Legislature(1999 - 2000)
08/18/2000 02:15 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
JOINT COMMITTEE
LEGISLATIVE BUDGET AND AUDIT
August 18, 2000
2:15 P.M.
MEMBERS PRESENT
Representative Gail Phillips, Chair
Representative Eric Croft
Representative Gary Davis
Representative Gene Therriault
Senator Randy Phillips, Vice Chair
Senator Rick Halford
Senator Gary Wilken
MEMBERS ABSENT
Representative Con Bunde
Representative Eldon Mulder (alternate)
Senator Al Adams
Senator Sean Parnell
Senator Drue Pearce (alternate)
COMMITTEE CALENDAR
APPROVAL OF MINUTES - April 26, 2000
REVISED PROGRAM RECEIPTS
OTHER COMMITTEE BUSINESS
EXECUTIVE SESSION
AUDIT REPORTS
WITNESS REGISTER
PAT HARTLEY, Legislative Assistant
to Representative Gail Phillips
345 W. Sterling Highway, #102 B
Homer, Alaska 99603
Telephone: (907) 235-2921
PAT DAVIDSON, Director
Division of Legislative Audit
State Office Building, Sixth Floor
Juneau, Alaska 99801
Telephone: (907) 465-3830
POSITION STATEMENT: Spoke to Audit Reports
GINGER BLAISDELL, Fiscal Analysts
Division of Legislative Finance
State Office Building, Sixth Floor
Juneau, Alaska 99811
Telephone: (907) 465-5432
POSITION STATEMENT: Introduced the RPLs
JEFF JESSE, Executive Director
Alaska Mental Health Trust Authority
Department of Revenue
th
550 W. 7 Avenue, Suite #1820
Anchorage, Alaska 99501
Telephone: (907) 269-7963
POSITION STATEMENT: Spoke to RPL #02-1-0011
JANET CLARKE, Director
Division of Administrative Services
Department of Health and Social Services
PO Box 110650
Juneau, Alaska 99811-0650
Telephone: (907) 465-3082
POSITION STATEMENT: Spoke to RPL #06-1-0030
GREG WOLF, Director
Division of Trade and Development
Department of Community & Economic Development
th
550 West 7 Street, Suite #1770
Anchorage, Alaska 99501
Telephone: (907) 269-8115
POSITION STATEMENT: Spoke to RPL #08-1-0008
JEFF BERLINER, Trade Specialist
Division of Trade and Development
Department of Community & Economic Development
PO Box 110804
Juneau, Alaska 99811-0804
Telephone: (907) 465-3962
POSITION STATEMENT: Spoke to RPL #08-1-0008
COL. MARK STIGAR, Aviation Officer
Alaska Army National Guard
Department of Military and Veterans Affairs
PO Box 5800
Ft. Richardson, Alaska 99505-0800
National Guard Armory
Telephone: (907) 428-6900
POSITION STATEMENT: Spoke to RPL #09-1-0009
ROBERT LOEFFLER, Director
Division of Mining, Land and Water
Department of Natural Resources
3601 C Street #800
Anchorage, Alaska 99503-5935
Telephone: (907) 269-8600
POSITION STATEMENT: Spoke to RPL #10-1-4015
KRAG JOHNSON
Denali Commission 2002 Work Plan
510 L Street #410
Anchorage, Alaska 99501
Telephone: (907) 271-1413
POSITION STATEMENT: Update on the Denali Commission
BRAD PIERCE, Senior Policy Analyst
Office of Management and Budget
Court Plaza Building
240 Main Street #801
Juneau, Alaska 99811-0020
Telephone:(907) 465-4677
POSITION STATEMENT: Update on the Carlson Case
STEPHEN WHITE, Assistant Attorney General
Natural Resources Division
Department of Law
PO Box 110300
Juneau, Alaska 99811-0300
Telephone:(907) 465-3600
POSITION STATEMENT: Info on the Carlson Case Update
DALE ANDERSON, Staff
to Representative Eldon Mulder
Alaska State Legislature
House of Representatives
State Capitol, Room 507
Juneau, Alaska 99801-1182
Telephone:(907) 465-2647
POSITION STATEMENT: Update regarding the
Regional Board of School study.
