Legislature(1999 - 2000)

01/27/1999 01:36 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                                                                                
                                                                                                                                
GENERAL SUBJECT(S):  FY 00 Department Overviews:                                                                                
  Department of Health and Social Services                                                                                      
  Alaska Court System                                                                                                           
  Department of Education                                                                                                       
  Department of Labor                                                                                                           
                                                                                                                                
The following overview was taken in log note format.  Tapes and                                                                 
handouts will be on file with the House Finance Committee through the                                                           
21st Legislative Session, contact 465-2156. After the 21st Legislative                                                          
Session they will be available through the Legislative Library at 465-                                                          
3808.                                                                                                                           
                                                                                                                                
Time Meeting Convened at 1:36 p.m.                                                                                              
                                                                                                                                
Tape   HFC 99-7, Side 1 and 2                                                                                                   
Tape  HFC 99-8, Side 1                                                                                                          
                                                                                                                                
                                                                                                                                
PRESENT:                                                                                                                        
X                                                                                                                               
Representative G. Davis                                                                                                         
X                                                                                                                               
Co-Chair Therriault                                                                                                             
X                                                                                                                               
Representative Foster                                                                                                           
X                                                                                                                               
Co-Chair Mulder                                                                                                                 
X                                                                                                                               
Representative Grussendorf                                                                                                      
X                                                                                                                               
Representative Austerman                                                                                                        
X                                                                                                                               
Representative Kohring                                                                                                          
X                                                                                                                               
Representative Bunde                                                                                                            
X                                                                                                                               
Representative  Moses                                                                                                           
X                                                                                                                               
Representative J. Davies                                                                                                        
X                                                                                                                               
Representative Williams                                                                                                         
                                                                                                                                
ALSO PRESENT:                                                                                                                   
REPRESENTATIVE SMALLEY; REPRESENTATIVE BRICE; SHIRELY HOLLOWAY,                                                                 
COMMISSIONER, DEPARTMENT OF EDUCATION; DAVID TEAL, DIRECTOR,                                                                    
LEGISLATIVE FINANCE; KAREN PERDUE, COMMISSIONER, DEPARTMENT OF                                                                  
HEALTH AND SOCIAL SERVICES; JANET CLARKE, DIRECTOR, DIVISION OF                                                                 
ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES;                                                              
KAREN REHFELD, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT OF                                                              
EDUCATION; RICHARD CROSS, DEPUTY COMMISSIONER, DEPARTMENT OF                                                                    
EDUCATION; ED FLANAGAN, COMMISSIONER, DEPARTMENT OF LABOR; REBECCA                                                              
GAMEZ, DIRECTOR, DIVISION OF EMPLOYMENT SECURITY, DEPARTMENT OF                                                                 
LABOR; DWIGHT PERKINS, SPECIAL ASSISTANT, DEPARTMENT OF LABOR;                                                                  
MICHAEL HELMS, BUDGET ANALYST, DIVISION OF ADMINISTRATIVE SERVICES,                                                             
DEPARTMENT OF LABOR; AL DWYER, DIVISION OF LABOR STANDARDS,                                                                     
DEPARTMENT OF LABOR; DENISE LICCIOLI, DIVISION OF ADMINISTRATIVE                                                                
SERVICES, DEPARTMENT OF LABOR; STEPHANIE COLE, ADMINISTRATIVE                                                                   
DIRECTOR, ALASKA COURT SYSTEM; ROBERT FISHER, FISCAL OFFICER, ALASKA                                                            
COURT SYSTEM; CHRIS CHRISTENSEN, STAFF COUNSEL, ALASKA COURT SYSTEM.                                                            
                                                                                                                                
                                                                                                                                
LOG                                                                                                                             
SPEAKER                                                                                                                         
DISCUSSION                                                                                                                      
000                                                                                                                             
TAPE 99-7, SIDE 1                                                                                                               
                                                                                                                                
                                                                                                                                
Co-Chair Mulder                                                                                                                 
Convened the meeting at 1:36 p.m.                                                                                               
078                                                                                                                             
Co-Chair Mulder                                                                                                                 
Presented members with subcommittee                                                                                             
assignments.                                                                                                                    
                                                                                                                                
