Legislature(2003 - 2004)

03/17/2003 09:04 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     SENATE BILL NO. 100                                                                                                        
     "An  Act making capital  appropriations  and reappropriations;                                                             
     capitalizing a fund;  making appropriations under art. IX, sec.                                                            
     17(c),   Constitution  of  the   State  of  Alaska,   from  the                                                            
     constitutional   budget reserve  fund;  and  providing  for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
Department of Law                                                                                                             
                                                                                                                                
                                     th                                                                                         
     Dimond Courthouse - Recarpet 5 Floor                                                                                       
     $44,000 general fund                                                                                                       
     Reference No.: 37955                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Juneau (Juneau/Downtown/Douglas)                                                                                 
     Election District: Juneau/Downtown/Douglas                                                                                 
     Estimated Project Dates: 07/01/2003 - 06/30/2005                                                                           
     One-time Project                                                                                                           
          th                                                                                                                    
     The 5   floor of the Dimond Courthouse  has not been recarpeted                                                            
     in  many years.  Existing carpeting  no longer  adheres to  the                                                            
     backing  in  many areas  and bubbles  up  creating significant                                                             
     ripples in  the carpet surface. Attempts to cut  and reglue the                                                            
     carpet  have failed.  The ripples  create a  safety hazard  for                                                            
     employees such that  the carpet may have to be torn up exposing                                                            
     bare concrete  floors. At this  time, the Dimond Courthouse  is                                                            
     not included in the Public Building Fund.                                                                                  
                                                                                                                                
KATHRYN DAUGHHETEE,  Director, Division of Administrative  Services,                                                            
Department of  Law, overviewed the explanatory statement.  She noted                                                            
temporary repairs are currently made using duct tape.                                                                           
                                                                                                                                
Senator Hoffman  asked the last time  this building was recarpeted.                                                             
                                                                                                                                
Ms. Daughhetee  answered the building was recarpeted  in 1995 at the                                                            
time the attorney general's office was consolidated.                                                                            
                                                                                                                                
Senator  Hoffman   asked  the  life   expectancy  of  the   existing                                                            
carpeting.                                                                                                                      
                                                                                                                                
Ms. Daughhetee  responded  the carpeting should  have lasted  longer                                                            
and surmised  that installation could  be responsible for  the undue                                                            
wear and  tear. She noted  carpeting installed  at the same  time on                                                            
other floors is wearing better.                                                                                                 
                                                                                                                                
Co-Chair Wilken asked the owner of the building.                                                                                
                                                                                                                                
Ms. Daughhetee replied the State, Department of Administration is                                                               
the owner of the Dimond Courthouse.                                                                                             
                                                                                                                                
Co-Chair Green asked the activities conducted on the fifth floor.                                                               
                                                                                                                                
Ms. Daughhetee answered "several sections of the attorney general's                                                             
office" are located on the fifth floor.                                                                                         
                                                                                                                                
     Oil and Gas Royalty Settlement Reopeners                                                                                   
     $1,000,000 general fund                                                                                                    
     Reference No.: 31371                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     One-time Project                                                                                                           
     This  project will  partially fund  the cost  of outside  legal                                                            
     counsel and  outside experts, and the State's  cost of reopener                                                            
     arbitrations  as the State proceeds with the  renegotiation and                                                            
     arbitration of royalty issues.                                                                                             
                                                                                                                                
Ms. Daughhetee read the Detailed Project Justification into the                                                                 
record as follows.                                                                                                              
                                                                                                                                
     The purpose  of this funding request is to enable  the State to                                                            
     effectively   resolve   ongoing   and   threatened   litigation                                                            
     involving Alaska North  Slope (ANS) oil and gas royalties owned                                                            
     the  State.  All of  the  major oil  companies  retain  private                                                            
     counsel will versed  in oil and gas issues to prosecute royalty                                                            
     disputes  against the State. This request is  intended to allow                                                            
     the  Department of Law  to also retain  a small body of  select                                                            
     private  counsel  to  assist  in  resolving   ongoing  disputes                                                            
     regarding oil and gas royalties owned the State.                                                                           
                                                                                                                                
     The major producers  entered into royalty settlement agreements                                                            
     with  the State in the  early 1990s.  The agreements provide  a                                                            
     methodology  for valuing  ANS oil for  royalty purposes  and an                                                            
     arbitration  procedure for changing value methodology  called a                                                            
     reopener.                                                                                                                  
                                                                                                                                
     In  the  last  year  Law  has  successfully  resolved  a  value                                                            
     reopener  against BP  and a value  and transportation  reopener                                                            
     against  Phillips.  A  value  and  transportation  reopener  is                                                            
     currently pending  against Exxon. The State has been attempting                                                            
     to obtain  Exxon data necessary to prosecute  the reopener to a                                                            
     conclusion, but as  of this date, Exxon has provided no data in                                                            
     response  to State requests. It is anticipated  that, as in the                                                            
     past,  Exxon will retain a large  number of outside  counsel to                                                            
     litigate  this reopener with  the State. In the last  major oil                                                            
     and  gas proceeding  with Exxon, it  retained several  separate                                                            
     law  firms and  also  utilized in-house  counsel  and staff  to                                                            
     litigate  against  the State. It  is necessary  that the  State                                                            
     have  access to  outside counsel  in order  to adequately  deal                                                            
     with  the Exxon  reopener,  which is  scheduled  to restart  in                                                            
     March of 2003 on a very short time line.                                                                                   
                                                                                                                                
     In  addition,  Law  anticipates  two  other  reopeners  against                                                            
     various   producers  focused   on  transportation  costs.   The                                                            
     producers  are buying new double-hulled tankers  to comply with                                                            
     federal law (OPA 90).  In connection therewith they are seeking                                                            
     significantly   increased   transportation    deductions.   One                                                            
     disputed  issue is the  treatment of tax  benefits such  as the                                                            
     capital  construction fund program,  which allows producers  to                                                            
     obtain vessels  with tax deferred dollars. At  least one of the                                                            
     producers  has  taken  the  position  that  the  State  is  not                                                            
     entitled to share  in the tax benefits. This type of litigation                                                            
     will  require  the retention  of  tax  counsel and  experts  in                                                            
     vessel financing and other issues.                                                                                         
                                                                                                                                
     In addition to outside  counsel, expert advice and opinions are                                                            
     essential  to match  the resources marshaled  by the  producers                                                            
     and to advance  the State's own position before  an arbitration                                                            
     panel and rebut the expert claims made by the producers.                                                                   
                                                                                                                                
     Once  the  State  or  a  producer   gives  notice  that  it  is                                                            
     exercising a reopener  provision, the schedules and protocol in                                                            
     the  royalty  settlement  agreements  must be  followed.  These                                                            
     schedules do not follow  the State's year-to-year annual budget                                                            
     or appropriation  time lines.  The Department of Law's  oil and                                                            
     gas  litigation   budget  has  been  reduced   over  time.  The                                                            
     Department  of Law does not currently have sufficient  funds to                                                            
     handle the needs caused by the reopeners.                                                                                  
                                                                                                                                
Co-Chair Green asked how this item is considered a capital project                                                              
rather than an operating budget item.                                                                                           
                                                                                                                                
Ms. Daughhetee explained the funding for this activity would be                                                                 
required for several years.                                                                                                     
                                                                                                                                
Department of Education and Early Development                                                                                 
                                                                                                                                
     Mt. Edgecumbe High School Exterior Renovations                                                                             
     $1,000,000 Alaska Student Loan Corporation (ASLC) dividend                                                                 
     Reference No.: 35855                                                                                                       
     Category: Education                                                                                                        
     Location: Sitka                                                                                                            
     Election District: Sitka/Wrangell/Petersburg                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     One-time Project                                                                                                           
     Removal  and  replacement  of asbestos/lead  paint  siding  and                                                            
     adding  insulation to  improve energy  efficiency in the  Boy's                                                            
     Dorm,  Girl's  Dorm,  and  Kitchen  Dining  Hall.  These  three                                                            
     buildings  are adjacent  to one another  and it is recommended                                                             
     that all  exterior renovation work be done at  the same time to                                                            
     reduce project costs.                                                                                                      
                                                                                                                                
EDDY  JEANS,  Manager,   School  Finance  and  Facilities   Section,                                                            
Education  Support  Services,  Department  of  Education  and  Early                                                            
Development  testified   this  project  is  included  in  a  capital                                                            
improvement master  plan drafted by an architectural  team on behalf                                                            
of the Department.                                                                                                              
                                                                                                                                
Co-Chair Green  asked if this project  was not included in  the bond                                                            
package for  school construction and  renovation that was  passed by                                                            
voters the previous year.                                                                                                       
                                                                                                                                
Mr. Jeans answered it was not included.                                                                                         
                                                                                                                                
     Yuut   Elitnaurviat  People's   Learning   Center  -  Phase   1                                                            
     Construction                                                                                                               
     $1,000,000 ASLC dividend                                                                                                   
     Reference No.: 36594                                                                                                       
     Category: Education                                                                                                        
     Location: Bethel                                                                                                           
     Election District: Bethel                                                                                                  
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     Phased Project                                                                                                             
     The  Yuut Elitnaurviat  People's Learning  Center in Bethel  is                                                            
     requesting  State  support  for construction  of  a  vocational                                                            
     training  center  to serve  the Yukon-Kuskokwim  Delta  Region.                                                            
     Phase  I  construction  is  estimate  to  cost  $16.3  million.                                                            
     Various  funding  partners,  including  the  Bureau  of  Indian                                                            
     Affairs FY 02 $1.0  million and the USDA-Rural Development $2.0                                                            
     million pending.                                                                                                           
                                                                                                                                
                                                                                                                                
Mr. Jeans stated  that this request is to allow leverage  of federal                                                            
funds from the federal  sources. He informed that "various partners"                                                            
in the  region have agreed  to assume the  operational costs  of the                                                            
center once it is completed.                                                                                                    
                                                                                                                                
