offices
for such needs as ambulances, heart monitors, training
equipment, and communications equipment. One dollar in
state general funds leverages more than four additional
dollars in other funds.
AMD 33443
Alaska Land Mobile Radio Emergency Response Narrowband
Compliance
$297,500.
Brief Summary and Statement of Need:
This is a new FY 2013 capital project due to cost estimates
that were finalized after the December 15 release of the
governor's budget. The purpose of this request is to
protect the health and safety of Alaskans by updating base
station, handheld, vehicle and probation radios, as well as
very high frequency (VHF) emergency communication systems.
The equipment and sites are owned by the state and
currently in use by emergency medical responders, and
juvenile justice and probations officers. Funding is needed
to maintain the federally mandated conversion to narrowband
effective January 1, 2013.
Ms. Baker stated that on page 10-2, there was an estimated
dollar amount of $110,240 for the DJJ Upgrades; the
upgrades were for base station radios for facilities in
Bethel, Nome, Ketchikan and Juneau, vehicle radios in
Bethel and Nome, as well as vehicle radios for
facilities/probation in Kenai, Ketchikan, Juneau and Mat-
Su. The funding would also replace ten handheld radios
statewide and would cover installation and administrative
costs. She pointed out that the Division of Public Health's
request was for $187,200 and would be used to upgrade the
nine remaining VHF sites to narrowband capability as
stipulated by federal requirements. She observed that three
of the nine VHF sites were only accessible by helicopter
and that it was estimated that it would cost about $20,000
per site to complete the upgrades.
2:22:05 PM
AMD 52386
State Improvements to Health Information Gateway
$3,641,400.
Brief Summary and Statement of Need:
To secure maximum federal reimbursement and greatest
benefit to the State, the Health Information Gateway
(Gateway) must develop interfaces with state healthcare
data systems and programs. These include the Medicaid
Management Information System, Laboratory Information
Management System, and various public health related
databases. Some of these databases will need to be updated
and modified in order to successfully integrate these
streams of data into the Gateway and assist the states and
providers in meeting the Centers for Medicare and Medicaid
Services' meaningful use requirements. This project was
inadvertently omitted from the December 15, 2012 release of
the FY2013 Governor's budget.
Ms. Baker shared that $3.277 million out of the $3.6414
million represented federal receipts.
2:22:51 PM
Commissioner Streur explained that the request represented
the state's match to join the Health Information Exchange,
which was being developed through the Alaska eHealth
Network. As organized under SB 133 from 2009, the state
needed to connect its vaccination program, lab results, and
other areas of the department to the system. He explained
that the funding represented the cost of facilitating the
new system and would include items such as training and
upgrades to data and software. He concluded that the
majority of the funding would come from the federal
government.
RN 33672
MH Essential Program Equipment
$475,000.
Brief Summary and Statement of Need:
The request will provide capital equipment grants through
the competitive process for agencies providing services,
activities and programs for Mental Health Trust
Beneficiaries.
Ms. Baker stated that the equipment may include therapeutic
equipment, computers, management information, etc. in order
to try and help the needs of the agencies. The cap on the
dollar amount per agency was $25,000.
RN 54274
M H Aging and Disability Resource Centers Pilot to Improve
Screening and Services
$425,000.
Brief Summary and Statement of Need:
This request is for a three-year pilot project to use Aging
and Disability Resource Centers (ADRCs) to better guide
individuals to the most appropriate care setting, increase
independence in a community based setting, improve health
outcomes for seniors and individuals with developmental
disabilities to reduce inappropriate or nursing home
placements, decrease cost to the state for unnecessary
level of care assessments, and provide a formalized process
for assessment and referral for behavioral
health services.
Senator Egan inquired if there would be a report given to
the legislature on the pilot program after it had completed
its three-year cycle. Commissioner Streur responded that
there would be a report given to the legislature at the end
of the three-year cycle, as well as a recommendation for
continuing the project or not.
RN 54250
M H Assistive Technology
$125,000.
Brief Summary and Statement of Need:
This capital program will provide funding for high-
technology and low-technology assistive devices for
Alaskans experiencing disabilities.
Ms. Baker explained that the request could be used to
purchase voice and eye recognition equipment for disabled
individuals and stated that the funding would be an
enhancement to the vocational rehabilitation program.
2:25:53 PM
RN 33671
M H Home Modification and Upgrades to Retain Housing
$1,050,000.
Brief Summary and Statement of Need:
This is a competitive capital grant program that provides
housing modifications for persons with special needs.
People are able to remain in their homes, thus reducing
costs of providing supported housing or moving to
institutional housing.
Ms. Baker explained that approximately 125 families
received modification to their homes each grant cycle and
that the grant funding amount was limited to $25,000 per
home owner and $10,000 per rental unit.
RN 37934
Deferred Maintenance, Renewal, Repair and Equipment -
Pioneer Homes
$4,000,000.
Brief Summary and Statement of Need:
Alaska Veterans and Pioneers Home deferred maintenance.
Ms. Baker pointed out that the $4 million request would
apply to four of the six pioneer homes. The funding would
be allocated as follows: the Alaska Veterans and Pioneers
Home in Seward would receive $24,810, the Anchorage Pioneer
Home would be allocated $1,389,360, the Juneau Pioneer Home
would be allotted $2,210,830, and the Sitka Pioneer home
would receive $375,000. She mentioned that the individual
allocations were also included on the preceding pages.