                                                                                                                                
DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                        
111                                                                                                                             
Commissioner Perdue                                                                                                             
Noted that the Department of Health and                                                                                         
Social Services was created with                                                                                                
statehood.  Gave a brief overview of                                                                                            
Department of Health and Social Services.                                                                                       
Provided members with handouts (copies on                                                                                       
file).                                                                                                                          
280                                                                                                                             
Commissioner Perdue                                                                                                             
Discussed performance measures.  Observed                                                                                       
that there are some areas where data                                                                                            
collection is not possible.  Felt that the                                                                                      
department has a good start on the                                                                                              
performance measures.                                                                                                           
360                                                                                                                             
Commissioner Perdue                                                                                                             
Reviewed budget as detailed in their                                                                                            
handout, FY00 Budget Overview (copy on                                                                                          
file).  In 1991, 49 percent of the                                                                                              
department's funds were in formula                                                                                              
programs. Today 57 percent of the                                                                                               
department's funds are in formula                                                                                               
programs.                                                                                                                       
532                                                                                                                             
Commissioner Perdue                                                                                                             
Discussed formula programs. Reviewed list                                                                                       
of formula programs on page 3.                                                                                                  
571                                                                                                                             
Commissioner Perdue                                                                                                             
Discussed welfare reform.  Caseloads have                                                                                       
dropped 27 percent in the last 5 years.                                                                                         
There are fewer people on the Alaska                                                                                            
Temporary Assistance Program (ATAP) than                                                                                        
were in 2/91.  People are leaving welfare                                                                                       
for jobs. Half of the caseload is now                                                                                           
working.  There is a decline in state                                                                                           
spending.                                                                                                                       
713                                                                                                                             
Commissioner Perdue                                                                                                             
Discussed page 7, Adult Public Assistance                                                                                       
(APA). This program helps disabled and                                                                                          
elderly and is steadily growing.  APA is                                                                                        
the largest program in the Department of                                                                                        
Health and Social Services. Chronically                                                                                         
mentally ill or permanently disabled make                                                                                       
up the majority of clients.                                                                                                     
830                                                                                                                             
Commissioner Perdue                                                                                                             
If the permanent fund dividend payments to                                                                                      
APA clients were not held harmless there                                                                                        
would be large savings.                                                                                                         
852                                                                                                                             
Commissioner Perdue                                                                                                             
Noted that the General Relief Medical                                                                                           
program no longer funds abortions.  Money                                                                                       
goes to persons with less then $300                                                                                             
hundred dollars a month income and who                                                                                          
have a chronic need. The program is now                                                                                         
called the Chronic and Acute Medical                                                                                            
Assistance program (CAMA).  The program is                                                                                      
short-funded and will run out in another                                                                                        
week.                                                                                                                           
941                                                                                                                             
Commissioner Perdue                                                                                                             
Discussed Medicaid on page 9. The program                                                                                       
covers about 90,000 Alaskans.  She                                                                                              
discussed the makeup of clients.  The                                                                                           
majority are children. The average                                                                                              
Medicaid cost for elderly and disabled                                                                                          
clients is higher than the cost for                                                                                             
children. A little over 200 elderly are                                                                                         
expected to join the program in FY00.                                                                                           
1100                                                                                                                            
Commissioner Perdue                                                                                                             
Discussed management of the Medicaid                                                                                            
program to contain costs.  The legislature                                                                                      
and Congress set benefits. The program is                                                                                       
managed by controlling eligibility and                                                                                          
rates.                                                                                                                          
1207                                                                                                                            
Commissioner Perdue                                                                                                             
Reviewed page 10, Medicaid expenditures.                                                                                        
1226                                                                                                                            
Commissioner Perdue                                                                                                             
Discussed foster care services. Progress                                                                                        
is being made in encouraging adoptions.                                                                                         
There are more children in custody.                                                                                             
1346                                                                                                                            
Commissioner Perdue                                                                                                             
Observed that new workers are on board.                                                                                         
Requesting more workers to keep up with                                                                                         
increased workload.  Emphasized that                                                                                            
progress is being made but that there is a                                                                                      
job left to do.                                                                                                                 
1399                                                                                                                            
Commissioner Perdue                                                                                                             
Discussed youth facilities, page 14. Staff                                                                                      
increases reflect new facilities.                                                                                               
1441                                                                                                                            
Co-Chair Mulder                                                                                                                 
Noted that a Nome facility was authorized                                                                                       
in FY00.                                                                                                                        
1455                                                                                                                            
Commissioner Perdue                                                                                                             
Estimated savings in welfare at $6 million                                                                                      
dollars.                                                                                                                        
1507                                                                                                                            
Representative J.                                                                                                               
Davies                                                                                                                          
Referred to page 13.  Asked for an                                                                                              
analysis of how cases are being handled to                                                                                      
see what progress has been made.                                                                                                
                                                                                                                                
