Legislature(2011 - 2012)ANCH LIO Rm 220
10/16/2012 10:30 AM House LEGISLATIVE BUDGET & AUDIT
| Audio | Topic |
|---|---|
| Start | |
| Approval of Minutes | |
| Revised Program - Legislative (rpls) | |
| Executive Session | |
| Release of Audits | |
| Other Committee Business | |
| Adjourn |
* 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
October 16, 2012
10:33 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 Linda Menard
Representative Bill Stoltze (alternate)
Senator Kevin Meyer (alternate) (via teleconference)
MEMBERS ABSENT
Senator Bert Stedman, Vice Chair
Senator Hollis French
Senator Thomas Wagoner
Representative Scott Kawasaki (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
DAVID TEAL, Legislative Fiscal Analyst
Legislative Finance Division
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented RPL 06-3-0192 and RPL 07-3-1043.
ACTION NARRATIVE
10:33:26 AM
CHAIR MIKE HAWKER called the Legislative Budget and Audit
Committee meeting to order at 10:33 a.m. Representatives
Hawker, Neuman (via teleconference), Olson, Thomas (via
teleconference), and Doogan, and Senators Hoffman, Menard, and
Meyer (alternate) (via teleconference) were present at the call
to order. Representative Stoltze (alternate) arrived as the
meeting was in progress.
^Approval of Minutes
Approval of Minutes
10:35:25 AM
CHAIR HAWKER announced that the first order of business would be
the approval of the minutes.
REPRESENTATIVE OLSON made a motion to approve the minutes of
September 5, 2012. There being no objection, the minutes from
the meeting of September 5, 2012, were approved.
^Revised Program - Legislative (RPLs)
Revised Program - Legislative (RPLs)
10:36:11 AM
CHAIR HAWKER announced that the next order of business would be
consideration of RPL 06-3-0192, Eligibility Information System
replacement, Department of Health and Social Services (DHSS).
10:37:07 AM
DAVID TEAL, Legislative Fiscal Analyst, Legislative Finance
Division, Alaska State Legislature, explained that via RPL 06-3-
0192, the Department of Health and Social Services (DHSS) is
seeking the authority to spend $65,826,669 in federal funds to
replace the Division of Public Assistance's Eligibility
Information System, and all related components, used to
determine Medicaid eligibility. A general fund (GF) match of
$8,738,478 has already been appropriated for this capital
project, and is expected to be sufficient to complete the
project's Medicaid component by October 2013 and all other
components by the end of calendar year 2015. If all goes as
anticipated, the DHSS will be able to take advantage of enhanced
match rates that will reduce the state's share of costs by over
$8 million. Additionally, a study commissioned by DHSS
indicates potential operating-cost savings of 30 percent or
more. Although there is no guarantee that a project of this
magnitude will come in on time, on budget, and produce the
hoped-for results, it is pretty safe to say that the
aforementioned $8 million in potential savings under the
enhanced match rate will not occur unless RPL 06-3-0192 is
approved.
10:38:52 AM
CHAIR HAWKER announced that the next order of business would be
consideration of RPL 07-3-1043, State Energy Sector Partnership
grant, Department of Labor & Workforce Development (DLWD).
MR. TEAL explained that via RPL 07-3-1043, the Department of
Labor & Workforce Development (DLWD) is seeking the authority to
expend $820,810 in now-available federal American Recovery and
Reinvestment Act of 2009 (ARRA) funds for the State Energy
Sector Partnership grant, which would apply to "green" jobs -
environmentally-friendly jobs - and is aimed at upgrading
necessary skills via education and job training. Although the
operating budget for fiscal year 2013 (FY 13) contained language
allowing the DLWD to carry forward money from FY 12, it was not
anticipated that this additional ARRA funding would be
available, and only the timely approval of RPL 07-3-1043 would
allow the DLWD to take advantage of it. The DLWD has indicated
that the training program will impact approximately 350 people,
that there will be no ARRA funding in FY 14, and that no GF
monies will be requested to replace the ARRA funding.
