Legislature(1993 - 1994)

03/02/1994 01:30 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HB 455    An Act  making and amending operating  and capital                 
            appropriations   and   ratifying   certain   state                 
            expenditures; and providing for an effective date.                 
                                                                               
            HB   455  was  HELD   in  Committee   for  further                 
            discussion.                                                        
                                                                               
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  HOUSE BILL 455                                                               
                                                                               
       "An  Act making  and  amending  operating  and  capital                 
       appropriations    and    ratifying     certain    state                 
       expenditures; and providing for an effective date."                     
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
  JILL SANDLEBEN, ALASKA GERIATRICS EXCHANGE NETWORK (AGENET),                 
  JUNEAU,  testified in  opposition to  the  proposed Medicaid                 
  reduction in HB 455.  She explained how the Medicaid program                 
  affects the  Home Waivers  Program.   This program  provides                 
                                                                               
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  services to clients in order to bring seniors out of nursing                 
  home facilities and into home care services.  She emphasized                 
  that the  program  provides more  services  at a  lower  per                 
  client cost.                                                                 
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND BUDGET,  OFFICE OF  THE GOVERNOR, provided  a                 
  sectional overview of HB 455, the supplemental legislation.                  
                                                                               
       *    Sec. 21   Medicaid State Programs       $7,000.0                   
                                                                               
            This  request  provides  for the  disproportionate                 
            share payments for API operations.                                 
                                                                               
  JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT  OF  HEALTH  AND  SOCIAL  SERVICES, provided  the                 
  Committee  with  a  handout   which  explains  the  Medicaid                 
  disproportionate  share  payments  made to  state  hospitals                 
  which serve a disproportionate share of low income patients.                 
  The payments are matched 50/50 by the federal government and                 
  the State.  [Attachment #5].                                                 
                                                                               
       *    Sec. 22   Waivers Services              $0.0                       
                                                                               
            This  request  would transfer  funds  from Waivers                 
            Authorization to the Community DD grants.                          
                                                                               
  Ms. Clarke explained that whatever  remains from the waivers                 
  will be distributed to the  grantees.  Representative Hanley                 
  pointed out that 10% of the  final quarterly advance is held                 
  from the grant  money until  all bills are  received by  the                 
  Department.  Ms. Clarke stated that  was not the policy this                 
  year due to cash flow problems.   Grantees would receive all                 
  the money available for the appropriation.                                   
                                                                               
  Representative Brown  requested that the  Committee consider                 
  introducing  a  House  Fiance  Committee  bill  which  would                 
  address Section #22 of the  proposed legislation to expedite                 
  the net zero appropriation.                                                  
                                                                               
       *    Sec. 23   McLaughlin Youth Center       $215.0                     
                                                                               
            This request would cover  the increased costs  due                 
            to   the   increase   in    gang-related   violent                 
            admissions.                                                        
                                                                               
       *    Sec. 24   Johnson Youth Center          $41.0                      
                                                                               
            This request would  cover the increased costs  due                 
            to a population increase  in violent youth  crimes                 
            resulting in contractual services.                                 
                                                                               
                                                                               
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       *    Sec. 25   Laboratory Services           $358.7                     
                                                                               
            This  request   would  move  money   from  program                 
            receipts to the  general fund  to cover a  delayed                 
            implementation  of a  program  for collecting  lab                 
            fees resulting in the loss of program receipts.                    
                                                                               
  Ms.  Clarke  explained that  the  Department tried  to adopt                 
  regulations  for  the  laboratory fees.    There  was public                 
  concern  regarding  the  fee  schedule.    Regulations  were                 
  withdrawn  due to  public concern  and testimony.   The  fee                 
  schedule is currently being reworked in order  to match what                 
  Medicaid has paid.                                                           
                                                                               
       *    Sec. 26   Post Mortem Examinations      $201.8                     
                                                                               
            This request would cover  costs related to delayed                 
            implementation of the Medical Examiner Program.                    
                                                                               
  (Tape Change, HFC 94-46, Side 1).                                            
                                                                               
       *    Sec. 27   Designated Evaluation & Treatment                        
                      $271.0                                                   
                                                                               
            This request  would cover the  costs of  increased                 
            client caseload and inpatient days.                                
                                                                               
  Ms. Clarke  stated that  the Department  has been unable  to                 
  come to an agreement with the Fairbanks Memorial Hospital on                 
  a daily rate.  The Department  has contracted with the North                 
  Star  Hospital  in  Anchorage for  an  interim  agreement to                 
  handle any  of the Fairbanks overflow.  Currently, Sitka and                 
  Anchorage are the only sites  being covered.  Representative                 
  Hanley questioned why the program was running over cost when                 
  so few sites were being covered.  Ms. Clarke stated that the                 
  program pays  for psychiatric designated  treatment services                 
  in hospitals.   Last year there  were unforeseen late  bills                 
  from hospitals which the Department  was responsible to pay.                 
                                                                               
                                                                               
       *    Sec. 28   Alaska Psychiatric Institute  $624.6                     
                                                                               
            This  request  would  cover costs  of  an eighteen                 
            percent  increase in admissions  and a fund change                 
            due to the Disproportionate Share Program.                         
                                                                               