Commissioner Perdue                                                                                                             
FY99 had 1,400 more calls for harm than                                                                                         
FY98. The amount has flattened out.                                                                                             
Decided not to put in new workers without                                                                                       
training.  Still thousands of calls for                                                                                         
neglect that are not being investigated.                                                                                        
1597                                                                                                                            
Representative J.                                                                                                               
Davies                                                                                                                          
Asked if there is information relating to                                                                                       
the number of repeat calls.                                                                                                     
1611                                                                                                                            
Commissioner Perdue                                                                                                             
Will provide information.  Some work can                                                                                        
be done by community agencies.  Important                                                                                       
that someone checks on the child.  70 to                                                                                        
73 percent of calls are checked.  The                                                                                           
calls must be triaged.  93 percent are                                                                                          
zero tolerance.                                                                                                                 
1706                                                                                                                            
Representative                                                                                                                  
Austerman                                                                                                                       
How is Alaska doing in child abuse?                                                                                             
1732                                                                                                                            
Commissioner Perdue                                                                                                             
Alaska has one of the highest rates of                                                                                          
child abuse. Warned that statistics are                                                                                         
done differently in different states.                                                                                           
Alcohol is one of the causes for Alaska's                                                                                       
high rate of child abuse.                                                                                                       
1760                                                                                                                            
Co-Chair Therriault                                                                                                             
Referred to page 7.                                                                                                             
                                                                                                                                
Commissioner Perdue                                                                                                             
Discussed qualifications for APA.                                                                                               
1783                                                                                                                            
Representative                                                                                                                  
Foster                                                                                                                          
Referred to page 171 of handout.  Asked                                                                                         
why funds go through RuralCap.                                                                                                  
1832                                                                                                                            
Commissioner Perdue                                                                                                             
Promised to review.                                                                                                             
1843                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
Referred to nursing home situation and                                                                                          
growth of elderly. Is there a number that                                                                                       
are not being served.                                                                                                           
1906                                                                                                                            
Commissioner Perdue                                                                                                             
Did not know, but thought that people are                                                                                       
being helped by community based services                                                                                        
to stay in the home.                                                                                                            
1918                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
Expressed concern that fee increases would                                                                                      
have negative impacts.                                                                                                          
1967                                                                                                                            
Commissioner Perdue                                                                                                             
Stressed that savings have been made on                                                                                         
able working persons.  Costs are now on                                                                                         
elderly and disabled. Both have growing                                                                                         
populations.                                                                                                                    
2031                                                                                                                            
                                                                                                                                