Co-Chair Wilken noted that  although the funding source of this item                                                            
is listed as student  loan dividends, it is actually  a reduction in                                                            
the amount the  Alaska Student Loan Corporation pays  to the general                                                            
funds. He then  asked the local contribution,  and also requested  a                                                            
five-year cash  flow report on how this facility,  once constructed,                                                            
would be  funded. He  compared this  facility to  a similar  project                                                            
located in Nome and discussed the previous legislative session.                                                                 
                                                                                                                                
Office of the Governor                                                                                                        
                                                                                                                                
LINDA PEREZ,  Administrative  Director, Division  of Administrative                                                             
Services, Office of the Governor, presented the requests.                                                                       
                                                                                                                                
     AccuVote - Payment 6 of 6                                                                                                  
     $387,789 general fund                                                                                                      
     Reference No.: 6712                                                                                                        
     Category: General Government                                                                                               
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/1998 - 06/30/2004                                                                           
     Phased Project                                                                                                             
     The  Division of  Elections purchased  the  new statewide  vote                                                            
     tabulation  system, AccuVote,  with a  six-year lease  purchase                                                            
     plan. The  payments began in FY 99, with the  final payment due                                                            
     in  FY  04. This  request  is  for the  system's  final  annual                                                            
     payment.                                                                                                                   
                                                                                                                                
Senator  Taylor asked  if  this system  is compatible  with  federal                                                            
Americans with Disabilities Act (ADA) requirements.                                                                             
                                                                                                                                
LAURA  GLAISER,  Director,  Division  of Elections,  Office  of  the                                                            
Lieutenant  Governor,   testified  that  these  units  are  not  ADA                                                            
compliant, and  that separate capital request has  been submitted to                                                            
purchase ADA  compliant units to supplement  the existing  machines.                                                            
                                                                                                                                
     Pacific Coastal Salmon Recovery Fund                                                                                       
     $21,857,000 federal receipts                                                                                               
     Reference No.: 33647                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     On-going Project                                                                                                           
     The   federal   fiscal   year   2003  (FFY03)   appropriations                                                             
     legislation  contains  funding for the  Pacific Coastal  Salmon                                                            
     Recovery  Fund. A total  of $115 million  was appropriated  for                                                            
     the  states  of  Alaska,  Washington,  Oregon  and California.                                                             
     Coordination  of the fund is through the respective  Governor's                                                            
     offices. The Alaska  portion of the federal FY 03 appropriation                                                            
     is $21.857  million. The Alaska  portion of this funding  comes                                                            
     to the State through  a Memorandum of Understanding designating                                                            
     Alaska Department of Fish and Game as the program manager.                                                                 
                                                                                                                                
Co-Chair Wilken  noted the Department of Fish and  Game would give a                                                            
complete presentation on this item at a later meeting.                                                                          
                                                                                                                                
Senator  Taylor wanted  to know  why this  item is  included in  the                                                            
Office of the Governor budget.                                                                                                  
                                                                                                                                
Ms. Perez understood  the original federal legislation  appropriated                                                            
the funds to the governor's offices of each state involved.                                                                     
                                                                                                                                
     Elections Reform Under the Federal Help America Vote Act                                                                   
     (HAVA)                                                                                                                     
     $5,000,000 federal receipts                                                                                                
     Reference No.: 38524                                                                                                       
     Category: General Government                                                                                               
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     Improve the administration of elections in accordance with the                                                             
     Help America Vote Act.                                                                                                     
                                                                                                                                
Ms. Perez  informed that  $5 million is the  minimum payment  amount                                                            
available to a state under  Title 1 of HAVA, and that funds would be                                                            
available through federal fiscal year 2005.                                                                                     
                                                                                                                                
Co-Chair  Wilken asked  if this  $5 million  could be  used to  fund                                                            
request  items 6712  and 34852. He  also asked  the requirements  of                                                            
Title 3 of HAVA.                                                                                                                
                                                                                                                                
Ms. Glaiser summarized  that Title 3 requires five-percent  in state                                                            
matching  funds. She  stated  it was determined  to  list this  item                                                            
separately as there is  still question as to whether the State would                                                            
be reimbursed for the approximately  $2 million in payments made for                                                            
the AccuVote purchases.                                                                                                         
                                                                                                                                
Co-Chair Wilken  asked if it would be possible that  the other items                                                            
could be paid with this HAVA funding.                                                                                           
                                                                                                                                
Ms. Glaiser was  unsure, but noted that if those projects  were paid                                                            
from  general  funds  and  reimbursed  these  HAVA  funds  would  be                                                            
available for other purposes.                                                                                                   
                                                                                                                                
Co-Chair  Wilken ascertained  the  AccuVote projects  meet the  HAVA                                                            
qualifications, asked for further review of the matter.                                                                         
                                                                                                                                
     Electronic Filing  of Public Official and Legislative Financial                                                            
     Disclosure Statements and Lobbying Activity Reports                                                                        
     $450,000 general funds                                                                                                     
     Reference No.: 37940                                                                                                       
     Category: General Government                                                                                               
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     One-time Project                                                                                                           
     Funds  will  be  used  for  consulting   services  for  design,                                                            
     development and testing  of a web-enabled filing system for the                                                            
     electronic filing  of public official and legislative financial                                                            
     disclosure statements, and lobbying activity reports.                                                                      
                                                                                                                                
Ms. Perez outlined the request.                                                                                                 
                                                                                                                                
Co-Chair Wilken  asked if the Alaska  Public Offices Commissions  is                                                            
transferred  to  the Division  of  Elections,  as requested  by  the                                                            
Governor,  whether  these  funds   would  be  transferred  with  the                                                            
program.                                                                                                                        
                                                                                                                                
Ms. Perez affirmed.                                                                                                             
                                                                                                                                
     Early Voting and Accessible Voting Equipment                                                                               
     $298,600 general funds                                                                                                     
     Reference No.: 34852                                                                                                       
     Category: General Government                                                                                               
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2004                                                                           
     One-time Project                                                                                                           
     Purchase  additional ballot tabulation units/accessible  voting                                                            
     equipment for disabled  voters and "Early Voting". This request                                                            
     includes  additional  ballot tabulation  units for overcrowded                                                             
     precincts  and Early  Voting. Accessible  units are to  be made                                                            
     available  in several  voting locations  for the next  election                                                            
     cycle. The Division  of Elections' goal is to have at least one                                                            
     accessible voting unit in each optical scan precinct.                                                                      
                                                                                                                                
Ms. Perez outlined this request.                                                                                                
                                                                                                                                
     Americans with Disabilities Act Compliance Projects                                                                        
     $500,000 general funds                                                                                                     
     Reference No.: 6391                                                                                                        
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     On-going Project                                                                                                           
     This  project continues  the  removal of  physical barriers  to                                                            
     persons  with  disabilities within  state-owned  facilities  as                                                            
     required  by Title II of the  Americans with Disabilities  Act,                                                            
     Public Law 101-336.  Funding covers the cost of design, project                                                            
     administration,   and  construction.   Aside  from   the  legal                                                            
     requirements,  removal  of physical  barriers  will negate  the                                                            
     need for  temporary program modifications, which  are currently                                                            
     required  of the facilities'  occupants.  Office of  Management                                                            
     and  Budget allocates  available funding  to the Department  of                                                            
     Transportation  [and Public Facilities] for State  facility ADA                                                            
     compliance projects  based upon DOT's prioritized project list.                                                            
     The  requested   FY 04  funds   will  continue  work  from  the                                                            
     statewide priority list.                                                                                                   
                                                                                                                                
Ms. Perez outlined this request.                                                                                                
                                                                                                                                
Co-Chair Wilken noted this item has been regularly funded since                                                                 
1993 and he asked for details on proposed renovations.                                                                          
                                                                                                                                
Ms. Perez would provide the information to the Committee.                                                                       
                                                                                                                                
Co-Chair Wilken also wanted to know the consequences if this item                                                               
were not fully funded at the current level.                                                                                     
                                                                                                                                
Ms. Perez indicated she would research the matter.                                                                              
                                                                                                                                
Department of Health and Social Services                                                                                      
                                                                                                                                
JANET CLARKE, Director, Division of Administrative Services,                                                                    
Department of Health and Social Services                                                                                        
                                                                                                                                
     Child Protection Information System - Phase 3                                                                              
     $1,884,500 federal receipts                                                                                                
     $1,884,500 G/F Match                                                                                                       
     Reference No.: 6816                                                                                                        
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     State-match required                                                                                                       
     Phased-underway Project                                                                                                    
     This  project  continues  efforts  for the  development  of  an                                                            
     information  system to protect  the children of Alaska  and the                                                            
     safety  of front-line  Division  of Family  and Youth  Services                                                            
     (DFYS) workers and  to increase worker productivity. DFYS is in                                                            
     the  final development  phase of the  Online Resources  for the                                                            
     Child  of Alaska system, and  this request is critical  for its                                                            
     completion.  Failure  to meet  all the  goals  of the  planning                                                            
     documents,  including  submission  of  required  adoptions  and                                                            
     foster  care  data  to  the  Administration  for  Children  and                                                            
     Families  (ACF),  could  result  in the  Department  having  to                                                            
     return over $4.5 million to the federal government.                                                                        
                                                                                                                                
Ms. Clarke  noted  supplemental information  has  been compiled  and                                                            
available for review.                                                                                                           
                                                                                                                                
Ms. Clarke  told  of the contractor,  American  Management  System's                                                            
success rate  in implanting  upgrades in  other states with  minimal                                                            
conversion difficulties.                                                                                                        
                                                                                                                                
Ms.  Clarke overviewed  the  expenditure  outline contained  in  the                                                            
detailed backup information  and informed that a 50 percent match is                                                            
provided for funds the State expends for this project.                                                                          
                                                                                                                                
