Legislature(2021 - 2022)SENATE FINANCE 532

01/27/2022 09:00 AM Senate FINANCE

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Audio Topic
09:01:41 AM Start
09:03:10 AM Presentation: Alaska Mental Health Trust Authority
10:32:08 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Alaska Mental Health Trust Authority TELECONFERENCED
Steve Williams, CEO
Anita Halterman, Board Chair
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                     January 27, 2022                                                                                           
                         9:01 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:01:41 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate Finance Committee                                                                            
meeting to order at 9:01 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Co-Chair                                                                                                  
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Anita Halterman, Board Chair, Alaska Mental Health Trust                                                                        
Authority; Steve Williams, CEO, Alaska Mental Health Trust                                                                      
Authority                                                                                                                       
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
PRESENTATION: ALASKA MENTAL HEALTH TRUST AUTHORITY                                                                              
                                                                                                                                
^PRESENTATION: ALASKA MENTAL HEALTH TRUST AUTHORITY                                                                           
                                                                                                                                
9:03:10 AM                                                                                                                    
                                                                                                                                
ANITA  HALTERMAN, BOARD  CHAIR, ALASKA  MENTAL HEALTH  TRUST                                                                    
AUTHORITY  (via teleconference),  relayed that  she was  the                                                                    
new board chair of the  Alaska Mental Health Trust Authority                                                                    
(AMHTA). She  listed the  names of  the trustees.  She cited                                                                    
that in FY 21 the trust  provided more than $21.3 million in                                                                    
grants to  partners that helped  improve the lives  of trust                                                                    
beneficiaries  across  the  state.    She  acknowledged  and                                                                    
thanked all the partners who  played a part in the formation                                                                    
of the agency.                                                                                                                  
                                                                                                                                
Ms. Halterman  continued her  opening remarks.  She asserted                                                                    
that the  trust worked  to provide  funding and  support for                                                                    
programs  that  improved  the lives  of  beneficiaries.  She                                                                    
noted  that the  standing trust  focus areas  and priorities                                                                    
included maximizing  the systems that  served beneficiaries.                                                                    
She  noted  that  the  trust   supported  its  work  through                                                                    
financial  management,  and  strategic management  of  trust                                                                    
land assets.  She acknowledged her  fellow trustees  and the                                                                    
trust  staff  for  ongoing efforts  in  managing  assets  to                                                                    
support  beneficiaries. She  sheared  the various  successes                                                                    
made by the trust in the last year.                                                                                             
                                                                                                                                
9:07:02 AM                                                                                                                    
                                                                                                                                
She publicly thanked  partners of the trust.  She thought it                                                                    
was  likely that  every  Alaskan  had experience  behavioral                                                                    
health challenges and was grateful to serve on the board.                                                                       
                                                                                                                                
9:08:01 AM                                                                                                                    
                                                                                                                                
Ms.  Halterman  introduced the  new  CEO  of the  trust  and                                                                    
provided a brief background.                                                                                                    
                                                                                                                                
9:08:41 AM                                                                                                                    
                                                                                                                                
Steve Williams,  CEO, Alaska Mental Health  Trust Authority,                                                                    
discussed  the  presentation  "Alaska  Mental  Health  Trust                                                                    
Authority  - Senate  Finance Committee  - January  27, 2022"                                                                    
(copy on file).                                                                                                                 
                                                                                                                                
Mr. Williams spoke to slide 3, "Trust Beneficiaries":                                                                           
                                                                                                                                
     ?Beneficiaries include Alaskans who experience:                                                                            
                                                                                                                                
      Mental illnesses                                                                                                          
     ?Intellectual and/or developmental disabilities                                                                            
     ?Alzheimer's disease and related dementia                                                                                  
     ?Traumatic brain injuries                                                                                                  
     ?Substance use disorders                                                                                                   
                                                                                                                                
9:09:49 AM                                                                                                                    
                                                                                                                                
Mr. Williams referenced slide 4, "Legislative Audit":                                                                           
                                                                                                                                
     ?Confirmed response to the 2018 audit                                                                                      
     ?Additional recommendations made in 2021                                                                                   
          ?Commercial Real Estate                                                                                               
          ?Policies and Procedures                                                                                              
                                                                                                                                
Mr. Williams shared that the  audit had been approved by the                                                                    
legislature in  March of 2020  as a  follow up to  the audit                                                                    
performed  in  2018.  He  assured  the  committee  that  the                                                                    
legislative auditor  had found that  the trust had  acted on                                                                    
the  2018 audit  findings and  that the  trust continued  to                                                                    
operate  while upholding  state statute  and the  1994 trust                                                                    
settlement agreement. He said  that the auditor had provided                                                                    
additional recommendations,  which were the last  two bullet                                                                    
points on the slide, and  that had been appreciated and were                                                                    
being considered by the board.                                                                                                  
                                                                                                                                
9:11:51 AM                                                                                                                    
                                                                                                                                
Senator Wilson  thought the 2018  audit was  a controversial                                                                    
due to the  issue of properties that had  been purchased. He                                                                    
asked  whether  the trust  still  owned  the properties  and                                                                    
wanted to  know the  net revenue  from those  properties. He                                                                    
asked   whether  the   properties  had   been  independently                                                                    
appraised.                                                                                                                      
                                                                                                                                
Co-Chair  Stedman asked  whether Senator  Wilson's questions                                                                    
would be answered later in the presentation.                                                                                    
                                                                                                                                
Mr. Williams stated  he would address the matter  at a later                                                                    
point in the presentation.                                                                                                      
                                                                                                                                
Co-Chair Stedman  suggested that Mr. Williams  factor in the                                                                    
responses and include details.                                                                                                  
                                                                                                                                