ALASKA COURT SYSTEM                                                                                                             
                                                                                                                                
2035                                                                                                                            
STEPHANIE COLE,                                                                                                                 
ADMINISTRATIVE                                                                                                                  
DIRECTOR, ALASKA                                                                                                                
COURT SYSTEM                                                                                                                    
Reviewed handout on the Alaska Court                                                                                            
System (copy on file).                                                                                                          
2117                                                                                                                            
Ms. Cole                                                                                                                        
Operating budget is 1.3 percent of the                                                                                          
state's total.                                                                                                                  
2157                                                                                                                            
Ms. Cole                                                                                                                        
Generates $5.8 million dollars in                                                                                               
collection revenues.                                                                                                            
2172                                                                                                                            
Ms. Cole                                                                                                                        
The felony caseload is increasing in the                                                                                        
Superior Court.  Felony cases take twice                                                                                        
as much resource as civil cases.  Caseload                                                                                      
correlated closely to the number of police                                                                                      
officers on the street.  The domestic                                                                                           
violence component continues to increase.                                                                                       
2262                                                                                                                            
Ms. Cole                                                                                                                        
Observed that there has been an increase                                                                                        
in cases involving children.  Anchorage                                                                                         
and Fairbanks have growing caseloads                                                                                            
involving children.                                                                                                             
2299                                                                                                                            
Ms. Cole                                                                                                                        
Discussed changes in the district court                                                                                         
level.  There has been an increase in                                                                                           
misdemeanors involving violence.                                                                                                
2330                                                                                                                            
Ms. Cole                                                                                                                        
There has been an increase of persons                                                                                           
representing themselves.  This impacts                                                                                          
court staff.                                                                                                                    
2365                                                                                                                            
Ms. Cole                                                                                                                        
Referred to page 2 of handout.  Majority                                                                                        
of general funds goes to salary.                                                                                                
000                                                                                                                             
TAPE 7, SIDE 2                                                                                                                  
TAPE CHANGE                                                                                                                     
056                                                                                                                             
Ms. Cole                                                                                                                        
Reviewed positions request on pages 3 - 5.                                                                                      
Nine new positions are being requested.                                                                                         
Reviewed positions requested as summarized                                                                                      
in the handout.                                                                                                                 
390                                                                                                                             
Ms. Cole                                                                                                                        
Through a self-evaluation the Alaska Court                                                                                      
System found that they were not doing the                                                                                       
job they should be doing in rural Alaska.                                                                                       
Their budget request reflects an attempt                                                                                        
to increase their presence in rural                                                                                             
Alaska.  This will result in increased                                                                                          
travel costs.                                                                                                                   
468                                                                                                                             
Ms. Cole                                                                                                                        
Asking for funding for increased jury                                                                                           
fees.                                                                                                                           
513                                                                                                                             
Ms. Cole                                                                                                                        
The Alaska Court System is requesting                                                                                           
funding for increased courthouse security.                                                                                      
This is the third year for the request.                                                                                         
The money would be given as a RSA to the                                                                                        
Department of Public Safety.                                                                                                    
618                                                                                                                             
Ms. Cole                                                                                                                        
Gave examples of areas where the Alaska                                                                                         
Court System is holding costs.  Bethel                                                                                          
caseload is backlogged.  They are using                                                                                         
federal grant funds to bolster judicial                                                                                         
resources in Bethel. No state funding is                                                                                        
needed at present. Federal funding will                                                                                         
not remain constant.                                                                                                            
703                                                                                                                             
Ms. Cole                                                                                                                        
Reviewed areas where funds and positions                                                                                        
have been shifted.                                                                                                              
743                                                                                                                             
Ms. Cole                                                                                                                        
Indications are that more cases are coming                                                                                      
in the door than are going out.                                                                                                 
775                                                                                                                             
Ms. Cole                                                                                                                        
Reviewed efforts to address needs without                                                                                       
additional money.  Accessing federal CSED                                                                                       
funding for those that are representing                                                                                         
themselves.  Changed procedures for                                                                                             
contacting those that did not pay their                                                                                         
traffic fines or show up in court.                                                                                              
Judgment                                                                                                                        
875                                                                                                                             
Ms. Cole                                                                                                                        
Emphasized that the Alaska Court System is                                                                                      
looking toward mediation projects.                                                                                              
936                                                                                                                             
Ms. Cole                                                                                                                        
Offering legislation to assess fees                                                                                             
regardless of outcome of judgement.                                                                                             
980                                                                                                                             
Co-Chair Mulder                                                                                                                 
Asked if crimes are going down.                                                                                                 
                                                                                                                                
