Legislature(1993 - 1994)
03/29/1994 06:40 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 29, 1994
6:40 p.m.
TAPES
SFC-94, #44, Side 2 (575-end)
SFC-94, #46, Side 1 (000-end)
SFC-94, #46, Side 2 (575-273)
CALL TO ORDER
Senator Drue Pearce, Co-chair, convened the meeting at
approximately 6:40 p.m.
PRESENT
In addition to Co-chairs Pearce and Frank, Senators
Kerttula, Rieger, and Sharp were present. Senator Kelly
arrived as the meeting was in progress. Senator Jacko did
not attend.
ALSO ATTENDING: Margaret Lowe, Commissioner, Dept. of
Health & Social Services; Janet Clarke, Director, Division
of Administrative Services, Dept. of Health and Social
Services; Jan Hansen, Director, Division of Public
Assistance, Dept. of Health and Social Services; Roger
Patch, Director of Installations, Dept. of Military and
Veterans Affairs; Kit Duke, Facilities Manager, Alaska Court
System; Newton Chase, Facilities Section Chief, Dept. of
Health and Social Services; Steve Rice, Data Process
Manager, Dept. of Health and Social Services; Chris Gates,
Director, Division of Economic Development, Dept. of
Commerce and Economic Development; Jeff Hartman, Assistant
Director, Support Services, Dept. of Natural Resources; Jim
McAllister, Regional Forester, Dept. of Natural Resources;
Ron Swanson, Director, Division of Lands, Dept. of Natural
Resources; Garrey Peska, Lobbyist for the Alaska Hospital
Association; Roger A. Stone, CFO, Ketchikan General
Hospital; Bill Harrison, CFO, Alaska Regional Hospital; Jon
Sherwood, Division of Medical Assistance, Dept. of Health
and Social Services; and aides to committee members and
other members of the legislature.
SUMMARY INFORMATION
SB 363 - APPROP: FY 95 CAPITAL PROJECTS AND GRANTS
Overviews were conducted for the following
departments:
Dept. of Commerce & Economic Development
Court System
Dept. of Health and Social Services
Dept. of Military & Veterans Affairs
Dept. of Natural Resources
SB 366 - MEDICAID AND MEDICAL SUPPORT ORDERS
Discussion was had with Garrey Peska, Roger Stone,
Bill Harrison, and Jon Sherwood. A problem
relating to the co-payment for a single-day
hospital stay was highlighted. The bill was HELD
in committee pending resolution of the issue.
SENATE BILL NO. 366
An Act relating to medical support for children;
allowing a member of the teachers' retirement system or
the public employees' retirement system to assign to a
Medicaid-qualifying trust the member's right to receive
a monetary benefit from the system; relating to the
effect of a Medicaid-qualifying trust on the
eligibility of a person for Medicaid; relating to the
recovery of certain Medicaid payments from estates and
trusts; requiring persons who receive Medicaid services
to be liable for sharing in the cost of those services
to the extent allowed under federal law and
regulations; and providing for an effective date.
Co-chair Pearce directed that SB 366 be brought on for
discussion and noted that a number of people had signed up
to speak to the legislation.
GARREY PESKA, representing the Alaska State Hospital and
Nursing Home Association, first came before committee. He
attested to concern regarding bill provisions relating to
Medicaid co-pay since it is difficult to determine how the
provisions will impact in-patient hospital services. The
association has been told by the director of the division of
medical assistance that, under federal law, the maximum
allowable co-pay for in-patient services is 50% of one day's
charges. Mr. Peska then advised that hospital
representatives would speak to what that means for their
particular facilities.
BILL HARRISON, Chief Finance Officer, Alaska Regional
Hospital, explained that concern relates to the fact that
patients must meet a certain medical criteria in order to be
classified as in-patients. If the purpose of the co-pay is
to try to impact utilization, that outcome is not foreseen
because a criteria review process is already in place.
Cases are reviewed for necessity of the medical care
received. Since this portion of Medicaid involves poor
patients, there is a question as to whether they have any
ability to make co-payments.
