Legislature(2011 - 2012)ANCH LIO Rm 220
09/05/2012 10:30 AM House LEGISLATIVE BUDGET & AUDIT
| Audio | Topic |
|---|---|
| Start | |
| Approval of Minutes | |
| Revised Program - Legislative (rpls) | |
| Executive Session |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
LEGISLATIVE BUDGET AND AUDIT COMMITTEE
Anchorage, Alaska
September 5, 2012
10:32 a.m.
MEMBERS PRESENT
Representative Mike Hawker, Chair
Representative Mark Neuman (via teleconference)
Representative Kurt Olson
Representative Bill Thomas (via teleconference)
Representative Mike Doogan
Senator Lyman Hoffman
Senator Kevin Meyer (alternate)
MEMBERS ABSENT
Senator Bert Stedman, Vice Chair
Senator Hollis French
Senator Linda Menard
Senator Thomas Wagoner
Representative Scott Kawasaki (alternate)
Representative Bill Stoltze (alternate)
COMMITTEE CALENDAR
APPROVAL OF MINUTES
REVISED PROGRAM - LEGISLATIVE (RPLS)
EXECUTIVE SESSION
RELEASE OF AUDITS
OTHER COMMITTEE BUSINESS
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ROB CARPENTER, Fiscal Analyst
Legislative Fiscal Analysts
Legislative Finance Division
Juneau, Alaska
POSITION STATEMENT: Reviewed RPLs 06-3-0100 and 18-3-0357 that
were before the committee.
ALICE EDWARDS, Director
Division of Air Quality
Department of Environmental Conservation
Juneau, Alaska
POSITION STATEMENT: During discussion of RPL 18-3-0357,
answered questions.
KRIS CURTIS, Legislative Auditor
Legislative Audit Division
Juneau, Alaska
POSITION STATEMENT: Discussed the existing and proposed
compensatory time policy.
SKIFF LOBAUGH, Manager
Division of Personnel
Legislative Affairs Agency
Juneau, Alaska
POSITION STATEMENT: During discussion of the proposed
compensatory time policy, answered questions.
PAULYN SWANSON, Staff
Representative Hawker
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: During hearing, answered questions.
ACTION NARRATIVE
10:32:11 AM
CHAIR MIKE HAWKER called the Legislative Budget and Audit
Committee meeting to order at 10:32 a.m. Representatives Neuman
(via teleconference), Olson, Thomas (via teleconference),
Doogan, and Hawker and Senators Hoffman and Meyer (alternate)
were present at the call to order.
^Approval of Minutes
Approval of Minutes
10:33:20 AM
CHAIR HAWKER announced that the first order of business would be
the approval of the minutes from the June 27, 2012, meeting.
REPRESENTATIVE OLSON moved to approve the minutes from the June
27, 2012, meeting. There being no objection, the minutes were
approved.
^Revised Program - Legislative (RPLs)
Revised Program - Legislative (RPLs)
10:33:45 AM
CHAIR HAWKER announced that the next order of business would be
consideration of the following RPLs: 06-3-0100 and 18-3-0357.
10:34:03 AM
ROB CARPENTER, Fiscal Analyst, Legislative Fiscal Analysts,
Legislative Finance Division, explained that via RPL 06-3-0100
the Department of Health and Social Services requests
authorization to expend $9,540,185 in federal receipts to
provide financial incentives to hospitals and other health care
providers for adopting, implementing, or upgrading an electronic
record technology. This RPL would be in addition to an existing
$36.5 million capital project authorized in the 2011 legislative
session. However, due to faster than expected utilization of
the program, that expenditure authority is expected to be
exhausted soon after the start of the 2013 session. This is a
100 percent federally funded program. Mr. Carpenter stated that
the Legislative Audit Division has no technical concerns with
RPL 06-3-0100.
10:35:45 AM
MR. CARPENER moved on to RPL 18-3-0357 through which the
Department of Environmental Conservation (DEC) is requesting
authorization to expend $467,000 in federal receipts on grants
that would allow the Native Village of Shungnak to recover heat
from the power plant and use it for other city facilities. He
informed the committee that originally, $592,600 was awarded for
the Shungnak project to be used over three fiscal years.
However, due to project delays expenditure requirements have
accumulated to the current fiscal year, and thereby straining
the existing federal authorization. He pointed out that once
this project is complete, it will reduce fuel consumption in
Shungnak by 9,200 gallons per year, which will provide
considerable cost savings to the community. Without approval of
this RPL, DEC may be required to return existing unused funding
to avoid disruption of the normal air quality programs. Mr.
Carpenter stated that the Legislative Finance Division has no
technical concerns with RPL 18-3-0357.
10:37:00 AM
REPRESENTATIVE NEUMAN asked whether this funding request will
complete the project.
MR. CARPENTER answered that he believes so, but deferred to DEC
staff.
10:37:27 AM
ALICE EDWARDS, Director, Division of Air Quality, Department of
Environmental Conservation, confirmed that the funding in RPL
18-3-0357 will complete the project.
10:37:48 AM
REPRESENTATIVE NEUMAN then inquired as to who has overseen this
project and allowed it to be overrun.
MS. EDWARDS responded that the Division of Air Quality has
overseen this project. She explained that the sub-award was
granted in fiscal year 2011 and there were two sub-awards
granted to the Alaska Village Electric Cooperative (AVEC), of
which one was for a project in Good News Bay and the other in
Shungnak. The Good News Bay project has been completed, whereas
the Shungnak project faced some design delays that resulted in
the desire to have additional time to complete the
implementation and installation of the project.