ACTION NARRATIVE
TAPE 00-6, Side A
Number 0001
CHAIR GAIL PHILLIPS called the Joint Committee on
Legislative Budget and Audit meeting to order at 2:15 p.m.
on August 18, 2000. Members present at the call to order
were Representatives Phillips, Davis, and Therriault, and
Senators Phillips, Halford and Wilken. Representative
Croft joined the Committee meeting later.
APPROVAL OF MINUTES
CHAIR PHILLIPS noted that the first order of business would
the approval of the minutes from the Legislative Budget and
th
Audit Committee meeting held April 26, 2000.
SENATOR PHILLIPS MOVED approval of the minutes and asked
for unanimous consent. There being NO OBJECTION, the
minutes were approved and adopted.
REVISED PROGRAMS (RPLs)
GINGER BLAISDELL, Legislative Analysts, Division of
Legislative Finance, (testified via teleconference),
explained the RPLs before the Committee for review and
action.
RPL Number: 02-1-0011
Department of Administration
Rural Long Term Care Job Development
$52.0 MHTAAR - Operating
GINGER BLAISDELL stated that the requested funding would
provide for a continuation of the Rural Long-Term Care
Workforce Development Project begun in FY2000.
Additionally, the request would increase the availability
of qualified long-term care workers throughout the State.
JEFF JESSE, Executive Director, Alaska Mental Health Trust
Authority (AMHTA), added that the request would move some
of the FY00 Mental Health authorized receipts into FY01.
He noted that action had occurred after the trustees had
discussion with the Administration regarding the concern.
Both parties agreed it would be an appropriate course of
action to develop the program for rural long-term care
systems.
SENATOR WILKEN noted his support for continuation of the
program.
REPRESENTATIVE THERRIAULT MOVED to approve RPS #02-1-0011.
There being NO OBJECTION, RPL #02-1-0011 was adopted.
RPL Number: 06-1-0030
Department of Health and Social Services
CIP Ketchikan Juvenile Treatment Center
$263.0 Statutory Designated Program Receipts (SDPR)
Capital Appropriation
GINGER BLAISDELL pointed out the funding would provide for
the Department of Health and Social Services, Division of
Juvenile Justice, an allocation for capital construction of
the Ketchikan Juvenile Detention/Diagnostic and Treatment
Center. The City of Ketchikan would provide funds to cover
all facility construction costs exceeding the estimates.
Ms. Blaisdell noted that the Department of Transportation
and Public Facilities required contingency money which
amounted to more than the actual costs of the construction.
The City of Ketchikan has agreed that these funds would be
the last money spent on the project.
JANET CLARKE, Director, Division of Administrative
Services, Department of Health and Social Services,
explained that all five bids provided to the Department of
Transportation and Public Facilities for the facility were
in excess of the cost estimator. She advised that the
Department of Transportation and Public Facilities and the
Department of Health and Social Services had taken the
following action to deal with that concern:
· Reduced the scope of the project, eliminating the
added alternate; and
· Contacted the City of Ketchikan, at which time,
the City agreed to provide the additional needed
funding plus other local funds to allow the
Department of Transportation and Public
Facilities to award the base bid.
Ms. Clarke continued, approval of the funds is needed in
order that the Department of Health and Social Services can
meet the requirement that the Department of Transportation
and Public Facilities has for a 10% contingency fund. The
funds are not currently available.
SENATOR PHILLIPS asked if the contribution made by the City
of Ketchikan was a direct contribution or if it had been
State funded.
MS. CLARKE understood that it was a direct contribution
from local government. She admitted the possibility that
they could have received some revenue sharing, however,
there was not a direct appropriation made to them that they
"turned around and gave back to the State".
REPRESENTATIVE G. THERRIAULT warned that no money had been
received from the City of Ketchikan to date. He questioned
if they actually intended to spend any of their own money.