Another side to the issue focuses on the fact that when co-
payments are involved, hospitals incur administrative costs.
Bills must be sent and payment may be as little as $5.00 per
month over a substantial period of time.
ROGER STONE, Chief Financial Officer, Ketchikan General
Hospital, advised that the association is not totally
opposed to the concept of co-pays. They do, however, need
to be reviewed in the broader context of the entire
Medicaid/welfare system. He noted that a single mother with
two children receives approximately $910.00 a month in state
assistance. A co-pay of $200.00 to $400.00 on an in-patient
stay represents an unpayable amount for the recipient. Mr.
Stone urged that co-pays be established at a reasonable
amount. He acknowledged that the concept that everyone
should pay for at least a portion of their care is probably
good in the long run. Concern by the hospital association
is that those who are already in dire straits will be forced
into worse situations, and hospitals will be saddled with
costly attempts to collect dollars that "are probably not
collectible . . . ."
Co-chair Frank acknowledged that 50% of the first day's stay
would result in a "pretty healthy" co-payment for a patient
only staying one day in the hospital. However, federal
government payments of $1.00 or $2.00 are too small. He
then asked for an explanation of the inconsistency in the
two examples. Mr. Stone responded that he had not yet had
an opportunity to conduct that type of review. He
acknowledged that co-pay amounts stipulated in federal code
are very small and almost not worth dealing with in terms of
administrative costs.
Senator Rieger noted earlier discussion of the bill relating
to utilization control. He then voiced his understanding
that the only control is an "after-the-fact" contract where
a hospital billing is denied for a stay beyond the "median
stay." No gatekeeping process is in place. Mr. Stone
acknowledged the "length-of-stay" criteria. Ketchikan
General has its own utilization management program. It is
constantly reviewing "these cases to make certain that they
do meet certain medical criteria." That is consistent among
all patients. Mr. Harrison advised that a similar review
process is in place at Alaska Regional for both before,
during, and after a patient's stay, in particular with
Medicaid. Under in-patient regulations and reimbursement
criteria set by the division, a maximum amount of
reimbursement for an in-patient stay is established. It is
in the hospital's best interest to get patients in and out
as quickly as possible. If the stay exceeds the maximum
amount, no matter how long the patient is in the hospital,
the hospital will not be paid "any more money."
In response to further comments by Senator Rieger, Mr.
Harrison said that financial inducement to discharge the
patient sooner will not change the medical criteria. It
remains to the physician to decide when the patient may be
discharged.
Co-chair Frank pointed to savings assumptions and noted the
$100.00 deductible for in-patient care rather than 50% of
the first day. He voiced need to work with the department
to establish "something that would be reasonable."
JON SHERWOOD, Division of Medical Assistance, Dept. of
Health and Social Services, next came before committee.
Speaking to questions regarding inconsistencies in co-
payments, he explained that it reflects federal law. He
acknowledged that he did not have background information on
why the amount is so high for in-patient stays. Co-chair
Frank asked if the co-payment could be structured so that
one staying in the hospital a single day pays only $25.00
while someone staying longer would accumulate co-payments up
to $100.00. Mr. Sherwood explained that maximum limits are
based on the total unit of service, without regard to the
length of stay. He said he could not say whether a sliding
co-payment based on the number of days could be implemented,
but he agreed to explore such an arrangement. Co-chair
Frank advised he would work with the department and bring
the bill back for further discussion at a later time. SB
366 was thus HELD in committee.
SENATE BILL NO. 363
An Act making appropriations for capital project
matching grant funds and for capital projects; and
providing for an effective date.
Co-chair Pearce directed that review of capital budget
projects be continued from an earlier meeting. She further
directed attention to a spread sheet from the Office of
Management and Budget showing capital requests by funding
source.