10:38:32 AM
REPRESENTATIVE NEUMAN expressed concern that if members in the
department don't know what they're doing, perhaps they shouldn't
continue to manage the Shungnak project.
10:38:51 AM
REPRESENTATIVE OLSON moved to approve the following RRLs: RPL
06-3-0100, Department of Health and Social Services, for
$9,540,185 in federal capital receipt authorization; and RPL 18-
3-0357, Department of Environmental Conservation, for $467,000
in federal capital receipt authorization. There being no
objection, both RPLs were approved.
^Executive Session
Executive Session
10:39:43 AM
CHAIR HAWKER announced that the committee would now move into
executive session to discuss confidential audit requests.
10:39:46 AM
REPRESENTATIVE OLSON made a motion under Uniform Rule 22 to move
to executive session for the purpose of discussing confidential
audit reports under AS 24.20.301. There being no objection, the
committee went into executive session at 10:39 a.m.
[Due to technical difficulties, there is no audio from this
point forward. The transcript was reconstructed from the
secretary's notes.]
CHAIR HAWKER brought the committee back to order. Upon
reconvening Representatives Neuman (via teleconference), Olson,
Thomas (via teleconference), Doogan, and Hawker and Senators
Hoffman and Meyer (alternate) were present.
^Release of Audits
Release of Audits
CHAIR HAWKER announced that the next order of business would be
the release of audits.
REPRESENTATIVE OLSON moved that the committee release the
following confidential audit reports to the appropriate agencies
for comment: Board of Governors of the Alaska Bar Association -
Sunset Review; Special Education Service Agency - Sunset Review;
and Alaska Film Production Incentive Program - Select
Performance Issues. There being no objection, the specified
audits were released.
REPRESENTATIVE OLSON moved that the committee release the
following confidential audit reports to the public: RCA - FY 11
Annual Report; Statewide Suicide Prevention Council - Sunset
Review. There being no objection, the specified audits were
released to the agencies.
^Other Committee Business
Other Committee Business
CHAIR HAWKER announced that the committee would now discuss the
proposed changes to the compensatory time policy for the
Legislative Audit Division and the Legislative Finance Division.
KRIS CURTIS, Legislative Auditor, Legislative Audit Division,
reviewed the points outlined in her memorandum dated August 30,
2012, including the existing compensatory time policy for the
Legislative Audit Division:
Auditors, regardless of rank, may earn up to 150 hours
of comp time over a 12 month period (September 1
through August 31) on an hour per hour basis. Once a
person reaches the level of In-charge Auditor I, their
ability to accrue comp time is limited to weekends and
holidays. Once an auditor is promoted to In-charge
Auditor II or above, their ability to accrue comp time
is limited to holidays only.
MS. CURTIS highlighted that most of the extra hours are worked
by staff in the position of In-charge Auditor and above.
Therefore, [In-charge Auditors and above] are asked to work more
hours without compensatory time, which doesn't encourage staff
staying with the division. In fact, she related that there have
been auditors that have declined promotions due to this policy.
SKIFF LOBAUGH, Manager, Division of Personnel, Legislative
Affairs Agency, stated that compensatory time, in general, has
been around for some time.
CHAIR HAWKER highlighted that the recruitment and retention of
competent financial professionals is a challenge.
MR. LOBAUGH agreed, and added that compensatory time has been
used to compete with other branches of government and the
private sector. He noted that the executive branch has a comp-
time policy that could [be viewed as a benefit the legislative
branch doesn't offer.]
SENATOR HOFFMAN inquired as to the amount of compensatory time
there would be and how it would be managed in terms of workload.
MS. CURTIS said that she expects all the upper level staff will
remain with the division. The division won't be able to give
more leave than it already does, but when staff takes vacation
time they will take compensatory time rather than personal
leave. She pointed out that although personal leave is cashable
and thus is a benefit [for staff], it wouldn't be an addition to
the budget.
SENATOR MEYER opined that the legislature under pays its
financial staff. He then expressed the need to be uniform in
terms of a compensatory time policy throughout all divisions and
occupations [in the legislature]. For example, Legislative
Legal Services staff works lots of extra hours without
compensatory time.
MR. LOBAUGH said he hopes to bring forward to Legislative
Council a compensatory time policy [for the legislature] in the
future.
CHAIR HAWKER explained that when the Legislative Budget and
Audit Committee first considered the changes to the compensatory
time policy, the policy addressed all legislative branch
services. However, the scope of the Legislative Budget and
Audit Committee only includes the Legislative Audit Division and
the Legislative Finance Division. The other areas of
legislative staff fall under the purview of Legislative Council.
MR. LOBAUGH reiterated that he would hope to have a compensatory
time policy for [all legislative staff] as well.
REPRESENTATIVE OLSON moved to authorize the legislative auditor
and the legislative fiscal analyst to implement the
"Compensatory Time Policy - September 2012" for the Legislative
Audit Division and the Legislative Finance Division, effective
September 1, 2012, as discussed. There being no objection, it
was authorized.
CHAIR HAWKER noted his appreciation for Ms. Curtis' work on this
matter.
PAULYN SWANSON, Staff, Representative Hawker, Alaska State
Legislature, reviewed the committee meeting schedule, which she
offered to forward to all members.
ADJOURNMENT
There being no further business before the committee, the
Legislative Budget and Audit Committee meeting was adjourned at
11:30 a.m.
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