MS. CLARKE clarified that the City of Ketchikan had pledged
the required amount through local ordinances. The funds
have not yet been expended because the Department has not
yet begun construction. She emphasized that it was a real
pledge.
REPRESENTATIVE G. DAVIS asked when the bids had been
accepted and opened.
st
MS. CLARKE responded the bids were opened on June 1, 2000.
She noted that building can occur all year long in
Ketchikan, as the winters tend to be mild.
REPRESENTATIVE G. DAVIS MOVED to adopt the requested
funding. There being NO OBJECTION, RPL #06-1-0030 was
adopted.
RPL Number: 08-1-0008
Department of Community & Economic Development
Alaska-Russia Far East Project
$440,000 Federal - US Agency for International Development
(USAID) part 1 of a 2 part grant Total of $745,835
GINGER BLAISDELL explained that the requested money would
be federal funds made available by the United States Agency
for International Development (USAID). USAID would provide
funding to the Division of International Trade and Market
Development (DITMD) for Alaskan projects providing
technical assistance for development in Sakhalin.
GREG WOLF, Director, Division of Trade and Development,
Department of Community & Economic Development, commented
that the Department is seeking additional receipt authority
for the grant to provide for continued funding for projects
in Sakhalin, located in Russia. He suggested that raising
Alaska's profile in that area would be beneficial to the
State. Companies in the oil and gas industry support the
construction and are actively pursuing business
opportunities in that area. Funding would help to further
open the doors for Alaska development on the island. Mr.
Wolf emphasized that there would be no State financial
match required by accepting this grant.
REPRESENTATIVE THERRIAULT questioned how the $20,000 for
personal services would be used.
MR. WOLF assumed that it would be used for unanticipated
costs associated with other projects which the Division is
working toward in outside areas. He clarified that the
funds would allow the Department to do a "little more" in
outside projects.
In response to Representative Therriault, Mr. Wolf
acknowledged that there is an environmental project
occurring on the island. The project envisions paying for
actual "out-of-pocket" costs and consultants going to
Sakhalin and should be defined based on the needs of that
area. He added that it would be a project of the Alaska-
Sakhalin working group, which would be comprised of a
number of committees. The Committees on Energy, Ecology
and Training developed the project. It currently is being
narrowed down.
REPRESENTATIVE G. DAVIS MOVED to adopt the requested
funding for the Alaska-Russian Far East project.
SENATOR PHILLIPS OBJECTED. He suggested that the request
should be funded through the private sector.
MR. WOLF responded that this is federal funding coming
through the United States Agency for International
Development (USAID). He stressed that the private sector
does make full-time contributions and that there is no in-
kind funding required.
REPRESENTATIVE G. DAVIS noted that he supported the
request. He commented that the funding could help place
the Russian government in an operating status to manage
that type of facility. He asked how private enterprise
should come to that status. Representative G. Davis
suggested that it would be a government-to-government
responsibility and reminded members of the direct benefit
to Alaskans through the "marriage".
JEFF BERLINER, Trade Specialist, Division of Trade and
Development, Department of Community & Economic
Development, addressed the benefits to the private sector.
The Workforce Development Project is a follow-up of an
earlier USAID project, which established Sakhalin College
that trains workers in oil field skills. Many of those
workers have been trained in Alaska. The benefits are
primarily to the Kenai Peninsula, bringing approximately
$300 million dollars to the private sector. The project is
designed to increase training and provide more involvement
for Alaskan companies.
CHAIR PHILLIPS asked if non-approval of the request would
affect the operations of Sakhalin College.
MR. BERLINER replied that it would bring all of the
projects to a halt. The Sakhalin Development Agency is a
project establishing an agency modeled after Alaska
Industrial Development Export Authority (AIDEA). That
project is currently half-finished. There have been other
regions in Russia that have requested similar projects from
Alaska. Such a project as this has the potential to create
the first true market economy and lending institution in
Russia, which could be a model for all Russian regions.
REPRESENTATIVE THERRIAULT asked if Representative G. Davis
had contacted the congressional staff regarding support.
