Legislature(2001 - 2002)
09/07/2001 01:10 PM House BUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT COMMITTEE
LEGISLATIVE BUDGET AND AUDIT
September 7, 2001
1:10 P.M.
MEMBERS PRESENT
Senator Gene Therriault, Chair
Senator Lyman Hoffman
Senator Jerry Ward
Senator Gary Wilken (alternate)
Representative Hugh Fate, Vice Chair (teleconferenced)
Representative John Harris
Representative Reggie Joule (teleconferenced)
Representative Ken Lancaster (teleconferenced)
Representative Eldon Mulder
Representative John Davies (alternate)
MEMBERS ABSENT
Senator Dave Donley
Senator Randy Phillips
Representative Bill Williams, (alternate)
COMMITTEE CALENDAR
APPROVAL OF COMMITTEE MINUTES
July 17, 2001
EXECUTIVE SESSION
Preliminary Audit Reports
Final Audit Reports
AUDIT REPORTS
Release of final Audits to Public
Release of Preliminary Audits for Agency Response
OTHER COMMITTEE BUSINESS
Legislative Audit - Foster Care Audit Update
Senator Taylor's Audit Request
Redistricting Concerns
District Cost Factor Study
Reclassification of Audit Analysts Positions
Travel & Per Diem Claim Form
DNR-Pipeline Issue
WITNESS REGISTER
HEATHER BRAKES, Legislative Assistant to
Senator Gene Therriault
Alaska State Legislature
Capitol Building, Room 121
Juneau, Alaska 99801-1182
Telephone: (907) 465-6590
DAVID TEAL, Director
(Testified via Teleconference)
Legislative Finance Division
Alaska State Legislature
P.O. Box 113200
Juneau, Alaska 99811-3200
Telephone: (907) 465-3795
POSITION STATEMENT: Spoke on behalf of the Legislative
Finance Division.
PAT DAVIDSON, Director
Legislative Audit Division
Alaska State Legislature
P.O. Box 113300
Juneau, Alaska 99811-3300
Telephone: (907) 465-3830
POSITION STATEMENT: Introduced the audit reports.
NICO BUS, Administrative Services Manager
(Testified via Teleconference)
Department of Natural Resources
400 Willoughby Ave, Suite 500
Juneau, Alaska 99801-1724
Telephone: (907) 465-2406
POSITION STATEMENT: Testified on RPL #10-2-4013
GARY PROKOSCH, Chief
Water Resources Section
Department of Natural Resources
th
550 West 7 Avenue, Ste. #650
Anchorage, Alaska 99501-3576
Telephone: (907) 269-8645
POSITION STATEMENT: Testified on RPL #10-2-4013
PATRICK GALVIN, Director
Office of the Governor
Division of Governmental Coordination
P.O. Box 110030
240 Main Street, Ste. #500
Juneau, Alaska 99811-0030
Telephone: (907) 465-3562
POSITION STATEMENT: Testified on RPL #01-2-8022
LISA WEISSLER, Project Analyst
Coastal Impact Assistance Program
Office of the Governor
Division of Governmental Coordination
P.O. Box 110030
240 Main Street, Ste 500
Juneau, Alaska 99811-0030
Telephone: (907) 465-8789
POSITION STATEMENT: Testified on RPL #01-2-8022
ELLEN FRITTS, Deputy Director
(Testified via Teleconference)
Division of Habitat and Restoration
Department of Fish & Game
P.O. Box 25526
th
1255 West 8 Street
Juneau, Alaska 99802-5526
Telephone: (907) 465-4105
POSITION STATEMENT: Testified on RPL #01-2-8022
JAMES BALDWIN, Assistant Attorney General
(Testified via Teleconference)
State of Alaska
Governmental Affairs Section
Civil Division
Department of Law
P.O. Box 110300
Juneau, Alaska 99811-0300
Telephone: (907) 465-2520
POSITION STATEMENT: Testified on the Redistricting Issue
ACTION NARRATIVE
TAPE LBA 01-8, SIDE A
CHAIR GENE THERRIAULT called the Joint Committee on
Legislative Budget and Audit meeting to order at 1:10 P.M.
on September 7, 2001. Members present at the call to order
were Senators Therriault, Hoffman, Wilken and Ward and with
Representatives Fate, Harris, Joule and Lancaster.
APPROVAL OF THE MINUTES
CHAIR THERRIAULT announced that the first order of business
th
would be approval of the minutes from the July 17, 2001
Legislative Budget and Audit Committee meeting.
SENATOR WILKEN MOVED approval of the minutes and asked for
unanimous consent. There being NO OBJECTION, the minutes
were approved and adopted.
OTHER COMMITTEE BUSINESS
Foster Care Audit Update
CHAIR THERRIAULT indicated that due to a time consideration
for Representative Fate, the Committee would address the
pending federal review of Alaska's foster care system.
