Legislature(2019 - 2020)SENATE FINANCE 532
02/06/2020 09:00 AM Senate FINANCE
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| Audio | Topic |
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| Start | |
| SB174 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 174 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 6, 2020
8:59 a.m.
8:59:35 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 8:59 a.m.
MEMBERS PRESENT
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Lyman Hoffman
Senator Donny Olson
Senator Bill Wielechowski
MEMBERS ABSENT
Senator Natasha von Imhof, Co-Chair
Senator David Wilson
ALSO PRESENT
Neil Steininger, Director, Office of Management and Budget,
Office of the Governor; Chris Maisch, State Forester and
Director, Division of Forestry, Department of Natural
Resources; April Wilkerson, Administrative Services
Director, Department of Corrections, Office of Management
and Budget, Office of the Governor; Senator Cathy Giessel;
Senator Gary Stevens; Sana Efird, Assistant Commissioner,
Department of Health and Social Services; Torrey Jacobsen,
Budget Analyst, Department of Public Safety; John
MacKinnon, Commissioner, Department of Transportation and
Public Facilities; Kelly Tshibaka, Commissioner, Department
of Administration.
SUMMARY
SB 174 APPROP:SUPP; REAPPROP; CAP; AMEND; CBR
SB 174 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 174
"An Act making supplemental appropriations,
reappropriations, and other appropriations; amending
appropriations; capitalizing funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date."
9:00:16 AM
Co-Chair Stedman relayed that the committee would consider
the supplemental budget and a presentation from the Office
of Management and Budget (OMB). He remarked that the
proposed supplemental budget was significant and commented
on the state's depleted cash reserves. He thought the
committee might want to include conversation with several
department heads that were present.
9:01:38 AM
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, discussed the presentation "Senate
Finance Committee FY2020 Supplemental Budget Overview"
(copy on file).
Mr. Steininger looked at slide 2, "Supplemental Bill":
? Supplemental bill comprised of two parts:
Urgent/emergency response: $241,931.7 UGF
? Regular supplement: $20,615.0 UGF
Total: $262,546.7 UGF, $507,910.4 All Funds
Mr. Steininger relayed that there were regular supplemental
items, which were urgent enough to have a FY 20 effective
date in the appropriation but did not need immediate action
to be able to continue the program.
9:03:09 AM
Senator Hoffman had done a cursory review of the
supplemental and referenced "urgent items." He did not see
funds requested by the administration other than donations
from Alaskans to get the Real I.D. He thought people that
would be most affected by the lack of ability to get the
Real I.D. to travel were the elderly and sick, who may not
have driver's licenses. He wondered why there had been no
request for what he considered a life and death situation,
where some individuals would need to travel for health
care.
Mr. Steininger stated that there was a small amount of
money in the Division of Motor Vehicle (DMV) receipts
related to document processing. He could not speak to what
Senator Hoffman had mentioned.
Senator Hoffman reiterated that the lack of funds was a
life and death situation. He emphasized that it was urgent
for the people of Alaska to get needed medical attention.
He noted that Senator Olson had brought up the issue on
numerous occasions. He hoped the matter could be addressed
before the supplemental budget was passed by the Senate. He
measured the supplemental budget requests by whether they
were equivalent or higher than the need of those in remote
areas that needed Real I.D. to travel for healthcare. He
thought the request for individual Alaskans to donate funds
to the DMV was absurd.
Senator Olson echoed the comments by Senator Hoffman. He
mentioned villages in his district. He referenced slide 15.
He was troubled by proposed funds to move a DMV site in
Anchorage. He questioned the priorities in the budget. He
wondered about the thought process behind the proposed
budget.
Co-Chair Stedman asked for Mr. Steininger to provide a
preliminary answer to Senator Olson's question and
suggested the committee revisit the topic on slide 15.
Mr. Steininger suggested that the discussion continue when
the presentation was on slide 15 and thought a
representative from the department could join the
conversations.
9:08:25 AM
Mr. Steininger spoke to slide 3, "UGF Operating & Capital
Budgets with Supplementals - FY2019 FY2021," which showed
a bar graph. He commented that the slide put context to the
total budget numbers inclusive of supplementals. He pointed
out that the first bar was the FY 19 budget inclusive of
supplementals past. Other bars showed the FY 20 budget with
proposed supplementals to date, and the FY 21 governor's
budget. He specified that from the FY 19 to the FY 20
inclusive supplemental budgets there was a significant
reduction in total undesignated general funds (UGF)
spending of about $239 million. From FY 20 to FY 21
(including supplementals) there was a reduction of about
$70 million in proposed spending.
Co-Chair Stedman thought there were some issues in the
supplemental that had not been dealt with in FY 20. He
mentioned oil tax credits, which he understood had an
impact of around $100 million if the state did not prevail
in litigation dealing with the issuance of bonds. He asked
if OMB had a position on the subject. He wondered what
action the legislature would take via a direct
appropriation versus a bond issuance.
Mr. Steininger stated the administration hoped that over
time there would be more clarity by resolution of a lawsuit
so that OMB could put forward a proposal based on the
outcome. He stated that the matter was under discussion.
Co-Chair Stedman thought it looked as though if there had
to be a direct appropriation, it would be at or above the
appropriation for the bonds.
Mr. Steininger did not have the exact number at hand but
acknowledged that a direct appropriation payout of credits
would be an increase in the amount of UGF needed.
Co-Chair Stedman wanted the public to recognize that there
had been a great deal of effort put forth by the
legislature and the administration to reduce the operating
budget over the previous year. When supplemental requests
for the current budget and tax credits were added back, the
amount was flat or higher than the previous year's
spending. If the state issued bonds, there would be some
reduction from the previous year; but cash flows going
forward would be impacted by possibly $50 million per year
for several years. The large step-down in operating
expenditures did not materialize. He stated that the
committee had discussed not having supplementals. He
thought the supplemental being considered was of colossal
size; and may give that idea that although there were
operating budget reductions, the funds were just added back
in.
9:13:00 AM
Mr. Steininger referenced slide 4, "Supplemental Bill
Urgent/Emergency Response Items":
? Dept. of Natural Resources
? Fire, Land, and Water Resources; Fire
Suppression: $110,500.0 UGF
? Dept. of Transportation and Public Facilities
? Operating: Highway, Aviation and Facilities;
Northern Highways Dalton Highway/Atigun Pass:
$158.1 UGF
? Capital: Knik-Goose Bay Road: $2,000.0 UGF
Reappropriation
? Capital: Earthquake Relief Federally
Ineligible: $3,000.0 UGF
? Dept. of Military and Veterans Affairs
Capital Mass Notification: $900.0 UGF
Reappropriation
? Dept. of Health and Social Services
Medicaid Services; Medicaid: $128,273.6 UGF,
$162,130.9 Fed
TOTAL: $241,931.7 UGF, $162,130.9 Fed
Mr. Steininger explained that there was a typo on the
slide, and that the $900,000 in UGF for the capital mass
notification system was actually $450,000 in UGF and
$450,000 in federal matching funds. He noted that there
were subsuquent slides that provided detail as to how the
administration got into the position of requiring such a
large supplemental for Medicaid services.