MR. WOLF interjected that the private sector is also paying
into the project.
SENATOR PHILLIPS reiterated his concern if there was
anything prohibiting the private sector from totally
handling the concern.
MR. BERLINGER explained that the first part of the
environmental project had been 100% privately funded.
A roll call vote was taken on the motion to adopt RPL #08-
1-0008.
IN FAVOR: Representatives G. Davis, Therriault, Croft,
Phillips
Senators Wilken, Halford
OPPOSED: Senator Phillips
Representatives Bunde and Mulder and Senators Parnell,
Adams, and Pearce were not present for the vote.
The MOTION PASSED (6-1).
RPL Number: 09-1-0009
Department of Military and Veterans Affairs
Centralized Billing Point for Medivac Missions
$205.0 Statutory Designated Program Receipts (SDPR)
Operating
GINGER BLAISDELL stated the purpose of the requested
funding would be for the Alaska Army National Guard (AANG)
to gain the ability to receive and expend total costs of
medivac missions through the State of Alaska's accounting
system. She noted that the process is administratively
complex, burdensome and results in payment delays to the
aircrews and confusion for the State and the customer. She
suggested that the project could simplify the process.
Ms. Blaisdell acknowledged concern of the Division of
Legislative Finance that the increased authorization would
raise the apparent size of that budget. The Division would
like to see that no administrative charge-backs are charged
against the agency. She noted that the agency has assured
the Division that those costs would go toward the
administrative costs to the Department of Military and
Veterans Affairs. The benefit would be a consolidation of
billings.
COL. MARK STIGAR, Aviation Officer, Alaska Army National
Guard, Department of Military and Veterans Affairs,
explained that the National Guard has been trying to
streamline the system for the past year. There have been
many delayed payments because of confusion in the billing
systems.
SENATOR HALFORD asked about typical medivac facilities and
equipment used.
COL. STIGAR replied that the National Guard is in
partnership with private companies in the Bethel area.
Many of the villages do not have instrument approaches for
helicopters. The primary reason that the National Guard is
involved is that no one else can get into those areas.
REPRESENTATIVE THERIAULT pointed out that no additional
money was being spent; however, changes were being made to
how it flows through the system.
REPRESENTATIVE THERRIAULT MOVED that the Committee approve
RPL #09-1-0009. There being NO OBJECTION, it was approved.
RPL Number: 10-1-4015
Department of Natural Resources
CIP-Abandoned Mine Lands Reclamation
$882.0 Federal - Capital
GINGER BLAISDELL commented that the request would amend an
existing capital project for the federally-funded Abandoned
Mine Lands (AML) Reclamation program. The funding would
allow the FY99 federal grant to be increased by the amount
not expended in earlier years.
ROBERT LOEFFLER, Director, Division of Mining, Land and
Water, Department of Natural Resources, explained that the
Department of Natural Resources had received federal funds
for the reclamation of an historic and abandoned mine. The
grant was used for the private sector to provide financing
for primarily coal mines.
SENATOR PHILLIPS asked if some of the funds had been used to
pay the contractor in Palmer.
MR. LOEFFLER replied they had. He added that there is still
a contract claim pending following the completion of the
contracts, which will be forth coming soon.
SENATOR PHILLIPS MOVED to adopt RPL #10-1-4015. There being
NO OBJECTION, it was adopted.
RPL Number: 10-1-4022
Department of Natural Resources
Division of Minerals, Land and Water Development
Expedite Land Transfers
$30.0 Statutory Designated Program Receipts (SDPR)
Operating Budget
GINGER BLAISDELL noted that the money would come from
municipalities to expedite the processing for land transfer
requests. During the 2000 Legislative Session, SB 283 was
passed and addressed land disposals. That legislation
changed all the statutory designated program receipts to
State land funds. She indicated that fund was intended to
be used for State purposes, not municipal monies and that
the funding needs to be replenished.
REPRESENTATIVE THERRIALUT MOVED to adopt RPL #10-1-4022.
There being NO OBJECTION, it was adopted.
