Legislature(2015 - 2016)HOUSE FINANCE 519
02/08/2016 01:30 PM House FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Fy 17 Budget Overviews: Department of Military and Veterans Affairs | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 256 | TELECONFERENCED | |
| += | HB 257 | TELECONFERENCED | |
| += | HB 255 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 8, 2016
2:34 p.m.
2:34:50 PM
CALL TO ORDER
Co-Chair Neuman called the House Finance Committee meeting
to order at 2:34 p.m.
MEMBERS PRESENT
Representative Mark Neuman, Co-Chair
Representative Steve Thompson, Co-Chair
Representative Dan Saddler, Vice-Chair
Representative Bryce Edgmon
Representative Les Gara
Representative Lynn Gattis
Representative David Guttenberg
Representative Scott Kawasaki
Representative Cathy Munoz
Representative Lance Pruitt
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Brigadier General Laurel Hummel, Commissioner, Department
of Military and Veterans Affairs; Colonel Robert Doehl,
Deputy Commissioner, Department of Military and Veterans
Affairs; Michael O'Hare, Director, Division of Homeland
Security and Emergency Management, Department of Military
and Veterans Affairs.
SUMMARY
FY 17 BUDGET OVERVIEWS:
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
Co-Chair Neuman discussed the meeting agenda.
^FY 17 BUDGET OVERVIEWS: DEPARTMENT OF MILITARY AND
VETERANS AFFAIRS
2:36:12 PM
BRIGADIER GENERAL LAUREL HUMMEL, COMMISSIONER, DEPARTMENT
OF MILITARY AND VETERANS AFFAIRS (DMVA), introduced herself
and colleagues. She provided a PowerPoint presentation
titled "FY2017 Budget Overview" dated February 8, 2016
(copy on file). She began with the department's statutory
mission on slide 2. She turned to slide 3 and addressed
core services:
· Defend and Protect Alaska and the United States
· Disaster Preparedness/Response and Recovery
· Outreach to Veterans and Military Families
· Youth Intervention
Commissioner Hummel relayed the core services were
analogous to the lines in the department's mission. She
stated the first two services nested well and all of the
services were very complimentary. Slide 4 included a pie
chart showing the department's budget by fund source. Other
funds of $16 million were represented in green, of which
slightly over $6 million represented interagency receipts
and funds received for services. For example, the Division
of Homeland Security and Emergency Management assisted with
the Department of Transportation and Public Facilities
(DOT) for grant preparation and DMVA received payment for
the assistance. She continued to address the other funds
category, which also included $1.7 million for capital
improvement project receipts. The budget included $1
million for equipping the proposed Alaska State Defense
Force Scout Battalion, $100,000 estimated authority for the
Counter Drug Program for seizures and forfeitures, $7.8
million for Alaska Aerospace Corporation receipt authority,
$435,000 for state designated general funds (DGF) where the
department brought in revenue for meal tickets and other,
and $12,000 for veterans' endowment memorial expenditures.
2:38:22 PM
Commissioner Hummel addressed a DMVA organizational chart
on slide 5. She detailed the dotted lines indicated
coordinating/administrative authority. Slide 6 provided an
introduction to the Alaska Air National Guard. There were
2,100 [2,120] air guard members serving in three locations
across the state. Eielson Airforce Base in Fairbanks was
home of the 168th wing, which had been called the air
refueling wing prior to February 2016; the name had been
officially changed to reflect the inclusion of the space
warning mission. Joint Base Elmendorf-Richardson (JBER) was
the home of the 176th wing, which was one of the most
complex organizations in the air guard; the base had four
primary mission sets to include strategic and tactical
airlift; air defense; and the rescue triad, which included
guardian angels, rescue helicopters, and the HC-130
aircraft responsible for providing refueling capability to
rescue helicopters.
Commissioner Hummel spoke to measures and results on slide
7. The chart showed the Alaska National Guard search and
rescue efforts by calendar year. The blue portion of the
bars represented lives saved in Alaska and the gold
represented lives saved outside of Alaska.
Co-Chair Neuman addressed search and rescue efforts. He
relayed the committee had learned from the Department of
Public Safety (DPS) Alaska State Troopers that their
ability to fly some of their helicopters for search and
rescue would be impaired by the budget deficit and
reductions. He asked if the effort fell back on DMVA and
the military to fill those functions. He wondered how DMVA
had worked the issue out with DPS in order to ensure
Alaskan citizens were safe.
Commissioner Hummel answered that DPS was the first
responder to search and rescue calls. She detailed that if
DPS could not effect a search and rescue the call was
referred to the Rescue Coordination Center, which was
operational to the 11th Air Force, but staffed by Alaska
Air Guard personnel. The department had search and rescue
capability, which it conducted throughout Alaska. The
concern about grounding the DPS helicopter was that the
search and rescue ability was secondary to the state's
federal mission set. The department had to be on standby to
support the active Air Force component; DMVA would accept a
search and rescue mission for life, limb, and safety
whenever it could. She furthered that DMVA had federal
regulations and guidelines; therefore, if an issue was not
immediate life, limb, and safety the department was
prohibited from responding. She continued that DMVA would
be required to seek reimbursement from the state if the
department made a response the federal government
determined was unwarranted or outside of federal guidelines
and regulations. She relayed that reimbursement rates were
very expensive and could be provided to the committee.