9:13:18 AM                                                                                                                    
                                                                                                                                
Mr. Williams turned to slide  5, "Financial Position," which                                                                    
showed a  bar graph  entitled 'Trust Invested  Assets,' with                                                                    
colored bars  denoting the trust corpus,  reserves, and real                                                                    
estate equity. He drew attention  to the growth shown on the                                                                    
far  right of  the graph,  which indicated  increased growth                                                                    
overtime,  except  for  the national  economic  downturn  in                                                                    
2009-2010.  He drew  attention to  the blue  section of  the                                                                    
far-most right bar,  which signified the corpus  was at $498                                                                    
million.  He  added  that  budget   reserves  were  at  $268                                                                    
million, and the real estate  equity was at $66 million; the                                                                    
total trust invested assets equaled $832 million.                                                                               
                                                                                                                                
Mr.  Williams  touched  on  Senator  Wilson's  question.  He                                                                    
related  that the  trust retained  7 commercial  real estate                                                                    
properties:  two in  Anchorage,  one in  Washington, one  in                                                                    
Utah,  and three  in Texas.  He  shared that  the board  had                                                                    
retained an independent real estate  advisor who worked with                                                                    
the  asset  managers at  the  Trust  Land Office  and  their                                                                    
recommendation had been for the properties to be held.                                                                          
                                                                                                                                
9:15:49 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  asked about an  agreement with  the Alaska                                                                    
Permanent  Fund Corporation  (APFC)  to manage  some of  the                                                                    
trust's assets.                                                                                                                 
                                                                                                                                
Mr. Williams  stated that the trustees  had considered seven                                                                    
different  recommendations for  property management,  one of                                                                    
which was  to transfer the  management of the  properties to                                                                    
APFC.  The   final  recommendation   had  been  to   use  an                                                                    
independent  advisor  in  conjunction with  the  Trust  Land                                                                    
Office.                                                                                                                         
                                                                                                                                
Co-Chair Stedman  asked whether there had  been concern that                                                                    
the assets were not of  sufficient quality to be of interest                                                                    
to APFC.                                                                                                                        
                                                                                                                                
Mr. Williams thought that the  concern was that the APFC was                                                                    
not  currently   structured  to  manage   seven  independent                                                                    
properties.                                                                                                                     
                                                                                                                                
Co-Chair Stedman  suggested that  he had  received differing                                                                    
reasons  why  APFC had  not  taken  over management  of  the                                                                    
properties.                                                                                                                     
                                                                                                                                
9:17:23 AM                                                                                                                    
                                                                                                                                
Senator Wilson recalled that according  to the recent audit,                                                                    
two  of  the properties  were  said  to have  negative  cash                                                                    
flows.  He  wondered  whether  it  was  the  boards  current                                                                    
position to retain all seven properties.                                                                                        
                                                                                                                                
Mr. Williams replied in the affirmative.                                                                                        
Co-Chair Stedman  requested the status of  each property and                                                                    
cash flow positions.                                                                                                            
                                                                                                                                
Mr. Williams agreed to provide the information.                                                                                 
                                                                                                                                
9:18:11 AM                                                                                                                    
                                                                                                                                
Mr. Williams  considered slide 6, "FY23  Available Funding,"                                                                    
which  showed a  table  illustrating  the trust's  available                                                                    
funding for  FY 23,  and a table  of the  trust's historical                                                                    
available funding from FY 18 to FY 22:                                                                                          
                                                                                                                                
     Trusts Estimated Available Funding FY 23                                                                               
     Investment   Portfolio   Payout    (4.25   percent)   -                                                                    
     $29,000,000                                                                                                                
     Prior Year Funds Carried Forward - $2,800,000                                                                              
     Land Office Spendable Income - $4,600,000                                                                                  
     Interest Earnings - $600,000                                                                                               
                                                                                                                                
     Total - $37,000,000                                                                                                      
                                                                                                                                
     Trust Available Funding                                                                                                
     FY22 $35,456,200                                                                                                           
     FY21 $33,243,200                                                                                                           
     FY20 $31,875,600                                                                                                           
     FY19 $29,437,000                                                                                                           
     FY18 $28,908,000                                                                                                           
                                                                                                                                
Mr. Williams stressed that the  FY23 numbers were estimates.                                                                    
He anticipated  the increase from  FY22 to  FY23 to be  at a                                                                    
half million dollars.                                                                                                           
                                                                                                                                
Co-Chair Stedman asked Mr. Williams  to remind the committee                                                                    
of a budgetary issue faced the previous year.                                                                                   
                                                                                                                                
Mr.  Williams  thought a  later  slide  would touch  on  the                                                                    
issue.                                                                                                                          
                                                                                                                                
9:20:41 AM                                                                                                                    
                                                                                                                                
Senator Hoffman  looked at the Land  Office spendable income                                                                    
on the  Available Funding table  on the slide. He  asked how                                                                    
the fund determined the amount  of spendable income form the                                                                    
Land Office.                                                                                                                    
                                                                                                                                
Mr. Williams  replied that spendable income  was outlined in                                                                    
statute and regulation.                                                                                                         
Senator  Hoffman  requested  a more  specific  and  detailed                                                                    
answer.                                                                                                                         
                                                                                                                                
Mr.  Williams  used  the  example   of  the  trust's  timber                                                                    
resources, of which 85 percent  went to the principal and 15                                                                    
percent went to spendable income.                                                                                               
                                                                                                                                
Co-Chair  Stedman asked  Mr.  Williams to  get  back to  the                                                                    
committee with a more detailed response.                                                                                        
                                                                                                                                
9:22:03 AM                                                                                                                    
                                                                                                                                
Mr. Williams  displayed slide  7, "Trust  Budget Development                                                                    
Process":                                                                                                                       
                                                                                                                                
     ?Multi-month budget development process                                                                                    
     ?Trustees approve a budget in late summer                                                                                  
     ?Approved budget transmitted to Governor and LB&A by                                                                       
     September 15                                                                                                               
                                                                                                                                