Ms. Cole                                                                                                                        
No indication that crime rates are                                                                                              
reduced.  Observed that enforcement on the                                                                                      
street has the biggest impact on                                                                                                
caseloads.                                                                                                                      
                                                                                                                                
Representative J.                                                                                                               
Davies                                                                                                                          
Asked for more information regarding                                                                                            
federal funding for positions in Bethel.                                                                                        
1048                                                                                                                            
Ms. Cole                                                                                                                        
There was federal funding for a cultural                                                                                        
navigator position in Bethel. The position                                                                                      
assists clients and trains villagers to                                                                                         
provide assistance.  Magistrate and court                                                                                       
clerk positions are also federally funded.                                                                                      
1136                                                                                                                            
Representative                                                                                                                  
Foster                                                                                                                          
Expressed support for rural funding.                                                                                            
Asked the impact of not funding Anchorage                                                                                       
positions.                                                                                                                      
1160                                                                                                                            
Ms. Cole                                                                                                                        
Caseloads would be delayed if positions                                                                                         
were not funded.                                                                                                                
1375                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
31 new positions?                                                                                                               
                                                                                                                                
Ms. Cole                                                                                                                        
Correct, if the 22 new security officers                                                                                        
are funded                                                                                                                      
1325                                                                                                                            
ROBERT FISHER,                                                                                                                  
FISCAL OFFICER,                                                                                                                 
ALASKA COURT SYSTEM                                                                                                             
The security officers would cost $65,000                                                                                        
per positions                                                                                                                   
                                                                                                                                
                                                                                                                                
DEPARTMENT OF EDUCATION                                                                                                         
1355                                                                                                                            
SHIRELY HOLLOWAY,                                                                                                               
COMMISSIONER,                                                                                                                   
DEPARTMENT OF                                                                                                                   
EDUCATION                                                                                                                       
Reviewed Performance measures.                                                                                                  
                                                                                                                                
Commissioner                                                                                                                    
Holloway                                                                                                                        
Noted that there are five major goals that                                                                                      
support the mission: To have clear,                                                                                             
rigorous, credible standards and                                                                                                
assessments; to have a credible system of                                                                                       
academic and fiscal accountability for                                                                                          
students; to have highly qualified staff                                                                                        
that have met credible standards and                                                                                            
assessments; to have schools in which                                                                                           
students, staff, families and communities                                                                                       
are active partners in learning; and to                                                                                         
have adequate and secure source of funding                                                                                      
for schools.                                                                                                                    
1536                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
Progress in Quality schools.  Student                                                                                           
standards: mandatory, specific, measurable                                                                                      
standards in reading, writing and                                                                                               
mathematics have been adopted.  School                                                                                          
boards must adopt and align their                                                                                               
programs.                                                                                                                       
1601                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
Discussed assessments.  On the brink of                                                                                         
having assessments for grades 3, 6, 8 and                                                                                       
all high school grades.                                                                                                         
                                                                                                                                
                                                                                                                                
Noted that Quality School Grants have                                                                                           
strings attached.                                                                                                               
1689                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
Noted that federal funding is available                                                                                         
for reading.                                                                                                                    
                                                                                                                                