Ms. Clarke  stressed Alaska is one  of the last states to  develop a                                                            
case-management  system for  family and youth  services. She  stated                                                            
that  because  of  this,  Alaska  could  learn  from  other  state's                                                            
conversion  efforts.  She  said that  some  states did  not  provide                                                            
adequate funding  for training and conversion of data  expenses, and                                                            
therefore funds  for those activities are included  in this request.                                                            
                                                                                                                                
Senator  Hoffman  asked  the  number  of  positions  that  could  be                                                            
eliminated given the systems automation.                                                                                        
                                                                                                                                
Ms. Clarke  responded that this has  not been determined  as of yet.                                                            
She was able  to assure that better  and timelier information  would                                                            
be available  and detailed  the abilities  of supervisors to  review                                                            
caseworker actions and decisions.                                                                                               
                                                                                                                                
Co-Chair Wilken  asked for further  explanation of the warning  that                                                            
failure to meet goals could result in a loss of federal funding.                                                                
                                                                                                                                
Ms. Clarke  told of efforts of the  federal government to  provide a                                                            
"carrot on  a stick" to provide incentives.  She explained  that the                                                            
50-percent  federal  funding match  is  available;  however, if  the                                                            
State fails  to continue  to make progress  in updating its  system,                                                            
funds already appropriated would have to be repaid.                                                                             
                                                                                                                                
Co-Chair  Wilken  asked if  the funding  match  has  always been  50                                                            
percent.                                                                                                                        
                                                                                                                                
Ms. Clarke  stated that for  a short time  the federal match  was 70                                                            
percent  and  Alaska  attempted  to take  advantage  of  the  higher                                                            
percentage when it was available.                                                                                               
                                                                                                                                
Co-Chair  Wilken referenced  travel expenses  for ORCA personnel  to                                                            
attend training.  He asked  if it would be  more cost effective  for                                                            
trainers travel to the "students".                                                                                              
                                                                                                                                
JOHN BAUCHER, Project Manager,  Online Resources for the Children of                                                            
Alaska (ORCA)  Project, Department  of Health  and Social  Services,                                                            
testified  that both methods  would be employed,  as well as  a web-                                                            
based training approach to reduce costs.                                                                                        
                                                                                                                                
Ms. Clarke furthered this  project would transition child protection                                                            
operations  from  a  "paper  intensive  system" to  an  online  case                                                            
management system.  She stated that other states have  asserted that                                                            
the cultural  change of this process  to the workforce could  not be                                                            
fully appreciated.                                                                                                              
                                                                                                                                
Co-Chair  Wilken asked  if this  issue  is addressed  in the  recent                                                            
federal review audit of the program.                                                                                            
                                                                                                                                
Ms. Clarke affirmed.                                                                                                            
                                                                                                                                
Co-Chair Wilken  requested explanation  of the 11 project  positions                                                            
required to "backfill".                                                                                                         
                                                                                                                                
Mr.  Baucher  spoke  of the  change  from  a  "maintenance  mode  to                                                            
building the capabilities  to support a system" and therefore skills                                                            
such as  database administration  would be  required. He added  that                                                            
three of the proposed  positions are field social  workers, one is a                                                            
financial  specialist  another   a licensing   specialist,  and  the                                                            
remaining to operate a help desk/support system.                                                                                
                                                                                                                                
Ms. Clarke  continued that some project  staff would be transferred                                                             
"from the field" to ensure  the system is developed appropriately to                                                            
field practice.                                                                                                                 
                                                                                                                                
Co-Chair Wilken asked if these would be temporary positions.                                                                    
                                                                                                                                
Ms. Clarke affirmed.                                                                                                            
                                                                                                                                
Co-Chair Wilken  asked if the staff proposed for these  positions is                                                            
knowledgeable in the new database system.                                                                                       
                                                                                                                                
Mr. Baucher responded the staff would be trained.                                                                               
                                                                                                                                
Co-Chair Wilken asked for  an explanation of the "backfill permanent                                                            
staff" justification for the temporary positions.                                                                               
                                                                                                                                
Ms. Clarke  replied  these positions  would be  necessary to  ensure                                                            
that "all the regular work continues".                                                                                          
                                                                                                                                
Co-Chair Wilken asked the date the project would be completed.                                                                  
                                                                                                                                
Mr. Baucher answered September 2004.                                                                                            
                                                                                                                                
Co-Chair Wilken asked if  therefore no budget requests for this item                                                            
would be made for FY 05.                                                                                                        
                                                                                                                                
Mr. Baucher affirmed.                                                                                                           
                                                                                                                                
Senator   Hoffman   asked   for  clarification    that  operational                                                             
maintenance costs would require four positions.                                                                                 
                                                                                                                                
Ms. Clarke  affirmed that  analysis programmer  and data  specialist                                                            
positions would  be necessary to maintain  the system, although  the                                                            
social worker  and licensing specialists  positions would  return to                                                            
regular duties.                                                                                                                 
                                                                                                                                
     Nome Youth Detention Facility Construction - Phase 2                                                                       
     $3,900,000 general funds                                                                                                   
     Reference No.: 35722                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Nome                                                                                                             
     Election District: Bering Straits                                                                                          
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     Phased-underway Project                                                                                                    
     Expansion  of the  Nome Youth  Facility (NYF)  to 12  detention                                                            
     beds and  renovation of the existing  structure is needed.  NYF                                                            
     has  received tremendous  community and  regional support  as a                                                            
     community detention  program. Increasing the capacity to twelve                                                            
     beds will reduce the  placement of youth outside of the region.                                                            
     Marginal   original  construction   and  minimal  maintenance,                                                             
     exacerbated  by the arctic climate, have left  the structure in                                                            
     need of complete renovation.                                                                                               
                                                                                                                                
                                                                                                                                
Ms.  Clarke   pointed  out  this   is  the  final  project   in  the                                                            
Department's  1997  Master Plan.  She  reminded  that in  FY 01  the                                                            
legislature appropriated funds for planning and design.                                                                         
                                                                                                                                
Ms. Clarke  informed that the facility  was constructed in  1981 and                                                            
has been impacted  by the Arctic weather  conditions and  inadequate                                                            
maintenance.  She referenced  a  pamphlet titled,  "NYF Development                                                             
Program" [copy on file],  noting similar information is prepared for                                                            
all  communities  with  a  youth  facility;  as  such  projects  are                                                            
sometimes controversial.  She assured no controversy exists with the                                                            
location of the  facility in Nome. She furthered that  the architect                                                            
firm employed  to plan this renovation  project have maximized  cost                                                            
savings.                                                                                                                        
                                                                                                                                
Co-Chair   Wilken   asked  the   funding   source  of   the  FY   01                                                            
appropriation.                                                                                                                  
                                                                                                                                
Ms. Clarke replied that  interest earned from a separate account was                                                            
appropriated by the legislature for this project.                                                                               
                                                                                                                                
Senator Taylor was incredulous  that this building is near collapse.                                                            
He spoke  to an inadequate  heating  unit and  asked how poorly  the                                                            
facility was originally designed or maintained.                                                                                 
                                                                                                                                
Ms. Clarke  agreed with  Senator Taylor's  observations. She  stated                                                            
that the  facility was  closed in  the 1980s as  a result of  budget                                                            
reductions, and  at that time adequate consideration  of maintenance                                                            
requirements in  the event of reopening the facility  was not given.                                                            
She furthered  that since construction, more has been  learned about                                                            
construction  in  arctic  conditions.   She  admitted  the  original                                                            
heating unit should  have lasted 30 years, although  it is currently                                                            
22 years old.                                                                                                                   
                                                                                                                                
Ms. Clarke stressed this  is important facility and important to the                                                            
juvenile justice system statewide.                                                                                              
                                                                                                                                
Co-Chair Wilken asked about  debt financing rather than general fund                                                            
financing of this project.                                                                                                      
                                                                                                                                
Ms. Clarke  replied this  was discussed in  previous years;  however                                                            
the amount is  less than usually considered for debt  financing. She                                                            
suggested  this project  could be  combined with  other projects  to                                                            
reach an acceptable amount.                                                                                                     
                                                                                                                                
     Federal Health Insurance Portability and Accountability Act                                                                
     Compliance - Phase 2                                                                                                       
     $828,150 federal receipts                                                                                                  
     $828,150 G/F match                                                                                                         
     Reference No.: 35721                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     State Match Required                                                                                                       
     Phased-underway Project                                                                                                    
     The  Health  Insurance   Portability  and  Accountability   Act                                                            
     (HIPAA)  was  enacted   by the  federal   government  in  1996.                                                            
     Deadlines   for   compliance   with   regulations    concerning                                                            
     electronic  transmissions, privacy and security  of patient and                                                            
     health care  information will be set over the  next five years.                                                            
     Substantial  monetary and civil  penalties can be imposed  as a                                                            
     result  of  non-compliance.  The  Department  is  compelled  to                                                            
     implement    in-depth   impact   analysis   and   requirements                                                             
     assessments for its  health care programs, operations, computer                                                            
     systems  and policies  and procedures.  It is anticipated  that                                                            
     both   small   and  large-scale   modifications   to   systems,                                                            
     operations and policies and procedures will be required.                                                                   
                                                                                                                                
Ms. Clarke  reminded  that the  legislature appropriated  funds  for                                                            
this  program  the  previous  session.  She  spoke  of  the  federal                                                            
regulations  the Department must comply  with to ensure the  privacy                                                            
and security  of patient information.  She indicated the  Department                                                            
planned several  specific projects  to meet the requirements  phased                                                            
over five years.                                                                                                                
                                                                                                                                
Ms. Clarke explained  the funding requested for FY  04 is to address                                                            
patient  information  contained  in  data  systems  outside  of  the                                                            
Medicaid  data  system.  She exampled  the  "maternal  child  family                                                            
health  arena" as  containing confidential  information,  which  the                                                            
Department must secure.                                                                                                         
                                                                                                                                