PAT DAVIDSON, Legislative Auditor, referenced the memorandum
requesting the audit. [Copy on File]. She noted that since
the last Legislative Budget & Audit (LBA) meeting, the
Division of Family and Youth Services (DFYS) is in the
initial stages of a Performance Audit required by the
federal agency. The time line for that audit will last
eight months.
Ms. Davidson recommended that the Committee withdraw the
audit request submitted by Representative Fate. She
commented that would allow DFYS to spend their resources
focusing on the federal review. She added that she had
spoken with Commissioner Perdue from the Department of
Health & Social Services and that she had agreed to support
two of the Legislative auditors be included as part of that
federal review team. The Legislative Audit staff would
participate in the training for the reviewers as well as in
the case-by-case review process. She stressed that it was
the intent of the Division to guarantee that the issues
voiced by Representative Fate and Senator Hoffman were
officially addressed.
Ms. Davidson understood that Representative Fate requested
that the audit be WITHDRAWN until the next noticed meeting.
She noted that it was her intent that the concerns be
researched.
REPRESENTATIVE FATE MOVED to WITHDRAW his original request
for the audit at this time.
CHAIR THERRIAULT asked if the intent was to resubmit the
request at a latter date.
REPRESENTATIVE FATE replied that the request would be
submitted only if the federal study does not meet the
State's expectations.
REPRESENTATIVE LANCASTER inquired if the federal audit could
be done more quickly.
PAT DAVIDSON replied that it was a federal timetable and
would run on that schedule. The entire process that the
Division needs to go through includes an assessment phase in
which they will be required to submit case data to the
federal agencies for review and evaluation and then a
selection process, coordinating the reviewers coming in from
the other states. She added that June 2002 was the target
date for the on-site review. Ms. Davidson reiterated that
the timetable has been established.
REPRESENTATIVE DAVIES clarified that two audit staff from
the Division of Legislative Audit would be included on the
team.
There being NO OBJECTION, the audit request was WITHDRAWN.
REPRESENTATIVE FATE voiced his appreciation to the Division
of Legislative Audit and the LBA Committee members. He
noted that he would be going "off-line" at this time.
REVISED PROGRAMS (RPLs)
NICO BUS, Administrative Services Manager, (Testified via
Teleconference), stated that Gary Prokosch, Water Resources
Section Chief for the Department, was accompanying him to
address RPL #10-2-4013.
RPL Number: 10-2-4013
Department of Natural Resources
Minerals, Land and Water Development
Water Development
$280.0 Statutory Designated Program Receipts (SDPR)
NICO BUS pointed out that the request was for $280.0
thousand dollars, funds which had not been budgeted. The
money comes from industry, local government, and/or Native
Corporations to ask and pay for the United States Geological
Survey (USGS) to install and operate stream gauges. That
information is necessary for resource development,
hydroelectric projects and water supply projects. If these
entities pay the USGS directly, USGS cannot provide matching
funds. But if the funding is passed through a State agency
to the USGS, the funds can be matched at 100% by the federal
government.
Mr. Bus continued that the USGS estimates that $280.0
thousand dollars in project requests in FY02, were based on
prior year requests and proposed new hydroelectric projects.
The anticipated projects in that program are:
· Cooper Creek, Kenai Peninsula
· Dorothy Creek, Southeast Alaska
· Greens Creek, Southeast Alaska
· Falls Creek, Gustavus
· Indian River, Sitka
· Four Dam Pool hydroelectric project
Mr. Bus pointed out that the program had been funded through
the Department of Community & Economic Development's, Alaska
Energy Authority (AEA), for several years. USGS requested
that the Department of Natural Resources, Division of
Minerals, Land and Water consider taking over the program.
He added that the continuation of the program would benefit
the State, local governments, and the private sector by
allowing them the benefits received from the 100% matching
funds provided by the cooperative program.
CHAIR THERRIAULT asked if funds had been budgeted through
the Department of Community & Economic Development in the
FY02 budget for the program.
NICO BUS indicated that he had spoken to the Department of
Community & Economic Development and that the Alaska Energy
Authority had included the project in the Capital Budget.
It had been included in the capital projects that were
either old or exhausted and the funding was no longer
appropriate because it was program receipts instead of
statutory designated program receipts. He reiterated that
it had not been included in that Department's operating
budget, but had been included in a very old capital budget
request.
CHAIR THERRIAULT asked under what system had the Department
of Community & Economic Development been requesting that
funding.
NICO BUS reiterated that it was an "old" capital project and
had not been included in the current operating budget.
REPRESENTATIVE LANCASTER asked if the funding would provide
any benefit to the Four Dam Pool project.
GARY PROKOSCH, Chief, Water Resources Section, explained
that the Four Dam Pool was using matching funds for some of
the projects. However, if they did become privately owned,
they would qualify under the proposed program and would
benefit.