Senator Wielechowski asked about the $110 million for fire
suppression and asked if any of the funds were for Swan
Lake.
Mr. Steininger did not know of specific fires the funds
were for, but qualified that the funds were for fires on
state lands.
Senator Wielechowski recalled that the federal government
had made the decision to let the fire run, which had turned
out to be a poor decision. He was curious as to the extent
to which the state was paying for what he considered the
negligence of the federal government.
Co-Chair Stedman thought the question might be best
directed to the Department of Natural Resources and agreed
that the issue was of concern.
9:16:24 AM
CHRIS MAISCH, STATE FORESTER AND DIRECTOR, DIVISION OF
FORESTRY, DEPARTMENT OF NATURAL RESOURCES, explained that
the supplemental did not include any costs for the Swan
Lake fire. The fire was covered under the federal authority
portion of fire cost accounting, which was separate than
the general funds. The state would be reimbursed the full
$49 million that was spent in federal authority to fight
the Swan Lake fire.
Senator Wielechowski asked if the reimbursement was
factored into the supplemental budget.
Mr. Maisch stated that the $49 million was accounted for
separately; and the federal authority piece of the budget
was the authority to collect federal revenue and also spend
general funds to suppress fires in the state's service
area. The Alaska Fire Service, the primary federal agency
that did fire suppression, protected a certain area of the
state and the Division of Forestry protected another area
of the state. When the division fought a federal fire in
the state's service area, it spent general funds up front
and then received reimbursement. The Alaska Fire Service
did the same, while spending federal money on state lands
and then getting reimbursed. The arrangement was called the
"cross-billing process," and it took approximately 24
months to complete. He clarified that the payments would
not affect the supplemental budget, which included costs
for fire suppression on state, federal, and municipal lands
which by statute the division was charged with protecting.
Senator Wielechowski asked if the state would be receiving
$49 million from the federal government that would be
reflected in the budget.
Mr. Maisch affirmed that the state would be reimbursed the
full amount, which would go to the general fund.
Co-Chair Stedman thought OMB or LFD could help clarify the
accounting process to see what was owed the state. He noted
there was a 24-month delay.
Senator Bishop asked about the $110 million for fire
suppression and asked if the funds were gone.
Mr. Maisch confirmed that the funds had been spent. He
explained that three of the fires in the previous year were
considered Fire Mitigation Assistance Grant fires, which
were dangerous fires that threatened urban areas, the costs
of which could be applied for reimbursement from the
Federal Emergency Management Agency (FEMA). The process was
lengthy and could return as much as $30 million to the
treasury. He thought the funds would not show up until FY
21 or FY 22. The fires were audited extensively by FEMA and
would be reimbursed up to 75 percent for eligible expenses.
9:20:10 AM
Senator Hoffman asked Mr. Maisch if he knew how much of the
$110 million was spent to save property.
Mr. Maisch thought 100 percent of the funds was spent to
protect life and property. The majority of the costs were
for large project fires, mainly up in Fairbanks and rural
parts of the state. He mentioned the McKinley fire, in
which there had been significant loss of structures. He
mentioned the Malaspina fire near Talkeetna, and many fires
in the area in late August.
Senator Wielechowski understood that many or most of the
fires were caused by human activity. He asked if there were
efforts underway to try and recover from people or
organizations that caused fires.
Mr. Maisch stated there were many human-caused fires every
year, and there was always an investigation to determine if
there had been negligence and if so if there were
recoverable funds. Typically, the recoverable funds were
from insurance proceeds from homeowners or business
policies. He estimated that there were four cases moving
through the civil process to recover funds. There was a
seven-year statute of limitations, and because of the
workload at the Department of Law, many of the cases did
not start until 5 years after the event.
9:22:13 AM
Mr. Steininger turned to slide 5, "Medicaid: Ambitious
Goals":
Governor's FY20 budget had ambitious savings targets
for Medicaid based on changes to several elements
? Reduced provider payments
? Withhold payment inflation adjustments
? Elimination of adult preventative dental benefit
? Timely filing allowance
? Transportation efficiencies
? Tribal claiming
? Other efforts
Mr. Steininger spoke to the bar graph on slide 5, entitled
'FY 2020 UGF Medicaid Budget'. He identified that there had
been ambitious goals built on savings initiatives. The
initiatives were related to a lot of items that had been
believed to be optional items or supposed reductions. He
pointed out that there was a projected about $20 million
shortfall just moving from FY 19 budget going to FY 20. The
projected need for the program as it was projected in
November 2018 was about $683 million. Through the
legislative process the budget was reduced to $574.6
million; then through further vetoes the amount was reduced
to $516.3 million.
Co-Chair Stedman was confused by the bar on the left-hand
side of the graph. He asked for Mr. Steininger to discuss
the projected shortfall.
Mr. Steininger explained that the blue bar represented what
the FY 19 "base budget" for Medicaid, which was the
starting point that OMB used to build the budget. The
orange portion of the bar showed the projected shortfall
for FY 20. On November 30, 2018 the department was
projecting the general fund need for the Medicaid program
for FY 20 would be $683 million. The amount was reflected
in initial budget proposals at the time; prior to the
governor-amended budget after the administration worked
with the department to identify areas for reduction. The
graph was intended to provide context of the true scale of
spending reductions the department had going into FY 20.
Co-Chair Stedman did not recall the projected shortfall
shown on the graph. He asked if the committee should be on
the lookout for another shortfall for the FY 21 budget.
Mr. Steininger thought one could consider the supplemental
request to be orange bar on the graph for FY 20, as it
represented the anticipated revenue shortfall in the
Medicaid program.
9:26:28 AM
Mr. Steininger considered slide 6, "Medicaid: Realized
Savings":
FY2020 ambitious savings goal of $166,707.7 UGF was
not realized.
Even after supplemental, FY2020 Medicaid spending is
still substantially reduced.
11/30/18 FY2020 Projection [UGF) $ 683,038.4
Provider rate reductions $ (17,716.9)
Savings through tribal claiming $ (20,100.0)
Savings thru pharmacy and Medicare Part B $ (5,538.0)
Other utilization changes $ 4,919.9
FY2020 Projected Total $ 644,603.4
Projected Savings in FY2020 $ (38,435.0)
Mr. Steininger summarized that there had been difficulty
achieving the ambitious savings goals previously
identified. Some of the services that were thought to be
optional at the time the budget was built turned out not to
be optional. There were still savings of about $38 million
from what the status quo projection was. While there were
failures in implementation of savings goals, there were
also successes. He thought a $38 million savings was
significant. He thought it was easy for the point to be
lost when considering a supplemental need as large as $128
million.