Commissioner                                                                                                                    
Holloway                                                                                                                        
In March children will be tested and                                                                                            
reviewed in the 3rd, sixth, eight and 10-                                                                                       
12th grades.                                                                                                                    
1771                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
All 12 graders must pass by 2002.                                                                                               
1801                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
Discussed standards and assessments.                                                                                            
Student assessment data plus school                                                                                             
standards will be the basis for school                                                                                          
improvement plans for designated schools,                                                                                       
in decline or crisis.                                                                                                           
1877                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
School standards are important.  Schools                                                                                        
will be designated in 2002.  School                                                                                             
improvement plans will be based on                                                                                              
standards                                                                                                                       
1911                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
Discussed Early childhood education.                                                                                            
Emphasized that ages 0-5 years must be a                                                                                        
priority.                                                                                                                       
1954                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
Emphasized a K-12/university partnership.                                                                                       
1987                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
FY00 total operating budget is $991,331                                                                                         
million, 96 percent is for formula                                                                                              
funding. There is a 2.5 percent increase                                                                                        
from the current fiscal year. Reviewed                                                                                          
budget components.  $1.5 million for                                                                                            
quality school component to support                                                                                             
legislative mandate.                                                                                                            
2050                                                                                                                            
Co-Chair Mulder                                                                                                                 
Increase of $500 thousand dollars for                                                                                           
implementation of the exit exams. Bill was                                                                                      
passed with fiscal notes.                                                                                                       
2105                                                                                                                            
KAREN REHFELD,                                                                                                                  
DIRECTOR, EDUCATION                                                                                                             
SUPPORT SERVICES,                                                                                                               
DEPARTMENT OF                                                                                                                   
EDUCATION                                                                                                                       
Explained that the fiscal note passed with                                                                                      
the exit exam was not sufficient to cover                                                                                       
the cost of contracting the exam. The                                                                                           
comprehensive system will be done with the                                                                                      
same contractor.  There are increased                                                                                           
costs.                                                                                                                          
2146                                                                                                                            
Co-Chair Mulder                                                                                                                 
Referred to funding for SB 36.                                                                                                  
                                                                                                                                
Ms. Rehfeld                                                                                                                     
Pointed out that 100 percent funding was                                                                                        
estimated at $26 million dollars.  Those                                                                                        
that received increases only received 60%                                                                                       
of full funding in FY00. The remaining                                                                                          
increment is based on increased                                                                                                 
enrollment.                                                                                                                     
2200                                                                                                                            
Representative                                                                                                                  
Bunde                                                                                                                           
Noted that there were concerns on                                                                                               
implement costs regarding the exit exam.                                                                                        
Districts are requesting money for                                                                                              
increased costs.                                                                                                                
2248                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
Pointed out that the state pays for the                                                                                         
costs of development, sending materials                                                                                         
and scoring the exams.                                                                                                          
2283                                                                                                                            
Representative                                                                                                                  
Austerman                                                                                                                       
Expressed concern that the assessment                                                                                           
process includes vocational aptitude.                                                                                           
2329                                                                                                                            
Commissioner                                                                                                                    
Holloway                                                                                                                        
Pointed out that they have employability                                                                                        
standards.                                                                                                                      
000                                                                                                                             
TAPE 99-8, SIDE 1                                                                                                               
TAPE CHANGE                                                                                                                     
051                                                                                                                             
Representative                                                                                                                  
Austerman                                                                                                                       
Referred to third grade assessments.                                                                                            
092                                                                                                                             
Commissioner                                                                                                                    
Holloway                                                                                                                        
Sitka has standards in every grade level.                                                                                       
Some schools looking at assessing in every                                                                                      
grade.  Emphasized the challenge of                                                                                             
extended learning time. Pointed out that                                                                                        
every child cannot meet the same standard                                                                                       
in the same timeframe, in the same way.                                                                                         
Stressed that children come from different                                                                                      
backgrounds and speak different languages.                                                                                      
192                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
Spoke in support of early intervention.                                                                                         
Asked if districts can provide for                                                                                              
extended learning time, mentoring, and                                                                                          
summer school with existing budget.                                                                                             
285                                                                                                                             
Commissioner                                                                                                                    
Holloway                                                                                                                        
Difficult for some districts but not                                                                                            
impossible. Stressed priorities of                                                                                              
focusing federal dollars and looking for                                                                                        
new money.                                                                                                                      
385                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
Asked the total of federal grants.                                                                                              
                                                                                                                                