     Comprehensive Stakeholder Engagement                                                                                       
                                                                                                                                
        • Advisory Boards                                                                                                       
        • Beneficiaries                                                                                                         
      • State, Tribal, community, & Local Partners                                                                              
             o Trust Staff                                                                                                      
                  square4 Review Focus Area/Priority Initiatives                                                                
                    Goals & Work                                                                                                
                  square4 Comprehensive Mental Health Program                                                                   
                    Plan                                                                                                        
                  square4 Grant Analysis                                                                                        
                  square4 Advocacy Priorities                                                                                   
                  square4 Review  Previous       Stakeholder                                                                    
                    Recommendations                                                                                             
                  square4 Budget Recommendations Presented to                                                                   
                    Trustees                                                                                                    
                                                                                                                                
9:23:06 AM                                                                                                                    
                                                                                                                                
Mr. Williams  highlighted slide 8,  "FY 23  Spending," which                                                                    
showed  a pie  chart divided  into authority  grants, agency                                                                    
budgets for the  trust authority and trust  land office, and                                                                    
Mental Health Trust  Authority Authorized Receipts (MHTAAR).                                                                    
He relayed  that the  slide was  a high-level  overview that                                                                    
showed that the spending fell into three buckets:                                                                               
                                                                                                                                
     Authority Grants                                                                                                         
     $17,634.7                                                                                                                  
     Designated grants to community providers, nonprofits,                                                                      
     local governments, and Tribal organizations.                                                                               
     *Includes $1.85M in mini grants                                                                                            
                                                                                                                                
     Agency Budgets                                                                                                           
     Trust Authority: $4,348.6                                                                                                  
     Trust Land Office: $4,877.2                                                                                                
                                                                                                                                
     Mental Health Trust Authority Authorized Receipts                                                                        
     (MHTAAR)                                                                                                                 
     $8,526.3                                                                                                                   
     Designated grants to state agencies, requires receipt                                                                      
     authority                                                                                                                  
                                                                                                                                
Mr.  Williams cited  that the  agency budgets  supported the                                                                    
activities for each  of the offices to  forward this mission                                                                    
of the trust.  The program staff spent  a significant amount                                                                    
of time  forwarding initiatives that had  been identified by                                                                    
the board.                                                                                                                      
                                                                                                                                
Mr.  Williams indicated  that the  green section  was MHTAAR                                                                    
funds, which  were trust funds  included in the  included in                                                                    
the  FY23  budget,  approved   for  different  agencies  for                                                                    
specific  projects.   He  continued  to  the   blue  section                                                                    
represented  authority  grants  that trustees  approved  and                                                                    
were  awarded outside  the budget  process. The  grants were                                                                    
made to  organizations that worked  to improve the  lives of                                                                    
beneficiaries.                                                                                                                  
                                                                                                                                
9:25:52 AM                                                                                                                    
                                                                                                                                
Mr.   Williams   looked   at   slide   9,   "FY   23   GF/MH                                                                    
Recommendations,"   which  showed   a  table   divided  into                                                                    
operating  budget  items  and capital  budget  items.    The                                                                    
recommendations  had   been  presented  to  the   board  and                                                                    
approved  by   the  board.  He   detailed  that   the  slide                                                                    
illustrated the  MHTAAR funds that related  to mental health                                                                    
General Fund recommendations.  He  highlighted the bottom of                                                                    
the first blue  column, which showed $3.7  million in MHTAAR                                                                    
funding, which  was a  portion of  the total  MHTAAR funding                                                                    
reflected  in  the  budget.  He said  that  the  table  only                                                                    
depicted  MHTAAR   that  was   connected  to   General  Fund                                                                    
recommendations;  all  other  MHTAAR increments  were  trust                                                                    
funded programs and services within  the state budget solely                                                                    
funded by the trust.                                                                                                            
                                                                                                                                
Mr.  Williams  noted that  many  of  the general  fund  (GF)                                                                    
increments were  important to improving the  system of care.                                                                    
He spoke to the columns on  the righthand side of the slide,                                                                    
which showed  the governors  proposed FY23  budget. He noted                                                                    
that  the governor  had included  all  the trustee  approved                                                                    
General Fund  recommendations. He added that  there we there                                                                    
were  two  slight  reductions   related  to  Alaska  Housing                                                                    
Finance  Corporation (AHFC)  receipts.  He highlighted  that                                                                    
the  reductions were  in Special  Needs  Housing Grants  and                                                                    
Housing  Assistance. He  did not  anticipate the  reductions                                                                    
having any significant impact on  the programs or recipients                                                                    
in FY23.                                                                                                                        
                                                                                                                                
Mr.  Williams  noted  that previously  when  the  trust  had                                                                    
presented  the table  to  the committee,  there  had been  a                                                                    
column entitled  "trust reserves," which had  included a set                                                                    
of uses  of trust  reserves that  had not  been communicated                                                                    
to, or  approved by,  the board. He  thought the  change was                                                                    
due to improved communication  with the administration about                                                                    
the  priorities of  the  trust.  He said  that  OMB and  the                                                                    
governor  had  offered  priorities theyd   hoped  the  board                                                                    
would  consider. He  used the  example of  the last  capital                                                                    
budget   item    on   the   list,   AHFC    Senior   Housing                                                                    
Predevelopment,   as   something  the   administration   had                                                                    
presented  to the  board, which  the board  had included  in                                                                    
their recommendations.                                                                                                          
                                                                                                                                
9:29:32 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman   wanted  Mr.  Williams  to   clarify  the                                                                    
transfer protocol to a portion  of the trust. He recalled an                                                                    
issue the previous  year. He asked when  the trust discussed                                                                    
transferring assets.                                                                                                            
                                                                                                                                
