Legislature(1993 - 1994)

04/14/1994 08:30 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL NO. 447                                                           
                                                                               
       "An Act establishing the Afognak Island State Park."                    
                                                                               
  CRAIG TILLERY, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW                 
  testified in support of HB 447.  He explained that the land,                 
  proposed for inclusion in the Afognak Island State Park, was                 
  originally acquired by the Exxon  Valdez Trustee Council for                 
  restoration   purposes.      The   Department  of   Interior                 
  subsequently  sought  the  land for  inclusion  in  a nearby                 
  national wildlife  refuge.   At the  objection of  the state                 
  trustees, the Council agreed to give the state of Alaska the                 
  first opportunity to acquire the land, on the condition that                 
  the  land be placed  in a state  park within one  year.  The                 
  purchase was completed  on November 23, 1993.  He emphasized                 
  that  the  land  must  become   a  state  park  during  this                 
  legislative session.  He noted that the legislation has wide                 
  support.                                                                     
                                                                               
  Representative  Hanley  provided  members with  AMENDMENT  1                 
  (copy on file).  He explained that Amendment 1 would provide                 
  that the land use agreement in  place, and recognized in the                 
  sale agreement,  be recognized  by the  Commissioner of  the                 
  Department of Natural Resources.                                             
                                                                               
  In response  to a  question by  Representative Navarre,  Mr.                 
  Tillery clarified  that the  road use  agreement is  between                 
  parties on  Afognak Island  that harvest  the  timber.   The                 
  state will be a member of the road use agreement.                            
                                                                               
  Representative Hanley  MOVED to  ADOPT AMENDMENT  1.   There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Representative Hanley MOVED to report  CSHB 447 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.   Co-Chair Larson referred  to the                 
  $17.0  thousand  dollar  accompanying  fiscal  note  by  the                 
  Department of Natural Resources.   Mr. Tillery felt that the                 
  fiscal  note  was unnecessary.    He suggested  that interim                 
                                                                               
                                2                                              
                                                                               
                                                                               
  operations could be funded through  the Exxon Valdez Trustee                 
  Council.                                                                     
                                                                               
  Representative Hanley  AMENDED the  MOTION to  adopt a  zero                 
  fiscal note  for the Department of Natural Resources.  There                 
  being  NO  OBJECTION, it  was so  ordered.   There  being NO                 
  OBJECTION, CSHB 447 (FIN) was reported from Committee.                       
                                                                               
  Mr.  Tillery assured,  Representative Grussendorf,  that the                 
  park would be passively managed.                                             
                                                                               
  CSHB 447  (FIN) was  reported out  of Committee  with a  "do                 
  pass" recommendation and  with three zero fiscal  notes, one                 
  by the Department of Public Safety, dated 2/4/94, one by the                 
  Department  of  Law, dated  2/4/94,  and  one by  the  House                 
  Finance Committee for the Department of Natural Resources.                   
                                                                               
  HOUSE BILL NO. 535                                                           
                                                                               
       "An  Act  making  appropriations  for  capital  project                 
       matching  grant  funds and  for  capital  projects; and                 
       providing for an effective date."                                       
                                                                               
  Co-Chair  noted that  the Department  of Transportation  and                 
  Public Facilities  would not be  presenting their  overview.                 
  She further  commented that there  was no allocation  in the                 
  capital budget for  the Department  of Education for  school                 
  construction and major maintenance priorities.                               
                                                                               
  GOVERNORS'S OFFICE                                                           
                                                                               
  NANCY  SLAGLE,  DIRECTOR OF  THE  DIVISION OF  BUDGET REVIEW                 
  explained the  capital project  requests for  the Governor's                 
  office.                                                                      
                                                                               
  *    This  budget  request  of $2,000.0  million  dollars is                 
  directed  towards  the  continued  removal of  architectural                 
  barriers within buildings occupied by state agencies.                        
                                                                               