2:42:06 PM
COLONEL ROBERT DOEHL, DEPUTY COMMISSIONER, DEPARTMENT OF
MILITARY AND VETERANS AFFAIRS, addressed the Air Facilities
Maintenance Division on slide 8:
· 32 full time budgeted positions
· $6,076.2 total budget request ($1,667.9 UGF)
· Provides maintenance services for Alaska Air National
Guard facilities
· Brings in $163,185,206 direct federal dollars to the
state economy
Mr. Doehl noted the federal dollars went to funding
guardsmen, contractors, or other entities in Alaska.
Representative Kawasaki remarked that DPS had requested
money in the prior year's budget for aircraft facilities
maintenance. He asked if the funding on slide 8 went to
non-military vehicles in addition to military vehicles.
Mr. Doehl responded that the facilities were located on Air
Force bases with equipment specific to Air Force aircraft;
they would not be a good fit for non-military aircrafts.
Additionally, the department's mechanics lacked the
appropriate Federal Aviation Administration certifications
for working on DPS aircraft.
Commissioner Hummel moved to slide 9 titled "Alaska Army
National Guard." The Army National Guard continued to
deploy soldiers in support of missions and training events
worldwide. She noted the guard continued its deployment
relationship with its state partner of Mongolia. The guard
had sent soldiers to Mongolia to train with 24 other
countries and participate in peace-keeping operations
training. Additionally, the guard had sent pilots to fly in
Afghanistan and two officers were currently serving in
Kosovo. Guard soldiers also trained in South Korea,
Cambodia, Australia, and across the continental U.S. There
were 210 Alaska Army guardsmen operating a ground missile
defense mission at Fort Greely who were on watch around the
clock, 365 days per year (operating as the nation's
defenders against intercontinental ballistic missile
attack). The guardsmen were deployed in place to provide a
vital defense to the homeland. State missions included
emergency response; and preparing for and responding to
requests by civil authorities for support ranging from
flood relief, search and rescue, and emergency housing for
citizens in armories.
Commissioner Hummel continued that the previous summer
Alaska Army National Guard's helicopters had supported the
Department of Forestry with 131 hours on the Mat-Su and
Kenai fires. Additionally, the guard had a civil support
team consisting of 22 specially trained Army and Air
guardsmen to assist civil authorities in the case of a
chemical, biological, radiological, nuclear, or explosive
event. The guard stood ready to support non-emergency
assistance to local and federal authorities. For example,
in support of the Glacier Summit, the National Guard had
provided military police support to the Anchorage Police
Department and state troopers; aviation support to the U.S.
Secret Service, and refueling support to Marine One. The
guard helped deliver medical care, build structures in
parks, and supply veterinary care throughout Alaska. The
Innovative Readiness Training Program combined the efforts
and skills of all the armed forces branches to train in
their career fields while benefitting citizens throughout
the U.S.
2:45:39 PM
Representative Wilson remarked there had been some issues
in the past year related to the National Guard and
recruiters and the ability to have guns onsite. She
detailed that some of the offices had been locked, which
required individuals to knock and wait for the door to be
opened. She wondered if the issue was ongoing.
Commissioner Hummel replied that there was a standard
operating procedure for the facilities that had a force of
one soldier or airman in an office. The procedure required
the door to be locked if the office was not located on a
federal facility. If the soldier felt they may be some
personal danger they were instructed to post a sign with a
phone number or way to contact them inside the office. The
tactics, techniques, and procedures had been implemented by
DMVA as long as the force protection measures warranted.
Representative Wilson stated that there had been more than
one person in the office. She had been told it had been a
directive. She wanted to keep the individuals safe, but she
figured they could carry guns for protection. She noted the
door had a glass panel and did not really offer protection.
She believed letting people know the individual inside was
not protected, put them in danger. She reiterated her
belief that it had been a direct order and that individuals
did not appear to have issues with safety.
Commissioner Hummel replied that DMVA had received
Representative Wilson's concern about the incident. No
direct order had been given to any of the department's
recruiting stations that they should lock themselves in if
there was more than one individual unless they felt there
was an imminent threat. The department had communicated the
standard operating procedures more clearly; everyone in the
recruiting facilities had been given a copy of the
procedures and had been briefed on the rules.
Co-Chair Neuman noted that that the previous year the
legislature had received information it would see a
downsizing from the federal government in the Army National
Guard and an increase in the Air Guard. He asked if it had
occurred and how it was reflected in the DMVA budget.
2:48:25 PM
Commissioner Hummel replied that it had occurred. She
detailed that the Alaska Army Guard would be further
decremented from 1,850 to 1,750 in the coming fiscal year.