Mr.  Williams   relayed  that  the  trust   transferred  its                                                                    
revenues  into  the corpus  of  the  trust, generally  on  a                                                                    
quarterly basis,  depending upon amount of  funds generated.                                                                    
The  transfer   was  coordinated  with  APFC   to  ensure  a                                                                    
predicative, substantial, timely transfer.                                                                                      
                                                                                                                                
Co-Chair  Stedman  asked whether  there  had  been a  policy                                                                    
change from previous years.                                                                                                     
                                                                                                                                
Mr.  Williams  stated  that  there had  not  been  a  policy                                                                    
change.                                                                                                                         
                                                                                                                                
Co-Chair Stedman  asked for more clarity.  He recalled there                                                                    
had  been  concern  about  having   an  orderly  process  in                                                                    
previous  years and  inaction by  the trustees  to authorize                                                                    
the  transfer  to build  up  liquidity.  He understood  that                                                                    
there had  been a  difference of  opinion between  the trust                                                                    
and the board as to whether the money should be spent.                                                                          
                                                                                                                                
Mr. Williams  offered to follow  up in writing  with further                                                                    
clarification.                                                                                                                  
                                                                                                                                
Co-Chair  Stedman asked  that  the  information include  the                                                                    
current board policy. He said  that there had been committee                                                                    
concern that  the transfers had  not been taking place  in a                                                                    
standardized  timeframe for  review and  had encouraged  the                                                                    
board to modify the policy to improve the process.                                                                              
                                                                                                                                
9:32:45 AM                                                                                                                    
                                                                                                                                
Senator von Imhof recalled that  the previous year there had                                                                    
been conversation  about funding for the  Alaska Psychiatric                                                                    
Institute  (API). She  recalled conflict  pertaining to  the                                                                    
appropriate  vehicle  for  API  funding;  the  governor  had                                                                    
wanted  to  used   funds  from  the  trust   and  the  board                                                                    
disagreed. She  had asked the  presenter from the  trust why                                                                    
the  trust did  not  fund  API. She  was  curious about  the                                                                    
board's rationale for funding or not funding API.                                                                               
                                                                                                                                
Mr.  Williams relayed  that  the trust  supported  API in  a                                                                    
variety of ways  and had done so  historically. He mentioned                                                                    
challenges  with  a  disability   lawsuit  against  API.  He                                                                    
believed  in FY23  budget  there was  at  least one  sizable                                                                    
increment  related  to  API of  approximately  $360,000.  He                                                                    
offered to get back to the committee in writing.                                                                                
                                                                                                                                
Senator  von  Imhof  thought  the  governor  had  previously                                                                    
requested between $6 million and  $9 million. She noted that                                                                    
monies  continued to  increase  (as shown  on  slide 6)  and                                                                    
stated  that  she  was  aware   there  was  no  shortage  of                                                                    
priorities. She  hoped for a more  robust conversation about                                                                    
the role of the trust on API.                                                                                                   
                                                                                                                                
9:35:47 AM                                                                                                                    
                                                                                                                                
Senator   Wielechowski   asked   whether  there   were   any                                                                    
recommendations for additional services for homelessness.                                                                       
                                                                                                                                
Mr. Williams  stated that the  trust's work  on homelessness                                                                    
was partially reflected in the  Special Needs Housing Grants                                                                    
and Housing Assistance Program in  partnership with AHFC. He                                                                    
said  that  there  were   other  trust-funded  efforts  that                                                                    
addressed homelessness.  He noted  that much of  the funding                                                                    
would be  outside the state  budget process and  directly to                                                                    
organizations providing programs to the homeless community.                                                                     
                                                                                                                                
Senator  Wielechowski wanted  to  see more  detail on  trust                                                                    
funding to address homelessness.  He asked about the Housing                                                                    
Assistance Program.                                                                                                             
                                                                                                                                
Co-Chair  Stedman  requested  that   Mr.  Williams  add  the                                                                    
information  to his  already requested  written response  on                                                                    
other issues.                                                                                                                   
                                                                                                                                
Mr. Williams agreed to provide the information.                                                                                 
                                                                                                                                
9:37:09 AM                                                                                                                    
                                                                                                                                
Mr. Williams addressed slide 10, "Work of the Trust":                                                                           
                                                                                                                                
     Established Focus Areas                                                                                                    
     ?Disability Justice                                                                                                        
     ?Mental Health & Addiction Intervention                                                                                    
     ?Beneficiary Employment & Engagement                                                                                       
     ?Housing and Home & Community Based Services                                                                               
                                                                                                                                
     Additional Priorities                                                                                                      
     ?Workforce Development                                                                                                     
     ?Early Childhood Intervention & Prevention                                                                                 
                                                                                                                                
9:38:31 AM                                                                                                                    
                                                                                                                                
Co-Chair  Bishop  congratulated  Mr.  Williams  on  his  new                                                                    
position.  He looked  back at  slide 9  and noted  there was                                                                    
about  $850,000 going  to the  University. He  asked whether                                                                    
the funding was going towards workforce development.                                                                            
                                                                                                                                
Mr. Williams  affirmed that the funding  was directed toward                                                                    
the  Center   for  Human  Development  to   provide  ongoing                                                                    
training   and   skill   development   of   direct   service                                                                    
professionals and more professional and clinical staff.                                                                         
                                                                                                                                
9:39:29 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman   looked  at  the  housing   and  home  and                                                                    
community-based  services  listed  as an  established  focus                                                                    
area. He asked for a list  of the targeted areas so he could                                                                    
assess the list for equity.                                                                                                     
                                                                                                                                
Co-Chair Stedman asked Mr. Williams to provide the list.                                                                        
                                                                                                                                