REPRESENTATIVE DAVIES asked about the chosen sites.
GARY PROKOSCH replied that many of the sites had already
been established and have a number of years of data
acquired. The program allows for new gauges for new
programs, which will benefit the State's lack of current
data. He added that the data would be placed on the USGS
website.
REPRESENTATIVE DAVIES indicated his support for the
increment, commenting that it would move the State in the
"right" direction for maintaining these stations.
SENATOR WILKEN MOVED to approve RPL #10-2-4013. There being
NO OBJECTION, the motion passed.
RPL Number: 01-2-0822
Office of the Governor
Division of Governmental Coordination
Governmental Coordination
$7,835.7 Federal Receipts
PATRICK GALVIN, Director, Governmental Coordination,
commented that the Division of Governmental Coordination
(DGC) was requesting $7,835.7 million dollars in federal
authority to implement the Coastal Impact Assistance Program
(CIAP) to help mitigate effects of the outer continental
shelf oil and gas exploration and development activities.
Uses of the CIAP funds would include:
· Conservation
· Restoration
· Enhancement or protection of coastal or marine
habitat, wetlands, watersheds and water quality
· Education and training
· Mapping and research
· Implementation of federal conservation management
plans
Mr. Galvin continued, under the CIAP, Alaska would receive a
one-time allocation of $12.2 million dollars. Based on the
CIAP legislation, 35% of the total, or $4.27 million
dollars, would be divided among 18 coastal boroughs and
Coastal Resource Service Areas (CRSA). The community funds
would be disbursed directly from the federal government to
the communities. The remaining $7.9 million dollars would
be allocated to the State of Alaska. He pointed out that
the Division of Governmental Coordination (DGC), FY02
operating budget does contain $100.0 of the CIAP funds.
Consequently, the RPL addresses only the $7.8 million
dollars allocated to the State.
Mr. Galvin discussed the designation of the monies:
Competitive Grants Program $3,100,000
Ocean, Coastal and Watershed Info. System $1,700,000
Cataloging Anadromous Fish Streams ` $1,000,000
Coastal Resource Inventory Project $ 800,000
Regional Coastal Program Planning $ 750,000
Implementation & Administrating of Plan $ 235,670
Grant Funds for AK. Coastal Resource Dis. $ 200,000
Ocean, Cstl & Watershed Symp & St. Oceans $ 150,000
TOTAL $7,935,670
Mr. Galvin noted that the Grant Program would establish the
grant criteria, solicit project proposals and select
projects to receive the funds. The grant program would be
open to applications from coastal resource districts, State
and local government agencies, tribal organizations, non-
profit organizations, individuals, private industry and
other interested parties.
Mr. Galvin further noted that the Coastal Impact Assistance
Program was a one-time appropriation that was part of the
compromise reached in the closing negotiations last year in
the Congress of the Conservation and Reinvestment Act
(CARA). The Coastal Impact Assistance Program is part of
what is now commonly referred to as the CARA-lite package.
REPRESENTATIVE MULDER asked how the members of the Coastal
Policy Council (CPC) would be selected.
PATRICK GALVIN replied that the Council already exists and
oversees the Alaska Coastal Management Program. He advised
that there are six State agencies represented and nine
locally elected officials from coastal communities within
the State. These people make up the Coastal Policy Council
and that they make the policy decisions for the coastal
management program. He emphasized that it was important to
establish a mechanism for administration of the potential
coastal impact grants without creating a new group
specifically for that one-time concern.
REPRESENTATIVE MULDER responded that two categories had been
established, education & conservation and restoration &
enhancement. He questioned the need to include "education".
LISA WEISSLER, Project Analyst, Coastal Impact Assistance
Program, explained that the Division has solicited public
input for ideas and that education had been one of the
proposed criteria to be included.
REPRESENTATIVE MULDER understood that during the 30-day
public comment period, the Division received only thirty to
forty responses. He commented that those people providing
services in those areas were sure to give "feedback" to the
Division. He stated that he did not support that aspect of
the program.
LISA WEISSLER responded that there were two public comment
periods. The first one lasted for fifteen days and
following that, the Division put the plan out for the public
for a thirty-day comment review period.
REPRESENTATIVE MULDER interjected that the plan states that
the funds could be used for conservation, restoration, or
enhancement of coastal marine habitat. He stressed that was
all encompassing considering that 25% of Alaska is wetlands.
He added that there are a number of capital projects each
year which the State has not been able to fund. He believed
that this funding could help with those projects.
Representative Mulder reiterated his opposition to including
the educational projects.
PATRICK GALVIN explained that included in the federal
legislation, no more than 23% of the funds could be used for
infrastructure, and only infrastructure, which is directly
related to mitigating the impact of offshore oil and gas
development. The only oil and gas qualifying for that would
be off the North Slope.