  Recent federal  legislation in  the form  of the  "Americans                 
  with Disabilities Act" has imposed a mandate upon all public                 
  (governmental)  agencies  to  eliminate those  physical  and                 
  procedural conditions which effectively discriminate against                 
  the disabled by January 26, 1995.                                            
                                                                               
  This  allocation  would assist  in  bringing the  state into                 
  compliance with the Americans with Disabilities Act.                         
                                                                               
  DEPARTMENT OF ADMINISTRATION                                                 
                                                                               
  COMMISSIONER  NANCY  USERA,  DEPARTMENT  OF  ADMINISTRATION,                 
  explained capital project requests for the department.                       
                                                                               
                                3                                              
                                                                               
                                                                               
  *    Statewide Administrative Manuals/Training                               
                                                                               
  This project request of $380.0  thousand dollars would allow                 
  the department to  buy professional  services to:   develope                 
  video training programs; write and/or  update all section of                 
  the Administrative Manual,  the AKSAS  User Manual; for  the                 
  development of AKSAS and AKPAY training materials to  use in                 
  conjunction  with  the  manuals; and  a  technical  and cost                 
  benefit  analysis  to  determine  the  most  cost  effective                 
  format.                                                                      
                                                                               
  *    Applicant Tracking System - Final Phase                                 
                                                                               
  This  project  request  of  $120.0  thousand dollars  is  to                 
  rewrite  the  nightly batch  system  in order  to  save data                 
  conversion costs.  It will result in programs converted from                 
  COBOL to Natural utilizing of the new file structures.                       
                                                                               
  There   was  general  discussion  between  Rep.  Martin  and                 
  Commissioner    Usera    regarding     leasing    practices.                 
  Commissioner  Usera  noted  passage of  SB  129  enabled the                 
  department  to  save money  as a  result  of its  ability to                 
  renegotiate costs.                                                           
                                                                               
  DEPARTMENT OF LAW                                                            
                                                                               
  CHERI JACOBUS, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW                 
  explained the capital project requests of the department.                    
                                                                               
  *    This project request of $1,032.0  million dollars is to                 
  reauthorize  CIP  funding  for  federal  litigation.    This                 
  funding  is  needed  to  continue   the  services  of  three                 
  attorneys and one legal secretary currently funded by the FY                 
  93  federal  litigation CIP  appropriation.   It  would also                 
  provide for the addition of  two attorneys, two senior-level                 
  paraprofessionals, and  two  legal secretaries  who will  be                 
  needed in the litigation progresses.                                         
                                                                               
  Cheri Jacobus listed the pending cases involving the federal                 
  government.                                                                  
                                                                               
  Rep. Brown and  Co-Chair MacLean questioned  why this was  a                 
  capital request  and  not  in  the operating  budget.    Ms.                 
  Jacobus explained  that  the need  for  request was  not  an                 
  ongoing  operating cost to the  department but had a limited                 
  use.                                                                         
                                                                               
  DEPARTMENT OF REVENUE                                                        
                                                                               
  BOB BARATKO,  DIRECTOR OF ADMINISTRATIVE  SERVICES DIVISION,                 
  DEPARTMENT OF REVENUE explained  the capital project request                 
                                                                               
                                4                                              
                                                                               
                                                                               
  and noted those on teleconference who could address specific                 
  areas of the request.                                                        
                                                                               
  WILL  GAY,  EXECUTIVE  DIRECTOR  OF  ALASKA  HOUSING FINANCE                 
  CORPORATION (AHFC) addressed the funding requests for AHFC.                  
                                                                               
  *    Bethel Heights Reconstruction                                           
                                                                               
  This project request of $5,200.0  million dollars in federal                 
  receipts would reconstruct  31 single  family houses as  one                 
  phase of a  multi-year program  to completely reconstruct  a                 
  total of 117 single family homes in Bethel in order to bring                 
  them  into  compliance  with  applicable  codes  and  energy                 
  considerations.                                                              
                                                                               