Co-Chair Wilken  asked if the entire  project would be completed  at                                                            
the conclusion of FY 05.                                                                                                        
                                                                                                                                
Ms. Clarke  answered this is correct,  although the Department  must                                                            
continue  to comply with  the HIPAA requirements,  although  capital                                                            
funding would not be necessary.                                                                                                 
                                                                                                                                
Co-Chair  Wilken asked  if  missions and  measures  were drafted  to                                                            
model the success of this investment.                                                                                           
                                                                                                                                
Ms. Clarke replied that  specific missions and measures had not been                                                            
developed,  as  the  focus has  been  compliance  with  the  federal                                                            
mandate.                                                                                                                        
                                                                                                                                
Senator  Hoffman asked  about additional  annual  operational  costs                                                            
after FY 05.                                                                                                                    
                                                                                                                                
Ms. Clarke  predicted there would  be additional expenses,  but that                                                            
they would be absorbed  within the regular budget appropriation. She                                                            
stated  that once  the systems  are in place,  different  procedures                                                            
would be  necessary but  would not require  additional funding.  She                                                            
noted employees  accessing the secure information  would be required                                                            
to log off of computers when leaving their workstations.                                                                        
                                                                                                                                
     Deferred Maintenance, Renewal, Replacement and Equipment                                                                   
     $800,000 federal receipts                                                                                                  
     $600,000 G/F match                                                                                                         
     Reference No.: 31862                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2004 - 06/30/2008                                                                           
     State Match Required                                                                                                       
     On-going Project                                                                                                           
     Funds deferred  maintenance at 37 State-owned  buildings with a                                                            
     replacement  value of $250 million, along with  selected leased                                                            
     facilities,  including urgent immediate repair,  renovation and                                                            
     equipment  needs.   Delay  in funding   will  cause  additional                                                            
     deterioration  of the Department's  facilities. Urgent  repairs                                                            
     and deferred  maintenance cannot  be delayed without  adversely                                                            
     affecting the State's investment in its facilities.                                                                        
                                                                                                                                
Ms.  Clarke  noted this  is  an annual  request,  and  admitted  the                                                            
Department would prefer  additional funds than the amount available.                                                            
She referenced  a list of proposed  projects included in  the backup                                                            
documentation.                                                                                                                  
                                                                                                                                
Ms. Clarke pointed out  that federal funds could not be used for all                                                            
of the projects.                                                                                                                
                                                                                                                                
Ms. Clarke  directed attention  to a handout  titled "Department  of                                                            
Health and  Social Services,  FY 2004 Deferred  Maintenance  Capital                                                            
Request"  [copy on  file]. She  overviewed the  photographs  showing                                                            
damaged facilities in need of repair or replacement.                                                                            
                                                                                                                                
                                                                                                                                
SFC 03 # 21, Side B 09:51 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Senator  Taylor asked  about the  proposed lock  replacement at  the                                                            
Nome Youth Facility.                                                                                                            
                                                                                                                                
Ms. Clarke assured that  the locks would not be installed only to be                                                            
demolished during renovation of the entire facility.                                                                            
                                                                                                                                
Senator  Taylor  asked  why  the  locks  are  not  included  in  the                                                            
renovation project.                                                                                                             
                                                                                                                                
Ms. Clarke  stressed the  need to secure  the facility immediately,                                                             
whereas  the  renovation   project  would  take  several   years  to                                                            
complete.                                                                                                                       
                                                                                                                                
Co-Chair  Wilken   appreciated  that   the  proposed  projects   are                                                            
prioritized.                                                                                                                    
                                                                                                                                
Ms. Clarke  explained  the prioritization  based  on fire, life  and                                                            
safety concerns.                                                                                                                
                                                                                                                                
Co-Chair Green asked about  some of the proposed projects to program                                                            
facilities and  asked if the buildings were State-owned  or owned by                                                            
non-profit organizations.                                                                                                       
                                                                                                                                
Ms. Clarke  replied  that the Assets  Building is  State owned.  She                                                            
informed that  the State funded the construction of  the facility in                                                            
the  form of  a grant  to  a non-profit  organization,  which  later                                                            
became  insolvent   and  the  building  was  transferred   to  State                                                            
ownership.  She  noted  that  a non-profit  organization   currently                                                            
occupies  the building,  which the  State maintains  to protect  its                                                            
investment into the facility.                                                                                                   
                                                                                                                                
Co-Chair  Green asked  the amount  of rent  paid  by the  non-profit                                                            
organization.                                                                                                                   
                                                                                                                                
Senator Taylor questioned  apparent duplication of requests, such as                                                            
a  proposed  project  for  shower  replacement  in  the  Nome  Youth                                                            
Facility.  He asked if this  is in the event  the larger  renovation                                                            
project is not funded.                                                                                                          
                                                                                                                                
Ms.  Clarke  agreed.  She  reassured  that  projects  would  not  be                                                            
undertaken only  to be demolished. She indicated that  some proposed                                                            
project lists  were complied independently and stated  they would be                                                            
reviewed to eliminate  duplications. She qualified  that funding for                                                            
the major renovation  is uncertain and that the smaller  repairs are                                                            
necessary.                                                                                                                      
                                                                                                                                
Senator Taylor  requested that the  smaller projects be included  in                                                            
the major renovation project.                                                                                                   
                                                                                                                                
Office of Management and Budget                                                                                               
                                                                                                                                
CHERYL FRASCA, Director,  Office of Management and Budget, Office of                                                            
the Governor,  gave  an overview  of the entire  Governor's  capital                                                            
budget request.  She read into the  record a handout titled,  "FY 04                                                            
Proposed  Capital   Budget  Highlights,  Senate  Finance   Committee                                                            
Overview, March 17, 2003" [copy on file], as follows.                                                                           
                                                                                                                                
     Total Spending:                      $1.4 billion                                                                          
          General Funds                   $134 million                                                                          
         Federal Funds                   $1 billion (71%)                                                                       
          Other State Funds               $268 million                                                                          
     FY 04 Proposed Compares to FY 03:                                                                                          
          Total Spending                  $168 million higher                                                                   
          General Funds                   $25 million higher                                                                    
          Federal Funds                   $56 million higher                                                                    
          Other State Funds               $41 million higher                                                                    
     Biggest Share of Capital Budget Pie: DOT/PF                                                                                
          Total Funds:         $825 million (59% of capital budget)                                                             
                Federal Funds             $695 million                                                                          
                General Funds Match       $62 million                                                                           
                General Funds             $25 million                                                                           
                Other State Funds         $43 million                                                                           
     General Fund Support of Maintenance, Equipment, New                                                                        
     Facilities:                                                                                                                
          Deferred/maintenance projects $22.3 million                                                                           
          Equipment repair/replacement $3.2 million                                                                             
          New facilities:                                                                                                       
                Nome Youth Facility            $3.9 million                                                                     
                Ketchikan Public Safety Bldg $2.5 million                                                                       
                Chandalar Maintenance Station $4.4 million                                                                      
                                                                                                                                
     Selected Project Highlights                                                                                                
     Economic Development                                                                                                       
     · Brooks Range Oil and Gas Reservoir Data            $50,000 GF                                                            
          Acquisition  and  analysis  of  baseline data  needed  for                                                            
          increased  private sector gas exploration  and development                                                            
          on State  and native corporation lands in the Brooks Range                                                            
          foothills.                                                                                                            
     · Oil and Gas Exploration, Development                                                                                     
             and Permit Streamlining                      $737,700 FF                                                           
          Increase  development  activity  from  small  to  moderate                                                            
          sized  firms by providing extensive public  information on                                                            
          existing   wells   via  the  Internet;   also   streamline                                                            
          permitting  process to reduce start-up  time to help lower                                                            
          the entry costs for new producers                                                                                     
     · North Slope Tundra Travel Analysis                 $250,000 FF                                                           
          Potential  to increase winter  work season for  production                                                            
          activities   by  determining   resistance  of   tundra  to                                                            
          disturbance  due to wintertime cross-country  travel; goal                                                            
          is   to  provide  production  activity   but  also  ensure                                                            
          environmental protection of the tundra surface                                                                        
     · Industrial Development                                                                                                   
             and Community Access Roads                $10 million GF                                                           
          These  funds would support reconnaissance  engineering and                                                            
          preliminary  environmental  studies necessary to  advocate                                                            
          access    roads   serving    communities   and    resource                                                            
          development.  This advance  engineering and environmental                                                             
          work  would  accelerate  these projects,  as construction                                                             
          funding  is made  available. Additional  funding is  being                                                            
          sought  from multiple sources including Denali Commission,                                                            
          federal  earmarks, and changes  in other federal  programs                                                            
          that could assist in road development.                                                                                
                                                                                                                                
          The  Department has identified  5 priority resource  roads                                                            
          that   would   benefit    from   early   engineering   and                                                            
          environmental  effort. The four that lack funding include:                                                            
          1)  the road and bridge to Nuiqsut (opens  NPR-A [National                                                            
          Petroleum Reserve-Alaska] oilfield development)                                                                       
          2) Foothills  road from Dalton Hwy to Nuiqsut (opens state                                                            
          oil leases in foothills region of Brooks Range)                                                                       
          3)  Glacier Creek  road near  Nome (opens  the Rock  Creek                                                            
          mine and nearby areas)                                                                                                
          4)  Yukon River port near  Holy Cross and road  to Poorman                                                            
          and  McGrath (supports Donlin  Creek mine and many  nearby                                                            
          gold fields)                                                                                                          
                                                                                                                                