REPRESENTATIVE MULDER asked if the Cook Inlet would be
included in that section.
PATRICK GALVIN responded that the definition of offshore oil
and gas excludes anything that is within the area between
three and six miles from the shore. He stated that would
significantly limit the ability of DGC to look at the
infrastructure project.
Mr. Galvin continued, a large portion of the Coastal Impact
Assistance Program that go directly to local governments
would be directly to the North Slope Borough. He commented
that it would be inappropriate to look for other
infrastructure projects within the borough using the State's
portion of the fund.
REPRESENTATIVE MULDER advised that he had not heard of that
portion of the offshore impact reference. He pointed out
that he had spoken directly with the U.S. Secretary of the
Interior and the Governor's Chief of Staff and that point
had not been brought up. He requested a reference for that.
LISA WEISSLER read from Authorization Section of that U.S.
Legislation: [Copy on File].
"(6) Mitigating impacts of Outer continental Shelf
activities through funding of (A) onshore
infrastructure projects and (B) other public
service needs intended to mitigate the
environmental effects of Outer Continental Shelf
activities: Provided, that funds made available
under this paragraph shall not exceed 23 percent
of the funds provided under this section."
REPRESENTATIVE MULDER asked if that amount would apply to
the entire appropriation.
LISA WEISSLER responded that it would.
CHAIR THERRIAULT inquired if it would be ongoing funding.
PATRICK GALVIN replied it would not.
CHAIR THERRIAULT voiced his concern if it would turn into
ongoing funding through the operations of CARA, then the
Committee would want to be careful how to set up the
expending mechanism. He believed that there should be a
"sensible" way to break the costs down for the development.
Chair Therriault questioned the amount requested for the
implementation and administration of the plan.
LISA WEISSLER pointed out that only four months had been
allocated to develop the plan. For the past several months,
the Division has been working on a detailed implementation
plan. She added that there would be continuing work
associated with the competitive grant program.
CHAIR THERRIAULT asked if there would be a problem
performing development of that plan before the grant money
had been received.
LISA WEISSLER responded that the Division would be
uncomfortable with the solicitation of proposals if the
funds were not available.
SENATOR HOFFMAN questioned how fish stock rebuilding and the
cataloging of fish streams would be accomplished. He
questioned who would be contracted to do the work and why
there was a need for two new positions.
PATRICK GALVIN explained that the Department of Fish & Game
would do the contractual work as they provided the work
plan.
CHAIR THERRIAULT interjected that contractual services would
not be issued to a non-State entity. All contracting must
be from one State agency to another.
SENATOR HOFFMAN reiterated his query of how the fish stocks
would be rebuilt.
ELLEN FRITTS, Deputy Director, Division of Habitat and
Restoration, Department of Fish & Game, (Testified via
Teleconference), explained that the intent of the cataloging
would be so that the Department could provide additional
information to the current catalogue of the anadromous
waters. That action would place those waters under the
protection of Title 16, Section .870, which requires
permitting. The point of the increment would improve
protection of the spawning and rearing areas and all of the
critical places which need to be rebuilt because of current
problems.
SENATOR HOFFMAN referenced Page 4, "rebuilding" of fish
stocks.
ELLEN FRITTS explained that money had not been designated
for rebuilding of fish stocks. She believed that statement
indicates the State's need to do a "better job" of
protecting fish stocks and the habitat that those stocks
need.
SENATOR HOFFMAN pointed out that the State already has a
cataloguing of 15,209 water bodies, including documented
evidence of anadromous fish use. He asked why an additional
million dollars was necessary.
ELLEN FRITTS acknowledged that a catalogue currently does
exist; however, the Division estimates that Alaska has less
than 60% of its anadromous fish habitat catalogued. She
emphasized that 40% of the fish habitat is not protected by
a permit program.
REPRESENTATIVE MULDER referenced the statement read by Ms.
Weissler, which specifically refers to the mitigating of the
outer continental shelf activities. He did not believe that
percentage was applicable to the projects for conservation
and protection of the wetlands and the comprehensive
management plans. He questioned if they would be subject to
the 23% limitation.
PATRICK GALVIN agreed that they were not and added that was
why they had been included in the grant description.
REPRESENTATIVE MULDER stressed that these were one-time
funds and that he would like to see those funds used more
beneficially for the State as opposed to looking at this as
an ongoing revenue stream.
PATRICK GALVIN inquired if it was the will of the Committee
to receive the applications for review in order to
understand the actual projects proposed.
CHAIR THERRIAULT recommended that should be a policy call of
the Coastal Policy Council determining the percentages used
for each category.
SENATOR WILKEN referenced Page 7 of the handout. He asked
about the nine new proposed positions and what would happen
with them next year when the funding was gone.
LISA WEISSLER advised that this was to be a three-year
project and when the money goes away, the positions would go
away.