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
ROGER PATCH, Director of Installations, Dept. of Military
and Veterans Affairs, came before committee. He explained
that the first request relates to receipt and expenditure of
$2 million in federal funds for upcoming major project
designs. Projects have yet to be identified due to the
change in mission of the Alaska National Guard and funding
restrictions at the National Guard Bureau. However,
projects will include aviation support facilities, federal
scout armories, and maintenance shops. Senator Rieger
inquired concerning backup information indicating that
reimbursement will be required for the state's share of
design costs at the time of construction. Mr. Patch
explained that if the projects are for aviation support,
federal scout armories, etc., they will be 100% federal.
Should moneys be used for a state armory, the situation
would be different. There are no state armories scheduled
for design. Senator Rieger sought assurance that approval
of the proposed request would not result in state liability
for reimbursement. Mr. Patch voiced confidence that there
would be no liability.
The second request addresses the $5 million army national
guard backlog in deferred maintenance. The instant request
for $665.0 is 12.8% of the total. The backlog is the result
of shortfalls in the operating budget. Funding at this time
is critical in that it may mean the difference between
repairing or replacing roofs, etc.
The third request, $100.0, is in conjunction with the second
in that it seeks funding for scheduled renewal and
replacement of building components. In response to a
question from Senator Kerttula, Mr. Patch acknowledged that
much of the work contemplated by the second and third
requests would be done by reserve units as well as regular
guard members.
Responding to a question from Co-chair Frank concerning the
$5 million maintenance backlog, Mr. Patch explained that
deferred maintenance for all state agencies results from
shortfalls in the operating budget. Those shortfalls
evidence both lack of inclusion of adequate maintenance
dollars in the administration's budget and legislative
failure to fund requests. The Co-chair asked for a
breakdown of the backlog, including a list of projects and
moneys that were cut from past operating budgets. Mr. Patch
agreed to provide the information. He noted that deferred
maintenance needs are growing at the rate of 15% to 20% per
year.
ALASKA COURT SYSTEM
KIT DUKE, Facilities Manager, Alaska Court System, next came
before committee. She explained that the court system
capital budget consists of a $4.8 million request for
funding needed to compete the court facility in Anchorage.
She then provided background information on past funding for
the project. Part of the current request represents the
difference between the total $40 million
cost of the project and FY 93 funding of $19.7 and FY 94
funding of $19.0. The balance will compensate for extra
well drilling costs for the cooling system and cost overruns
experienced when site excavation encountered hazardous
materials.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
MARGARET LOWE, Commissioner, Dept. of Health and Social
Services, and JANET CLARKE, Director, Division of
Administrative Services, Dept. of Health and Social
Services, came before committee. Ms. Clarke explained that
the first of the department's four projects seeks $888.9 for
department-wide renovation and repair. Approximately $800.0
is general funds. Renovation and repair will assist in
management of 25 state-owned facilities and provide for
safety and security upgrades, work at health clinics,
drinking water at the Bethel facility, etc. Senator Rieger
voiced need for details on specific projects. Ms. Clarke
said that projects have not yet been prioritized. She
advised that she could provide a verbal listing at this time
and follow up with more specific information at a later
date. She then cited need for the following work:
1. Juneau Health Center - Roof problem due to ice
buildup.
2. Johnson Youth Center - Security concerns and
problems
with the exterior of the building
3. Sitka Health Center - Furnace replacement and
refoofing.
4. Kodiak - Problems at the Griffin Building.
5. McLaughlin Youth Center - Ventilation
6. Assets Building, Anchorage - Roof completion.
7. Dillingham Health Center - Furnace, roof repairs,
painting.
8. Bethel Youth Faciity - Exterior leakage.
9. Fairbanks Youth Facility - Renovation of space for
a closed treatment unit.
Senator Sharp referenced lack of funding for equipment for
the Fairbanks Regional Health Center. He noted that the
center is utilized to a great extent by individuals located
outside the borough. He then advised that he would not
provide discretionary moneys.
The second project seeks $4,017.3 million for two projects
relating to computer system development. The first involves
the eligibility information system. The department has
found a one-time, federal source of funds to use to match
other federal funds. For FY 95, upgrades in the eligibility
system will be totally federally funded. Moneys will be
used to prolong the life of the system and increase user
productivity. Of this $2.4 million project, $1.4 million
will be devoted to productivity improvement since no new
staff will be provided. Federally mandated reporting
requirements for the JOBS program will require $800.0, and
enhanced data retrieval and report capability will entail
$200.0.