          Community  Access  Roads:  The Department  has  identified                                                            
          several  priority  community access  roads that  currently                                                            
          lack other funding sources, including:                                                                                
          1) Seldovia to Port Graham with ferry at Jackelof Bay                                                                 
          2)  Williamsport to Pile Bay (connects  Cook Inlet to Lake                                                            
          Illiamna villages)                                                                                                    
          3)  Yukon River  Highway (links  several villages  between                                                            
          Manley Hot Springs and Nome)                                                                                          
          4) Chena Hot Springs to Circle Hot Springs Road                                                                       
          5)  Chignik Connectors  (links Chignik  to Chignik  Lagoon                                                            
          and Chignik Lake villages)                                                                                            
          6) Naknek to South Naknek bridge and road.                                                                            
     · Navigable Waters Assertions                        $188,700 GF                                                           
          For  preparation  and  filing  of  applications  with  BLM                                                            
          [federal   Bureau  of Land  Management]   for "Recordable                                                             
          Disclaimers  of Interests" that will clear  State title to                                                            
          certain  navigable  waters;  except  to file  for  several                                                            
          hundred  rivers  within  the  next year  as  part of  this                                                            
          project.  This is in response to January  2003 US Interior                                                            
          Department  revised regulation  to allows filing  of these                                                            
          requests  to resolve  land title  issues with the  Federal                                                            
          government                                                                                                            
     · Forest Productivity Improvement in                                                                                       
             Southern Southeast Alaska                    $100,000 GF                                                           
          Sustain   a  long-term   timber   supply  to  value-added                                                             
          processors  in SE  Alaska by thinning  young, overstocked                                                             
          stands                                                                                                                
     · Nearshore Marine Research Studies                  $998,000 FF                                                           
          Conduct  stock assessment and research  as prerequisite to                                                            
          development   fishery  management  plans  for sustainable                                                             
          fisheries  on previously unexploited or  lightly exploited                                                            
          marine  resources in order to foster economic  development                                                            
          of coastal communities                                                                                                
     · Harbor Construction                     $8.25 million GF/Match                                                           
          Haines  Harbor design ($100,000); Wrangell Heritage Harbor                                                            
          construction  ($4 million); St. Paul Harbor and navigation                                                            
          improvements ($4.15 million)                                                                                          
     · Pre-Harvest Geoduck PSP Testing                    $250,000 GF                                                           
          Monitoring,  data collection to improve marketability as a                                                            
          live fishery                                                                                                          
     · Regional Learning Center (Yuut Elitnaurviat                                                                              
             People's Learning Center)                $1 million GF                                                             
          Phase  1 -  vocational education  center  to serve  Yukon-                                                            
          Kuskokwim Delta Region                                                                                                
     · Capital Matching Grants Program                $15 million GF                                                            
          General   Funds   supplants   AIDEA   [Alaska   Industrial                                                            
          Development  and Export Authority] dividend as fund source                                                            
                                                                                                                                
     Public Safety and Health                                                                                                   
     · Statewide Illegal Drug and Alcohol use         $2 million FF                                                             
          Community  policing  approach  to fight  alcohol and  drug                                                            
          abuse in rural areas                                                                                                  
     · Alaska Land Mobile Radio                           $680,000 GF                                                           
          Continue  process of converting Federal,  State, and local                                                            
          emergency  communications  systems  so  all jurisdictions                                                             
          will be able to communicate with each other                                                                           
     · Community water/sewer projects                     $108 million                                                          
          o  Village Safe  Water     $84 million (+14 m above FY 03)                                                            
          o Municipal matching grants $24 million                                                                               
                                                                                                                                
Senator  Taylor asked  if $600,000  represents the  total amount  of                                                            
requested  capital budget  funds for  the Alaska  Land Mobile  Radio                                                            
(ALMR)  project,  or whether  additional  requests  would  be  found                                                            
within  the  Department  of  Public Safety  and  other  agencies  to                                                            
purchase equipment to interact with the ALMR project.                                                                           
                                                                                                                                
Ms. Frasca  stated the amount indicated  in the overview  represents                                                            
funding  requested  for  the Department  of  Military  and  Veterans                                                            
Affairs. She  stated she would research  the matter, noting  capital                                                            
budget  requests  have  been submitted  for  the  Emergency  Medical                                                            
Services for the Code Blue project.                                                                                             
                                                                                                                                
Senator  Taylor told  of efforts  of the  previous  session on  this                                                            
project  and the  Knowles Administration's  withdrawal  of all  ALMR                                                            
funding requests  despite entering into a contract  for the project.                                                            
                                                                                                                                
Ms. Frasca  noted the departments  have additional funding  requests                                                            
not mentioned in her overview.                                                                                                  
                                                                                                                                
Co-Chair  Wilken asked if  AIDEA dividend funds  for FY 04  would be                                                            
possible.                                                                                                                       
                                                                                                                                
Ms. Frasca replied that  legislation would be necessary to amend the                                                            
definition  of net  income on  which the  dividends  are based.  She                                                            
relayed  discussions were  held with  AIDEA before  the legislative                                                             
session and  it was determined that  in the "environment  of Enron",                                                            
redefinition  of the  basis in  which dividends  are  paid would  be                                                            
unadvisable. Enron  was the major energy corporation  whose officers                                                            
are alleged to have falsified  accounting procedures to misrepresent                                                            
the amount  of debt and  earnings of the  organization.  She  stated                                                            
the  intent is  to  fund the  FY  04 capital  budget  without  AIDEA                                                            
dividend funds and offset the loss with general funds.                                                                          
                                                                                                                                
Co-Chair  Wilken asked if  the matter of  redefining net income  for                                                            
AIDEA would be considered in the future.                                                                                        
                                                                                                                                
Ms. Frasca responded that  the expectation is an AIDEA dividend paid                                                            
to the State in FY 05.                                                                                                          
                                                                                                                                
Co-Chair Wilken  asked if US Congressman  Don Young were  successful                                                            
in  renewing TEA-21  funds,  whether  the appropriation  would  pass                                                            
through the Denali Commission.                                                                                                  
                                                                                                                                
Ms. Frasca  explained two  funding sources  would occur; the  TEA-21                                                            
funds  which  would  be  appropriated  through   the  Department  of                                                            
Transportation   and   a  separate   program  that   would   receive                                                            
transportation-related  funds  through  the Denali  Commission.  She                                                            
assured the  funds appropriated to  the Denali Commission  would not                                                            
"take the place of our regular entitlement".                                                                                    
                                                                                                                                
Co-Chair  Wilken  asked  if  the Village  Safe  Water  projects  are                                                            
contained in  the Department of Environmental  Conservation  budget.                                                            
                                                                                                                                
Ms. Frasca affirmed.                                                                                                            
                                                                                                                                
Co-Chair  Wilken  requested a  complete  list of  projects  proposed                                                            
under this item.                                                                                                                
                                                                                                                                
Ms.  Frasca  stated   the  Department  of  Community   and  Economic                                                            
Development would provide the information.                                                                                      
                                                                                                                                
Senator  Hoffman   recalled  that   economic  development   was  the                                                            
"cornerstone"  of Governor Murkowski's  State of the State  Address.                                                            
Senator  Hoffman  asked  when revenue  from  the  proposed  economic                                                            
development  projects  would be  generated  to the  State's  general                                                            
fund.                                                                                                                           
                                                                                                                                
Ms.  Frasca responded  it  is "highly  unlikely"  revenues would  be                                                            
realized in the  "immediate future", pointing out  the time required                                                            
to develop  the projects. She stressed  the importance of  beginning                                                            
the projects  now rather than waiting,  remarking "it's worth  it in                                                            
the long term".                                                                                                                 
                                                                                                                                
Senator  Hoffman asked  if the  investments  proposed  in the FY  04                                                            
capital budget  would generate revenue  within the next five  years.                                                            
                                                                                                                                
Ms. Frasca replied  that private sector "activity"  is required. She                                                            
offered to discuss with  the Department of Transportation and Public                                                            
Facilities,  the partnerships  proposed and  in place, and  the time                                                            
frame  for  completion  of  the  road  projects.   She  stated  that                                                            
additional funds  from alternate funding sources would  be necessary                                                            
and that construction dates are unknown.                                                                                        
                                                                                                                                
Department of Health and Social Services (cont.)                                                                              
                                                                                                                                
     Pioneers' Homes Deferred Maintenance, Renewal and Repair                                                                   
     $1,000,000 general funds                                                                                                   
     Reference No.: 37934                                                                                                       
     Category: Housing/Social Services                                                                                          
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     On-going Project                                                                                                           
     Funding is requested  for Fire and Life Safety problems and for                                                            
     deferred maintenance  and structural repairs of Pioneers' Homes                                                            
     throughout  the State. All projects listed in  this request are                                                            
     considered  Category 1.  Category 1 issues  relate to  Fire and                                                            
     Life Safety  and other integrity of emergency,  electrical, and                                                            
     other building systems  that without resolution place residents                                                            
     and staff at risk of harm.                                                                                                 
                                                                                                                                
Ms.  Clarke  noted   these  facilities  had  been   managed  by  the                                                            
Department of  Administration and that the Department  of Health and                                                            
Social  Services  is  attempting  to  assume  operating  duties  and                                                            
maintenance requirements.                                                                                                       
                                                                                                                                
Ms.   Clarke   listed  design   and   engineering   for   structural                                                            
modifications  for  the  Ketchikan  Pioneers  Home  as  the  highest                                                            
priority  project  at a  cost  of  $176,100.  She informed  that  an                                                            
initial  engineering  survey has  been conducted,  which  identified                                                            
structural  deficiencies. She stated  the proposed project  would be                                                            
the  first  phase  and  that  the  Department  would  later  request                                                            
additional  funds for the  construction portion.  She remarked  that                                                            
although  the  building  is  deemed  safe  for  occupancy,   serious                                                            
concerns  exist that  high  winds might  compromise  the  structural                                                            
integrity of the building.                                                                                                      
                                                                                                                                