CHAIR THERRIAULT commented that in order for it to become a
three-year project, the Division will need to request a
funding source shift.
SENATOR WILKEN referenced Page 9 of the handout, warning
that the full impact on the general fund will not be known,
until the CIAP projects are completed.
PATRICK GALVIN addressed the "positive" impact of the
project on the State's budget. He projected that there
could possibly be a decrease from requested amounts.
SENATOR WILKEN referenced Page 15 of the handout, Section 6-
Coastal Political Subdivisions, Paragraph A.
"In Alaska, a coastal political subdivision
Equivalent is an organized borough or coastal
resource service area (CRSA)."
Senator Wilken asked where that designation had occurred.
PATRICK GALVIN replied that there is not a designation in
State law that a CRSA is a political subdivision. However,
the intent of the Division was to comply with the intent of
the federal statute that makes "county-equivalents" eligible
for that "other" portion of the fund. It refers back to the
previous sentence:
"A coastal political subdivision is defined as a
'county, parish, or any equivalent subdivision'
(~31(a)(1))."
Mr. Galvin acknowledged how that would apply to Alaska is
debatable. He stated that the Division felt that the intent
was to have the money available for as much of the State's
coastal communities as possible, and that the regional
coastal management entities in those service areas should
also receive the funding. A new definition of coastal
political subdivision has been included in the current CARA
bill going through Congress, and it would allow coastal
cities not within a regional entity to share in the local
portion of the funding.
SEANTOR WILKEN voiced his concern that the CRSA's not be
eliminated.
PATRICK GALVIN acknowledged that CRSA's would be included.
CHAIR THERRIAULT referenced the spreadsheet listed on Page 3
of the handout, pointing out that regional coastal planning
was one of the components. He advised that the definition
was listed on Page 5:
"Three regions of the state are not currently covered
by local coastal management plans; Prince William
Sound, Northern Southeast Alaska, and Southern
Southeast Alaska."
TAPE LBA 01-8, SIDE B
REPRESENTATIVE DAVIES asked if the areas were exclusive
boroughs of if they would include coastal cities.
PATRICK GALVIN explained that within the definition of
eligibility, a municipality within a borough could not be
included and that there would be no overlap.
REPRESENTATIVE DAVIES addressed the education project,
recommending that it be a separate category.
PATRICK GALVIN agreed that was a good idea.
REPRESENTATIVE MULDER referenced the computer based
information system. He commented that once a computer
system is established, someone needs to be available to
maintain and operate it.
LISA WEISSLER stated that the data would be centralized
within the agencies that collect and maintain it. She added
that there is potential for future federal grants for that
type of system. In response to Representative Mulder, Ms.
Weissler added that there is much information currently
collected by the State. The computer system would network
all the inter-agency information and make it available at
one site.
PATRICK GALVIN added that the computer system would provide
an "entry point" that would indicate where permittees and
applicants would need to go to gather the information that
they need to complete the process.
LISA WEISSLER responded to concerns voiced by Representative
Mulder, explaining that the federal government would be
willing to help with that funding in the future. The feds
are interested in the State's proposal and they are building
Alaska into their budget. The State does not want to lose
the momentum they have achieved to date.
CHAIR THERIAULT pointed out that the funds would become
available in the federal fiscal year.
PATRICK GALVIN commented that the proposed funds are
available in the current federal fiscal year and will be
available in October 2001, if there is approval of the State
plan by the National Oceanic and Atmospheric Administration
(NOAA).
CHAIR THERRIAULT asked if the Committee provided partial
approval, would a delay jeopardize the remaining money.
PATRICK GALVIN replied that if the projects proposed were
accepted, the funding would not be jeopardized.
SENATOR WARD asked if the funds could lapse.
PATRICK GALVIN replied they would not.
LISA WEISSLER explained that NOAA has indicated that they
may establish a three-year limit.
PATRICK GALVIN stressed that the plan needs Committee
approval.
REPRESENTATIVE DAVIES inquired if the three-year limit was
on the total expenditure for that project.
LISA WEISSLER replied that she did not know for sure,
however, believed that it would be funded for the time spent
on the total project.
CHAIR THERRIAULT asked about the language referencing
establishing of a "trust fund".
PATRICK GALVIN explained that the word "trust" was used in
the description of the authorized use of the funds. In
discussing that option with NOAA and the agencies that have
experience with trusts, there were two primary issues. The
first was if the State administrative burden would be eased
and second, if there would be interest accumulated on that
part, which the State could spend in the future. Absent
other federal language, NOAA lawyers have indicated that the
State would not accumulate the interest. Based on this, it
is unlikely that the State will pursue a trust structure.
CHAIR THERRIAULT referenced the breakdown for the
competitive grant program. He asked if the competitive
grants portion was not approved, could the Division still
move forward with the program.
