Legislature(1993 - 1994)
02/08/1993 01:34 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
HB 60 FY 94 CAPITAL BUDGET Co-Chair MacLean provided members with a packet of detail information on each capital improvement project request submitted by the Departments of Law, Education and Revenue 1 (copy on file). She also presented members with three worksheets prepared by the Division of Legislative Finance (Attachment 1). Co-Chair MacLean identified two areas of concern. She noted that the FY 94 capital request emphasizes data processing and communications related projects. There are approximately $18 million dollars in data processing and communications related projects. She noted that few of the proposed projects have been approved by the Telecommunications and Information Council in the Department of Administration (TIC). Co-Chair MacLean explained that the FY 93 budget placed individual departmental information management projects in the front section of the budget with language requiring that projects be consistent with the state short and long range plan developed by TIC. Co-Chair MacLean stated that it is her plan to place projects not reviewed by TIC in the front section of the budget with the appropriate language requiring TIC review. Co-Chair MacLean expressed concern with the proliferation of operating budget items in the capital budget. She pointed to projects in the Department of Fish and Game and Department of Natural Resources. DEPARTMENT OF LAW BRUCE BOTELHO, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW addressed the Department's CIP request for FY 94. He noted that the Department's request is identical to their FY 93 request. The Department proposes to establish local and wide area networks for the criminal and civil divisions. He stressed that the Department of Law must exchange documents between locations in an expedient manner. He gave examples involving the exchange of documents between division offices. Representative Brown asked if the request included funding for reconciling incompatible data bases. RICHARD PEGUES, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF LAW replied that the funding is for implementation of a local area network (LAN) and a wide area network (WAN). Mr. Pegues clarified that the project has been reviewed by the Information Systems Projects Review Committee in the Department of Administration (ISPRC). 2 Representative Hanley noted that the system would be completed in FY 95. Co-Chair MacLean asked for further information concerning the Department's information management plan. Representative Brown noted operating costs were included in the Department's request. Mr. Pegues explained that capital money would not be used for operating expenses. Mr. Pegues, in response to a question by Representative Hoffman, elucidated that the Office of Budget and Management presented the Department of Law with a $1.2 million dollar target. Representative Brown asked for back-up information regarding the request which was provided to ISPRC. Co-Chair MacLean asked for a breakdown of expenditures of the FY 93 capital appropriation for the Department of Law, lawsuit settlements. Representative Hoffman noted that two additional positions will be located in Anchorage. Co-Chair MacLean asked if other projects went through TIC. Mr. Pegues clarified that all the Department's projects went through ISPRC. Representative Brown discussed the coordination of data bases. Mr. Botelho clarified that the LAN and WAN requested by the Department of Law is for the internal transfer of pleas, motions and other documents that are not of interest to agencies outside the Department of Law in regards to the tracking of cases or individuals within the criminal justice. Representative Brown asked that a cost saving benefit analysis be provided. Representative Parnell noted the need for an overall coordinated data base. He asked if a brief or pleading bank is maintained. Mr. Botelho assured him that information is indexed and available. Brief banks are located in Juneau, Anchorage, Fairbanks and in the Criminal Division. Briefs will not be optically scanned. Mr. Botelho, in response to a question by Representative Therriault, clarified that the two new positions will maintain the network. The network installation will be contracted. Positions to maintain the system will be included in the FY 95 operating budget. Representative Hoffman expressed concern that the positions will add to the cost of future operating budgets. Mr. Botelho stressed that there will be a cost savings 3 associated with the project. He added that charge backs will be used to pay for the positions. Representative Brown noted that there are 16 - 20 EMAIL systems in the state agencies. Mr. Botelho emphasized that the Department of Law currently uses the state EMAIL system. He observed that the state EMAIL system is inappropriate for the transfer of documents that are in final form. ALASKA HOUSING FINANCE CORPORATION - DEPARTMENT OF REVENUE BARRY HULIN, EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE CORPORATION observed that AHFC has not submitted a CIP request since 1983. He stated that programs within the Administration were transferred to AHFC from Department of Community and Regional Affairs to the Corporation. The request by AHFC will continue programs begun in the Department of Community and Regional Affairs. He noted that the request will be matched by federal or corporation dollars. RAY UTTER, ADMINISTRATIVE MANAGER, DIVISION OF ADMINISTRATIVE SERVICES, ALASKA HOUSING FINANCE CORPORATION detailed AHFC's CIP requests. He referred to AHFC's CIP request for the HOME Investment Partnership Program to supply affordable, low and moderate income housing. There is a state match requirement of approximately $1,050.0 million dollars in corporate receipts. Mr. Utter reviewed AHFC's CIP request for federal competitive grants. He detailed the funding source and amount for each program. * Transitional Housing: $500.0 thousand dollars federal funds - $500.0 thousand dollars in corporation match * Permanent Housing for Handicapped Homeless: $500.0 thousand dollars in federal funds - $500.0 thousand dollars in corporation match * Shelter Plus $700.0 thousand dollars in federal funds -$700.0 thousand dollars in corporation match * Supplemental Assistance for Facilities to Assist the Homeless: $1,900.0 million dollars in federal funds * Housing Opportunities for Persons with Aids: $500.0 thousand dollars in federal funds * Multi-Family Home-Ownership Planning Grant: 4 $200.0 thousand dollars in federal funds * Single Family Home-Ownership Planning Grant: $100.0 thousand dollars in federal funds * Economic Empowerment for Low Income Families: $50.0 thousand dollars Mr. Utter discussed AHFC's CIP request for program receipt authority to fund $500.0 thousand dollars in Alaska Housing Finance Corporation Grants. He explained that there is a need to supplement federal funds. He gave as an example the Fairbanks Public Housing Development Project. Representative Brown asked if AHFC discussed the possibility of funding programs regarding mental disabilities through the Mental Health Trust Fund. Mr. Hulin stated that AHFC had not considered the Mental Health Trust Fund as a funding source. Co-Chair MacLean asked if AHFC had previously received discretionary grant authority. Mr. Hulin stated that AHFC has not traditionally given grants. (Tape Change, HFC 93-17, Side 2) Representative Hoffman expressed concern with a discretionary grant program. He felt that the Legislature would be providing a "blank check." Representative Martin asked if AHFC understood that it would receive grant authority under the merger. Mr. Hulin noted that AHFC received specific authority to provide grants that were in the AHFC budget and were reviewed by the Legislature. Mr. Hulin emphasized that the ASHA Board of Directors made a commitment to the Fairbanks Public Housing Development before its demise. He noted that the remaining $164.0 thousand dollars would be for similar projects. Co- Chair MacLean clarified that corporate funds would be used as a federal match. Representative Brown discussed the Hollywood Vista site in Anchorage. Mr. Hulin noted that the project cost is undetermined. He expressed his reluctance to commit AHFC funds to the project. Mr. Utter discussed AHFC's CIP request for Affordable Housing and Energy Efficiency Grants. He noted that the project began in the Department of Community and Regional Affairs. There is a $1,625.0 million dollar federal contribution for weatherization. Corporate matches of $500.0 thousand dollars will be made by the Alaska Craftsman 5 Home Program and Energy Rated Homes of Alaska. Mr. Utter referred to AHFC's CIP request for $1 million dollars in authorization for Oil Overcharge Settlement Funds. This program was also transferred from Department of Community and Regional Affairs. Mr. Hulin commented on AHFC's request for authorization to expend corporate receipts of $9.2 million dollars in the Supplemental Housing Development Program. He noted that the program would be continued with corporate funding. The program had been financed with general fund dollars. Representative Hoffman asked if the Board reviewed the capital improvement project requests. Mr. Hulin replied that the Board has not historically been involved in the budget process. He noted that the Board has a copy of AHFC's budget. He expected further involvement by the Board. Representative Martin asked if the merger has been successful. Mr. Hulin acknowledged that the merger of ASHA has been challenging. He stressed that there has been a smooth merger of programs from the Department of Community and Regional Affairs. He observed that the Board make-up has been changed to reflect the different emphasis of the Corporation. DEPARTMENT OF EDUCATION GARY BADER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF EDUCATION stated that the Department's CIP requests were prioritized under the current law. He detailed the process. Six year plans are submitted by school districts. The