Ms. Clarke  then told of  the main entry  door upgrade proposed  for                                                            
the Palmer  Pioneers Home to replace  two heavy exterior  doors that                                                            
could not be opened by an infirm person.                                                                                        
                                                                                                                                
Ms. Clarke  continued with  the Anchorage  Pioneers Home Fire  Alarm                                                            
System  Renovation  proposed  project at  a  cost of  $597,800.  She                                                            
stated  that  during a  building  survey  conducted  in 2001  for  a                                                            
ventilation project, it  was discovered that the existing fire alarm                                                            
system  was obsolete,  unreliable  and  subject to  numerous  faulty                                                            
alarms.  She  shared  that  false  alarms   cause  problems  at  the                                                            
Anchorage Pioneer  Homes, given that a high percentage  of residents                                                            
become "easily confused".                                                                                                       
                                                                                                                                
Ms.  Clarke  described  the  Juneau Pioneers  Home  Fire  Alarm  and                                                            
Emergency Lighting System  Upgrades. She explained the existing fire                                                            
alarm system is  independent and only recognizes that  smoke or fire                                                            
is present  in a  large group of  rooms, rather  than specifying  an                                                            
exact  location.  She  furthered  that  the  system  lacks  adequate                                                            
detectors, horns, strobes, etc.                                                                                                 
                                                                                                                                
Ms. Clarke  listed the  final proposed  project  as $42,000 for  the                                                            
Anchorage   Pioneers    Home   Wireless   Emergency    Call   System                                                            
Installation. She informed  that the existing system is obsolete and                                                            
frequently fails to receive emergency calls.                                                                                    
                                                                                                                                
Co-Chair  Wilken requested  the  funding history  for  this item  as                                                            
previously appropriated to the Department of Administration.                                                                    
                                                                                                                                
Ms. Clarke responded that she would compile the information.                                                                    
                                                                                                                                
Co-Chair Wilken asked if  the proposed projects are listed according                                                            
to priority.                                                                                                                    
                                                                                                                                
Ms. Clarke affirmed.                                                                                                            
                                                                                                                                
Co-Chair  Wilken asked  if  the fire  alarm and  emergency  lighting                                                            
project in the  Juneau Pioneers Home is to address  a code violation                                                            
or rather a "convenience upgrade."                                                                                              
                                                                                                                                
Ms. Clarke indicated she would research the matter.                                                                             
                                                                                                                                
     Safety and Support Equipment for Public Health Nurses,                                                                     
     Probation Officers and Social Workers                                                                                      
     $431,000 federal receipts                                                                                                  
     $259,500 G/F Match                                                                                                         
     $140,500 general funds                                                                                                     
     Reference No.: 32446                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     State Match Required                                                                                                       
     On-going Project                                                                                                           
     Project  provides funds  for critical  equipment needed  by the                                                            
     Department to enhance  security, improve program efficiency and                                                            
     replace aging  or dysfunctional equipment for  the Department's                                                            
     statewide  operations. Older  or unsuitable vehicles  have been                                                            
     identified  as the most dangerous  equipment and as  a priority                                                            
     for replacement. There  is an urgent need for this equipment so                                                            
     that Family and Youth  Service social workers, Juvenile Justice                                                            
     detention  and probation officers and Public  Health nurses can                                                            
     perform  their duties safely  and effectively. Failure  to fund                                                            
     some equipment  purchases will  mean that they may not  be able                                                            
     to do their job or that they may be placed in danger.                                                                      
                                                                                                                                
Ms.  Clarke  included  vehicle  maintenance   and  security  cameras                                                            
located in  Juvenile Justice  facilities as  some of the safety  and                                                            
support equipment  projects. She added that a mobile  clinic van for                                                            
public  health  nurses,  recently  made  available,  would  also  be                                                            
purchased  with  the  requested  funds.  She stated  this  would  be                                                            
located in the Fairbanks  area for service to communities assessable                                                            
by road to Fairbanks.                                                                                                           
                                                                                                                                
Senator  Taylor asked  if  the Department  purchases  or leases  the                                                            
vehicles.                                                                                                                       
                                                                                                                                
Ms. Clarke  replied  the vehicles  are purchased  through the  State                                                            
equipment fleet.                                                                                                                
                                                                                                                                
Senator  Taylor noted the  Department of  Transportation and  Public                                                            
Facilities  performs all maintenance  on these vehicles and  charges                                                            
back the  Department  of Health and  Social Services.  He asked  the                                                            
hourly rate assessed.                                                                                                           
                                                                                                                                
Ms. Clarke was unsure.                                                                                                          
                                                                                                                                
Senator  Taylor cited  the amount  "several years  ago" was $75  per                                                            
hour. He  suggested that  if the vehicles  were leased under  a "wet                                                            
lease"  agreement,  dealerships  would  perform  maintenance  at  no                                                            
charge  to the  State as  well as provide  another  vehicle for  use                                                            
during the time the State vehicle is being serviced.                                                                            
                                                                                                                                
Co-Chair  Wilken   understood  the   current  administration   would                                                            
research the viability of leasing vehicles.                                                                                     
                                                                                                                                
     Emergency  Medical Services Ambulances and Equipment  Statewide                                                            
     - Match for Code Blue Project                                                                                              
     $425,000 G/F Match                                                                                                         
     Reference No.: 33797                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     State Match Required                                                                                                       
     On-going Project                                                                                                           
     This request will  provide funding to match federal dollars and                                                            
     other  funding  to  purchase  ambulances  and  other  emergency                                                            
      medical equipment needed in rural Alaskan communities.                                                                    
                                                                                                                                
Ms. Clarke  noted the legislature  has funded this project  for many                                                            
years. She listed  other funding sources utilized  to purchase these                                                            
vehicles, including the  US Department of Agriculture, the Rasmussen                                                            
Foundation and the Denali Commission.                                                                                           
                                                                                                                                
Ms. Clarke  informed that some of  the requested funds could  be for                                                            
communities  to access  the Alaska  Land Mobile  Radio project.  She                                                            
indicated  a detailed  listing of  all Code Blue  projects could  be                                                            
made available to the Committee.                                                                                                
                                                                                                                                
Co-Chair  Wilken clarified  this request  for  matching funds  would                                                            
facilitate over $2 million  for emergency services across the State.                                                            
                                                                                                                                
Ms. Clarke affirmed.                                                                                                            
                                                                                                                                
     Juneau Public Health  Center Heating and Ventilation Upgraded -                                                            
     Phase 2                                                                                                                    
     $142,066 federal receipts                                                                                                  
     $647,191 G/F Match                                                                                                         
     Reference No.: 32451                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Juneau (Juneau/Downtown/Douglas)                                                                                 
     Election District: Juneau/Downtown/Douglas                                                                                 
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     State Match Required                                                                                                       
     Phased - underway Project                                                                                                  
     This facility has  no ventilation system and the heating system                                                            
     is on the  verge of failure. The legislature  provided funds in                                                            
     FY  2002  for the  design  of  a new  heating  and ventilation                                                             
     system. The legislature  provided funds in FY 02 for the design                                                            
     of a new heating and  ventilation system. A detailed evaluation                                                            
     conduced by Southeast  Energy Consulting found that the heating                                                            
     and ventilation  system at the  Juneau Public Center  is out of                                                            
     compliance  with  the  1991  and  1994  Uniform  Building  Code                                                            
     requirements.  This request  would provide  funding to  replace                                                            
     the  current heating  system and to  provide a new ventilation                                                             
     system.                                                                                                                    
                                                                                                                                
Ms. Clarke informed  that the State purchased this  facility in 1991                                                            
from a private  physician at what appeared to be a  "very good deal"                                                            
at the time,  given that the State  was leasing space. However,  she                                                            
stated it  has since been  learned that some  upgrades had  not been                                                            
made.                                                                                                                           
                                                                                                                                
Ms. Clarke  referenced a handout titled,  "Department of  Health and                                                            
Social   Services,  Juneau   Public   Health  Center   Heating   and                                                            
Ventilation  System  Upgrades"  [copy on  file], which  details  the                                                            
project.                                                                                                                        
                                                                                                                                
Ms. Clarke  noted this  is the third  year of  this request  and she                                                            
expressed appreciation  for the design funds appropriated  in FY 01.                                                            
She pointed  out that  this project  could begin  immediately,  once                                                            
funds were appropriated.                                                                                                        
                                                                                                                                
     Fairbanks Public Health Center Repair and Back-up Generator                                                                
     $46,800 federal receipts                                                                                                   
     $229,450 general funds                                                                                                     
     Reference No.: 37687                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Fairbanks (City of Fairbanks)                                                                                    
     Election District: City of Fairbanks                                                                                       
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     State Match Required                                                                                                       
     One-Time Project                                                                                                           
     This request will  provide funding to make major repairs and to                                                            
     buy  a reliable  back-up  generator  for the  Fairbanks  Public                                                            
     Health Center.                                                                                                             
                                                                                                                                
Ms. Clarke stated this  request reflects a collaborative effort with                                                            
the Fairbanks local government  contributing some major maintenance.                                                            
She  informed that  State  public health  nurses  solely occupy  the                                                            
facility  and of the transfer  of the facility  to State  ownership.                                                            
She stated  the transfer  is the  result of  the local government's                                                             
determination  that the functions were not within  its core mission.                                                            
In  acquiring  the facility,  she  pointed  out  "major maintenance                                                             
issues" must be "corrected".                                                                                                    
                                                                                                                                
Ms. Clarke furthered  that the facility has no backup  generator and                                                            
she told of vaccines destroyed  within minutes of a power outage due                                                            
to temperature  sensitivities. She emphasized the  facility operates                                                            
as a regional  hub of vaccine  storage for  the northern portion  of                                                            
the State.                                                                                                                      
                                                                                                                                