OTHER COMMITTEE BUSINESS
DENALI COMMISSION
KRAG JOHNSON, Denali Commission 2002 Work Plan, highlighted
what the Denali Commission has undertaken. The Commission
was established in 1998 to deliver services from the federal
government, in a cost-effective and practicable manner to
communities throughout rural Alaska.
To date the Commission has received approximately $20
million dollars with additional appropriations expected to
be coming from the Trans-Alaska Pipeline Liability Fund for
bulk fuel in the amount of $10 million dollars. In the
first two years, the Commission received a total of $60
million dollars and over $50 million dollars were obligated
to the bulk fuel and power generation needs throughout the
State.
SENATOR HALFORD asked if additional generation capacity
would be put in place.
MR. JOHNSON responded that the bulk fuel storage program was
only one portion of the construction package of the
facilities. He noted that $10 million dollars had been
directly dedicated to bulk fuel of which the majority of
that money would be used to up-grade the fuel storage
capacity in rural Alaska.
Mr. Johnson spoke to other areas of involvement such as
training and economic development. The Commission was
dedicated to provide training needs to local residents for
the construction and operation of jobs that go along with
the projects. Ten percent of the funding has been allocated
to go for the training needs.
Mr. Johnson pointed out that the Commission is investigating
economic development opportunities. The only committed
project to date is a $500 thousand dollar mini-grant program
to the Department of Community & Economic Development.
CHAIR PHILLIPS supported the Denali Commission not assuming
a "hard line" stance on policy.
(Tape Change, LBA 00-6, Side 2).
MR. JOHNSON explained that the Commission is "struggling"
with numerous requests for assistance in economic
development. The Commission anticipates to obligate the
entire amount. He noted that construction had begun on the
st
1 project and that FY 2000 funds have been obligated.
Following the first year construction funding of the Alaska
Energy Authority (AEA), the Commission decided to review the
processes. He acknowledged the request to have an
independent, outside review or audit of the fund handling at
the community level.
Mr. Johnson added that Representative Morgan had requested
an audit of the Division of Energy. He believed that could
be tied into what currently has been undertaken.
Mr. Johnson addressed the Commission's federal agency work.
In an effort to coordinate and deliver federal resources,
the Commission is closely working with the State and federal
agencies. In the future, the Commission will continue to
work with various energy programs and the Alaska Energy
Authority, Division of Energy. Senator Stevens was
successful in securing $10 million dollars for the
Commission to directly appropriate for health clinic
construction.
At present, what remains in the budget is $30 million
general appropriation dollars for the Commission's efforts,
$10 million dollars for the health clinic facilities,
leaving an additional $10 million dollars.
Mr. Johnson noted that member's packets included a copy of
the FY2002 work plan. He urged members to review the packet
and provide comments.
CHAIR PHILLIPS asked the response received from Senator
Stevens regarding work done by the Commission.
MR. JOHNSON responded that Senator Stevens had approved of
the general direction taken by the Commission. He spoke to
federal funds, which the Commission could expect to receive,
and what the Commission should do to "fit" into those
system-area needs. Thus concluded the testimony by the
Denali Commission.
CARLSON VERSUS STATE OF ALASKA CASE
BRAD PIERCE, Senior Policy Analyst, Office of Management and
Budget, spoke to developments in the Donald Carlson versus
the State of Alaska case. He noted that the case was a
class action lawsuit by a non-resident commercial fisherman
over the license fee differential charged by the State. The
suit was brought forward in 1986. The period of time of
that case is 1984 to present.
A ruling was provided in June 2000. He noted that Steve
White is the lead attorney on that case and requested that
he testify at this time.
STEPHEN WHITE, Assistant Attorney General, Natural Resources
Division, Department of Law, advised that the case had been
before the Alaska Supreme Court twice in the last month.
The Court ruled in 1996, giving both sides a formula to be
used to determine the permissible difference between a
resident and non-resident limited entry permit. The formula
takes the State's expenditures for commercial fishing and
divides it by the number of people in Alaska, then multiples
that number by the percentage of the budget coming from oil
revenues. The formula provides a dollar figure, resulting
in the additional amount that can be charged to non-
residents for their fishing licenses.