Senator Hoffman thought the committee had identified and
pursued the tribal claims with the cooperation of the
tribes in the state. He noted that over 50 percent of the
savings on the page were contributed to the tribal members
of Alaska.
Co-Chair Stedman recalled that the committee had been
concerned about the matter and had been urging action for a
number of years. He thought the inability to control
Medicaid was concerning. He thought it was alarming and
discomfiting that the state did significant budget
reductions then added back the spending six months later.
He thought it made it more difficult for the public to
understand the difficulty with reducing the operating
budget as the state's cash ran out.
Senator Bishop commented that the slide had said "projected
savings," which indicated it was not sure.
Mr. Steininger confirmed that the slide was based on
current projections.
Senator Wielechowski asked about the impact to the state
and Medicaid services if the legislature did not add back
on $128 million to Medicaid.
9:29:41 AM
Mr. Steininger displayed slide 7, "Medicaid: General Fund
Cash Flow," which showed a line graph. He thought the next
slide would address Senator Wielechowski's question. The
blue line showed the cash flow in the Medicaid program with
current funding. The implication was that without
supplemental appropriation, the state would no longer be
able to pay out to service providers starting at the end of
March, 2020. The average weekly spend projected for the
rest of the year was about $13.8 million in UGF. The last
point on the slide, "insufficient funding to get through
the last quarter of FY 20" was a fairly optimistic
statement. He stated that there was insufficient funding to
guarantee the state got through the third quarter of FY 20.
Co-Chair Stedman asked Mr. Steininger to explain a formula-
driven program, and why the funding could not just go to
zero and stay at zero.
Mr. Steininger stated that about 35 percent of the state
were beneficiaries of the Medicaid program. As
beneficiaries utilized services, the state was obligated to
pay providers for services rendered. Even if the
appropriation was less than the costs, the state did not
have a choice in having to pay. The department had been
working with different stakeholders to reduce costs and had
had been looking at the different services provided; but
such changes required coordination between many outside
parties. He noted that the federal government provided over
70 percent of the funding for the program and had a lot of
say over the services provided under the program.
Co-Chair Stedman stated that the program was operating
under federal law.
Mr. Steininger answered "yes."
Co-Chair Stedman thought the committee would be very
concerned when it put together the upcoming budget to avoid
the current situation and have more realistic numbers in
the budget. He pointed out that it was not possible to
identify and fix problems unless they were delineated and
defined more accurately. He recognized that Mr. Steininger
was the new director of OMB, and that the last director had
made the commitments. He said some of his comments had a
historical perspective.
9:33:32 AM
Mr. Steininger highlighted slide 8, "Medicaid Spending:
FY2004 - FY2021," which showed a graph entitled 'Medicaid
Actuals.' The slide was updated from the same slide that
had been included in his general budget overview. He
pointed out that the slide had been updated to include all
fund sources to show Medicaid historical spending. The
slide illustrated the growth in the program. He pointed
that there were not significant reductions projected into
FY 21. He stated the department would rather come back with
savings that had been realized rather than projecting
savings that could not be guaranteed.
Co-Chair Stedman thought the committee would appreciate the
representation, as well as a more refined estimate of the
state's cash position. He noted that that the committee
would work with the department through the budgetary
process to identify cost savings and have discussions on
what formula-driven mechanisms could be altered to get
costs under control. He did not want the public to think
that the legislature would do nothing.
Senator Hoffman requested information on geographic
distribution of growth in Medicaid beneficiaries from 2015
to 2020.
Co-Chair Stedman asked for Mr. Steininger to do a
geographical distribution of beneficiaries and the
beneficiary's growth. He thought the chair of the DHSS
subcommittee could incorporate the information into budget
discussions. He wanted information including several years
before the growth started.
Mr. Steininger looked at slide 9, "Regular Supplemental
Items." The next section of the presentation addressed
items that were sufficiently urgent to warrant an
appropriation in FY 20, but not so urgent that they needed
to be addressed immediately. He noted that there were also
some items included that had a supplemental effective date
for technical reasons and were part of the bill.
9:37:04 AM
Mr. Steininger addressed slide 10, "Supplemental Bill:
Department of Administration":
Operating Total: $1,700.0 UGF, $550.0 DGF
Legal and Advocacy Services, Office of Public
Advocacy
Caseload growth and operational cost: $1,700.0 UGF
? Division of Motor Vehicles
Document security and preservation system: $50.0 DGF
Anchorage office location move: $500.0 DGF
Mr. Steininger explained that the Anchorage DMV office was
relocating to avoid a large rent increase.
Co-Chair Stedman asked if the relocation was into a state
facility.
Mr. Steininger thought the new facility was owned by the
University of Alaska Anchorage.
Mr. Steininger advanced to slide 11, "Supplemental Bill:
Dept. of Commerce, Community, and Economic Development":
Capital Total: $45,526.1 Fed
? Housing and Urban Development (HUD) Community
Development Block Grant, Disaster Recovery Program:
$38,856.0 Fed
? National Petroleum Reserve-Alaska (NPR-A) Impact
Grants:
$6,670.1 Fed
Mr. Steininger noted that there was a typo on the slide and
the block grant should be $35.8 million of federal receipt
authority.
Senator Bishop asked if the slide listed additional
royalties that came in after the budget was passed the
previous year.
Mr. Steininger answered in the affirmative.
Mr. Steininger looked at slide 12, "Supplemental Bill:
Department of Corrections":
Operating Total: $8,025.7 Fed
? Population Management, Anchorage Correctional
Complex
Add carryforward language: $8,025.7 Fed
? Population Management, Palmer Correctional Center
(PCC)
Extend appropriation for PCC efforts (FY20-FY21)
Mr. Steininger stated that carry-forward language related
to federal man-day collections had been added. The
collections of revenue were for housing of federal inmates
at state facilities, and the amount was set on a per-day
cost for inmates. There had been some additional revenue
from the collections over time and the department was
adding language to access the prior collections in order to
avoid a general fund supplemental need to address
population management issues. He discussed the amount of
time required to open the Palmer facility, which would
extend into the next fiscal year.
Senator Wielechowski asked what sort of efforts the
Department of Corrections was undertaking to start
recruiting corrections officers. He had heard concerns that
the process should be started expeditiously rather than
waiting.
Mr. Steininger knew that recruitment and retention of
correctional officers was an issue being addressed.