Co-Chair  Stedman  commented  that the  committee  would  be                                                                    
spending some time  on the topic of  work force development.                                                                    
He  referenced substantial  federal  funding  coming to  the                                                                    
state that  could be used to  build up the workforce  in the                                                                    
state. He  suggested that  the trust look  to invest  in the                                                                    
issue.                                                                                                                          
                                                                                                                                
9:41:23 AM                                                                                                                    
                                                                                                                                
Mr. Williams advanced to slide 11, "Trust Grant Impacts":                                                                       
                                                                                                                                
     Increasing residential treatment and support capacity                                                                    
          ?$300,000 to Alaska Behavioral Health for                                                                             
          residential mental health treatment in Fairbanks                                                                      
          ?$216,000 to the Arc of Anchorage for adult                                                                           
          residential mental health treatment                                                                                   
          ?$250,000 to Set Free Alaska (Mat-Su) for long                                                                        
          term recovery housing                                                                                                 
                                                                                                                                
     Supported efforts to prevent and end homelessness                                                                        
          ?$250,000 to the Beans Caf? for permanency                                                                            
          navigation and new facility                                                                                           
          ?$150,000 for the new Southeast Community Center                                                                      
          hub in Juneau                                                                                                         
          ?$250,000 for Fairbanks Rescue Mission for Rapid                                                                      
          Re-Housing                                                                                                            
                                                                                                                                
Mr. Williams  noted that  the projects  listed on  the slide                                                                    
were outside the state's budget  process and were not MHTAAR                                                                    
funds. Mr.  Williams spoke to  the first two  bullet points,                                                                    
which  increased access  to residential  treatment beds.  He                                                                    
noted  that  several  of   the  project  directly  addressed                                                                    
homelessness.                                                                                                                   
                                                                                                                                
9:43:59 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman asked  Mr. Williams  to  elaborate on  the                                                                    
grant listed for  the new Southeast Community  Center hub in                                                                    
Juneau.                                                                                                                         
                                                                                                                                
Mr.  Williams mentioned  the Teal  Center,  which was  being                                                                    
constructed in Juneau. The trust  was excited to support the                                                                    
Teal  Center,  where  there   would  be  several  non-profit                                                                    
organizations sharing a space  and providing direct services                                                                    
and  well as  referral  services. He  said  that the  center                                                                    
would serve the homeless population.                                                                                            
                                                                                                                                
Co-Chair  Stedman  asked  whether he  should  send  homeless                                                                    
constituents to Juneau.                                                                                                         
                                                                                                                                
Mr. Williams  detailed that  the reason  that the  grant was                                                                    
for  this facility  was because  a grant  request to  assist                                                                    
with coordinating services organizations  in Juneau had been                                                                    
received by  the trust.   He believed that  Southeast Alaska                                                                    
Independent  Living   (SAIL)  provided  services   all  over                                                                    
Southeast.                                                                                                                      
                                                                                                                                
Co-Chair Stedman reminded  the trust to look  beyond the hub                                                                    
areas. He  lamented that cuts  to the Alaska  Marine Highway                                                                    
System (AMHS) made it difficult  for people form more remote                                                                    
areas to access services.                                                                                                       
                                                                                                                                
9:46:29 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman  was  focused on  expanding  upon  Co-Chair                                                                    
Stedman's  issue  with  Southeast.  He  made  note  of  $1.4                                                                    
million  being spent  on homelessness  in  urban Alaska.  He                                                                    
wondered how  the trust was assisting  homelessness in rural                                                                    
communities. He thought that the  rural northern and western                                                                    
Alaska  were more  critical in  terms of  health, life,  and                                                                    
safety of the homeless, given the climate and geography.                                                                        
                                                                                                                                
Mr. Williams appreciated Senator  Hoffman's question and the                                                                    
comments from Co-Chair Stedman. He  stated that the trust as                                                                    
an   organization   was    responsible   for   beneficiaries                                                                    
throughout  the state.  He  emphasized  that resources  were                                                                    
focused on the entire state.                                                                                                    
                                                                                                                                
Mr.  Williams cited  that the  trust had  provided financial                                                                    
support to  the Winter House  in Bethel. The trust  had also                                                                    
helped  to   establish  a  homeless  shelter   in  Nome.  He                                                                    
recognized that  the two shelters  did not address  the full                                                                    
need of  northern and western  Alaska. He offered  to follow                                                                    
up with additional information.                                                                                                 
                                                                                                                                
Senator  Hoffman noted  that  there  were many  sub-regional                                                                    
hubs  in the  state. He  cited that  there were  hundreds of                                                                    
communities in  the state  and knew  there were  entities in                                                                    
each community that were trying  to address homelessness. He                                                                    
challenged  the   board  to  address  homelessness   in  the                                                                    
smallest  areas that  were not  regional hubs.  He contended                                                                    
that the smaller rural areas  of Alaska were being forgotten                                                                    
by the trust.                                                                                                                   
                                                                                                                                
9:51:20 AM                                                                                                                    
                                                                                                                                
Senator Wilson  asked whether the  trust looked  at grantees                                                                    
in terms  of evaluating  effectiveness or  use of  funds. He                                                                    
asked whether  the trust had  ever requested or  taken legal                                                                    
action against a grantee for return of funds.                                                                                   
                                                                                                                                
Mr.  Williams stated  that the  trust  looked at  non-profit                                                                    
status and  standing when it  received an application  to be                                                                    
sure that the applicant was  in good standing. He noted that                                                                    
all trust  grants required  financial and  program reporting                                                                    
that  included  follow   through  with  performance  measure                                                                    
outlined in grant agreements. He  stated that if there was a                                                                    
situation   in   which   an  organization   did   not   meet                                                                    
expectations, recalling funding would be considered.                                                                            
                                                                                                                                
Senator  Wilson asked  whether AMHTA  had, in  recent years,                                                                    
revoked  any organization's  status due  to misappropriation                                                                    
of funds.                                                                                                                       
                                                                                                                                