Mr. White continued, an uncertain part of the formula is the
annual fisheries budget, which is a variable number each
year supporting commercial fishing. The State developed a
method and approach for identifying those commercial-fishing
expenditures. The trial clarified that portion of the
formula.
Mr. White advised that the State had presented to the Court
six different components and legitimate ways of measuring
commercial fishery costs to the State. The judge ruled that
only two of those components could be allowed in that
formula. Additionally, the State used the figures from FY96
to illustrate the various budget components. Only allowing
two components, the permissible differential was reduced to
$155 dollars for that year. He stressed the amount does not
capture the necessary fees.
Mr. White continued, following that trial, the State of
Alaska asked the Entry Commission to take the result from
the Court and calculate what the potential refunds would be
for FY96. He acknowledged that there is some uncertainty in
how to calculate refunds and the interest associated with
those amounts. The range of refunds for that year alone
amount to $1.2 to $1.8 million dollars. The next step would
be to identify the legal issues surrounding the calculation
of refunds. He noted that the State would be appealing the
decision; however, he believed that the action would not
happen for another year or so. Mr. White pointed out that
there are approximately 11,000 non-residents that paid fees
in the last sixteen years, and who create the "class action"
suit. The State of Alaska had requested that the judge
limit the recovery to only those plaintiffs named instead of
the entire class. The judge did rule against that request.
MR. PIERCE added, since there is a formula, the State of
Alaska's Department of Law has proposed that the Governor
write legislation to indicate "good faith" to the Court, and
which the State would attempt to live within. He reminded
members that the "meter is running" on the action pending.
REGIONAL BOARD OF SCHOOL
VOCATIONAL EDUCATION UPDATE
DALE ANDERSON, Staff, Representative Eldon Mulder, provided
an update on the regional school study and the
accomplishments it has achieved. He identified 110 schools
in the State of Alaska, which in the last twelve years have
averaged less than six high school students.
CHAIR PHILLIPS explained that the Legislative Budget and
Audit Committee had been tasked by House Finance Committee
to provide a statewide task force to investigate
consideration of regional boarding high schools. She noted
that the information provided by Mr. Anderson was the
beginning of that process.
MR. ANDERSON explained that objectives had been established
focusing the analysis for the study. He noted that member's
packets contained a scope of ideas from sources throughout
the State and that all of the 110 schools had been
identified. A statewide questionnaire has been sent out and
some responses have been received back. The distribution
was mailed in early August to all education associations,
superintendents, principals, legislators and thirteen
regional corporations.
REPRESENTATIVE G. DAVIS questioned the connection with the
"vocational" aspect of the material.
MR. ANDERSON explained that the boarding school concept is
the basic schooling program being considered. Within that,
many varying "tracks" could be taken such as vocational,
technical or college prep programs and he suggested that
there are varying opportunities at each site.
REPRESENTATIVE CROFT pointed out that Kodiak was not
mentioned in the report. He asked if it had been
considered.
CHAIR PHILLIPS mentioned that there are requests at this
time from Kodiak, St. Mary's, Bethel, Seldovia, and a number
of other places throughout the State. Since the
questionnaire has been distributed, there have been many
additional requests received in hopes of revitalizing
programs which were in place in the past. Mt. Edgecumbe is
currently the only boarding school operating in the State at
this time.
SENATOR HALFORD believed that this was a good project. He
questioned how to generate local support in order to get the
project to work.
REPRESENTATIVE CROFT agreed that it would be difficult to
decide in which villages the schools should be located.
CHAIR PHILLIPS noted that there would be several criteria
used in determining the location.
· Good transportation system;
· Public safety; and
· Health facilities.
REPRESENTATIVE THERRIAULT noted that "regional" should
indicate that the State wants the opportunities disbursed
throughout the State; however, he thought that there need to
be boundary exceptions. He foresaw that "control" would be
another big issue.
EXECUTIVE SESSION
SENATOR PHILLIPS made a motion, in accordance with Title 24
and 44, to move to 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 3:32 P.M.