9:41:02 AM
AT EASE
9:41:42 AM
RECONVENED
APRIL WILKERSON, ADMINISTRATIVE SERVICES DIRECTOR,
DEPARTMENT OF CORRECTIONS, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, addressed Senator Wielechowski's
question regarding the recruitment for correctional
officers for the Palmer Correctional Center.
Ms. Wilkerson believed it would take 12 to 18 months to
make the facility operational. She explained that the
current process for recruitment for correctional officers
took 8 to 12 weeks. Given the timeline to bring the
facility operational for housing capacity, she thought
there was time to address the officer needs for the Palmer
facility.
Co-Chair Stedman thought there would be more questions and
work on the issue during the subcommittee process. He
commented that the Department of Corrections was not as
large as Medicaid but was part of the magnitude of the
budget.
Mr. Steininger spoke to slide 13, "Supplemental Bill: Dept.
of Education and Early Development":
Operating Total: $100.0 UGF, $150.0 DGF, $10,000.0 Fed
? Education Support and Administrative Services,
Student and School Achievement
Additional federal receipts for U.S. Dept. of
Education grants: $10,000.0 Fed
Mt. Edgecumbe Boarding School, MEHS Facilities
Maintenance
Operational and maintenance costs for MEHS
Aquatic
Center: $100.0 UGF, $150.0 DGF
Mr. Steininger detailed that the $10 million in additional
receipt authority was for pass-through grants to allow for
obligation of federal receipts to send out to school
districts throughout the state.
9:44:26 AM
Senator Olson shared a concern from his district about the
lack of swimming instruction for children. He asked how
much of the funding was going towards getting the pool up
and running to teach rural students how to swim. He had
heard ongoing concerns with the pool. He discussed boating
accidents.
Mr. Steininger explained that the Mt. Edgecumbe aquatic
center was currently operating for the instruction of the
students. The funds were for continued operation for spring
semester for courses for the students. The $100,000 was to
ensure that the cost for operation of the pool did not come
at the expense of other instructional areas.
Senator Olson asked about the likelihood that students at
Mt. Edgecumbe had received a swimming lesson. He wondered
if students could have received swimming instruction as
recently as yesterday.
Mr. Steininger answered in the affirmative, assuming a
student was enrolled in a swimming course.
Co-Chair Stedman stated that there would be an upcoming
hearing on the bond package. He referenced the document
"Operating Maintenance Costs" (copy on file) which showed
the projects in the bond package. He noted that the dollars
being spent from FY 14 to FY 21 in the proposed budget were
operating funds. He was concerned that seven of the eight
projects had been completed and funded after a vote by the
people. He pointed out the Mt. Edgecumbe High School
project, which had an appropriation of $38 million in
operating funds. Of the $38 million, $500,000 was put into
the aquatic center in FY 18, which was part municipal match
and part other funds. A significant portion of the $500,000
was for maintenance of the facility.
9:47:57 AM
Co-Chair Stedman continued his remarks. He noted that for
FY 19, there was $250,000 in receipt authority and the pool
was not in operating due to mechanical issues. In the FY 20
budget, there had been nothing enacted for the facility,
while there was $5.2 million for the other projects. He
thought there was an urban/rural issue. He opined that
rural projects received no funds while urban projects
received funding with no discussion. In the current budget,
there was $650,000 in receipt authority. He thought the
issue needed work and rectification. He explained that
receipt authority allowed for the aquatic center to reduce
the subsidy needed to run the facility. In order to
minimize budget impacts, it was important to collect
revenue from users.
Co-Chair Stedman continued his remarks. He pointed out that
removal of the receipt authority blocked the facility from
receiving a check in excess of $150,000; and put
considerable disruption in the marketing of the facility to
entities that would gladly contribute for use of the pool.
He commented on the facility's use by the Alaska State
Troopers and the United States Coast Guard. He thought
there was continued work to do. He thought the matter did
not bode well for future bond packages, particularly from
rural legislators.
9:51:12 AM
Co-Chair Stedman continued to discuss the document and
listed the projects that were part of the 2010 bond package
projects as listed on the document:
State Library, Archives, and Museums
Valley Center for art and learning - Mat-Su Campus
Community Arena and athletic facility - UA - Anchorage
Life Science Classroom and Lab UA - Fairbanks
Student Housing - Kenai Campus
Career and Technical Education Center - Kenai Campus
ADFG - Near Island Research Facility
Mt. Edgecumbe Aquatic Center
Co-Chair Stedman reminded the public and the administration
that the projects were voted on by the people of the state
of Alaska to build and operate. He reminded that the
legislature was the appropriators and had to make sure that
there was the fairest possible distribution of the treasury
to facilitate everyone's equal interest. He recognized and
appreciated the $100,000 in cash to the aquatic center. The
school had been taking funds from other areas to keep the
aquatic center operational. He commented that the center
had missed the opportunity of the high revenue time of year
without the ability to collect money at the door.
Senator Hoffman reminded that the region of the state with
the largest participation at Mt. Edgecumbe was the Yukon-
Kuskokwim Delta and emphasized that the region had the
largest rate of drowning. He thought the aquatic center was
a health-life-safety issue. Even thought he had supported
the other projects; it was hard for him to compare
appropriations for other projects against the health and
safety issue that he felt had been ignored by previous and
current administrations. He requested the administration to
come forward with a number it felt was appropriate for
addressing the health-life-safety of the people of Alaska
in Senator Olson's district, his own district, and others.
Senator Hoffman thought the swimming program at Mt.
Edgecumbe should be mandatory. He referenced the lack of
request by the Department of Administration (DOA) for
addressing the Real I.D., which he thought could result in
deaths of elders in the state. He believed that health-
life-safety issues should rise to the top of the
administration's priorities. He reiterated that the
projects were voted on by the people and the implementation
should be fully supported by the administration. He hoped
that the administration would come forward to address the
two issues of health-life-safety that he had brought up.
9:57:01 AM
Senator Bishop noted that he also represented rural areas
of the state such as the Yukon, Porcupine, Black River, and
Koyukuk. He had received letters from Mt. Edgecumbe
students as recently as the previous week. He wanted to
work with the co-chair to make sure the pool received
enough DGF funds to support long-term contracts.
Co-Chair Stedman stated that the committee would take up
the suggestion by Senator Hoffman and ask OMB to come
forward with solutions. He reiterated that the projects
would be considered when the bond package was in review. He
wanted to assure that the committee was looking for equity
going forward.
Mr. Steininger referenced slide 14, "Supplemental Bill:
Office of the Governor":
Operating Total: $233.4 UGF
Capital Total: $3,700.0 Other
Operating
Executive Operations, Lieutenant Governor
Voter initiative public hearings: $18.0 UGF
? Elections
Voter initiative review, certification and
language translation: $215.4 UGF
Capital
? Help America Vote Act: $3,700.0 Other
Senator Wielechowski was curious about the $215 million for
the voter initiative review and certification. He
understood that the initiative was reviewed by the
lieutenant governor and by the attorney general and was
done in-house. He did not understand where the $215,400
went.