In response to questions from Co-chair Pearce, Ms. Clarke
advised of 17 computer projects, only two of which are
included within the Governor's capital budget. She further
noted that the original request of $2.8 for the eligibility
information system was amended to $2.4. The entire amount
reflects federal funds.
The second project within the $4,017.3 request for computer
system development relates to the division of family and
youth services.
Ms. Clarke next spoke to the $200.0 request for public
health laboratory planning and design. She noted that the
department has three labs located in Juneau, Anchorage, and
Fairbanks. Studies of privatization and consolidation have
been ongoing over the years. The most recent will provide
comprehensive financial information. The department intends
to return to the legislature next year with a financing
proposal that could save lease costs and help build a
consolidated public health lab. Consolidation would reduce
staff needs associated with the existing three facilities.
The $200.0 will complete the final portion of review.
Discussion followed regarding possible contracting of lab
services to private laboratories. Ms. Clarke told members
that that review would be part of the ongoing study. She
acknowledged that some work could be contracted, but it
makes sense for the state to continue to conduct tests that
are unprofitable for private labs or present risks private
labs do not wish to assume. (Testing for tuberculosis was
cited as an example.)
Senator Kerttula voiced need for state monitoring of private
contractors for both adequacy and accuracy.
[Senator Kelly arrived at the meeting at this time.]
Ms. Clarke explained that the final request has been part of
the budget for the past five years. It seeks $1,032.5
million for API "stop-gap repair." API has a number of
problems. It was recently visited by the fire marshal,
OSHA, and individuals conducting an Americans With
Disabilities Act survey. Surveys indicated "high dollar
implications." Ms. Clarke referenced information submitted
to the Office of Management and Budget which lists projects
to be funded in priority order. The twenty-four-hour
facility receives over 1,100 admissions per year. She
stressed need to ensure the safety of both staff and
patients. Stop-gap repairs have a five-year life.
Discussion followed between Ms. Clarke and Co-chair Pearce
regarding differences between the department request for
capital funding and that actually provided by the Governor.
Ms. Clarke agreed to provide a listing of projects to be
completed in FY 95.
Further discussion ensued regarding inspection of state
facilities by local building officials and fire marshals.
Ms. Clarke acknowledged that various state facilities have
been under citation by local fire marshals. As long as the
state continues to show marked progress toward satisfying
deficiencies, no facilities have been closed. NEWTON CHASE,
Chief of Facilities, Dept. of Health and Social Services,
explained that, as a therapeutic environment, the greenhouse
at API falls under a particular section of the code
requiring a certain level of fire safety. The greenhouse
does not comply. It is too combustible. An agreement has
been reached with the local fire marshal that does not
require removal of the greenhouse.
Co-chair Pearce directed that committee attention revert to
consideration of the remaining portion of the requested
computer system development. Ms. Clarke noted that the EIS
enhancement request was revised so that it could be funded
entirely from federal moneys.
End: SFC-94, #44, Side 2
Begin: SFC-94, #46, Side 1
Senator Rieger asked if the project included purchase of a
mainframe. Ms. Clarke responded negatively. JAN HANSEN,
Director, Division of Public Assistance, Dept. of Health and
Social Services, explained that the capital budget contains
no hardware purchases. Funding relates to programming
enhancements to the EIS system to improve productivity or
payment accuracy.
The next computer project relates to the division of family
and youth services. The U.S. Health and Human Services
Department mandates quarterly data reporting for foster care
and subsidized adoptions. New legislation provided a 75%
federal match for state systems. Of the requested $1.6
million, $400.0 would be general fund match. Co-chair
Pearce noted that the original request was for $3.8 million.
She then asked for a breakdown of how the $1.6 million
provided by the Governor would be spent.