Co-Chair   Wilken  asked   whether   the  Golden   Valley   Electric                                                            
Association (GVeA)  has been contacted on this matter.  He indicated                                                            
the  GVEA   would  be  installing   a  backup  battery  system   and                                                            
anticipated  a  decrease  in the  number  of  power outages  in  the                                                            
Fairbanks area.                                                                                                                 
                                                                                                                                
     Residential Child Care Grantee Capital Needs                                                                               
     $30,587 federal receipts                                                                                                   
     $30,587 G/F Match                                                                                                          
     $169,413 general funds                                                                                                     
     Reference No.: 33815                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     State Match Required                                                                                                       
     One-Time Project                                                                                                           
     Provides  for capital funds to Residential Child  Care grantees                                                            
     in FY  04 and beyond  for deferred  maintenance, ADA  upgrades,                                                            
     remodeling  and equipment needs for in-state  residential youth                                                            
     care facilities.  The Department of Health and  Social Services                                                            
     is also  pursuing funding from  private foundations,  including                                                            
     the Rasmussen Foundation.                                                                                                  
                                                                                                                                
Ms. Clarke  spoke to the  State's responsibility  for ensuring  that                                                            
children,  who are in State  custody, are  housed in safe  "grantee"                                                            
facilities.                                                                                                                     
                                                                                                                                
Co-Chair Wilken exampled  Kids Are People, Inc., one of the grantees                                                            
and the proposed  $59,000 deferred maintenance project  and asked if                                                            
the State would  fund this project at a non-State  owned or operated                                                            
facility because  the children house  there are wards of  the State.                                                            
                                                                                                                                
Ms.  Clarke  affirmed  most  of the  grantees  have  a  majority  of                                                            
residents  who  are  in  State  custody.   She  qualified  that  the                                                            
facilities  also house some children  who are not in State  custody.                                                            
                                                                                                                                
Ms. Clarke assured  a process would be undertaken  to prioritize the                                                            
requests,  noting the  list included  in  the backup  material  is a                                                            
"wish list" of all requests submitted by grantees.                                                                              
                                                                                                                                
Co-Chair  Wilken  requested  clarification   of  the  three  funding                                                            
sources.  He asked if the  general fund  match appropriation,  taken                                                            
from the  general funds  is to  indicate the  federal matching  fund                                                            
requirement is met.                                                                                                             
                                                                                                                                
Ms. Clarke affirmed.                                                                                                            
                                                                                                                                
Senator Taylor pointed  out these are not State-owned facilities and                                                            
that the State  has contracted with organizations  to house children                                                            
in State custody.                                                                                                               
                                                                                                                                
Ms. Clarke  agreed the  facilities  are owned and  operated by  non-                                                            
profit  organizations,  known as  grantees.  She stressed  that  the                                                            
State has some  responsibility in  maintaining the viability  of the                                                            
grantees because if they  did not exist, the State would be required                                                            
to provide housing directly.                                                                                                    
                                                                                                                                
Senator Taylor  questioned the State providing funds  to improve and                                                            
rebuild privately owned structures.                                                                                             
                                                                                                                                
Ms.  Clarke  emphasized  that   the  State  is  not  rebuilding  any                                                            
facilities rather  the funds would be utilized to  undertake repairs                                                            
and make some  improvements. She reminded  that the legislature  has                                                            
awarded  grants  to  non-profit  organizations  that  provide  State                                                            
services in the past.                                                                                                           
                                                                                                                                
Senator Taylor  referenced one request and questioned  the "pressing                                                            
need" to replace three  canoes and sea kayaks for a facility located                                                            
in Juneau.                                                                                                                      
                                                                                                                                
Ms. Clarke reiterated the  Department would prioritize the requests.                                                            
                                                                                                                                
The remaining  items  are included  in HB  76 and  relate to  mental                                                            
health issues.                                                                                                                  
                                                                                                                                
     MH [Mental Health] Treatment Based Special Needs Housing                                                                   
     Program                                                                                                                    
     $250,000 Alaska Housing Financing Corporation (AHFC) dividend                                                              
     $150,000 Mental Health Trust Authority Authorized Receipts                                                                 
     (MHTAAR)                                                                                                                   
     Reference No.: 37901                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     One-Time Project                                                                                                           
     Mental Health Bill                                                                                                         
     This program provides funding to develop special needs Trust                                                               
     beneficiary housing that is treatment based, and thus cannot                                                               
      be funded under AHFC because of statutory limitations.                                                                    
                                                                                                                                
Ms.  Clarke indicated  the  other special  needs  housing items  are                                                            
included in  the Alaska Housing Finance  Corporation (AHFC)  budget.                                                            
                                                                                                                                
Ms.  Clarke  stated   this  program  is  intended   to  allow  Trust                                                            
beneficiaries  to  stay  in home-like  atmospheres  rather  than  be                                                            
institutionalized.                                                                                                              
                                                                                                                                
Co-Chair  Wilken characterized  the AHFC dividend  as general  funds                                                            
since the dividend  is annually deposited into the  general fund for                                                            
appropriation.                                                                                                                  
                                                                                                                                
Ms. Clarke affirmed.                                                                                                            
                                                                                                                                
Co-Chair  Wilken  asked  for identification   of any  MHTAAR  funded                                                            
capital  projects  that  would  require  future  State  funding  for                                                            
operation or maintenance expenses.                                                                                              
                                                                                                                                
      MH Deferred Maintenance and Accessibility Improvements                                                                    
     $333,300 MHTAAR                                                                                                            
     Reference No.: 33670                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     On-going Project                                                                                                           
     Mental Health Bill                                                                                                         
     This  program makes  capital funds available  on a competitive                                                             
     basis  to Mental  Health Trust  service  provider agencies  for                                                            
     deferred   maintenance  and   accessibility  improvements   for                                                            
     program facilities.                                                                                                        
                                                                                                                                
Ms. Clarke  pointed  out that although  matching  general funds  are                                                            
typically  utilized  to  partially   fund  this  program,  none  are                                                            
included in the FY 04 Governor's recommendation.                                                                                
                                                                                                                                
Ms. Clarke  explained these  projects address  maintenance  needs of                                                            
mental health  treatment facilities  and are utilized for  a variety                                                            
of purposes,  including ADA compliance  and upgrades. She  noted all                                                            
mental health  beneficiaries are eligible  to receive funding  under                                                            
this  program. She  pointed  out that  an  extensive prioritization                                                             
process  is  undertaken  by  the Department  to  identify  the  most                                                            
critical needs.                                                                                                                 
                                                                                                                                
Co-Chair  Wilken asked  for a  definition  of GF/MH  as listed  as a                                                            
funding source on some of the items.                                                                                            
                                                                                                                                
Ms. Clarke explained  this is designation of general  funds that are                                                            
utilized for mental health-related  expenditures and are included in                                                            
the Mental  Health appropriation.  She stated that the MHTAAR  funds                                                            
are those funds  administered by the  Mental Health Trust  Authority                                                            
and  proposed   for  certain   projects,   subject  to  legislative                                                             
authorization  through the mental health appropriation  legislation.                                                            
She emphasized  that every  item included  in this legislation  have                                                            
been reviewed  and endorsed by the  Trust Authority. She  noted that                                                            
the MHTA assumed a certain  amount of GF/MH funds would be available                                                            
to supplement  the MHTAAR funds proposed for the projects;  however,                                                            
the  Governor  has chosen  to  recommend  against the  general  fund                                                            
appropriations.                                                                                                                 
                                                                                                                                
Senator B. Stevens pointed  out several projects would not require a                                                            
general fund  appropriation for FY  04, but indicate future  general                                                            
fund  requirements  of  approximately  $1.5  million.  He  asked  if                                                            
approval of these projects  would "bind" future legislatures to fund                                                            
the projects.                                                                                                                   
                                                                                                                                
Ms. Clarke  answered  it would not,  as the  legislature would  make                                                            
funding decisions  annually.  She asserted that the  Trust Authority                                                            
has "worked  well" with the legislature  to provide MHTAAR  funds to                                                            
match general  funds in past projects  and would continue  to do so.                                                            
                                                                                                                                
Senator  B. Stevens  clarified  that the  legislature  would not  be                                                            
charged with under  funding or undercutting the projects  if funding                                                            
were not appropriated the following year.                                                                                       
                                                                                                                                
Ms. Clarke  replied that the projects  are undertaken individually,                                                             
based on  the amount of  funds available.  She detailed the  request                                                            
for proposal  (rfp)  process to  determine which  projects would  be                                                            
addressed.                                                                                                                      
                                                                                                                                
Senator Taylor  asked if the MHTAAR funds are receipts  generated by                                                            
the Trust from its land and resource base.                                                                                      
                                                                                                                                
Ms. Clarke affirmed.                                                                                                            
                                                                                                                                
     MH Essential Program Equipment Grants to Service Providers                                                                 
     $250,000 MHTAAR                                                                                                            
     Reference No.: 33672                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     On-going Project                                                                                                           
     Mental Health Bill                                                                                                         
     The request  will provide capital equipment grants  through the                                                            
     competitive   request   for  proposal   process  for   agencies                                                            
     providing  services, activities and programs  for Mental Health                                                            
     Trust beneficiaries.                                                                                                       
                                                                                                                                
Ms. Clarke indicated the  same rfp prioritization process is applied                                                            
to  projects  funded  through  this  item.  She  listed therapeutic                                                             
equipment, general  office equipment, and telepsychiatry  equipment,                                                            
as examples.                                                                                                                    
                                                                                                                                
     MH Adult Day Facility Modifications                                                                                        
     $125,000 MHTAAR                                                                                                            
     Reference No.: 37929                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2004 - 06/30/2008                                                                           
     Phased Project                                                                                                             
     Mental Health Bill                                                                                                         
     The Adult Day Facility  Dementia Design project in FY 02 funded                                                            
     a contract  for a design  architect to  analyze each of  the 12                                                            
     Adult Day programs  to better accommodate the health and safety                                                            
     needs of persons with  dementia. Recommendations were developed                                                            
     unique to each program  and the subsequent Adult Day Facilities                                                            
     Modifications project  was continued with reduced funding in FY                                                            
     03.  This  funding  request   will  assist  in  completing  the                                                            
     required modifications.                                                                                                    
                                                                                                                                