Mr. Steininger stated that there were costs associated with
translation of ballots. He stated that while done in the
lieutenant governor's office, review and certification of
ballots cost money.
Senator Wielechowski asked for a breakdown on the costs. He
pointed out that the election was not until the next year.
He was also interested in the $18,000 for voter initiative
public hearings. He asked about the plan for the meetings
including the date, location, and format.
Mr. Steininger stated that he would get back to the
committee with the requested information.
10:00:24 AM
Mr. Steininger turned to slide 15, "Supplemental Bill:
Department of Health and Social Services":
Operating Total: $15,600.0 UGF
? Alaska Pioneer Homes, APH Payment Assistance
Alaska Pioneer Homes payment assistance: $1,000.0
UGF
? Alaska Psychiatric Institute
Add authority to achieve full capacity: $6,000.0
UGF
? Public Assistance, Adult Public Assistance
Restore Adult Public Assistance payment
maintenance of effort requirements: $8,600.0 UGF
Mr. Steininger explained that in review of the change to
the maintenance of effort calculation with the federal
government, the effect of the change was too onerous, and
funds needed to be added back into the budget.
Senator Wielechowski asked about the $6 million for the
Alaska Psychiatric Institute (API), and asked if any of the
funds were going to Wellpath, Inc.
Mr. Steininger asked for a representative from the
department to discuss the question in more detail.
SANA EFIRD, ASSISTANT COMMISSIONER, DEPARTMENT OF HEALTH
AND SOCIAL SERVICES, confirmed that some portion of the
funds was for continuation of the Wellpath Contract. The
original contract began in February of the previous year,
and the contract was renewed for the stabilization of API.
She was happy to say that 92 of the findings that API was
under had been resolved. She continued that API was
continuing to contract with Wellpath; and the current
contract ended March 31, with an option to renew.
Senator Wielechowski was interested in a breakdown of where
the $6 million was going. He asked if the funds were
expected to go towards increased nurse or assistant
positions, or to the Wellpath organization.
Ms. Efird stated that the funds were to be spent on a
number of things, including an increase in salary for
nurses after a nurse study had been done. She continued
that the funds were also to contract when it was not
possible to hire for psychiatrists and other medical
personnel. There was continued recruitment for staff. There
was an additional cost for continuation of a security
contract, due to the acuity of the patients at the
hospital.
Co-Chair Stedman asked Ms. Efird to get back to the
committee with additional information.
10:04:28 AM
Senator Olson asked if Wellpath employed the nurses being
discussed.
Ms. Efird noted that the state employed nurses and staff,
and Wellpath was present to advise and stabilize. Wellpath
had been providing assistance with API to provide
stabilization and to meet all the requirements through the
findings from the survey.
Senator Olson assumed that Wellpath did not employ the
psychiatrists.
Ms. Efird affirmed that the state employed the
psychiatrists at API.
Mr. Steininger considered slide 16, "Supplemental Bill:
Department of Law":
Operating Total $150.0 Other, $250.0 Fed
? Criminal Division, Second Judicial District
Reopening Utqiagvik District Attorney's Office:
$150.0 Other
Criminal Division, Criminal Appeals/Special
Litigation
Expand prosecutions in rural Alaska: $250.0 Fed
Senator Olson asked if it was true that the facilities on
the North Slope were also chipping in to make it so
reopening the offices did not cost the state as much as it
would otherwise.
Mr. Steininger understood that there was a Memorandum of
Agreement to receive money from the community to reopen the
office.
Senator Olson asked if the office was still doing cases, or
if the cases were going to Fairbanks.
Mr. Steininger did not know the answer to Senator Olson's
question.
Co-Chair Stedman asked Mr. Steininger to get back to the
committee with more information on Senator Olson's
question. He thought the subject was a point of discussion
the previous year during the budget cycle and he wanted to
ensure that the topic was well understood by the committee.
Senator Olson was concerned that outside counsel had been
hired by the Department of Law to handle some cases for
which the department did not have expertise. He understood
that there were hundreds of thousands of dollars being
spent on law firms in the Lower 48. He asked if the expense
was reflected in the supplemental budget being considered.
Mr. Steininger stated that the funds on the slide reflected
reopening of the district attorney's office. The expansion
of prosecutions listed on the slide was a new federal grant
being received by the department, and believed prosecutors
were in Anchorage but assigned to rural areas.
Senator Olson clarified that his question was if the
supplemental request was for money being spent on outside
counsel for lawsuits that some considered frivolous.
Mr. Steininger stated he did not think so.
Co-Chair Stedman thought the matter could be fleshed out in
the subcommittee process and would get to the answer.
10:08:09 AM
Mr. Steininger displayed slide 17, "Supplemental Bill:
Department of Natural Resources":
Operating Total: $76.1 DGF
? Fire Suppression, Land, and Water Resources; Mining,
Land and Water
Aquatic farm application processing: $76.1 DGF
Mr. Steininger detailed that there had been a significant
increase in the number of aquatic farms, and there was
additional authority was needed for processing
applications.
Co-Chair Stedman thought it was good that there was an
expanding industry.
Co-Chair Stedman noted that Senator Gary Stevens was
present. He thought some of Senator Stevens constituents
were students at Mt. Edgecumbe.
Senator Bishop asked if Mr. Steininger thought the funds on
slide 7 were due to having missed the mark on the fiscal
note when there was associated legislation being passed
through the body.
Mr. Steininger believed that the number of applications had
risen from 4 to 16, and did not recall when the information
was known.
Co-Chair Stedman thought the subcommittee could address the
topic in detail.
Mr. Steininger highlighted slide 18, "Supplemental Bill:
Department of Public Safety":
Operating Total: $6,743.4 UGF
Capital Total: $605.0 UGF
Operating
Alaska State Troopers, AST Detachments, Alaska
Wildlife Troopers, and Wildlife Troopers Aircraft
Section - Meet FY2020 operating needs and law
enforcement safety equipment: $6,743.4 UGF
Capital
? FAA required aircraft equipment: $105.0 UGF
? Radio replacement: $500.0 UGF
Mr. Steininger commented on the good news of increased
recruitment and retention of Alaska State Troopers. He
noted that the amount of people coming in for new trooper
classes was exceeding the amount of people turning over
within the ranks, so additional authority was needed to
outfit and pay new troopers.
10:10:33 AM
Senator Hoffman was glad to see that public safety was a
priority of the administration. He made note of the lack of
request for funds for operation of the Village Public
Safety Officer (VPSO) program and asked if it was an
indication of the program functioning fully.