Senator Kelly inquired concerning the number of social
workers statewide. Ms. Clarke advised of 400. In response
to a further question from the Senator concerning the number
of personal computer purchases associated with the proposed
enhancement, STEVE RICE, Data Processing Manager, Dept. of
Health and Social Services, came before committee. He
advised of need for an additional 125 personal computers to
both replace old units and ensure that those who need a pc
have access to one. Ms. Clarke clarified that, given the
reduction between requested and provided funding, the
department will have to review the number of units it will
be able to purchase and still meet federal data reporting
requirements. Actual purchase will probably be considerably
less than 125.
Senator Rieger voiced support for Dept. of Health and Social
Services computer requests, stating his belief that the
department has been "under computerized" for a long time.
Support is further bolstered by the fact that the state will
only pay one-quarter of the cost.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
CHRIS GATES, Director, Division of Economic Development,
Dept. of Commerce and Economic Development, came before
committee to speak to the department's $1.8 million request.
He explained that $500.0 relates to continuation of the 13-
year history of providing small economic development
matching grants (up to $100.0) for municipalities and non-
profits. The department has been able to generate a 3 to 1
match on available dollars. Co-chair Pearce asked if the
department undertakes an entirely new selection process each
year. Mr. Gates said that the program operates on a first
come, first served basis. Operating changes for the coming
year will request projects three times a year and evaluate
them against one another to determine the highest and best
use of limited moneys.
The second increment consists of a $253.0 request for small
business development centers. These moneys match federal
SBA moneys on a one-to-one basis and allow the department to
offer basic private sector business consulting to Alaskans
in both rural and urban areas. This service was provided to
over 4,300 clients, and 191 training programs were offered.
Discussion followed regarding referral of individuals with
tax problems to proper assistance.
In the course of further discussion, Mr. Gates explained
that the $253.0 in federal funding flows through the
University small business development center. The small
business development center program is an SBA sponsored
activity through universities in all fifty states. Alaska
makes extensive use of the program.
The $183.0 increment funds assistance and counseling for
federal contracts in Alaska. It is called a procurement
technical assistance program. It is also administered
through the University of Alaska, small business development
center. Funding is a one-to-one match with the U.S.
Department of Defense. The program provides assistance in
dealing with federal regulations and getting through the
maze of paperwork involved in bidding federal contracts.
This year the program counseled 787 clients in government
contracting, including state contracting. As a result,
clients were awarded over $57 million in government
contracts. Those awards would not have been made but for
the direct assistance provided by the program.
Co-chair Pearce voiced her understanding that, under the
proposed budget, there would be no "buy Alaska" program.
Mr. Gates concurred. The Co-chair inquired concerning the
philosophy behind elimination of that program but inclusion
of the small business development centers. NANCY SLAGLE,
Director of Budget Review, Office of Management and Budget,
voiced her understanding the "buy Alaska" program involved
purely general funds while a match was available for small
business development. Mr. Gates added that while there was
no government match for "buy Alaska" funds, state moneys
were matched with private moneys and in-kind services from
the Anchorage Chamber and Anchorage Economic Development
Corporation. Co-chair Frank said he recalled Legislative
Budget and Audit Committee discussion of efforts to move the
"buy Alaska" program entirely into the private sector. Mr.
Gates advised that he had no knowledge of such discussion.
He acknowledged that, due to lack of funding, the program
would end.
Co-chair Pearce asked about department ability to charge for
small business assistance. She also asked that Mr. Gates
review program records to determine how often the program
serves the same client.
Senator Sharp inquired concerning the number of business
undertakings that proved to be viable. Mr. Gates agreed to
provide the information.
Discussion of the $250.0 request for the Arctic Winter Games
followed. Senator Kelly noted funding of the games in last
year's budget as well, and he further noted that the games
would not be held until next year. Co-chair Pearce
reference correspondence in support from Senator Randy
Phillips.