There had been a slight uptick in the Air National Guard
numbers to about 2,100 or so. Therefore, overall the Alaska
National Guard was about the same as it had been in the
past couple of fiscal years. The department would provide
further detail at its Joint Armed Services meeting the
following day. Alternatively, she offered to provide a
further briefing after the current meeting. In terms of
facility maintenance, the department's budget did not show
a significant difference.
Mr. Doehl agreed that the Air National Guard had increased
by a couple hundred members and the Army National Guard had
decreased by a couple of hundred soldiers. Currently, the
department still had the legacy facilities in the Army
National Guard; it was working on the consolidation of 17
facilities. The department had fully engaged with the Army
Corps of Engineers and the state Department of
Administration was pursuing repurposing. He estimated a
reduction was envisioned in two to three years as
facilities were repurposed and removed from the books.
Until the department got an environmental baseline and
other mitigation work it was not in a position to lower the
budget. The department had drastically curtailed all the
utilities due to a cost-containment measure; previously
utilities had been left running.
Mr. Doehl spoke to Army Guard facilities maintenance on
slide 10. He shared they were spread across four locations
statewide to operate 55 facilities, which needed to be
repurposed, and another 17 the department continued to work
out of. The budget request was $2.6 million undesignated
general funds (UGF) [the total request was $12.7 million]
and facilities maintenance ultimately brought in about $51
million direct federal payments to the state economy.
Commissioner Hummel addressed measures and results related
to Alaska Guard strength on slide 11. Alaska was one of the
few states with a larger Air Guard than Army Guard
component. The chart indicated that Army structure had been
reduced slightly, while Air Force structure had been
increased. She referred to Mr. Doehl's comments about the
repurposing of armories and added that the reduction of the
footprint of the armories and the stationing plan was not
so much about changes in the past year or two, but changes
in the past 20 or 30 years in terms of force structure
decrements. She turned to a map of the world on slide 12
showing training events and deployments conducted in 2015
by the Alaska National Guard.
Commissioner Hummel moved to slide 13 spoke to the
department's Division of Homeland Security and Emergency
Management. The division was currently managing 12 federal
disasters and 10 state disasters. The public assistance
section of the division was managing over 700 projects
worth over $250 million in communities around the state.
The section provided emergency management training to over
700 Alaskans in over 40 training events statewide. The
section was preparing for a statewide homeland security
exercise in April [2016] with an emphasis on cyber security
and local response to terrorist active shooter scenarios.
Additionally, the section was working with over 30 local
communities on small community emergency response plans.
2:52:39 PM
Representative Kawasaki noted the committee had heard from
the Department of Health and Social Services (DHSS)
commissioner about public health issues earlier in the day.
He continued that the Division of Public Health dealt
specifically with public health disasters with 47 full-time
employees. He wondered how DMVA worked closely with DHSS on
the topic. He noted the Department of Environmental
Conservation (DEC), DOT, and DPS also had emergency
management groups.
Commissioner Hummel deferred the question to the director
of the Division of Homeland Security and Emergency
Management.
MICHAEL O'HARE, DIRECTOR, DIVISION OF HOMELAND SECURITY AND
EMERGENCY MANAGEMENT, DEPARTMENT OF MILITARY AND VETERANS
AFFAIRS, answered that DMVA, DOT, DPS, DEC, DHSS were
partners and all intertwined in the planning and training
response based upon the event. The agencies had senior and
primary responsibility based upon the event type. For
example, DHSS would have senior responsibility for
something like a pandemic outbreak. Depending on the event,
one agency would support another "at the tip of the spear."
Representative Kawasaki asked if the DMVA Division of
Homeland Security and Emergency Management was the lead
agency for a disaster. Alternatively, he asked if it would
depend on the type of disaster.
Mr. O'Hare responded that it depended on the type of
disaster. He explained that DMVA was responsible for all
natural and terrorist disasters in Alaska. The DHSS was
responsible for health related events, DEC was responsible
for environmental spills or similar events, and DMVA would
act in a supporting role.
2:54:52 PM
Commissioner Hummel addressed slide 14 titled "Measures and
Results" pertaining to the Division of Homeland Security
and Emergency Management. The graph included an assessment
by division staff that organized boroughs were able to
support their communities in both exercise and real world
response (i.e. operating their emergency operation centers
and providing effective and efficient response to
communities without an over-reliance on state assistance -
the reliance on the state was typically seen during a
disaster recovery phase, which DMVA specialized in at the
state level).
Representative Guttenberg stated that it had become common
for pieces of government to be merged into homeland
security. He asked about the meaning of the following
language: "boroughs that responded effectively to events
without state assistance." He spoke to the simulation of an
airplane crash at the Fairbanks International Airport. He
detailed that everyone had responded to the simulation. He
continued it was an example of local organized boroughs
effectively responding. He believed it was assumed that
such an event would immediately overwhelm the local
capacity. He wondered what kind of events the slide was
referring to.
Commissioner Hummel deferred the question to Mr. O'Hare.