CHAIR PHILLIPS requested that Pat Davidson (Legislative
Auditor) and Pat Hartley (Legislative Budget and Audit
Legislative Assistant) attend the Executive Session.
The Committee resumed Open Session at 3:55 P.M.
(Tape Change, LBA 00-7, Side 1).
AUDIT REPORTS
SENATOR PHILLIPS MOVED that the first four final audits on
the agenda be released to the public:
· OG/Alaska Human Rights Commission
· DEED/DLWD - Little Davis Bacon Act
· DCED/AEA/AIDEA - 4 Dam Pool
· DFG/Board of Fish - Some Operational Practices
There being NO OBJECTION, the four final audits were
released to their respective Departments for public view.
SENATOR PHILLIPS MOVED that the final audit on the agenda
be released to the public:
· Statewide Single Audit for FY99
PAT DAVIDSON, Director, Division of Legislative Audit,
advised that the agencies would have twenty days to respond
to that audit. She suggested that once all the responses
had been received, the Legislature should release a copy of
the report to Committee members; if no objection is
received within seven days, then the audit would be
released to the public.
There being NO OBJECTION, the final audit on the agenda was
approved.
AUDIT REQUEST
PAT DAVIDSON stated that the Committee had received three
new requests as well as one established through legislation
passed in 1996. That request was for a compliance audit
for an obligation under the first amendment of the North
Star Unit Police Department.
The second audit request was submitted by Senator John
Torgerson to look into the Statewide Training Program
(STEP) in the Department of Labor and Work Force
Development.
Additionally, a request was submitted by Representative
Carl Morgan to audit what use to be the Division of Energy
(DOE) and its current placement in Alaska Industrial
Development and Export Authority (AIDEA).
The final audit request was submitted by Representative
Jeannette James to investigate the Division of Senior
Services, specifically, payment for the assisted living
programs.
REPRESENTATIVE THERRIAULT questioned the reason for the
audit submitted by Representative Morgan.
MS. DAVIDSON explained that there had been concern
expressed about movement of the Division of Energy from the
Department of Community and Regional Affairs. Since the
move, there has been a significant amount of staff
turnover. The audit would investigate what the effects are
and determine if AEA could better meet its mission if
placed in a different agency.
SENATOR WILKEN referenced the audit regarding the assisted
living rates. He asked if there had been reference to
personal care attendants and how they are being to be paid.
MS. DAVIDSON replied that the audit request was addressed
to the concern over delayed payments in the Assisted Living
Program. It does not limit the types of payment being
distributed; however, the focus of the request is to
determine how quickly the agency is getting payments out to
the providers.
SENATOR WILKEN noted that he would request that
Representative James consider adding how personal care
attendants are paid and the overhead taken before the funds
are distributed.
REPRESENTATIVE G. DAVIS MOVED to approve the four audit
requests. There being NO OBJECTION, they were approved.
MS. DAVIDSON pointed out that the Division of Audit had
received some correspondence about a particular
individual's case and whether it was covered under
workman's compensation. She noted that she had been making
inquiries regarding that concern and had not yet compiled a
request or determined what the objectives of that would be.
She recommended it could be handled "in-house".
REPRESENTATIVE THERRIAULT voiced caution in turning the
Legislative Budget and Audit Committee into an ombudsman's
office.
REPRESENTATIVE G. DAVIS questioned if there was "room" for
an audit consideration given to statewide computer
purchases and networking organizations. He noted that the
Office of the Governor had distributed a request for
telecommunication services stressing the technicalness of
that field. He questioned the impact that computerization
of State government will entail.
MS. DAVIDSON noted that if there was interest, Karen Morgan
from Information Technology Group (ITG) could be invited to
discuss the scope of such a request. Members agreed that
would be beneficial.
CHAIR PHILLIPS noted that Ms. Morgan's presentation could
be added to one of the following meeting agendas.
ADJOURNMENT
CHAIR PHILLIPS adjourned the meeting at 4:10 P.M.
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