10:40:25 AM
REPRESENTATIVE OLSON made a motion to approve RPL 06-3-0192,
Department of Health and Social Services, $65,826,669 federal
capital receipt authorization; and RPL 07-3-1043, Department of
Labor & Workforce Development, $820,810 federal ARRA receipt
authorization. There being no objection, RPL 06-3-0192 and
RPL 07-3-1043 were so approved.
^Executive Session
Executive Session
10:41:29 AM
CHAIR HAWKER announced that the committee would next go into
executive session.
REPRESENTATIVE OLSON made a motion 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 10:42 a.m.
CHAIR HAWKER brought the committee back to order at 11:12 a.m.
Upon reconvening, Representatives Hawker, Olson, Doogan, and
Stoltze (alternate), and Senators Hoffman, Menard, and Meyer
(alternate) (via teleconference) were present.
^Release of Audits
Release of Audits
11:13:47 AM
CHAIR HAWKER announced that the next order of business would be
the release of audits.
11:14:01 AM
REPRESENTATIVE OLSON made a motion for the preliminary audits
for the Board of Public Accountancy sunset review, and the State
Medical Board sunset review to be released to the appropriate
agencies for response. There being no objection, it was so
ordered.
REPRESENTATIVE OLSON made a motion for the final audits for the
Board of Governors of the Alaska Bar Association sunset review,
the Special Education Service Agency sunset review, and the
Alaska Film Production Incentive Program select performance
issues [review] to be released to the public.
11:15:00 AM
REPRESENTATIVE DOOGAN objected for the purpose of discussion;
expressed disapproval of the Alaska Film Production Incentive
Program; and then removed his objection to the motion to release
the aforementioned final audits to the public.
REPRESENTATIVE STOLTZE concurred with the comments on the Film
Tax Incentive Program, and expressed concern with and
disapproval of the length of the sunset extension [recommended
in the audit] for the Board of Governors of the Alaska Bar
Association.
CHAIR HAWKER concurred, characterizing it as too long an
extension.
CHAIR HAWKER, after ascertaining that there were no further
objections, announced that the motion to release the
aforementioned final audits was approved.
^Other Committee Business
Other Committee Business
11:21:45 AM
CHAIR HAWKER announced that the final order of business, under
other committee business, would be consideration of an amendment
to the contract with PFC Energy, a professional consulting firm
specializing in the oil and gas industry. The proposed
amendment would extend the current contract with PFC Energy for
another year, to January 31, 2014; would modify the purpose of
that contract to also include professional fiscal analysis and
consulting related to Alaska's upstream oil and gas sector,
Alaska's oil and gas fiscal systems, and proposals for
monetizing North Slope gas; and would increase the amount of the
contract by $750,000. He emphasized that approval of the
proposed contract amendment would not obligate the next
legislature to avail itself of PFC Energy's consulting services,
but would preclude the administration from contracting with PFC
energy for those same services during that timeframe. In
conclusion, he characterized PFC Energy's credentials as
impeccable; remarked on the importance of having professional
consultants on retainer to provide the legislature with
information about Alaska's oil and gas; mentioned that PFC
Energy's chief competitor in Alaska is already under contract
with the administration; and noted that Senator Stedman has
expressed to him his strong support for the proposed contract
amendment.
REPRESENTATIVE STOLTZE expressed support for the proposed
contract amendment, and remarked on the importance of having
independent consultants available to provide the legislature
with necessary information.
11:28:33 AM
REPRESENTATIVE OLSON made a motion that the chair of the
Legislative Budget and Audit Committee be authorized to increase
the PFC Energy contract by $750,000, to an amount not to exceed
$1,650,000; to extend the term of the contract one year -
through January 31, 2014; and to modify the purpose of the
contract to include professional fiscal analysis and consulting
related to Alaska's upstream oil and gas sector, to Alaska's oil
and gas fiscal systems, and to proposals for monetizing North
Slope gas. This proposed contract amendment reflects a sole
source procurement as determined to be in the committee's best
interest. There being no objection, the motion passed.
11:29:40 AM
ADJOURNMENT
There being no further business before the committee, the
Legislative Budget and Audit Committee meeting was adjourned at
11:29 a.m.
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