Mr.  Williams  did  not  know.  He  agreed  to  provide  the                                                                    
information.                                                                                                                    
                                                                                                                                
Co-Chair  Stedman suggested  that Mr.  Williams get  back to                                                                    
the committee with further information.                                                                                         
                                                                                                                                
9:53:51 AM                                                                                                                    
                                                                                                                                
Mr. Williams  looked at  slide 12,  "Transforming Behavioral                                                                    
Health Crisis Response":                                                                                                        
                                                                                                                                
     What is the Crisis Now Framework?                                                                                        
     Someone to Talk to, Someone to Respond and a Place to                                                                      
     Go                                                                                                                         
                                                                                                                                
        o Crisis Call Center                                                                                                    
        o Mobile Crisis Team                                                                                                    
             o Crisis Response Center                                                                                         
               o 23-Hour Stabilization                                                                                          
               o Short-term Stabilization                                                                                       
                                                                                                                                
Mr.  Williams explained  that  there  were opportunities  to                                                                    
intervene  at lower  levels of  care it  saved on  costs and                                                                    
resources. He said that starting  at lower levels would have                                                                    
impact  on  API and  ensure  that  individuals received  the                                                                    
level of care they needed at the right time.                                                                                    
                                                                                                                                
9:55:58 AM                                                                                                                    
                                                                                                                                
Co-Chair  Bishop asked  whether  the  slide represented  the                                                                    
model that was  presented by the prior CEO of  the trust and                                                                    
had  been implemented  by  the State  of  Arizona. He  asked                                                                    
whether law  enforcement included the Alaska  State Troopers                                                                    
to  help  in  emergency situations,  particularly  in  rural                                                                    
Alaska where  there would  be no  mental health  provider to                                                                    
guide individuals through crisis.                                                                                               
                                                                                                                                
Mr.  Williams  affirmed  that  the model  was  the  same  as                                                                    
presented  by his  predecessor.  He thought  the next  slide                                                                    
would address Co-Chair Bishop's questions.                                                                                      
                                                                                                                                
9:57:21 AM                                                                                                                    
                                                                                                                                
Mr. Williams showed slide 13, "Crisis Efforts, Cont'd":                                                                         
                                                                                                                                
     ?Working with stakeholders statewide                                                                                       
     ?Partnerships for new services in population centers                                                                       
          ?Fairbanks                                                                                                            
          ?Mat-Su                                                                                                               
          ?Anchorage                                                                                                            
          ?Juneau                                                                                                               
     ?SB124 & HB172                                                                                                             
     CRISIS NOW  Recent Trust Investments                                                                                     
                                                                                                                                
     Fairbanks Crisis Now Coordinator Position (City of                                                                       
     Fairbanks)- $135k                                                                                                          
                                                                                                                                
     Fairbanks Mobile Crisis Teams: Clinical (Alaska                                                                          
     Behavioral Health)                                                                                                         
     and                                                                                                                        
     Peer Support Specialist (The Bridge) - $807k                                                                             
                                                                                                                                
     Call Center Operations Expansion (Alaska Careline) -                                                                     
     $100k                                                                                                                      
                                                                                                                                
     Anchorage Crisis Stabilization Services Planning                                                                         
     (Southcentral Foundation and Providence Alaska) -                                                                          
     $885k                                                                                                                      
                                                                                                                                
     Mat-Su Crisis Community Development Coordinator (Mat-                                                                    
     Su Health Foundation) - $100k                                                                                              
                                                                                                                                
Mr. Williams stressed that to  transform the system required                                                                    
multiple  stakeholders  to  be  able to  come  together  for                                                                    
change, and that  no one entity would have  the resources or                                                                    
capacity  to  transform  the system  alone.  He  highlighted                                                                    
examples  of  recent  trust  investment  in  the  initiative                                                                    
totaling  approximately  $2  million in  direct  grants.  He                                                                    
highlighted the  Fairbanks Mobile  Crisis Team  and referred                                                                    
to  slide  12,  noting  the relationship  between  the  call                                                                    
center and the crisis team.                                                                                                     
                                                                                                                                
10:00:31 AM                                                                                                                   
                                                                                                                                
Mr.  Williams explained  that the  availability of  the call                                                                    
center had  resulted in resolution of  individual case calls                                                                    
without intervention or higher levels of care.                                                                                  
                                                                                                                                
Mr.  Williams  noted that  the  last  bullet, represented  a                                                                    
piece  of   legislation  (SB  124)   put  for  the   by  the                                                                    
administration  that  would  ensure   that  people  had  the                                                                    
opportunity to  be taken into  protective custody  status to                                                                    
receive care.                                                                                                                   
                                                                                                                                
10:03:03 AM                                                                                                                   
                                                                                                                                
Senator Hoffman  referenced slide  11, and the  $1.4 million                                                                    
for urban Alaska.  He noted that there was  an additional $2                                                                    
million that also excluded Southeast,  and that was millions                                                                    
more dollars going to urban  areas of the state. He reminded                                                                    
that crises existed throughout the  state, and he thought it                                                                    
seemed that  trustees needed to  have a broader view  of the                                                                    
problem.  He  thought  when the  state  was  investing  $3.5                                                                    
million  in urban  areas while  turning a  blind eye  on the                                                                    
rest  of  the state  was  disheartening.  He challenged  Mr.                                                                    
Williams and  the board to  look at mental health  issues in                                                                    
the  state on  a broader  scale. He  cited that  he was  not                                                                    
criticizing  the  fact that  there  were  problems in  urban                                                                    
areas  that  needed  addressing but  he  asserted  that  the                                                                    
funding  for the  different areas  of the  state was  out of                                                                    
balance.                                                                                                                        
                                                                                                                                