Mr. O'Hare replied that the organized boroughs went through
the process of immediate response to support their local
communities when facing floods, fires, and other typical
events a community was threatened with. In the case of
larger events where a borough was overwhelmed with
supporting its communities, the process of asking for state
involvement/resources was followed effectively and
efficiently. He explained that slide 14 represented typical
immediate response for the ongoing daily seasonal threats
communities faced in Alaska. With the larger and
specialized events where boroughs may not have the
expertise or may require more resources, the boroughs
followed the established procedures to request additional
resources from the state. The state then provided as much
support as possible and may request additional assistance
from the federal government if necessary.
Representative Guttenberg referred to conversations with
emergency management heads about the process of going up
the chain in the event of an emergency. He provided an
example of an emergency where ambulance staff called a fire
chief who then called another fire district and a trooper
and so on. He asked who was capable of calling the DMVA
Division of Homeland Security and Emergency Management.
Mr. O'Hare answered that the borough emergency management
office or elected leadership called the state emergency
operations center to request help.
Representative Guttenberg wondered if a trooper could
notify the state. Mr. O'Hare replied that the emergency
operations center would corroborate the information with a
call to the borough emergency manager. The division took
its orders from borough emergency management and certainly
took its partnerships with another state agency looking for
help seriously, but it was necessary to size up the
situation to determine the real needs.
Representative Guttenberg asked if the division monitored
switchboard call centers.
Mr. O'Hare answered in the negative. The boroughs had the
division's phone numbers and the division had radio
communication with state troopers all of the time.
3:00:14 PM
Vice-Chair Saddler remarked that unless the information was
a measure of how well DMVA had trained organized boroughs
to respond, the effectiveness measure seemed rather
peripheral for the department. He surmised it seemed to be
more of a measure of how well the boroughs responded to
things.
Mr. O'Hare answered that one of the division's
responsibilities was to prepare Alaskans for responding to
disasters. The department's job was to help boroughs become
more prepared to support their citizens.
Vice-Chair Saddler observed that the organized boroughs had
responded effectively to events without state assistance
100 percent of the time many of the years shown on the
graph. He was interested to hear about responses from
unorganized areas. He reasoned organized boroughs had
resources and organization.
Mr. O'Hare answered that he would follow up with the
information. He detailed that communities in unorganized
boroughs called the state emergency operations center
directly and the state acted as their responding borough
with support.
Commissioner Hummel moved on to discuss the Office of
Veterans Affairs on slide 15. The office was small in size,
but it assisted nearly 58,000 Alaskans with state and
federal VA [U.S. Department of Veterans' Affairs] benefits
requests; the number represented an increase of over 10,000
Alaskans assisted in FY 14 and reflected a workload of 7.5
clients per day per employee. The office assisted Alaska
veterans in receiving over $222 million in federally funded
medical care, $244 million in direct federal funds for
disability compensation payments, 4,605 students (including
veterans and eligible family members) in receiving $74
million in federally funded education or vocational
rehabilitation benefits, and 5,208 Alaska veterans in
obtaining home loan certificates resulting in over $1.4
billion in guaranteed loans. She specified it was the first
time the VA home loan program passed $1 billion in Alaska.
3:03:06 PM
Co-Chair Neuman stated that all of the committee members
had veterans in their districts who did not want to deal
with government for one reason or another. He wondered if
there was a phone number to provide to individuals needing
medical help and other.
Commissioner Hummel replied in the affirmative. She
stressed that DMVA operated as ombudsman; it was the
department's job to connect Alaska's veterans to the
services and entitlements they had earned through their
service. On behalf of the Verdie Bowen, the director of the
Office of Veterans Affairs, she believed he would tell the
committee he dealt with people daily who were off-the-grid
or distrustful of big government. The department connected
person-to-person and would go wherever needed to help fill
out paperwork or other. She would provide the committee
with the appropriate contact number.
Co-Chair Neuman referred to substantial problems
(potentially the worst in the nation) with the veterans'
hospital in Wasilla according to an investigation by the
federal government. However, there was a new, federally
funded Native hospital in Wasilla. He asked if veterans
could use the new hospital.
Mr. Doehl replied in the affirmative. He detailed the
individuals needed to coordinate with the VA to have their
care transferred over to the Southcentral Foundation
Hospital in Wasilla. He noted approximately 800 veterans
were using the new hospital and had raved about the level
of service. He spoke to the one-stop-shopping at the
facility versus the community-based outpatient clinic at
the VA in Wasilla that still tried to send patients to
Anchorage for certain functions. He noted individuals were
required to get preapproval from the VA to utilize the new
hospital, but the process was straightforward.
Co-Chair Neuman asked about the difficulty of the process.
Mr. Doehl replied that he did not know of a veteran who had
been denied; it was the veteran's choice.
Co-Chair Neuman stated it was probably the best news he had
personally received - that he could help spread to his
constituents - in a very long time.
Commissioner Hummel agreed that it was great news, but it
was worrisome that people did not know about it. Much of
the department's work involved communication outreach and
more community outreach. She remarked that the department
believed it had everybody covered, but there were always
people who did not get the word.