  *    Cedar Park Housing Construction                                         
                                                                               
  This   request  of   $9,000.0   million  dollars   in  state                 
  corporation receipts  would rebuild  the Cedar  Park Housing                 
  structure.  Inspections have revealed considerable  evidence                 
  of  water damage and  dry rot,  among many  other structural                 
  problems.                                                                    
                                                                               
  *    Environmental Cleanup/Abatement                                         
                                                                               
  This project request of $1,000.0 million dollars  in   state                 
  corporation receipts would  provide funding for  the removal                 
  of  the  old  and  deteriorating underground  storage  tanks                 
  (USTs).                                                                      
                                                                               
                                                                               
  *    Deferred Maintenance - Senior Citizens Housing                          
                                                                               
  This project request  of $2,000.0  million dollars in  state                 
  corporation receipts  would  provide  funding  for  deferred                 
  maintenance  of AHFC  housing units  in  Fairbanks, Cordova,                 
  Seward,  and  Anchorage.   The  deferred maintenance   would                 
  include  such items  as alarm  system upgrades,  replacement                 
  hardware   for   windows,   deteriorated   sidewalks,   roof                 
  replacement,  replacement  of  window  curtains, broken  and                 
  stained   ceiling  tile,  carpet  in  community  rooms,  and                 
  elevator overhauls.                                                          
                                                                               
  In response to  Rep. MacLean's  concern regarding the  Cedar                 
  Park  project  Mr.  Gay  noted  that  AHFC has  to  use  HUD                 
  determined  wages   and  use   state  procurement   purchase                 
  requirements which adds 10% to 15% of the total cost of  the                 
  project.                                                                     
                                                                               
  Rep.  Martin  aired  a concern  regarding  the  expansion of                 
  Alaska Housing Finance Corp. and its  potential interference                 
  with private enterprise.                                                     
                                                                               
                                5                                              
                                                                               
                                                                               
  *     Beringvue Low Rent Housing                                             
                                                                               
  This project request of $5,700.0  million dollars in federal                 
  receipts  would place  new  foundations  under the  existing                 
  structures,  renovate the interiors, add floor space, repair                 
  the underground utilities  as well as meet  Alaska Craftsman                 
  Home Project energy standards.                                               
                                                                               
  *    Etolin Heights Renovation and Remodeling                                
                                                                               
  This project request  of $4,000.0  million dollars in  state                 
  corporation receipts would  renovate and upgrade  the Etolin                 
  Heights Facility.   These renovations  and upgrades  include                 
  making at least  one unit handicap accessible,  repairing of                 
  underground  utilities,  channeling water  drainage properly                 
  and paving the parking area.                                                 
                                                                               
  *    Public Housing Support                                                  
                                                                               
  This project request  of $1,000.0  million dollars in  state                 
  corporate receipts would renovate  maintenance facilities in                 
  Nome and Juneau.                                                             
                                                                               
  *    Energy Conservation Retrofit                                            
                                                                               
  This project request  of $1,000.0  million dollars in  state                 
  corporate receipts would  be used to retrofit  buildings and                 
  utility  systems  in  order  to  provide  a  more  efficient                 
  functioning  of  utilities  and  thereby  bring down  energy                 
  costs.                                                                       
                                                                               
  *    Statewide Renewal and Replacement                                       
                                                                               
  This  project  request  of  $220.0  thousand  dollars  would                 
  provide  funds for the replacement and renewal of fire alarm                 
  systems,  hearing  and  sight  impaired  alert  system,  and                 
  elevator  repairs.   This  is an  annual  supplement to  the                 
  operating  budget  of  these  projects  and  is based  on  a                 
  nationally recognized formula.                                               
                                                                               
  Co  Chair  MacLean asked  how  the department  established a                 
  priority list.                                                               
                                                                               
  The department  responded by  saying the  priority list  was                 
  established by  internal discretion  with staff  determining                 
  greatest need.   The  items in  the current  request reflect                 
  that priority.                                                               
                                                                               