PATRICK GALVIN advised that the $16 thousand dollars for
travel would be needed for the scheduled meetings of the
Coastal Policy Council to review the grants for approval;
however, he believed that amount could be merged into the
CPC's current budget for the time being.
LISA WEISSLER explained that the contractual amount of
$168.1 thousand dollars would be used for the grant
administrator position within the Department of Community &
Economic Development. She indicated that amount was not
essential until there are grants to manage.
PATRICK GALVIN explained how that program would work.
REPRESENTATIVE MULDER asked for a description of the coastal
resource inventory project request in the amount of $800.0
thousand dollars.
LISA WEISSLER explained that during the public comment
period, people understood that there was a lot of
information available but they did not know what it was or
where it was located. She indicated that the project has
two components. The first would be to determine what is
available, leading to the information system. The remaining
portion would be to create an information identification
system and determine information needs.
PATRICK GALVIN interjected that the component is critical,
as relevant and important information exists for making
decisions but it is not currently accessible. He reiterated
that there is no mechanism currently available in the State
system, which makes that information readily available.
SENATOR WARD referenced the competitive grant fund
component. He asked if there was a reason that fund did not
extract funding from one of the other components.
PATRICK GALVIN clarified that NOAA is currently reviewing
the plan for approval. To amend the plan, the State would
have to go back to NOAA. The proposed plan includes
described categories and the projects associated with each.
SENATOR WARD asked what the process would be to go back to
NOAA and change the current agreement.
PATRICK GALVIN understood that would mean going back out for
public comment. That is an obligation under federal law.
SENATOR WARD inquired if the local communities had
recommended that amount be allocated for the resource
inventory project.
PATRICK GALVIN stated that the local communities indicated
that they would like information available and a place to
access that information. He added that the proposed project
summary was the one agreed to by the local communities.
SENATOR WARD asked if a list of projects proposed by the
local communities was available.
PATRICK GALVIN responded that there are two different lists.
One is part of the proposed State plan and the other is a
list of "other" projects.
LISA WEISSLER listed some of the cementers who provided
input during the comment period:
· University
· Alaska University Fisheries Center
· Gulf of Alaska Coastal Community Coalition
· Joseph Bader
· National Wildlife Refuge
· Regional Guide Fisheries Association
· Cook Inlet Aquaculture Association
Ms. Weissler noted that there was no criteria or application
available to select projects proposed by those that
commented. In order to deal with them and recommend
specific projects, funding for the competitive grant fund
needed to be set aside. She added that there had been $14
million dollars worth of projects proposed.
CHAIR THERRIAULT recommended deferring projects for the full
Legislature to consider. He added that there will be
another two LBA Committee meetings scheduled over the next
few months.
REPRESENTATIVE MULDER MOVED to DELETE the request of
$3,100.0 thousand dollars for the Competitive Grant Fund
until actual projects are determined. He added to delete
the Symposium & Report project in the amount of $150.0
thousand dollars.
Representative Mulder MOVED to ADOPT the request for the
Information System in the amount of $1,700.0 thousand
dollars; $1,000.0 dollars for Cataloguing the Streams;
$800.0 thousand dollars for the Resource Inventory; $750.0
thousand dollars for the Regional Coastal Planning; and
$200.0 thousand dollars for the Coastal District Grants.
Representative Mulder MOVED to REDUCE the Plan
Implementation to $50.0 thousand dollars.
REPRESENTATIVE JOULE asked if the full Legislature would be
addressing the two projects being recommended for deletion.
CHAIR THERRIAULT responded that perhaps they would if the
Program had proposals for the full Legislature to consider.
DAVID TEAL, Director, Division of Legislative Finance,
[Testified via Teleconference], interjected that all the
projects are likely to be before the full Legislature in
FY03. He pointed out that the proposal is an operating RPL
and that the timeline is for three years. He noted that it
was the intent of the Office of Management and Budget (OMB)
to come back before the full Legislature and have the
operating money converted into a capitol project.
Mr. Teal added that because this is an operating RPL, it
does not matter what the LBA Committee specifies the money
can be technically used for. It is just an operating
appropriation and they can use it for anything they want.
The MOTION as MOVED:
DELETE:
Competitive Grant Fund $3,100.0
Symposium & Report Pro. $ 150.0
REDUCE:
Plan Implementation to: $ 50.0
ADOPT:
Information System $1,700.0
Cataloguing Streams $1,000.0
Resource Inventory $ 800.0
Regional Coastal Planning $ 750.0
Coastal District Grants $ 200.0
There being NO OBJECTION, the MOTION as made by
Representative Mulder was adopted.
EXECUTIVE SESSION
SENATOR WILKEN made a motion, in accordance with Title 24
and 44, to MOVE into Executive Session for the purpose of
discussing audit reports, which are held confidential by
law. There being NO OBJECTION, the Committee went into
Executive Session at 2:30 P.M.