are evaluated and ranked according to: * Health, Life and Safety * Unhoused Students * Protection of Structure * Code Upgrade * Operating Cost Savings * Functional Upgrade * Other He explained that other factors considered under the Life, Health and Safety category include: * District's ranking of projects * District's ability to provide educational services through alternative facilities 6 * Nature and seriousness of the problem * If funding has already been provided to start the project * Life cycle cost of project Mr. Bader stressed that school districts may request public comment on the Department's ranking. Districts can ask for a formal hearing to dispute the ranking. Final review can be taken to the Superior Court. Co-Chair MacLean asked the status of the regional high school review. Mr. Bader noted that a request for proposals has been issued. He did not know the current status. Mr. Bader addressed the Department's CIP request for $350.0 thousand dollars to provide materials to the State Library. He noted that the capital budget has been used over the past nine years to provide materials to the State Library. Co- Chair MacLean noted that the FY 93 appropriation for library materials was $200.0 thousand dollars. Mr. Bader observed that the original FY 93 request was $250.0 thousand dollars. Mr. Bader discussed the Department's CIP request of $100.0 thousand dollars for a statewide data management system. He noted that the project was reviewed by ISPRC as included in a previous request. He noted that a meeting of the Department of Education, Department of Administration, school districts and private individuals took place in 1991, to discuss information needs relative to school districts. The recommendations were to: * Establish a common data base for information sharing by all school districts and the Department of Education; * Establish a common accounting system for all school districts; * Establish a common formate for reporting test data and other information needed for verification for state and federal program funding; * Establish a statewide electronic mail system for use by all school districts and the Department of Education Mr. Bader emphasized that the statewide data management system would be a pilot project. He stressed that cost 7 savings would be involved. Co-Chair MacLean noted that $800.0 thousand dollars were appropriated for this project in FY 93. DUANE GUILEY, DIRECTOR, SCHOOL FINANCE, DEPARTMENT OF EDUCATION clarified that the Department of Education received $800.0 thousand dollars of a $2.5 million dollar request. He stated that the FY 93 appropriation will be used to convert some existing data on the Department's Wang computer to the AS/400 computer to develop a standard data dictionary. The standard data dictionary will be published through the school districts. It will define file structure and data elements. School districts will then be hardware/software independent from the Department of Education. The $100.0 thousand dollar request will be the third phase of a four year plan. Mr. Bader clarified that utilization of the data dictionary represents a pilot project. Districts will be able to report data electronically to the Department of Education. Representative Brown expressed her concern that the project is not serving classrooms. She suggested that the Department take the leadership to provide a transition to compatible systems. Mr. Bader commented on the Department's CIP request of $236.8 thousand dollars for maintenance at the Alaska Vocational Technical Center (AVTEC). He discussed needed maintenance. Representative Martin asked for the percentage of students with disabilities. Mr. Bader did not know. Representative Martin noted that the cost to bring all the facilities into compliance with the American Disabilities Act would be $218.0 thousand dollars. Representative Brown clarified that funding for ADA modifications will be provided by grants through the Department of Transportation and Public Facilities. Mr. Bader reviewed the Department's CIP request of $290.0 thousand dollars for a Micro Image Optical System. He explained that the current system stores images in a magnetic storage system. He noted that magnetic storage is costly and volatile. Optical Storage cannot be written over. The request would also include an upgrade of the current computer. Without an upgrade in storage capacity, the Department estimates it will be out of storage capacity within one year. The cost of continuing magnetic storage would be approximately $45.0 thousand dollars a year. 8 Co-Chair Larson asked if it would be better to wait for the "F" series computer. Mr. Bader agreed that the Department would like to wait for the "F" series if possible. Mr. Bader clarified that the AS/400 has been with the Department for two years. Co-Chair MacLean asked for the Department's long term plan. Mr. Bader stressed that the Department intends to discontinue using the Wang system and to consolidate into one system. This appropriation would complete the