10:05:30 AM                                                                                                                   
                                                                                                                                
Senator Olson  echoed Senator  Hoffman's comments.  He asked                                                                    
what plans the trust had for  rural and more remote areas of                                                                    
the state.                                                                                                                      
                                                                                                                                
Mr.  Williams stated  that the  trust was  looking at  rural                                                                    
Alaska as  it discussed  initiatives. He assured  that staff                                                                    
resources  were   being  used  to  communicate   with  rural                                                                    
entities such  as Norton Sound, Ketchikan,  and other areas.                                                                    
He recognized  that the  model might  not fit  directly into                                                                    
rural communities.                                                                                                              
                                                                                                                                
10:07:17 AM                                                                                                                   
                                                                                                                                
Senator  Olson looked  at  slide 13  and  considered the  $2                                                                    
million in recent trust investments.  He asked about ongoing                                                                    
costs for the projects.                                                                                                         
                                                                                                                                
Mr. Williams did  not have information on  ongoing costs. He                                                                    
anticipated  that some  of the  services  would qualify  for                                                                    
Medicaid.                                                                                                                       
                                                                                                                                
10:08:38 AM                                                                                                                   
                                                                                                                                
Senator  Wilson  referenced  Mr. William's  mention  of  the                                                                    
Fairbanks crisis  intervention team and diversions  from use                                                                    
of  emergency  services.  He asked  whether  there  was  any                                                                    
information available  on the  cost savings  associated with                                                                    
the new program.                                                                                                                
                                                                                                                                
Mr.  Williams did  not have  the numbers.  He said  that the                                                                    
program had only operated for one month.                                                                                        
                                                                                                                                
10:09:53 AM                                                                                                                   
                                                                                                                                
Senator   Hoffman  referenced   Mr.  Williams'   mention  of                                                                    
communication  with  more  rural  areas  of  the  state.  He                                                                    
thought  it would  be advisable  to set  up a  demonstration                                                                    
project in one  of the rural areas so  that eventually those                                                                    
rural  communities  could  design their  programs  from  the                                                                    
ground up.                                                                                                                      
                                                                                                                                
10:10:54 AM                                                                                                                   
                                                                                                                                
Mr. Williams referenced slide 14, "Trust Land Office":                                                                          
                                                                                                                                
     Highlights                                                                                                               
     ?Land Sales                                                                                                                
     ?Subdivision Platting                                                                                                      
     ?Icy Cape Development                                                                                                      
                                                                                                                                
     FY 22 Anticipated Trust Land Office Revenues                                                                             
     Coal - $247,000                                                                                                          
     Oil and Gas - $1,158,000                                                                                                 
     Minerals - $1,168,700                                                                                                    
     Materials - $25,000                                                                                                      
     Timber $2,747,000                                                                                                        
     Lands - $3,200,000                                                                                                       
     Real Estate - $2,068,659                                                                                                 
     Total - $10,614,359                                                                                                      
                                                                                                                                
Mr. Williams thought everyone was  aware that the trust land                                                                    
office operated within the  Department of Natural Resources.                                                                    
He said that many of  the parcels were large and subdividing                                                                    
them made them  more accessible to Alaskans  and to generate                                                                    
funds for the trust.                                                                                                            
                                                                                                                                
Mr. Williams mentioned that the  Icy Cape Development listed                                                                    
on the  slide was a parcel  about 75 miles south  of Yakutat                                                                    
and was encouraged to discover  hoe the lands could generate                                                                    
more money  for the trust.   He cited that the  table showed                                                                    
asset classes within land office  revenues. He said that the                                                                    
lands  were diverse  and provided  various ways  to generate                                                                    
funds.                                                                                                                          
                                                                                                                                
10:14:03 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman  asked about the  Icy Cape  Development and                                                                    
thought there  had been  concern in the  past about  how the                                                                    
resource complied  with the trust settlement  agreement.  He                                                                    
asked for more detail on the matter.                                                                                            
                                                                                                                                
Mr. Williams  thought Co-Chair Stedman was  referring to use                                                                    
of trust principal  in the development, which  was a finding                                                                    
of the 2018 audit. He  reminded that the trust had addressed                                                                    
the issue, and the board  had authorized a transfer of trust                                                                    
income into the principal to  compensate for previous use of                                                                    
the principal invested in the project.                                                                                          
                                                                                                                                
Co-Chair Stedman asked whether the issue had been resolved.                                                                     
                                                                                                                                
Mr. Williams answered in the affirmative.                                                                                       
                                                                                                                                
Co-Chair Stedman  asked how much  timber land the  trust had                                                                    
left with which to have timber harvest.                                                                                         
                                                                                                                                
10:15:58 AM                                                                                                                   
                                                                                                                                
Mr.   Williams  turned   to  slide   15,  "Trust/USFS   Land                                                                    
Exchange":                                                                                                                      
                                                                                                                                
     ?Result of more than a decade of effort                                                                                    
     ?Multiple stakeholders                                                                                                     
     ?Swaps approx. 17,980 acres of Trust land for approx.                                                                      
     18,494 acres of USFS lands (equal value exchange)                                                                          
          ?Hollis                                                                                                               
          ?Naukati                                                                                                              
          ?Shelter Cove                                                                                                         
     ?Revenue generation for Trust beneficiaries                                                                                
     ?Preservation of viewsheds and other interests near SE                                                                     
     AK communities                                                                                                             
                                                                                                                                
Mr.  Williams  addressed  Co-Chair  Stedman's  question  and                                                                    
relayed that process had started  in 2005 and was the result                                                                    
of many  parties coming together.  After more than  a decade                                                                    
of engagement with many stakeholders,  the exchange had been                                                                    
finalized.  The  parcels  listed   on  the  slide  had  been                                                                    
transferred to the trust. He  anticipated the trust would be                                                                    
able to  generate $25 million  to $30 million of  revenue in                                                                    
the future.  He agreed to provide  more detailed information                                                                    
about trust lands that had  timber resources. He thanked Co-                                                                    
Chair Stedman for his work on state legislation in 2017.                                                                        
                                                                                                                                