CHAIR THERRIAULT requested that Pat Davidson (Legislative
Auditor) and her staff and Committee Staff, Heather Brakes
be present for the Executive Session.
The Committee resumed Open Session at 3:00 P.M.
AUDIT REPORTS
SENATOR WILKEN MOVED to release the preliminary audits to
the agencies:
· DOA/Data Systems
· DOA/Division of Senior Svc.- Asst. Living Program
· DLWD/Vocational Rehabilitation
There being NO OBJECTION, the preliminary audit reports were
released for agency response.
SENATOR WILKEN MOVED to release the final audit reports as
public:
· FY00 State of Alaska Single Audit
· AIDEA/Rural Energy Programs
There being NO OBJECTION, the final audit reports were
released for public response.
OTHER COMMITTEE BUSINESS
Special Audit Request
CHAIR THERRIUALT noted that there was an audit request
submitted by Senator Taylor to review certain activities of
the Department of Transportation & Public Facilities
Southeast Director, Construction, maintenance and operations
(M&O). The areas requested for review should include the
necessity of business related travel and authorization of
the use of the State equipment by non-state personnel.
SENATOR WARD MOVED Committee approval of the audit request.
PAT DAVIDSON explained that her office had been working with
Senator Taylor to address the purpose of the audit request.
She noted that an agreement with Senator Taylor to create a
broader identification category would allow the Division to
look at a fuller range of activities.
There being NO OBJECTION, the special audit request was
submitted for approval.
Redistricting Issue
CHAIR THERRIAULT commented that he had spoken with the
Attorney General due to a number of members' concern that
the Department of Law was weighing in on the redistricting
issue. He noted that with the Constitutional change, the
Redistricting Board does have its own office, budget and
legal counsel. He noted that he had submitted a letter to
the Attorney General's Office and that Mr. Baldwin was on-
line to address questions of the Committee.
CHAIR THERRIAULT voiced concern with the overall amount of
hours spent on the issue by the Department of Law.
JAMES BALDWIN, Assistant Attorney General, [Testified via
Teleconference], explained that those were the hours spent
th,th,
between April 19 2001 and June 19 2001, during the period
in which the plan was being prepared.
CHAIR THERRIAULT asked about the hours since the plan has
been submitted.
JAMES BALDWIN added that the 114 hours included an
assessment of the nine cases, which had been consolidated
into a single case. The Department was required to prepare
answers to all of those nine cases and then filed a motion
to intervene, following up by doing the typical work to
prepare the case.
CHAIR THERRIAULT pointed out that not all of the cases had
named the State, specifically. He understood now that all
cases that had named the State have since moved to drop the
State as the name.
JAMES BALDWIN advised that there were four or five of the
cases which expressly named the State and asked for
injunctions against the Division of Elections. In all of
those cases, they filed a voluntary dismissal of the State
as a party. However, they did not subsequently amend their
complaints, which ask that the Division of Elections be
joined in a certain way. The Department of Law believes
that even though that maneuver was taken, there still
remains a strong State interest in being protected. Mr.
Baldwin stressed that is why the Department intervened.
CHAIR THERRIAULT asked if the Department had filed
opposition to dropping the State as a name on behalf of the
State of Alaska.
JAMES BALDWIN explained that this was not a procedure where
that occurred. Rather, it is a procedure where if someone
is dismissed, but nothing has been done on the case, it
would not just happen. That is why the Department moved to
intervene. The Department wanted to see the case advance
but did not want to take the full 40-days to see that
happen. Then the voluntary dismissal was filed and then the
efforts were switched to a motion to intervene because the
Department was still technically and legally in the case.
CHAIR THERRIAULT commented on a reference that existing
RSA's or existing funding would be adequate. He asked if
the Department was intending to come back to the Legislature
through the supplemental process. He added, he heard that
the Department of Law was running out of money and would be
submitting an RPL to cover those costs. He asked if
anything had been budgeted to the Department to cover the
costs associated with the redistricting concerns.
Senator Therriault stressed that the Redistricting Board has
their own budget and their own legal counsel. He asked how
much of the Department of Law's money was being used for
those concerns which would short other work within the
Department.
JAMES BALDWIN did not know about the need for a supplemental
budget request. At this point, he noted that only he had
been involved with the case. He added that the Department
has been involved with the situation since the beginning and
that the principle focus has been the voting right aspects
of the plan. Now that there is a compressed legal
proceeding, the Department is concerned with the effect it
might have on the ability to conduct elections in 2002. It
is in everyone's interest that the litigation be conducted
in a way that the State can carry off successfully the
primary and general elections for 2002.
CHAIR THERRIAULT interjected that when the Constitution was
amended, the accelerated legal procedure was established.
He believed that the State was "ahead" from the last time
the issue surfaced. He asked if there was anything that
made the Department seriously doubt that the standard
election cycle would be in jeopardy.