3:06:22 PM
Co-Chair Neuman asked agreements with other states about
providing the best price for service if there were veterans
requiring surgical procedures. Mr. Doehl answered that the
VA was the direct care provider of medical services and was
responsible for paying for the services. However, the VA
had partnered with the Alaska Native Tribal Health
Consortium (ANTHC) and several major hospitals to provide
cost-effective care closer to home. Additionally,
agreements were in place in two different programs to send
veterans out-of-state if the service could be better
provided elsewhere.
Co-Chair Neuman asked for handouts outlining services that
could be passed on to constituents.
Vice-Chair Saddler remarked that the Office of Veterans'
Affairs published an excellent pamphlet annually that
described the plethora of benefits provided to veterans in
Alaska. He asked if the cooperation with the Mat-Su
hospital for VA qualified veterans run through the federal
Veterans' Choice program.
Mr. Doehl answered in the negative. He detailed that Alaska
had led the way in direct contractual relationships between
the VA and different health providers outside the program.
He believed it was the reason the process was working much
better for veterans in Alaska than some of the stories
heard about the process out-of-state.
Representative Wilson noted that Alaska was still exempt
due to the Real ID Act; however, veterans still had to use
Fort Wainright. She asked if veterans received a special
card in order to have something to show if they only had an
Alaska driver's license and no passport.
Mr. Doehl answered that the Tanana Chiefs Conference
facilities in Fairbanks had the same relationship with the
Southcentral Foundation the committee had just been
discussing. There were means for individuals to work with
the military police squadron to develop other means for
access to a base such as a defense base identification card
someone needed regular access to a facility. There were
means with the local base security for regular users and
other means the VA hospital should be coordinating with the
installation security staff.
Representative Wilson disclosed that her husband is a
veteran. She asked if the issue had to be dealt with
federally if a veteran had issues with a veteran hospital
on base. Alternatively, she wondered if the issue could be
handled by DMVA.
Mr. Doehl answered that the department could attempt to
intervene, but the individual would have to go through a
federal process either through congressional offices (who
were adept at dealing with the matters due to the number of
veterans in Alaska - the highest per capita) or the
individual could seek to have its care through another
cooperative provider in the Fairbanks area.
Representative Wilson believed individuals got lost in the
confusion.
3:10:05 PM
Vice-Chair Saddler remarked that a couple of years back,
with the department's help, legislation had passed to
provide a veteran designation on the State of Alaska
driver's license or ID card. He did not believe it sufficed
to get a person on a military base, but it was another
indication the state was proud to acknowledge its veterans'
service and to help them obtain other benefits outside of
the VA clinic or base access. He reasoned if people did not
know about the publications from the DMVA, they may not be
aware of the veterans' driver licenses.
Representative Edgmon returned to slide 15. He referenced
Mr. Doehl's statement that Alaska had among the highest
veterans per capita. He noted it had been that way for
numerous years. He was working on legal services
legislation and had been surprised to learn how many
veterans utilized the legal services. He asked if the
profile of Alaska's veteran community followed the normal
population curve (i.e. younger and older veterans, single
and married veterans, etcetera). He wondered how Medicaid
expansion tied into the services provided by the department
given it had only been around since September.
Mr. Doehl answered that the department had provided copies
of a recent survey of the state's veteran population to the
finance subcommittee; it would be provided to the House
Finance Committee as well. There were around 75,000
veterans in Alaska, but the number was growing about 5
percent per year. He detailed that the incoming individuals
were young and most were married with children; individuals
that were not retiring out of the service, but were coming
in after completing somewhere between 5 and 15 years of
service. He would follow up on the question related to
Medicaid expansion and its impact on the specific group.
The department believed there was a significant group in
the hundreds to thousands who getting access to VA provided
healthcare earned through military service, took care of an
obligation that would otherwise be assumed by Medicaid.
Representative Edgmon referenced an inquiry generated at a
meeting in Dillingham with a number of veterans around the
table. He had been surprised at the number of veterans
living in the Dillingham community. He detailed a number of
the individuals would fit the Medicaid expansion recipient
profile.
Commissioner Hummel reiterated that Alaska had more
veterans per capita than any other state. She referred to
Mr. Doehl's testimony the number of veterans in Alaska was
75,000 and climbing. She relayed that young veterans were
increasing the fastest. There would be a big bulge that
would eventually taper off, but the majority of the
individuals had combat experience.
3:14:12 PM
Commissioner Hummel moved to slide 16 and addressed
measures and results of the Office of Veterans' Affairs.
She noted that for 2015, the federal VA had not yet
finished calculating all of the benefits provided to
Alaskans; therefore, the number on the graph was
anticipated to increase by approximately $10 million. She
turned to slide 17 and provided an introduction to the
Alaska Military Youth Academy (AMYA). The department was
proud of the program and over the past year it had
restructured the cadre organization of platoons and the
dining facility staff in order to save money. She detailed
there had been substantial reductions in overtime costs;
three dining facility positions had been eliminated without
a reduction in quality of service to at risk youth.