Mr. Steininger stated that there was no request for
additional funding for the VPSO program as they amount of
money the program had was sufficient for operations within
the current year.
Senator Hoffman asked if the people of rural Alaska,
considering that there were no additional funds being
requested, should feel that the program was running at full
steam and pumping on all cylinders and should feel safe at
night.
Mr. Steininger thought it was the goal of the DPS for all
people of Alaska to feel safe at night.
Co-Chair Stedman thought the topic would be addressed in
subcommittee.
Senator Wielechowski asked how many VPSOs there were and
how many vacancies there were in the program.
Mr. Steininger did not have the information. He offered to
get back to the committee with the information.
Co-Chair Stedman thought the issue was sizeable and would
be worked on in subcommittee.
Senator Olson was a member of a VPSO working group. He
explained that the program was at an all-time low, with 38
officers. He thought there had been anticipation for 100
officers that had been funded a number of years ago, but
there had been challenges with recruitment and retention.
He commented that the VPSO in his town of Golovin had been
there the second longest of any VPSO. He thought the VPSO
program needed an overhaul and suffered from lack of
funding reaching the point where it was implemented. He
mentioned that one recommendation of the working group was
to pull the funding allocation from DPS and put it into the
Department of Commerce, Community and Economic Development
to more reasonably delegate the funds.
Senator Hoffman thanked Senator Olson for his comments. He
asked if the administration had reviewed the report from
the task force on the VPSO program, and if there was
interest in getting the report implemented so that the
people of rural Alaska could feel safe when going to sleep
at night.
Mr. Steininger wanted to get back to Senator Hoffman
regarding the analysis of the report.
Senator Hoffman asked if Mr. Steininger had a lifeline to
respond to his question.
10:14:54 AM
TORREY JACOBSEN, BUDGET ANALYST, DEPARTMENT OF PUBLIC
SAFETY, stated that the commissioner was not present, and
he was not able to respond to decisions within the
department. He offered to research the matter and get back
to the committee.
Senator Olson thought there was a great deal of funds put
into trooper recruitment and retention. He assumed that the
previous testifier was aware of how much had been to
improve recruitment and retention for the VPSO program.
Mr. Steininger asked to get back to the committee with the
information as to what funds had been allocated for
recruitment and retention within the VPSO program.
Senator Olson said unequivocally that people would not be
sleeping better as a result of feeling that communities
were currently safer.
10:16:42 AM
Mr. Steininger looked at slide 19, "Supplemental Bill:
Department of Revenue":
Operating Total: $854.4 UGF, ($400.0 Other)
? Taxation and Treasury, Tax Division
Tax Revenue Management System maintenance and support
costs: $400.0 UGF, ($400.0 Other)
Tax subject matter experts, economic and legal
analysis
(FY20-FY22): $350.0 UGF
? Administration and Support, Commissioner's Office
Technology refresh and space utilization and planning:
$104.4 UGF
Mr. Steininger detailed that the new tax revenue management
system capital project funds had been exhausted and the
costs of supporting the system needed to be moved to the
operating budget.
Senator Olson considered the proposed $350,000 in UGF for
economic and legal analysis and thought the amount was
sizable. He asked how the funds would be used in the next
four to five months.
Mr. Steininger stated that the work on the tax matters
would be starting in FY 20, but the appropriation extended
into FY 22. The funds would extend through FY 22 and were
to provide additional support as DOR looked at various
proposals related to taxation.
Senator Olson understood that there was consideration of
implementation of a statewide sales tax. He asked if the
matter was covered in the proposed funds.
Mr. Steininger stated that the funds would assist the
economic research group in the Department of Revenue and
would go towards any tax related issue proposed by anyone.
Co-Chair Stedman thought the funds might be more
appropriate in the FY 21 budget.
Senator Hoffman considered the expenditure being included
in the supplemental in the current year's budget and asked
if the legislature could anticipate legislation to address
additional revenue measures.
Mr. Steininger could not comment on bills that had not been
introduced. He knew there were various tax ideas that DOR
wanted to review.
10:19:44 AM
Mr. Steininger addressed slide 20, "Supplemental Bill:
Dept. of Transportation and Public Facilities":
Operating Total: $7,050.0 DGF
Capital Total: $5,000.0 DGF, $3,155.0 Other
Operating
? Administration and Support, Measurement Standards
Replace capital funding with unified carrier
registration receipts: fund source change
? Marine Highway System, Marine Vessel Operations
Maintain AMHS vessel operations: $7,050.0 DGF
Capital
? AMHS vessel overhaul:$5,000.0 DGF
? DPS patrol vehicles: $3,155.0 Other
Mr. Steininger explained that the proposed funds for the
Alaska Marine Highway System (AMHS) were to cover some
additional costs for boats that ended up in layup longer
than anticipated; which had resulted in more expensive
boats being used and other expenses such as fuel cost
increases. The funds were to ensure that the service level
planned for the year could be met. The costs for vessel
overhauls had been significantly more expensive than
anticipated. The DPS patrol vehicle fund request was for
fund the department had already paid into the fund.
Senator Bishop asked about the balance of the fund after
the proposed purchase of patrol vehicles.
Mr. Steininger believed the credits DPS had in the fund
were in the $12 million dollar range. The department paid
into the fund based on the vehicles it had, so the fund
balance was replenished every year roughly equal to the
average amount spent yearly.
10:22:09 AM
Senator Olson asked if any of the funds on slide 20 would
supplement some of the AMHS services that had been
curtailed because of maintenance issues. He noted that a
number of legislative vehicles had been stuck and could not
be transported to Juneau.
Mr. Steininger stated that the proposed $5 million in
overhaul was to get boats back in the water. The $7 million
was to maintain the service level that had been planned.
There were a couple of routes where the funds would add
service above what was planned when the FY 20 budget was
passed.
Co-Chair Stedman thought the matter would be best addressed
in more detail by the commissioner of DOT. He thought the
economic significance of having virtually the entire fleet
tied up for several weeks needed to be addressed and
information needed to flow to the public. He asked the
commissioner to address the matter with frankness.
10:25:11 AM
JOHN MACKINNON, COMMISSIONER, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES, stated that the proposed $7 million
supplemental request would be used for unanticipated
expenses that occurred in the current fiscal year. He
addressed stranded vehicles and passengers. He recalled
that when the Matanuska was tied up in Juneau and unable to
continue its run North, there had been a number of military
personnel and vehicles on the ship. The department had
assisted the military to arrange transport. The department
had chartered a vessel to get other stranded passengers to
Haines. He added that there had been some union contract
issues involved. Tickets for truncated voyages would be
refunded.