Department's needs for this goal. Representative Brown addressed an imaging study contracted for by TIC. Mr. Bader noted that the project is still active. He expected that the Department's existing optical storage would be compatible with standards developed by TIC. Optical storage etches into the storage media. Representative Hoffman noted that the estimated completion date is 1997. Mr. Bader clarified that the system will be implemented immediately. Transferring of data will continue into 1997. (Tape Change, HFC 93-18, Side 1) Mr. Bader addressed the Department's request of $213.7 thousand dollars for the Alaska Vocational Technical Center for equipment purchases. He noted that funds would be distributed as follows: * Food Service - $15.0 thousand dollars * Fisheries - $28.0 thousand dollars * Library - thousand dollars * Mechanics training program - $50.0 thousand dollars * Administration - $80.0 thousand dollars * Forestry - $15.8 thousand dollars Mr. Bader referred to the Department's CIP request of $140.0 thousand dollars in federal pass-through funds for Public Library Constructions. Libraries must match grants with 55 percent of local funds. Grants are administered by the State Library. No state funds are required. Mr. Bader discussed the Department's CIP request of $809.0 thousand dollars for Stabilization of Museum Environment. He explained that the project originally contained an additional $254.8 thousand dollars for American Disabilities Act (ADA) repairs. Funding for ADA improvements will be requested through the Department of Transportation and Public Facilities. He explained that the request is a continuation of a FY 91 Capital appropriation of $88.0 9 thousand dollars to upgrade the Alaska State Museum's heating, ventilation, and air conditioning system. Funding for the project was not sufficient for completion. This request will complete the project. Representative Therriault clarified that the Department of Education will apply for ADA funding through the Department of Transportation and Public Facilities. POSTSECONDARY EDUCATION COMMISSION - DEPARTMENT OF EDUCATION MARY LOU MADDEN, ASSISTANT EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION COMMISSION DEPARTMENT OF EDUCATION explained that the Postsecondary Education Commission is requesting three CIP projects. The Postsecondary Education Commission is requesting corporate receipt authority to improve operational efficiency. She noted that the Postsecondary Education Commission is experiencing an expediential increase in loans coming into repayment. DOUG HANON, FINANCIAL OFFICER, POSTSECONDARY EDUCATION COMMISSION, DEPARTMENT OF EDUCATION addressed the Commission's CIP request of $210.0 thousand dollars for a telephone intelligent dialing system. He explained that collection personnel will be able to more efficiently contact clients in or approaching default. The intelligent dialing system would interface with the student loan data base system for automatic contact. The Postsecondary Education Commission expects up to a 300 percent staff productivity improvement. The request would be funded from corporation receipts. Representative Navarre noted that the request would only effect over due accounts. Mr. Hanon addressed steps to alleviate backlogs in communications of borrowers. Eight temporary positions were recently added to the Postsecondary Education Commission. The Commission has included funding for continuation of 6 positions beyond June 30, 1993. He added that the Commission's request for optical imagining would provide further technical support to Commission staff. Mr. Hanon discussed the Department's CIP request of $25.0 thousand dollars in corporate receipts to modify and enhance the Student Financial Aid data processing system (SFAS). He noted that 3,000 nonstandard accounts must be maintained manually. Co-Chair MacLean asked for clarification of funding the Postsecondary Education Commission received through the Legislative Budget and Audit Committee. Mr. Hanon noted that funding through the Legislative Budget and Audit 10 Committee was used to address conversion problems and to add communication staff. Representative Brown noted that the original system contained design problems. She asked if the Commission has tried to collect on deficient work done by the original contractor. Ms. Madden noted that the deficiency was not the fault of the original contractor. She noted that the Postsecondary Education Commission purchased a program developed for federal loan programs. Representative Brown noted that the system cost $1 million dollars. She suggested that the process was defective. Mr. Hanon pointed out that the program has expanded since its inception. Mr. Hanon referred to the Department's CIP request of $250.0 thousand dollars for data imaging analysis. The Postsecondary Education Commission has 3 million records that are used daily. The Postsecondary Education Commission will work with the Department of Administration.
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