  JUDY DESPAIN,  DEPUTY  EXECUTIVE  DIRECTOR,  ALASKA  HOUSING                 
  FINANCE   CORPORATION   explained  the   following  projects                 
  requests for the department:                                                 
                                                                               
                                6                                              
                                                                               
                                                                               
  *    Affordable Housing and Energy Efficiency                                
                                                                               
  This project request of $1,700.0  million dollars in federal                 
  receipts and $20,975.0 million  dollars in state corporation                 
  receipts would be used to finance the Alaska Housing Finance                 
  Corporation to fund a                                                        
  weatherization  project, using  current  funds  as  well  as                 
  Department of Energy funds to provide these programs.                        
                                                                               
  $8.2 million of the $20,975.0 million dollars in corporation                 
  receipts  would  be  used  as matching  dollars  to  the $41                 
  million of  federal funding  received  through the  Regional                 
  Housing  Authority  to complete  housing  projects  in rural                 
  Alaska.                                                                      
                                                                               
  *    Comprehensive Grant Program                                             
                                                                               
  This project request of $9,500.0  million dollars in federal                 
  receipts  is  received each  fiscal  year to  complete tasks                 
  planned for that year.  The plan is a five year rolling base                 
  with a grant amount that is  formula determined by the total                 
  number of AHFC units.                                                        
                                                                               
  Projects have begun  at Cedar Park  Annex, Mountain View  in                 
  Juneau, Spruce  Park in  Fairbanks, Schoenbar  in Ketchikan,                 
  Eyak Manor in Cordova, and Loussac Manor in Anchorage.  Work                 
  is also anticipated in Wrangell.                                             
                                                                               
  *    Federal Grants and Special Needs Housing Programs                       
                                                                               
  This project request of $12,489.0 million dollars in federal                 
  receipts and  $5,690.0 million dollars in  state corporation                 
  receipts  is  to  be  used  by the  Alaska  Housing  Finance                 
  Corporation to apply for the U.S. Department of  Housing and                 
  Urban Development, other state and federal agencies, and the                 
  private sector grants.  The funds requested would be used as                 
  matching dollars for those grants.                                           
                                                                               
  TOM  WILLIAMS,  DIRECTOR  OF THE  PERMANENT  FUND  DIVISION,                 
  DEPARTMENT OF REVENUE explained the capital project requests                 
  for the department.                                                          
                                                                               
  *    Microfilm Equipment replacement and microfilming of all                 
  1992 - 1990 auxiliary file records                                           
                                                                               
  This project request  of $359.3  in Permanent Fund  Dividend                 
  Funds   would  replace  microfilm  equipment  and  fund  the                 
  microfilming  of  all the  divisions  1982 -  1990 auxiliary                 
  files.                                                                       
                                                                               
  *    Child   Support    Enforcement   Information    Systems                 
                                                                               
                                7                                              
                                                                               
                                                                               
  Enhancement                                                                  
                                                                               
  This project  request of  $1,780.9 in  federal receipts  and                 
  $917.5 thousand dollars  in general fund match  would enable                 
  the department to achieve an  appropriate level of automated                 
  functionality   and  most   specifically,  to   make  system                 
  modifications   required   to  meet   federal  certification                 
  mandates by October, 1995.                                                   
                                                                               
  In response  to Co-Chair  MacLean's comments  the department                 
  noted the General Fund match would be 90%.                                   
                                                                               
  In response to  Rep. Martin's question, the  department said                 
  the project would need to be completed by October 1995.                      
                                                                               
  Rep.  MacLean asked the  department to provide justification                 
  for the match.                                                               
                                                                               
  In  response   to  Rep.  Brown's  question   the  department                 
  explained that  the wide  area network  system ties  in CSED                 
  with  the Department of  Revenue and allow  the division and                 
  the  department  to   interface  as  well  as   cross  check                 
  information.                                                                 
                                                                               
  The department said that failure  to comply with improvement                 
  could result in a  $1.4 million dollar loss in  funding from                 
  the federal government.                                                      
                                                                               