Senator Olson thought the department had made a good effort
in accommodating passengers. He asked about vehicles that
had been shipped south by legislators and staff and
wondered how the vehicles would get to Juneau.
Commissioner MacKinnon stated that the department had been
having discussion on the matter and what steps could be
taken to get the vehicles to Juneau. He noted that Alaska
Marine Lines had weekly trips from Haines/Skagway to Juneau
that could accommodate vehicles.
Senator Olson asked if the supplemental cost of chartering
vessels would be paid for by the state.
Commissioner MacKinnon mentioned the cost of transporting
stranded students, which the department had paid for. He
thought the state needed to be cautious about setting a
precedent.
10:28:32 AM
Senator Wielechowski asked how much cost had the department
had "eaten."
Co-Chair Stedman asked if the commissioner could provide
one part of his answer in hindsight, as well as discuss
fleet capacity.
Commissioner MacKinnon believed the cost of taking care of
the stranded students was approximately $11,000. He
continued that the department was looking at options and
there was a number of community events in the month of
March. He mentioned a press release the previous day and
stated there was a good likelihood that AMHS would not have
service in Southeast in March. The department was looking
at engaging other transportation services to serve for the
Gold Medal Tournament and other sports events. He mentioned
vessels that were laid up in overhaul or not operational.
He described the situation as a "perfect storm." He
reiterated that there were complications with union
contracts that could prevent certain solutions.
Co-Chair Stedman would be asking the budget subcommittee on
DOT to look at the current budget, how much had been
consumed in operations, and the need going forward. He
thought a broader concern was that if all vessels were tied
up save for one, there was still a substantial fixed cost.
Even though no ships were running, there was still a draw
on the operating budget. He thought the subcommittee needed
to understand the information and then bring the
information to the full committee. He thought the public
should take note of the commissioner's comment that there
was high likelihood of minimal to no service through March.
Co-Chair Stedman discussed the challenges inherent in
having vessels in the shipyard. He asked the public to try
and have flexibility as the issue was being worked through.
He asked the commissioner to discuss the issue with the M/V
Matanuska and give more information on why the vessel was
not running.
10:33:27 AM
Commissioner MacKinnon commented on the complexity of the
operational scheduling of ferries. He discussed costs for
fuel and overhaul. Ships in overhaul required some crew
presence. For some longer-term savings, ships were in
layup, which also required crew. He discussed unanticipated
costs for vessel overhaul.
Commissioner MacKinnon discussed vessel testing and
overhaul. The M/V Matanuska underwent extensive engine
replacement and overhaul. The department had anticipated
that the ship could handle much of the mainline service for
the winter, but there had been a failure of the new
equipment.
Co-Chair Stedman summarized that there was a severe
mechanical issue that made the ship inoperable and repair
would take time.
10:36:09 AM
Senator Hoffman recalled that it was reported in the news
that the governor had expressed that the AMHS was a high
priority of the administration. He asked if the statement
of commitment to the people of coastal Alaska would result
in an additional supplemental to FY 20 and FY 21 budgets.
He asked if the commissioner and the governor had discussed
the matter.
Commissioner MacKinnon stated that the conversation was
taking place. The department was considering which ships
could be returned to operation. He discussed the status of
various vessels. The M/V Aurora had extensive repairs to be
done. The department was working with the United States
Coast Guard to determine eligibility of vessels for
operation. When the department knew what was possible it
would address finances and come back to the legislature
with a request for more funds if needed.
Co-Chair Stedman stated that the DOT finance subcommittee
(chaired by Senator Bishop) would be looking at the AMHS
maintenance schedule. He thought there had been concern
that there had not been requests put forward to deal with
major maintenance items. He pointed out that decomposition
of steel ships happened over time and was curious why all
of the maintenance and certification issues were happening
simultaneously. He wanted the subcommittee to come back
with a recommendation of what it would take to get the
fleet back into operation to serve land-locked communities.
He noted there were food supply issues with smaller
communities.
10:40:31 AM
Senator Bishop understood that the mechanical failure on
the M/V Matanuska was under warranty.
Commissioner MacKinnon affirmed that that the equipment was
under warranty but reminded that there were multiple
stakeholders. He thought there would be finger-pointing and
the matter would take time to address.
Co-Chair Stedman stated that the committee over funded the
request from the AMHS the previous year. The committee had
over funded by around $20 million and added back
substantial funds for maintenance. He pointed out that that
there were no ships immediately in the Statewide
Transportation Improvement Program for replacement. To have
new ships constructed was an 8 to 10-year process. He
thought there would be forthcoming conversation regarding
the M/V Tustemena and a replacement. He expected that there
would be encouragement from the committee to move along
with replacement.
Co-Chair Stedman thought timely planning was needed. He
reminded that last time the state had two ships built, the
funding had been driven by the legislature. He thought
there was a significant challenge to figure out the
transportation system within coastal Alaska. He mentioned
the military bases and the ability for the AMHS to respond
to any catastrophic events and be able to transport goods
to the Railbelt. He thought there was concern that with the
fleet inoperable it would hinder the states response to an
emergency such as an oil spill. He thought the issue was
much broader than moving cars and people. He asked the
public to be cognizant that it would likely be April before
the AMHS was operable.
10:45:00 AM
Co-Chair Stedman appreciated DOT's ability to facilitate
the needs of the communities since no one had expected the
entire fleet being tied up.
Co-Chair Stedman asked Mr. Steininger to address the next
two slides and then return to slide 10.
Mr. Steininger advanced to slide 21, "Supplemental Bill:
Fund Capitalization and Transfers":
Fund Capitalization: Total $600.0 UGF, $3,000.0 Fed
Capital
? Election Fund - FY20 capitalization of the
Election Fund with federal receipts: $600.0 UGF,
$3,000.0 Fed
Fund Transfers: Total $1,100.0 deposit into General
Fund
? Undesignated Reserve (UGF out), AHFC Subsidiary
Fund
Transfer balance of AHCC account to the General
Fund:
$1,100.0 fund transfer
Mr. Steininger explained that emptying the Alaska Housing
Finance Corporation (AHFC) Capital Corporation Account into
the General Fund would save costs on administrative work on
maintaining the account.
Mr. Steininger turned to slide 22, "Supplemental Bill:
Special Appropriations and Capital Items":
Special Appropriations: Total $131.7 UGF
? Judgments, Settlements, and Claims
FY2020 judgments, settlements, and claims: $131.7
UGF
Capital: Total $4,852.9 deposit into General Fund
? Capital
Repeals: $4,398.6 UGF
Mr. Steininger stated that the capital budget had a variety
of repeals of old projects, some of which had remaining
funds. It was proposed for $5 million of the amount would
be deposited into the General Fund. Co-Chair Stedman stated
that the committee had not had the discussion regarding
reappropriating funds for old projects yet.