DEPARTMENT OF NATURAL RESOURCES
JEFF HARTMAN, Assistant Director, Support Services, Dept. of
Natural Resources, came before committee together with RON
SWANSON, Director, Division of Lands, and JIM McALLISTER,
Regional Forester. Mr. Hartman directed attention to 13
projects and noted that they break down as follows: 4 for
land, 4 for forestry and fire, 3 for parks, 1 for land
record information services, and 1 for geological and
geophysical services. The first seeks $45.0 for pollution
assessment at the Isabel Pass pipeline construction camp.
Co-chair Frank asked if the responsible party was
accessible. Mr. Hartman responded that the owner is
Alyeska. The department would use requested funding to
assess the extent of contamination, determine what must be
done, and require the responsible party to conduct cleanup.
The track record on use of the site is cloudy. Mr. Swanson
clarified that Alyeska is the responsible party. While the
lease had often been subassigned, Alyeska has maintained
responsibility for the site.
Senator Kelly asked why DNR was undertaking the assessment
rather than DEC. Mr. Swanson said that DNR would work with
DEC. DNR is the state landowner. Co-chair Frank asked if
the property remains under lease, and Mr. Swanson responded
negatively. Mr. Swanson further explained that the
department has been told, by workers at the site, that
materials were buried.
In response to a question from Co-chair Pearce, Mr. Swanson
said that, under current lease provisions, certification
that the site is clean must be provided prior to conclusion
of the lease. The department is now contending with older
leases, such as Isabel Pass, that did not contain that
requirement. Co-chair Pearce suggested that the department
should be able to demand that Alyeska clean the site without
need for a $45.0 assessment. She then asked that additional
information concerning the request be provided.
Mr. Hartman explained that the $500.0 for multi-mission
village work crews relates to a program to use trained fire
fighting crews, on a contract basis with federal agencies,
to conduct controlled burning and reduce the chance of a
major fire. The project will also provide meaningful
training for rural fire fighting crews. Federal agencies
have agreed to fund up to 300 days of work. The plan is to
use ten, sixteen-person crews for up to 21 days rotation.
Funding is federal. In response to a question from Senator
Kelly, Mr. McAllister said that the state does not use
convict labor for fire fighting. Mr. Hartman stressed need
for extensive training of fire fighters but advised that he
would look into use of convicts for part of the effort.
The $650.0 general fund request for land acquisition relates
to the remaining 17-million acre selection to complete the
105-million acre state entitlement. Some of these lands
have also been selected by Native corporations. The
proposed project will resolve double selections and make the
best choice in selection of the final 17 million acres. Mr.
Swanson further explained that the $650.0 would fund two
efforts. The first is GIS related and would cleanup
selection data in order to make a final prioritization of
the 17 million acres. The second component involves work
with the federal government and native corporations to
reduce the 17 million acres of dual selections. Co-chair
Pearce asked for a breakdown of expenditure of the $650.0
versus the original request to the Governor. Department
staff provided revised backup information for copying and
distribution to members.
The request for $450.0 in general funds for mental health
land reconstitution reflects an ongoing program. This
particular portion involves notation of status plats.
Funding will be divided between the division of land and
LRIS to identify conveyable original trust land and
replacement land, record needed documentation, and enter the
information into state status graphic records. Co-chair
Pearce requested a breakout. Mr. Swanson added that the
proposed project is based upon pending mental health trust
legislation rather than continued implementation of Ch. 66.
Co-chair Pearce asked if the capital budget request
represents the fiscal note for SB 67. Mr. Hartman explained
that capital funds relate to notation of records.
Additional moneys will be needed for management of lands.
That will be shown on the fiscal note.
The $50.0 in general funds for fire equipment would replace
old chain saws and fire pumps that are no longer safe and
reliable. Funding would purchase 50 chain saws at $360
each, and 14 fire pumps at $2,300 each.
The next $50.0 request would fund emergency repairs at the
Wickersham House to replace the leaking roof, gutters, and
trim. The state spent $300.0 on renovations to the
building, last year. Estimates for roofing costs are based
on experience from recent renovations.