  *    APFC Electronic Imaging and Document Retrieval                          
                                                                               
  PETER  BUSHRE,  CHIEF  FINANCIAL   OFFICER,  PERMANENT  FUND                 
  CORPORATION, DEPARTMENT OF REVENUE addressed the departments                 
  capital project request.                                                     
                                                                               
  This project request of $251.5 would provide for the design,                 
  acquisition and installation of electronic imaging software,                 
  compatible  with existing local  area network and accounting                 
  system.                                                                      
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
  GEORGE  SMITH,  DEPUTY   DIRECTOR,  DIVISION  OF  LIBRARIES,                 
  ARCHIVES &  MUSEUMS, DEPARTMENT  OF EDUCATION explained  the                 
  capital project requests for the division.                                   
                                                                               
  *    Library Materials and Equipment                                         
                                                                               
  This project request  of $200.0 thousand dollars  in general                 
  fund  dollars  would purchase,  update and  maintain library                 
  materials  such   as   reference   materials,   books,   and                 
  periodicals.                                                                 
                                                                               
                                                                               
                                8                                              
                                                                               
                                                                               
  *    Public Library Construction                                             
                                                                               
  This project request  of $140.0 thousand dollars  in federal                 
  receipts   is   pass   through   money   used   for  library                 
  construction.  This  amount is  appropriated to the  library                 
  every year by congress.                                                      
                                                                               
  In  response  to  Rep.   Martin's  comments  regarding   the                 
  possibility  of charging  a users  fee  to cover  costs, Mr.                 
  Smith noted the fact  that the primary users of  the library                 
  are other government agencies.                                               
                                                                               
  JOE McCORMICK, EXECUTIVE DIRECTOR, DIVISION OF POSTSECONDARY                 
  EDUCATION, explained the project requests for the division.                  
                                                                               
  *    ACPE Intelligent Phone Dialing System                                   
                                                                               
  This project  request of  $185.0 thousand  dollars in  state                 
  corporation receipts would purchase a Voicelink phone system                 
  in order to increase efficiency of client contact.                           
                                                                               
  *    ACPE Expanded System Network and Enhancements                           
                                                                               
  This project  request of  $150.0 thousand  dollars in  state                 
  corporation receipts would provide for program expansion and                 
  enhancement  of the  Student Financial  Aid data  processing                 
  system.  These enhancements would include the integration of                 
  family education loans,  half-time loans, and federal  grant                 
  assistance loans into the  data processing system,  refining                 
  and  automating the  deferment, forgiveness  and forbearance                 
  processing and developing  additional enhancements to  adapt                 
  the system for use with special fees, penalty interest, late                 
  payments fees and origination fees.                                          
                                                                               
  *    Microfiche Equipment Replacement                                        
                                                                               
  This project  request of  $130.0 thousand  dollars in  state                 
  corporation receipts                                                         
  would   allow  the   Commission   to  purchase   two   fiche                 
  duplicators,  one  copier, workstations  and  partitions for                 
  records staff.                                                               
                                                                               
  A recent  performance audit  cited the  Commission for  it's                 
  failure to maintain and replace the microfiche equipment                     
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
  JANET CLARK, DIRECTOR,  DIVISION OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT  OF  HEALTH  AND  SOCIAL SERVICES  explained  the                 
  project request of the  department.  She also noted  that of                 
  the  seventeen   projects  the  department   requested,  the                 
  governor's budget supported two.                                             
                                                                               
                                9                                              
                                                                               
                                                                               
  *    This  project  request  of  $88.9  thousand dollars  in                 
  federal  receipts, and  $800.0 thousand  dollars in  General                 
  Fund  Match  would  fund  ongoing  renovation,  repair,  and                 
  equipment  needs  for the  Department  of Health  and Social                 
  Services  statewide.  Specifically, included are twenty five                 
  DHSS owned facilities and eighty eight lease sites.                          
                                                                               
  Rep.  Brown  questioned the  proposed  $1.7 million  for the                 
  Kenai Public Health Clinic.                                                  
                                                                               