Senator Hoffman asked if the committee could obtain a copy
of capital projects that were being eliminated with funding
going to the General Fund.
Mr. Steininger informed that the projects were detailed in
the bill, as well as in the backup documents. He stated he
could also provide a list.
Co-Chair Stedman referenced a report on disposition of
state properties to be potentially liquidated. He asked for
an update.
Mr. Steininger updated that there was a facilities council
that was undertaking to identify various state facilities
that were not being utilized and could be disposed of.
There was a prioritized list that was generated.
Co-Chair Stedman stated the list would be considered at a
future hearing, and he thought one of the facilities on the
list was the Mt. Edgecumbe pool. He reminded that the
public voted to build the facility.
Mr. Steininger stated that the item was on initial drafts
and had been removed after discussion.
Co-Chair Stedman stated that the topic would be revisited
when the committee addressed the bond package.
10:49:40 AM
Senator Olson referenced Senator Hoffman's question about
capital project funds going back to the General Fund. He
asked if the Knik Arm Bridge was on the list.
Mr. Steininger did not have the list in front of him and
was not sure if the bridge was on the list. The
administration had worked with the department to ensure
that projects were completed and that the funds were truly
not needed. The list was in the bill listing specific
locations and projects.
Senator Olson commented on the duration of the bridge
project.
Co-Chair Stedman stated the committee would review the list
and discuss the projects at a later time.
Senator Olson had discussed alternative avenues for
obtaining the Real I.D. with the commissioner of DOA. He
agreed with Senator Hoffman that there was a health-life-
safety issue. He asked about the lack of funding request
for supporting getting the Real I.D. situation resolved in
rural Alaska.
10:52:40 AM
KELLY TSHIBAKA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION,
appreciated the opportunity to address the question. She
thought it was important to clarify that a Real I.D.
driver's license was not needed to fly as of October 1,
2020. She thought some messaging had been confusing. She
referenced an excerpt from the Transportation Security
Administration's (TSA) standard operating procedures that
showed 30 alternative forms of identification that Alaskans
could use to fly. She listed passports, passport cards, a
tribal identification with a photo, and others. She noted
that a TSA-compliant identification would be required as of
October 1, 2020.
Commissioner Tshibaka continued to address Senator Olson's
question. She stated that the Real I.D. paperwork burden
was very high. She reiterated that the Real I.D. was not
required to fly, and other pieces of identification, such
as a tribal I.D., were easier to obtain. She referenced AS
28.15.041, which dictated that the state or local
jurisdictions could not require a person to have a Real
I.D. There were 48 DMV locations around the state,
including 17 in rural areas; where applicants could come
and request a driver's license. She agreed that there were
situations in which Alaskans could not get an alternative
form of I.D.
Commissioner Tshibaka asserted that the DMV had been going
above and beyond its normal operations to help with the
education and outreach efforts, and that one department
staff member was dedicated for the outreach. The department
had engaged with rural points of contact in communities.
She referenced a campaign that started under the last
administration and a rural DMV effort that would require
developing digital technology to take a biometric
identification camera into rural communities as well as
other technologies for signatures and identification
screening. She referenced financial arrangements with the
communities paying for the services and asserted that every
Alaskan paid for DMV services.
10:56:48 AM
Commissioner Tshibaka stated that she started with the
department at the end of January 2019, and there had been a
program in place. The technology had been developed two
months previously and the program was being piloted. The
department had visited New Stuyahok in January and issued
83 I.D.s to residents. The department had experienced
significant challenges with the technical digitalization of
the camera. She was not confident that rural trips would
continue to be successful in rural Alaska if the problems
with the camera were not solved. She referenced
requirements for biometric identifiers. She noted that
there were five more communities that were on a list to be
visited and had requested Real I.D. The department was
partnering with the Department of Education and Early
Development and wanted to work with TSA to educate the
public.
10:58:33 AM
Senator Hoffman stated he had met with the commissioner and
the president of the Yukon-Kuskokwim Health Corporation the
previous day. He noted that the corporation was the largest
in the region and represented 56 communities over a very
vast area. The president had asserted that the elderly of
the state (with English as a second language) would be hurt
the worst by the Real I.D. requirement, regardless of if
they had requested services. The president had thought that
thousands of elders would not be able to travel for health
reasons. He thought it was unacceptable that the
administration had not requested more resources to address
the problem. He emphasized that if the department was
having problems with its camera, it should request more
resources. He strongly asserted that if there were people
with lives in danger, it was a result of the department not
coming forward to request resources.
Commissioner Tshibaka relayed that she did not make budget
requests that were not supported on data. She referenced a
law passed in 2005 that said Real I.D. was coming into
effect and there would be new requirements for passing
through TSA checkpoints. She stated that the DMV was
contributing to the education of Alaskans but was not the
only partners in the education of Alaskans about the
requirements for getting through TSA checkpoints. She
asserted that the responsibility of the department was to
issue licenses with respect to motor vehicles and was doing
what it could to also help with the education with other
alternative forms of I.D.s for getting through check
points. She listed the numbers of different I.D. types. She
stated that the department was open and available to
discuss a pilot program, and that she was not going to
bring forward a supplemental budget request when she did
not have more than a handful of communities that had
requested help with getting Real I.D.
Senator Hoffman told Commissioner Tshibaka to "do your
homework."
Co-Chair Stedman was glad the commissioner had brought a
list of alternate identifications, and though the state
could distribute the information throughout the state.
SB 174 was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman discussed the agenda for the following
day.
AJOURNMENT
11:03:28 AM
The meeting was adjourned at 11:03 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 02.06.2020 SFC FY20 Supplemental Presentation.pdf |
SFIN 2/6/2020 9:00:00 AM |
|
| Copy of 2010 Bond Package OM comparison 1 13 20 from OMB and added FY21 edited for .pdf |
SFIN 2/6/2020 9:00:00 AM |
SB 152 |
| 020620 OMB Response - Response to SFC Questions.pdf |
SFIN 2/6/2020 9:00:00 AM |
Operating Budget |
| 020620 OMB Response - FY20 Master Grant Agreement Final 5-3.pdf |
SFIN 2/6/2020 9:00:00 AM |
Operating Budget |
| 020620 OMB Response - Senate Finance Response- VPSO Program.pdf |
SFIN 2/6/2020 9:00:00 AM |
Operating Budget |
| 020620 OMB Response - MOU of NSB and AK to fund Utqiavik DA.pdf |
SFIN 2/6/2020 9:00:00 AM |
Operating Budget |
| 020620 OMB Response - AKDHSS Enrollment Geo Data.pdf |
SFIN 2/6/2020 9:00:00 AM |
Operating Budget |