RN 31862
Deferred Maintenance, Renewal, Repair and Equipment - Non-
Pioneer Homes
$3,015,740.
Brief Summary and Statement of Need:
This request is for deferred maintenance and renovation
projects for more than 35 facilities maintained by the
Department, including health centers, youth facilities, the
Anchorage Public Health Lab and behavioral health
facilities statewide with a combined replacement value of
$343,000,000. Funds would be used for immediate and
critical renewal, repair, replacement and equipment needs
in state-owned facilities and selected leased facilities.
This request does not include the deferred maintenance
needs for the Pioneer Homes.
Ms. Baker added that the request included about $15,000 of
federal funding and that the rest was general fund
match/general funds. She stated that the funds would be
allocated as follows: $902,475 for Alaska Psychiatric
Institute, $132,322 for the Anchorage Public Health
Laboratory, $206,750 for the Denardo Center, $14,919 for
the Dillingham Health Center, $275,771 for the Fahrenkamp
Center, $415,402 for the Johnson Youth Center, $104,434 for
the Juneau Public Health Center, $165,400 for the Kenai
Peninsula Youth Facility, $37,297 for the Ketchikan Public
Health Center, $41,350 for the Mat-Su Youth Facility,
$703,120 for the Mclaughlin Youth Center, and $16,500 for
the Sitka Public Health Center. She added the request was
an appropriation and that remaining pages discussed the
individual allocations.
Senator Thomas mentioned the work being done on the Bethel
Youth Facility and inquired if the facility had any
vocational or general education aspects associated with it.
Ms. Baker replied that the department would get back to the
committee with a response.
Alaska Court System
DOUG WOOLIVER, DEPUTY ADMINISTRATIVE DIRECTOR, ALASKA COURT
SYSTEM, discussed the Alaska Court System's capital
requests.
RN 43152
Anchorage Campus Court Renovation
$5,100,000.
Brief Summary and Statement of Need:
The Anchorage court campus is comprised of three main
buildings - the Boney Courthouse, the Nesbett Courthouse,
and the Snowden Administration Building. This project is
for a major remodel of the Boney Courthouse and a lesser
remodel of the Nesbett Courthouse to accommodate additional
judges, provide secure prisoner containment and transport
within the Boney Courthouse, and perform seismic upgrades
as practicable and in compliance with building codes.
Mr. Wooliver related that the Nesbett Courthouse, which was
the primary trial facility in Anchorage, was full when it
had opened in 1996 and that since that time, five superior
court judges, one district court judge, and accompanying
staff had been added to the facility. He pointed out that
the Boney Courthouse was being remodeled to eventually take
over all the district court functions and that the Nesbett
Courthouse would serve as the superior court facility. He
stated the $5.1 million request would be sufficient to move
the department into the next phase of the project. He noted
that when the department had submitted the request of $11.3
million for the total completion of the project it had been
based on an estimate from a contracted cost estimator. He
stated that after the budget was released, the actual bids
that the department had received were significantly higher
than the estimator had indicated and that although it did
not affect this year's appropriation, the following year's
request would be higher than the department had
anticipated.
RN 47151
Court Security Projects
$1,700,000.
Brief Summary and Statement of Need:
This request includes projects to provide physical security
for the public and others in court facilities
statewide.
Mr. Wooliver stated that the funding would be used to
upgrade the Palmer Courthouse. He related that the prior
summer, the Palmer Courthouse had enlisted two court
security experts from the National Center for State Courts
and that the experts, along with members from the Alaska
Court System, had toured five different court facilities.
He related that during the tour, the facility with the most
egregious security concerns was the Palmer Courthouse,
specifically in the areas of the facility that dealt with
prisoner holding and transport. He stated that the current
Palmer facilities were inadequate and unsafe for both
prisoners and court service officers. He concluded that the
request would enable the department to insure the safe
transportation and holding of prisoners.
RN 52410
Electronic Filing System
$1,785,000.
Brief Summary and Statement of Need:
Implementation of an electronic filing and document
management system.
Mr. Wooliver stated that the request was for the second
phase of funding for the department's multi-year effort to
implement an electronic filing and record management
system. The department estimated the project to last
roughly six years and would have a total cost of about $6
million. He pointed out that like other courts around the
country, the department was moving to a system of
electronic filings and electronic records management. He
stated that the new system was central to the department's
long-term planning and that it would represent a dramatic
change in how both agencies and individuals interfaced with
the Alaska Court System. He concluded that an electronic
system included a great number of benefits on many levels
and that it was one of the department's top priorities.
Mr. Wooliver added that in addition to the mentioned
requests, the department also had $2.5 million in deferred
maintenance included in the governor's budget. He stated
$1.872 million of the funding for deferred maintenance
would be used for cleaning the HVAC ducting and replacing
outdated heating controls in the Boney Courthouse. He
shared that he had mentioned the deferred maintenance on
the Boney Courthouse because the work on that facility
could be completed much more efficiently if it was done in
conjunction with the ongoing remodel.
Co-Chair Hoffman discussed the following meeting's agenda.
SB 160 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
2:35:19 PM
The meeting was adjourned at 2:35 PM.
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