JAMES BALDWIN voiced concern that a trial has been scheduled
for the middle of January 2002. The Department urged
counsel for the Redistricting Board to schedule trial for
earlier than that under the theory that there must be
sufficient time allowed for the appeal of the Alaska Supreme
Court and then time for the Court to decide. Unlike earlier
years in the redistricting cycle, if there is an error found
in the present plan, it will have to go back to the Board
for correction. In the prior procedure, the Court usually
appointed a master or determined the establishment of an
interim plan or made corrections to the final plan. These
are the steps that have to occur. Having the trial set for
January 2002, will press on the election calendar. He
acknowledged that it could not be worse than it was in 1990,
when the trial did not finish until May. He warned that the
State does not want to fall into the problems experienced in
1990.
CHAIR THERRIAULT observed that the Court would start a plan
from "scratch". With a new scenario, the Court could remand
it back to the Redistricting Board, with some direction on
how to remedy the problems that it potentially found. He
believed that would be a more streamline method.
JAMES BALDWIN replied that it could be, depending on what
the Court does with the finding of error.
CHAIR THERRIAULT voiced his appreciation for the quick
response provided by the Department of Law. He noted that
he would follow-up with some additional questions at a
latter date.
JAMES BALDWIN replied that the Department would attempt to
provide as much information as they can.
District Cost Factor Study
CHAIR THERRIAULT mentioned the district cost factor study.
He noted that the evaluation team consisted of five members:
Representative Fate, Eddy Jeans from the Department of
Education & Early Development, Pat Davidson-Legislative
Auditor, David Teal-Legislative Finance Director, and
himself. The team did meet to address the three proposals
and did award an out-of-state company, who had done work in
the State of Alaska in the 1980's. Senator Therriault
explained that the way in which the decision was made was
through the use of grading sheets disbursed to each member
independently on the team and then discussed. The final
process was close. The company that won the bid is the
American Institute for Research from California. He added
that the Notice of Award had been sent out and that there is
a ten-day appeal process.
TAPE CHANGE, LBA 01-9, SIDE 1
CHAIR THERRIAULT noted that the bid price came back at
$348,000 dollars. The amount, which had been budgeted, was
$350,000 dollars. He reiterated that the notices to proceed
with the award have been sent.
Reclassification of Auditors Positions
CHAIR THERRIAULT advised that Pat Davidson had issued a
memorandum regarding the reclassification of some of the
auditor's positions within the Division of Legislative Audit
to give some analysts an increase in pay range. Ms.
Davidson indicated that the Division was having difficulty
being competitive with some of the other State agencies.
Senator Therriault stated that the decision would not take
formal Committee action.
PAT DAVIDSON mentioned that the Legislative Audit Division
has experienced turnover in the last few years. She noted
that she found that employees were leaving the Audit
Division and often going on to the Executive Branch,
receiving a two-range increase.
The Legislative Audit Division operates like a public
accounting firm. They are able to get applicants because
the work experience in the Division qualifies that person to
become a Certified Public Account (CPA). Once they receive
a little experience in the Audit Division, they are then
hired out as Finance Officers and/or other audit positions.
She commented that the turnover makes the audit process less
efficient.
Since it is within the Division of Audit's budgetary
constraints, the Division is looking at moving some
positions up one range. Currently, those positions are at
Ranges 20, 21 and 23. Finance Officers in the State
generally are Ranges 21 and 22. Assistant Directors are at
Range 24. She added that when checking with states with a
similar population base, Alaska does pay less to its audit
employees.
Ms. Davidson added that in the past, there was a ten to
fifteen year experience rate in the Division, however, that
has decreased to five to eight years. Ms. Davidson
suggested that change shows in the efficiency of the audits.
CHAIR THERRIAULT reminded members how difficult the turnover
rate within the Division of Legislative Finance has been on
that Division. He indicated that unless there were
objections from the Committee, it was his intent to give Ms.
Davidson the authority to make those change. There were no
objections voiced.
Travel & Per Diem Claim Form
PAT DAVIDSON advised that member's packets contained a copy
of a Travel and Per Diem Claim Form. [Copy on File]. She
pointed out the changes which had been made to that form,
should make it easier for everyone to get paid more timely.
Department of Natural Resources - Pipeline Issue
CHAIR THERRIAULT noted that at the last LBA meeting, he had
been given authority to release money to the Department of
Natural Resources for the pipeline issue. He reported that
so far, there have been no billings. The work has not yet
"gotten off the ground" as quickly as expected. He noted
his concern with what he had heard to expect for a billing
from the Foothill producers group. He advised that Mr.
Britt would be meeting with him, following the adjournment
of the LBA meeting and invited any members interested in
participating in that meeting to attend.
ADJOURNMENT
CHAIR THERRIAULT adjourned the Legislative Budget and Audit
Committee at 3:25 P.M.
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