Representative Wilson requested numbers of enrolled AMYA
students for the fall and spring. Commissioner Hummel
replied the department would follow up with the numbers.
Representative Wilson remarked that several years earlier
there had been an issue with ensuring high school dropouts
got to AMYA. She asked if the issue was ongoing.
Commissioner Hummel asked if Representative Wilson was
saying in the past there had been a lack of information
from the high schools identifying dropouts.
Representative Wilson replied in the affirmative.
Commissioner Hummel answered that the academy had
admissions officers and provided outreach to the schools.
She believed disclosing a list of dropouts was probably a
privacy act issue. She did not expect AMYA would receive
the information directly from the schools or school
district. However, the schools were knowledgeable of the
program's existence, which marketed throughout the schools
and social agencies. She did not know if the academy
received a list of high school dropouts, but she would be
surprised if it did.
Mr. Doehl answered that the department was not currently
receiving the information, but it would follow up with more
detail. He noted the department had just recently sent
requested information to Representative Gara on social
agency interactions.
3:16:47 PM
Representative Wilson noted she had previously had DMVA [as
a finance subcommittee] and believed that statute
designated the information was to be provided to DMVA. She
believed AMYA's primary goal was to help students get back
on track and into school to complete credits. She surmised
that without the list the academy would probably be
spending significant time and money on trying to determine
who the students were.
Commissioner Hummel answered that the department would
follow up.
Vice-Chair Saddler had been informed there had been some
problem with the academy's educational component that was
not qualified as a grade A or upper level program when it
came to U.S. Department of Defense recruiting. He stated
that for some reason an academy graduate had not been
scored for recruiting purposes as highly as a student from
a regular, public, private, or charter school.
Mr. Doehl answered that in the past there had been some
confusion about the value of an AMYA diploma. The issue had
been rectified and it had become recognizable as a high
school diploma. He detailed that a general education
diploma (GED) was a notch down, but a diploma from the
academy counted as the equivalent to a high school diploma.
He added that regulations specified the academy diploma
should be considered a high school diploma.
Vice-Chair Saddler understood the AMYA diploma qualified as
a high school diploma, but he had heard there had been a
question about whether it "made the grade" and if someone
had to go through additional training before being accepted
as a recruit.
3:18:50 PM
Representative Munoz spoke to the high school qualifying
exam (HSQE) requirements that had been eliminated [in
2015]. She asked if previous students who had not passed
the HSQE had been afforded an opportunity to pass or take
the test [in the academy]. She surmised perhaps the test
had not been required for AMYA recruits.
Mr. Doehl would follow up on the question. He referred to a
change in the GED that had become retroactive. Given the
change, the department anticipated having some students who
previously took the GED who passed; however, the academy
was still assessing how to reach back to the students and
to determine what role the HSQE played in the credits
received by students at AMYA who then attempted to graduate
at their home high school or at the academy. His
understanding was that the exit requirements did not exist.
Co-Chair Neuman stated that in the past federal recruiters
had been dealing with federal regulations on home school
students and had not recognized their diplomas. He asked if
the issue had been resolved. He added that the students had
been required to go back to community colleges to obtain
special credits in other classes.
Mr. Doehl asked if Co-Chair Neuman was referencing home
school programs outside of AMYA. He noted those programs
were outside of his expertise.
Co-Chair Neuman specified he was referring to home school
programs where students had state identification numbers
from the Department of Education and Early Development
(DEED).
Mr. Doehl answered that he would follow up with the
information. He was not familiar enough with the home
school program in Alaska and how the recruiters had dealt
with those high school diplomas. However, for purposes of
academy accessions it was not a show stopper.
Co-Chair Neuman noted that there were 10,000 homeschool
kids in Alaska doing a good job who would like to join the
military. He added that his son was one of the students who
had experienced issues with the situation.
Mr. Doehl answered that the prior year four of the
recommendations of the congressional delegation had
included home schoolers. He gave assurance that at the
highest level of the military the issue was not a show
stopper.
3:21:14 PM
Commissioner Hummel briefly highlighted AMYA measures and
results and the percent of eligible cadets who received a
GED or high school diploma (by graduating class and fiscal
year) on slide 18. She pointed to a drop in the graduating
class related to the GED in 2014 due to the changes in
standardization in 2014. She skipped slide 19.
Mr. Doehl spoke to a look-back with funding source changes
on slide 20. He pointed out that in 2007 AMYA had been an
interagency transfer from DEED and had not been included in
DMVA's budget numbers. He detailed the current DMVA budget
was within $240,000 of its 2007 budget; the increase
represented 1.8 percent growth over 11 years or 0.17
percent annual growth rate.