10:18:34 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman recognized that  the land exchange had been                                                                    
completed, and  he was  under the impression  that a  lot of                                                                    
the timber land  would be monetized by  a ten-year contract.                                                                    
He  wondered what  activity would  follow the  contracts. He                                                                    
asked  about future  timber supply  over the  next 20  to 30                                                                    
years. He asked  Mr. Williams to address the  size of future                                                                    
opportunities  and noted  that  smaller mills  were also  in                                                                    
need of fiber supplies.                                                                                                         
                                                                                                                                
10:20:02 AM                                                                                                                   
                                                                                                                                
Senator Wilson asked  whether AMHTA had any  other land swap                                                                    
deals in process.                                                                                                               
                                                                                                                                
Mr.  Williams relayed  that there  were opportunities  being                                                                    
considered but did not know of any active deals.                                                                                
                                                                                                                                
Co-Chair Stedman noted  there was one parcel  in the Shelter                                                                    
Cove area in  which state lands would be  transferred to the                                                                    
trust to  facilitate timber  and recreation  development. He                                                                    
requested more  information on the  exchange of land  in the                                                                    
Shelter Cove area.                                                                                                              
                                                                                                                                
10:21:30 AM                                                                                                                   
                                                                                                                                
Senator Wilson requested  for the land office  to comment on                                                                    
a gravel pit  in his district that was  under litigation. He                                                                    
asked why  AMHTA wanted  to pursue  the lawsuit  against the                                                                    
will of the community.                                                                                                          
                                                                                                                                
Mr. Williams offered to provide information later.                                                                              
                                                                                                                                
10:22:38 AM                                                                                                                   
                                                                                                                                
Mr. Williams considered slide 16, "In Closing":                                                                                 
                                                                                                                                
     ?Strong leadership at the board, Trust Authority &                                                                         
     Trust Land Office                                                                                                          
     ?Strong financial position                                                                                                 
     ?Strong partnerships Together = positive impacts for                                                                       
     Beneficiaries                                                                                                              
                                                                                                                                
Mr.  Williams addressed  Co-Chair  Stedman's comments  about                                                                    
potential  land exchange.  He noted  that  the governor  had                                                                    
asked the  land office  to identify  other state  lands that                                                                    
could be transferred  to the trust. The  trust had responded                                                                    
with several  parcels that could  be transferred;  there had                                                                    
been no  movement in status  on those lands. He  closed that                                                                    
the  trust  was  in  a strong  leadership  position  at  all                                                                    
levels. He commented that the  trust had strong partnerships                                                                    
with  all stakeholders  to improve  the  current systems  of                                                                    
care.                                                                                                                           
                                                                                                                                
10:24:35 AM                                                                                                                   
                                                                                                                                
Senator Hoffman thanked  Mr. Williams and the  board for all                                                                    
the hard work that had been  done. He noted that he had been                                                                    
in the legislature  in the 1990's when the  formation of the                                                                    
trust  had been  finalized. He  shared that  there had  been                                                                    
many    hours    of    discussion   regarding    what    the                                                                    
responsibilities of the trust. He  asserted that his primary                                                                    
focus was on services for  rural Alaska. He lamented that 30                                                                    
years  after  the  formation  of the  thrust  he  was  still                                                                    
requesting that  rural Alaska  be an  equal priority  to the                                                                    
board  as urban  areas of  the  state. He  thought that  the                                                                    
board  had done  a  good  job and  recognized  that new  and                                                                    
existing programs should be equitable across the state.                                                                         
                                                                                                                                
10:26:15 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman  thanked Senator  Hoffman for  his service,                                                                    
spanning two centuries.                                                                                                         
                                                                                                                                
10:26:26 AM                                                                                                                   
                                                                                                                                
Co-Chair  Bishop dovetailed  on Senator  Hoffman's comments.                                                                    
He  thought the  committee  had identified  gaps outside  of                                                                    
urban  centers  and  major  hubs.  He  agreed  with  Senator                                                                    
Hoffmans   concerns. He  asked  whether the  board had  ever                                                                    
done a  needs analysis with  all the stakeholders  in mental                                                                    
health to  identify gaps  in the system  He asked  about the                                                                    
number  of  dollars  that  might be  required  to  fill  any                                                                    
identified gaps.                                                                                                                
                                                                                                                                
Mr. Williams recalled that in 2014  or 2015 there had been a                                                                    
statewide analysis  of the behavioral health  system. He did                                                                    
not  recall   whether  there  had   been  a   cost  analysis                                                                    
associated  with  the report,  which  was  available on  the                                                                    
trust website.                                                                                                                  
                                                                                                                                
Co-Chair Bishop noted that the  report was ten years old and                                                                    
thought a current analysis would be a valuable comparison.                                                                      
                                                                                                                                
Co-Chair  Stedman   thanked  the  presenters.   He  directed                                                                    
members to provide questions to  his office. He thought that                                                                    
the  presentation would  conclude discussion  of the  Mental                                                                    
Health budget.                                                                                                                  
                                                                                                                                
Co-Chair Stedman discussed housekeeping.                                                                                        
                                                                                                                                
10:31:21 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman noted that the  meeting schedule could slow                                                                    
in speed to accommodate staff burnout.                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:32:08 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:32 a.m.                                                                                         
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
012722 Senate Finance 2022 AMHTrust Presentation.pdf SFIN 1/27/2022 9:00:00 AM
AMHTA
010422 Alaska Mental Health Trust Follow Up Questions Senate Finance 2.3.22.pdf SFIN 1/27/2022 9:00:00 AM