  Ms. Slagle explained that this was  a transfer of money from                 
  the Medical Assistance Division to API where it will be used                 
  for  operations.   At that time,  given the  availability of                 
  mental   health  funds,   they  will   be   used  elsewhere.                 
  Representative Hanley pointed  out that  a large portion  of                 
  the funds would  replace Mental  Health Trust  money.   This                 
                                                                               
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  will be a cost savings to the State.                                         
                                                                               
       *    Sec. 29   Harborview Development Center $598.2                     
                                                                               
            This  request would  cover  the  costs related  to                 
            certification deficiencies and heating.                            
                                                                               
  Ms.  Slagle stated that the request  would address the steam                 
  heat plant  obligations  and problems  encountered with  the                 
  fast-track certification which  Harborview encountered  last                 
  year.                                                                        
                                                                               
  Ms. Clarke noted that $100 thousand dollars of the requested                 
  amount resulted  from a construction delay in the steam heat                 
  plant at Harborview, a joint  project between the Department                 
  of  Transportation   and  Public   Facilities  (DOTPF)   and                 
  Harborview.    The  remaining amount  will  cover  personnel                 
  services.                                                                    
                                                                               
  DEPARTMENT OF MILITARY AND VETERANS' AFFAIRS                                 
                                                                               
       *    Sec. 30   Veteran's Death Gratuity $37.5                           
                                                                               
            This request would cover the death gratuity claims                 
            received in FY93.                                                  
                                                                               
  Ms. Slagle pointed out  that the program is no  longer being                 
  funded although these applicants were  not considered in the                 
  appropriation  requests  last  year.    This  request  would                 
  conclude the program.                                                        
                                                                               
  DEPARTMENT OF NATURAL RESOURCES                                              
                                                                               
       *    Sec. 31   Fire Suppression         $4,643.8                        
                                                                               
            This request would cover fire suppression costs.                   
                                                                               
  NICO  BUS,  ACTING  DIRECTOR,  SUPPORT  SERVICES   DIVISION,                 
  DEPARTMENT  OF  NATURAL  RESOURCES,  stated  that  the total                 
  request would include  1,754 actual fires and  the remaining                 
  would cover the fixed  costs owed to the federal  government                 
  for fighting fires on state land.                                            
                                                                               
  Mr.  Bus explained  that  the front  section  of the  budget                 
  itemized the amount of money used  for fixed costs and would                 
  not  cover any fire activity.   The average fire suppression                 
  costs for the past  five years is $9.5 million  general fund                 
  dollars.                                                                     
                                                                               
       *    Sec. 32   Various                  $0.0                            
                                                                               
            This request addresses  the ratification of  prior                 
                                                                               
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            year expenditures.                                                 
                                                                               
  DEPARTMENT OF FISH AND GAME                                                  
                                                                               
       *    Sec. 33   Administrative Services  $20.0                           
                                                                               
            This request would  grant additional  compensation                 
            to vendors for king salmon tag sales.                              
                                                                               
       *    Sec. 34   Subsistence              $60.5                           
                                                                               
            This request  would provide  a fund  source change                 
            from federal to general fund program receipts.                     
                                                                               
  Ms. Slagle pointed out this would be a fund source change to                 
  program receipts  from  federal receipts  resulting from  an                 
  anticipated federal grant  but in reality received  from the                 
  University of Utah.  This would correct the funding source.                  
                                                                               
       *    Sec. 35   Various                  $0.0                            
                                                                               
            This component would clarify ratification of prior                 
            year expenditures.                                                 
                                                                               
  KEVIN   BROOKS,   DIRECTOR,   DIVISION  OF   ADMINISTRATION,                 
  DEPARTMENT  OF  FISH AND  GAME,  explained that  Section #35                 
  resulted from  an audit  by Legislative Audit,  OMB and  the                 
  Division of Finance  to clean up old balances.   Many of the                 
  balances  have been  over-spent  and  some  are  uncollected                 
  revenues.  All items listed  in Section #5 occurred  between                 
  1985 and  1991.  The expenditures have  already occurred and                 
  the fund  balance is not  affected yet the  expenditures did                 
  exceed appropriation levels.                                                 
                                                                               
       *    Sec. 36   Fisheries Management     ($10.0)                         
                                                                               
            This request would address the Wood River project,                 
            reappropriation and reduction in those funds.                      
                                                                               
  Ms. Slagle  stated that Section 36 would  change the project                 
  title and reduce the amount by $10 thousand dollars.                         
                                                                               
  DEPARTMENT OF PUBLIC SAFETY                                                  
                                                                               
       *    Sec. 37   Motor Vehicle Administration  $331.9                     
                                                                               
            This  request  would  cover  the  data  processing                 
            charge back.                                                       
                                                                               
  Ms. Slagle explained that  when the charge back process  was                 
  initiated,  the  amount provided  to  the Division  of Motor                 
  Vehicles  was  less that  required.   Consequently,  DMV was                 
                                                                               
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  short funded last year.                                                      
                                                                               
       *    Sec. 38   Contract Jails                $70.4                      
                                                                               
            This   request   would    fully   fund    prisoner                 
            transportation costs negotiated in FY94.                           
                                                                               
  HB 455 was HELD in Committee for further consideration.                      

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