Commissioner Hummel moved to a pie chart on slide 21
showing DMVA's share of Alaska's General Fund operating
budget. The department represented 0.66 percent of the
overall state budget. She turned to slide 22 that showed an
image of an iceberg. She detailed the portion of the
iceberg above the water's surface represented DMVA's
requested state General Fund dollars of $18.4 million for
FY 17; the portion of the iceberg below the water's surface
reflected federal dollars received. She elaborated the
slide showed slightly under $500 million in federal
funding; however, the number was closer to $530 million
because the slide did not include $30 million in federal
receipts coming through the Division of Homeland Security
and Emergency Management.
Mr. Doehl moved to slide 25 titled "Personal Services Look-
Back." The department had seen growth of $10 million in its
personal services account for contractual pay increases. He
specified that when removing personal services from the
equation, the department's costs had dropped by $5.6
million over the past 11 years. He directed attention to
slide 26 related to budgeted positions to illustrate the
point. He noted the department currently had 47 fewer
positions than in 2017. He detailed it was one of the ways
DMVA had strived to be more effective with the money
appropriated by the legislature over the years. Over the
past 11 years some things had changed within the
department, including the addition of the Alaska Aerospace
Corporation into the DMVA budget. He noted the corporation
currently received zero state General Fund dollars. He
elaborated that by restructuring some of the money, the
department had grown the Office of Veterans' Affairs into
providing 17 veterans' service officers statewide and had
moved them off-base to a more accessible location. Slides
27 through 30 largely addressed the rise and fall of AMYA
becoming part of the DMVA's primary budget, the addition of
the Alaska Aerospace Corporation, changing types of money,
and incoming/outgoing General Funds. He moved to slide 31
titled "FY2017 Budget Highlights."
Mr. Doehl directed attention to slide 31 related to FY 17
budget highlights. The department was facing some
unallocated reductions that would be addressed by the
deletion of positions, reduction of services, and
implementation of furloughs for exempt employees (i.e. DMVA
directors and commissioner). The department had submitted
its recommendations to the Office of the Governor and was
awaiting approval; the approved recommendations would be
reflected in an amended budget item.
3:25:35 PM
Commissioner Hummel addressed two increments in the
governor's FY 17 budget on slide 32. She emphasized that
even with the two areas of growth, DMVA was within $220,000
of its 2007 budget. She provided further detail on slides
33 and 34. She specified the department was requesting
$120,000 General Funds for obtaining the services of a
consultancy for enhancing military community and
legislative partnerships in order to address the potential
impact of base realignment and closure (BRAC) as early as
FY 18. The department had to be prepared to inform the U.S.
Department of Defense and congressional policy and decision
making processes, which would specifically require seeking
expertise in the areas of federal legislation affecting
military base viability, reducing the energy cost
differences between Alaska and outside bases, improving
partnerships between host communities and military bases,
and developing enhanced-use leases. Focus on the areas
would enable DMVA to enhance military, community, and
legislative partnerships in order to be better prepared for
and respond to BRAC in the future, as well as to hedge
against any proposed force structure decrements.
Mr. Doehl addressed the second increment the department was
seeking (outside of a formulaic increase in the National
Guard and Naval Militia Retirement System), which was for a
rural engagement initiative to stand up an Alaska defense
force presence in Southwest Alaska based in Bethel and
would address several things. First, the Alaska Army
National Guard had been drawn down over the years in rural
Alaska. He detailed that during that time the department
had over-concentrated or overcentralized its force in
Southcentral Alaska. He elaborated that in the event of a
mass disaster, such as an earthquake, the department's
ability to provide a response force was compromised.
Second, the department believed the group would address a
need for sensors as the Arctic became more accessible and
commerce increased. Third, it would provide more of an on-
the-ground group to deal with the unorganized borough
responses to disasters. Rather than instantly turning to
the state, it would provide a means to export and develop
local expertise to address the issues. He relayed the
increment would be the subject of a much longer briefing to
be held Thursday night of the present week during a
[legislative] budget subcommittee meeting.
3:28:07 PM
Mr. Doehl turned to slides 35 through 38 related to FY 16
unallocated reductions. There had been $51.9 million in
unallocated travel reductions across three divisions. The
department had determined the reduction would be
sustainable and it was currently on track. Slide 36 showed
reductions to Air and Army Guard facilities. He moved to
slide 37 and addressed where the reductions had been made.
A position had been deleted in the commissioner's office
that had been partially funded with General Fund dollars
(the remaining fund source had been federal receipt
authority). He furthered that six positions had been
deleted in AMYA and a cost of living allowance (COLA)
increase had been reduced under Craig Campbell (the
president and chief executive officer of the Alaska
Aerospace Corporation under DMVA), who had always refused
COLA increases in the Alaska Aerospace Corporation. Slide
38 showed how the decreases had impacted the department. He
detailed that pink slips had been given to three
individuals when the six positions had been eliminated.
Additionally, two more individuals had left their positions
once notified of their impending job loss. He noted that
heeding Representative Thompson's advice the department had
not focused eliminating low earning positions; 50 percent
of the cuts (including two occupied positions) had been to
the expert/professional level position range. The remaining
50 percent impacted technical and entry level positions. He
relayed that most of the positions eliminated were at JBER
or in Anchorage. The positions in Kodiak had been
eliminated by the Alaska Aerospace Development Corporation.