The $250.0 for the land status geographic information system
funds year four of a five-year project to change this data
base from manual to digital format. Alaska has
approximately 8,000 townships and 17,000 maps. The project
has already digitized 4,330 townships. In the remaining two
years, the project will be completed. Once information is
digitized, it will be available to resource managers and
make mapping projects easier and more useful. Co-chair
Pearce noted that the original request was cut from $575.0
to $250.0. Mr. Hartman advised of a $217.0 carryover and
total availability of $525.0 for the year. Two positions
have been eliminated, but the department believes it can
complete the project in two years.
End: SFC-94, #46, Side 1
Begin: SFC-94, #46, Side 2
The $225.0 general fund request for the geological mineral
inventory relates to airborne aeromagnetic investigation of
promising mineral deposits. This work has, in the past,
been done in conjunction with Native corporations. That
approach will be taken this year. Work is to be done in the
Circle and Bonnifield districts. When complete, the
inventory will provide files of likely sites for
development. Most of the cost is for helicopter time.
The $300.0 general fund request for the forest practices act
will fund seven projects and public hearings. The contract
will be with the University of Alaska, Fairbanks, institute
of northern forestry. It will assess protection of the
environment, reforestation, etc. Co-chair Pearce said that
not much has happened since passage of the act. She then
asked what the department intends to study. Jim McAllister
explained that the forest practices act was primarily
designed to address timber harvests on private lands. The
proposed project will assess water quality protection
measures in the act and associated regulations.
In response to questions from Co-chair Frank, Mr. McAllister
acknowledged that most harvest has occurred in coastal areas
of Southeast, Prince William Sound, and on the Kenai.
Requirement for the assessment was built into the forest
practices act.
Discussion followed regarding contracting of services and
involvement of the University. Senator Kerttula voiced
concern over putting more moneys into studies than the state
receives for the trees.
Co-chair Frank asked why funding for the geological mineral
inventory was cut from $1.5 million to $225.0 while funding
for research under the forest practices act was only reduced
from $350.0 to $300.0. Mr. Hartman explained that
forecasted sales for timber, $12 million, are the largest
the state has experienced.
The $100.0 in general funds for the forest resource
inventory would provide for phase II of the Tanana Valley
inventory. Discussion of need for computers followed
between Mr. Hartman and Senator Kelly. Co-chair Frank noted
reduction from $700.0 to $100.0 and asked what the
department intended to do for $100.0. Mr. McAllister
explained that it would continue inventory of hardwoods in
the Tanana Valley.
Discussion followed concerning beetle outbreaks.
The $640.0 in federal funds for national historic
preservation will be used to acquire, stabilize, and restore
properties listed in the national register of historic
places. Sites are selected by the nine-member historical
commission. Mr. Hartman advised of a 60/40 match. Co-chair
Pearce noted that no state funds are indicated. FRED
FISHER, Fiscal Analyst, Legislative Finance Division,
advised that grantees provide the match. Mr. Hartman said
he would provide additional information.
Discussion followed regarding ownership of the historical
sites. Co-chair Pearce asked that department staff double
check the source of matching moneys.
The $500.0 in federal funds for land and water conservation
grants reflects a 50/50 match for recreational water
projects. Co-chair Pearce asked for further explanation of
the source of matching funds. Senator Kelly inquired
concerning the 12% surcharge. Mr. Hartman explained that
the 12% represents indirect costs for management of the
program.
The $400.0 in general funds for RS2477 assertions and
mapping represents the second year of a two-year project.
The department has identified approximately 1,500 trails,
access rights-of-way, etc. There is disagreement between
federal agencies and the state concerning width and whether
or not they satisfy statute 2477. Requested funding will
prepare cases for litigation to resolve these issues.
Access to the patchwork of state ownership is extremely
important for development. Senator Kelly voiced his
understanding that this would be the last year the state
will have to fund 2477 projects and associated staff
positions. Mr. Swanson concurred. He noted, however,
potential litigation costs in the future.
Co-chair Pearce advised that review of SB 363 capital
projects would continue at a subsequent meeting.
ADJOURNMENT
The meeting was adjourned at approximately 8:40 p.m.
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