  Janet Clark clarified  the situation by explaining  that the                 
  state  currently has a lease with  the city of Kenai for the                 
  Public Health  center building but  that building is  not in                 
  compliance  with Americans  with Disabilities  Act.   Rather                 
  than  renovating  and  remodeling  the  old   building,  the                 
  department  is  looking  into purchasing  the  vacant  court                 
  building.                                                                    
                                                                               
  *    Computer Systems Development                                            
                                                                               
  This project request of $3,617.3  million dollars in federal                 
  receipts  and  $400.0  thousand  dollars  in   general  fund                 
  matching monies would fund two  major DHSS computer systems:                 
  Family   and  Youth   Services'   MIS  upgrade   and  Public                 
  Assistance's Eligibility Information System enhancements.                    
                                                                               
  *    MIS Upgrade/Network Expansion                                           
                                                                               
  This  project  request   would  purchase  approximately  125                 
  additional  or   replacement  PCs,   two  additional   LANS,                 
  peripheral  equipment and  software,  software and  hardware                 
  upgrades and expansion of the QAN to at least one additional                 
  DFYS site.  This purchase will enable the department to come                 
  into compliance with the U.S. Department of Health and Human                 
  Services,  Administration  for  Children and  Families,  new                 
  mandatory quarterly data reporting for adoption  and methods                 
  for data transmission.                                                       
                                                                               
  By being in  compliance with  the federal requirements,  the                 
  department is able to receive 75% of federal match funding.                  
                                                                               
  STEVE RICE,  INFORMATION SYSTEMS MANAGER, DIVISION OF FAMILY                 
  YOUTH SERVICES,  DEPARTMENT  OF HEALTH  AND SOCIAL  SERVICES                 
  addressed the $50,000 in personnel/travel expenses.                          
                                                                               
  One of the  requirements for receiving the  federal match is                 
  the  assessment  of other  state  systems  to see  if  it is                 
  possible  to  transpose  an  existing   system  rather  than                 
  developing  from  scratch.   Travel  expenses are  to review                 
  systems in other states.                                                     
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  The $750,000 would address a needs assessment and would also                 
  include travel.                                                              
                                                                               
  In response to Rep. Martin's  concern regarding the outdated                 
  computers and their use, Ms. Clark  noted that the state has                 
  a surplus property requirement program.                                      
                                                                               
  *    Eligibility Information System Enhancement Project                      
                                                                               
  This  project request  for  $2,417,300  in federal  receipts                 
  would prolong the life of the Eligibility Information System                 
  and   integrate   technology   which  will   increase   user                 
  productivity and preserve accuracy in the delivery of public                 
  assistance benefits and services.                                            
                                                                               
  These federal funds  would not need  to be matched with  any                 
  local funds.                                                                 
                                                                               
  *    Public Health Lab Plan Implementation                                   
                                                                               
  This project would begin to  implement the recommendation of                 
  the 1994 Public  Health Strategic  Plan.  Specifically,  the                 
  project  begins   the  initial  facility   planning  program                 
  confirmation,  and  detailed financial  feasibility analysis                 
  portions of the project.                                                     
                                                                               
  *    Alaska Psychiatric (95) Stop Gap Repair                                 
                                                                               
  This  project  request  of   $1,032.5  million  dollars   in                 
  GF/Mental Health  Trust funds  would fund  ongoing stop  gap                 
  repairs to  the existing Alaska Psychiatric  Institute while                 
  the replacement facility planning, design, and  construction                 
  are  underway.     Specifically,  the  project   will  fund:                 
  priority interim fire/life  safety; occupational safety  and                 
  health and minor  Americans with Disabilities Act  upgrades.                 
  The project would  also fund  ongoing replacement of  pipes,                 
  finishes , fixtures, fittings, and furniture that are broken                 
  or pose hazards to staff, public, and clients.                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:10 a.m.                                          
                                                                               
                                                                               
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