Vice-Chair Saddler noted that the legislature had tried not
to allow for the contracted increase in wages "because we
knew exactly what would happen, has happened - six people
lost their positions." He wondered whether the individuals
would rather have maintained their employment at lower pay
or other. He referred to the department's request of
$120,000 for a consultant for BRAC-proofing. He knew there
had been other consultant work. He referred to
recommendations and believed the department should utilize
the money doing something for BRAC-proofing instead of
studying how to do it. He reasoned money would be hard to
come by and it would be increasingly hard to come by for
outside experts.
Co-Chair Neuman noted the department may even have to look
for some outside funding for the item. He added it was
difficult to try to get the funding in the budget.
Representative Kawasaki relayed the Fairbanks borough had
consistently spent money annually on BRAC-proofing and
consultants. He thought maybe there were some ways the
department could work with municipalities with a high
number of military bases.
Commissioner Hummel answered that when she and Mr. Doehl
had come into their positions they had seen there was a
contract in place for consultancy, which had been about
three times more than the current request. She elaborated
they had felt the state was not getting a good deal for the
money; therefore, they had let the contract expire and had
not requested a contract for the current fiscal year.
However, the department had realized with the "poaching of
425 and the BRAC standing up again," the department really
needed help from someone with expertise inside the beltway.
She continued that one of the consultants contracted to
DMVA in the past had been the individual who had assisted
U.S Senator Dan Sullivan's office in the creation of the
NDAA (National Defense Authorization Act), which had been
accepted and would force the U.S. Department of Defense to
develop a "conops" [concept of operations] for the Arctic
and to resource the operations there. She relayed the funds
would not be directed at numerous studies, but would go
towards an ounce of prevention in order to get some inside
expertise on how to make things happen in Washington
[D.C.].
3:32:58 PM
Representative Kawasaki wondered why the committee had not
heard much information about the Alaska Aerospace
Corporation. Mr. Doehl answered that there had been no
General Fund appropriation request for the corporation. The
governor was currently evaluating a proposal for the
corporation to become privatized. He explained that without
a budget "tie-in" the department had not found a good fit
within the committee process in which to discuss the
corporation.
Representative Kawasaki would like to see what the money
had gone to in the past several years. He specified that
substantial General Fund dollars had gone to the
corporation. He elaborated that the director of the
corporation's travel budget had been roughly what the
entire department's travel budget cut had been. He reasoned
that as long as the director was acting on behalf of the
state, the fund source did not matter (i.e. federal or
state UGF) and the corporation should be held accountable.
Representative Wilson asked about the proposed increase
associated with rural engagement. Mr. Doehl answered $1.3
million.
Representative Wilson asked what the increment was for. Mr.
Doehl answered that DMVA envisioned a very small cadre of
three to four individuals on state active duty to do
exercised design and administrate the program. Primarily
the funds would go to paying for participation, exercises,
and procurements of some small things.
3:35:08 PM
Co-Chair Thompson clarified that the request was $1.3
million in the operating budget and there was an additional
$1 million request in the capital budget for "mission
creep." He thanked the presenters for the presentation. He
asked Commissioner Hummel to introduce the staff in the
audience. He thanked the individuals for their service to
Alaska and the nation.
Commissioner Hummel introduced the department staff.
Co-Chair Thompson thanked the individuals for their
service. He discussed the agenda for the following day.
ADJOURNMENT
3:37:25 PM
The meeting was adjourned at 3:37 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| UA FY17 HFIN Overview - 2.5.16.pdf |
HFIN 2/8/2016 1:30:00 PM |
|
| FY17 DMVA House Finance Overview -- 02-08-2016 FINAL.pdf |
HFIN 2/8/2016 1:30:00 PM |
|
| Industry support letters--Marine Transportation.pdf |
HFIN 2/8/2016 1:30:00 PM |
HFIN UA Overview Response |
| Letter-HFIN overview questions 2-9-16.pdf |
HFIN 2/8/2016 1:30:00 PM |
HFIN UA Overview Response |
| Distributions for the Benefit of UA.pdf |
HFIN 2/8/2016 1:30:00 PM |
HFIN UA Overview Response |
| presidential performance comp fy16.pdf |
HFIN 2/8/2016 1:30:00 PM |
HFIN UA Overview Response |
| UA performance framework.pdf |
HFIN 2/8/2016 1:30:00 PM |
HFIN UA Overview Response |
| UAF Response - KSMSC.pdf |
HFIN 2/8/2016 1:30:00 PM |
HFIN UA Overview Response |
| UAF Powerplant update.pdf |
HFIN 2/8/2016 1:30:00 PM |
DOT Response HFIN HFIN UA Overview Response |
| Year to Date Fundraising_12-31-15.pdf |
HFIN 2/8/2016 1:30:00 PM |
|
| UAS response to House Finance inquiries--Marine Transportation.pdf |
HFIN 2/8/2016 1:30:00 PM |
HFIN UA Overview Response |