Ms.  Clarke  this was  funded  in  past through  the  Department  of                                                            
Administration.  She stated that funding would be  awarded through a                                                            
competitive  process limited  to the  12 facilities.  She noted  the                                                            
amount  of  this  request  is  "considerably   less  than  what  was                                                            
envisioned  originally,"  as  the  Trust  had recommended   matching                                                            
general funds.                                                                                                                  
                                                                                                                                
     MH  Integrating  Cultural  Resources  into  ADRD  Programs  and                                                            
     Environments                                                                                                               
     $87,500 MHTAAR                                                                                                             
     Reference No.: 37908                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     On-going Project                                                                                                           
     Mental Health Bill                                                                                                         
     The  goal   of  this  research   project  is  to  advance   the                                                            
     understanding  of  culture  and the  ways it  can  be used  for                                                            
     planning  enhanced programs and  environments for persons  with                                                            
     Alzheimer's  Disease  or Related  Disorders (ADRD).  This  is a                                                            
     follow-up  to the  FY 02 Adult  Day Dementia  Design and  FY 03                                                            
     Adult  Day Modifications projects  previously supported  by the                                                            
     Trust.                                                                                                                     
                                                                                                                                
Ms.  Clarke stated  this  project  is intended  to ensure  the  ADRD                                                            
programs are  operated utilizing "culturally  relevant approaches".                                                             
                                                                                                                                
                                                                                                                                
SFC 03 # 22, Side A 10:39 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Ms. Clarke offered experts  on this project to answer any questions.                                                            
                                                                                                                                
Senator  Taylor asked  if this  project  would study  the impact  of                                                            
Norwegian culture  in the treatment of ADRD patients  in Petersburg.                                                            
                                                                                                                                
Ms. Clarke  understood this  project relates  to the communities  of                                                            
Kodiak  and  Bethel.  She  qualified  the  Department  has  recently                                                            
assumed responsibility  for this project  and has limited  knowledge                                                            
of the matter.                                                                                                                  
                                                                                                                                
Senator Taylor requested additional information.                                                                                
                                                                                                                                
     MH Vehicle and Housing Modifications for Families or                                                                       
     Individuals                                                                                                                
     $300,000 MHTAAR                                                                                                            
     Reference No.: 33671                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     On-going Project                                                                                                           
     Mental Health Bill                                                                                                         
     This project  provides housing  and vehicle modification  funds                                                            
     for people  with special needs. Vehicle modification  funds are                                                            
     for  individuals  with developmental  disabilities  or  special                                                            
     needs  for  their  families for  modifications  to  make  their                                                            
     vehicles accessible.                                                                                                       
                                                                                                                                
Ms. Clarke  stated funding  for these projects  would allow  persons                                                            
with disabilities  to remain  in their homes  and could potentially                                                             
reduce  State expenses  in  providing  special housing.  She  listed                                                            
ramps, doorway  widening and kitchen  and bathroom modifications  as                                                            
examples of projects undertaken by this program.                                                                                
                                                                                                                                
Ms. Clarke  noted vehicle  modification would  be utilized  in those                                                            
communities  where no adequate public  transportation is  available.                                                            
She suggested modifications  could be less expensive than purchasing                                                            
new vehicles.                                                                                                                   
                                                                                                                                
Senator Olson  asked if the vehicle modification program  applies to                                                            
privately owned vehicles  or vehicles utilized by service providers.                                                            
                                                                                                                                
Ms. Clarke  was unsure and  understood the  funds could be  utilized                                                            
for both privately owned and program utilized vehicles.                                                                         
                                                                                                                                
Senator Olson  asked if funds are  provided to individuals  based on                                                            
financial need.                                                                                                                 
                                                                                                                                
Ms.  Clarke  replied  the individuals   must have  a  disability  to                                                            
qualify  and that  the Department  would  review  each situation  to                                                            
determine the need for modified housing or vehicles.                                                                            
                                                                                                                                
Senator Olson  pointed out that some  individuals with disabilities                                                             
are financially able to cover these expenses.                                                                                   
                                                                                                                                
Ms. Clarke stated she would research the matter.                                                                                
                                                                                                                                
     MH Safe Harbor Addition                                                                                                    
     $300,000 MHTAAR                                                                                                            
     Reference No.: 37893                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Anchorage (Downtown/Rogers Park)                                                                                 
     Election District: Downtown/Rogers Park                                                                                    
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     One-Time Project                                                                                                           
     Mental Health Bill                                                                                                         
     This  project would expand  the capacity  of programs  like the                                                            
     Safe  Harbor   Inn,  a  non-profit  motel  in  Anchorage   that                                                            
     successfully  provides  safe, affordable  lodging for  homeless                                                            
     families  and persons with mental and physical  disabilities as                                                            
     a transition to permanent housing.                                                                                         
                                                                                                                                
Ms.  Clarke  stated the  Safe  Harbor  Inn has  been  successful  in                                                            
providing  transitions   to permanent   housing.  She  informed  the                                                            
facility  operates at full  capacity and  the Department intends  to                                                            
expand the service to provide additional transitional housing.                                                                  
                                                                                                                                
     MH Repair and Replacement of Village-Based Counselors' Offices                                                             
     $75,000 MHTAAR                                                                                                             
     Reference No.: 37894                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     One-Time Project                                                                                                           
     Mental Health Bill                                                                                                         
     Offices for rural mental health/substance counselors are in                                                                
     deplorable  and non-therapeutic  condition. This project  would                                                            
     augment inadequate  capital funding available from DHSS through                                                            
     their rural facilities needs assessment process.                                                                           
                                                                                                                                
Ms. Clarke overviewed this request.                                                                                             
                                                                                                                                
      MH Replacement of Rural Community Mental Health Centers                                                                   
     $250,000 MHTAAR                                                                                                            
     Reference No.: 37895                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     One-Time Project                                                                                                           
     Mental Health Bill                                                                                                         
     Local  community  mental  health center  (CMHC)  facilities  in                                                            
     rural   Alaska    are   often   physically   substandard    and                                                            
     therapeutically   inappropriate.  This  project   will  provide                                                            
     matching  funds for replacement  of local CMHC facilities  with                                                            
     priority accorded to proposals with funding partnerships.                                                                  
                                                                                                                                
Ms. Clarke stated this item would address structural integrity of                                                               
the local facilities. She qualified the amount requested would not                                                              
allow for construction of new facilities.                                                                                       
                                                                                                                                
Ms. Clarke understood the Trust Authority envisioned receiving                                                                  
general funds for this item.                                                                                                    
                                                                                                                                
Co-Chair Wilken requested a list of the highest priority facilities                                                             
and identified repairs needed.                                                                                                  
                                                                                                                                
     MH Consumer Designated and Managed Projects                                                                                
     $131,300 MHTAAR                                                                                                            
     Reference No.: 34042                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     One-Time Project                                                                                                           
     Mental Health Bill                                                                                                         
     Provides  capital funds  to assist mental  health consumers  in                                                            
     setting  up consumer  run programs.  Qualified proposals  would                                                            
     secure other funding.                                                                                                      
                                                                                                                                
Ms. Clarke informed that historically these funds have been                                                                     
allocated to non-profit organizations that are "consumer run and                                                                
organized". She stated the program has been successful.                                                                         
                                                                                                                                
     MH Micro Enterprise Funds                                                                                                  
     $75,000 MHTAAR                                                                                                             
     Reference No.: 34043                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     One-Time Project                                                                                                           
     Mental Health Bill                                                                                                         
     Provides  funds  to purchase  start-up  equipment  and  working                                                            
     capital  for beneficiaries  who want  to be self-employed;  for                                                            
     service  providers  to  establish small  businesses  to  employ                                                            
     beneficiaries;   and  for private  enterprises   interested  in                                                            
     expanding    their   businesses   in   exchange    for   hiring                                                            
     beneficiaries.                                                                                                             
                                                                                                                                
Ms.  Clarke  noted  this  item  reflects  a  recommendation  of  the                                                            
Governor's  Council  on  Disabilities  and  Special  Education.  She                                                            
furthered  that the  majority  of the  businesses  targeted in  this                                                            
program are small  with start-up costs of less than  $10,000 and are                                                            
"seldom" eligible for most  grant and loan programs. She stated this                                                            
would provide incentive to hire beneficiaries.                                                                                  
                                                                                                                                
     MH Provider Resource Sharing and Coordination                                                                              
     $150,000 MHTAAR                                                                                                            
     Reference No.: 34039                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     On-going Project                                                                                                           
     Mental Health Bill                                                                                                         
     Funds  will be used  to pilot recommendations  at the  local or                                                            
     regional  provider level and provide resources  to make changes                                                            
     at the State level (i.e. regulatory changes).                                                                              
                                                                                                                                
Ms. Clarke stated  this project is intended to promote  efficiencies                                                            
and reduce  overhead expenditures  of non-profit service  providers.                                                            
                                                                                                                                
Senator Taylor  spoke of  the high cost of  liability insurance  for                                                            
non-profit  providers  and  expressed  intent  that  more  funds  be                                                            
utilized for providing  services rather than for insurance expenses.                                                            
He indicated the State  is self insured and mentioned that indemnity                                                            
could be extended to the  organizations and that organizations could                                                            
contribute to this expense.                                                                                                     
                                                                                                                                
Ms. Clarke stated she would research the matter.                                                                                
                                                                                                                                
Senator Olson requested additional information demonstrating the                                                                
success rate of the Micro Enterprises Fund program, Reference No.                                                               
34043.                                                                                                                          
                                                                                                                                

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