Commissioner                                                                                                                    
Holloway                                                                                                                        
Did not know the exact amount and stated                                                                                        
that she would research potential amount.                                                                                       
414                                                                                                                             
Co-Chair Therriault                                                                                                             
Asked what is going on with student                                                                                             
enrollment. Questioned if correspondence                                                                                        
programs are affecting enrollment.                                                                                              
452                                                                                                                             
Commissioner                                                                                                                    
Holloway                                                                                                                        
Will provide information.                                                                                                       
509                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
Asked how important is it for kids to                                                                                           
improve their readiness.                                                                                                        
539                                                                                                                             
Commissioner                                                                                                                    
Holloway                                                                                                                        
Very important. Stressed that it is                                                                                             
important to make sure families have                                                                                            
quality daycare.  Stressed a higher                                                                                             
emphasize on ages 0-5.                                                                                                          
598                                                                                                                             
Representative                                                                                                                  
Kohring                                                                                                                         
Referred to impact on correspondence                                                                                            
study.                                                                                                                          
693                                                                                                                             
Co-Chair Mulder                                                                                                                 
Asked for correspondence enrollment                                                                                             
numbers.                                                                                                                        
701                                                                                                                             
Commissioner                                                                                                                    
Holloway                                                                                                                        
Welcomed dialog in regards to                                                                                                   
correspondence study.                                                                                                           
725                                                                                                                             
Representative                                                                                                                  
Bunde                                                                                                                           
Noted that Anchorage high school                                                                                                
enrollment is increasing while                                                                                                  
kindergarten is decreasing.                                                                                                     
772                                                                                                                             
Commissioner                                                                                                                    
Holloway                                                                                                                        
Noted that the cut score is higher than                                                                                         
other states.                                                                                                                   
872                                                                                                                             
Co-Chair Mulder                                                                                                                 
How many schools have requested a waiver?                                                                                       
                                                                                                                                
Commissioner                                                                                                                    
Holloway                                                                                                                        
13 districts have requested a waiver.  All                                                                                      
were granted and put on notice.                                                                                                 
914                                                                                                                             
Mr. Cross                                                                                                                       
If waivers were not granted the districts                                                                                       
would not have received state aid.  Did                                                                                         
not know total of state aid that the                                                                                            
districts stood to lose if their waivers                                                                                        
were not given.                                                                                                                 
                                                                                                                                
Co-Chair Therriault                                                                                                             
Pointed out that money would stay in                                                                                            
district, but go to construction.  Asked                                                                                        
what waivers are based on.                                                                                                      
1066                                                                                                                            
Mr. Cross                                                                                                                       
Have warned districts that waivers will                                                                                         
not be given next year if improvement is                                                                                        
not made.  Will look at administration and                                                                                      
other costs.  Formal presentations will be                                                                                      
made to Legislative Budget and Audit                                                                                            
Committee in March.                                                                                                             
1077                                                                                                                            
Co-Chair Mulder                                                                                                                 
Noted that impacts of SB 36 would be on                                                                                         
agenda next week.                                                                                                               
1096                                                                                                                            
                                                                                                                                
DEPARTMENT OF LABOR                                                                                                             
1130                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Budget much the same. Pointed out that the                                                                                      
Department of Labor receives .4 percent of                                                                                      
the state's general funds.  Provided                                                                                            
members with a handout on FY00 budget,                                                                                          
(copy on file).                                                                                                                 
1205                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Reviewed handout. Trying to maintain                                                                                            
service without raising funding.  Noted                                                                                         
that funding has gone down since FY91.                                                                                          
1264                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Reviewed page 5. Pie charts show total                                                                                          
budget. Commissioner's Office is 10% of                                                                                         
general fund request.  The Department of                                                                                        
Labor is primarily funded with federal                                                                                          
funds. Commissioner's Office has four                                                                                           
divisions; administrative services,                                                                                             
employment security, labor standards and                                                                                        
safety and workers compensation.                                                                                                
1380                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Continued discussion of page #5.                                                                                                
Explained the line item moves.  The                                                                                             
biggest challenge rests in the Labor                                                                                            
Relations' Agency.                                                                                                              
1438                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Changes to the administrative services                                                                                          
division were mostly technical, with 3 new                                                                                      
full-time positions.  There are only 3 new                                                                                      
positions in the budget. They are in the                                                                                        
data processing unit for Y2K operations.                                                                                        
These would be temporary positions.                                                                                             
1508                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Research analysis section has extensive                                                                                         
responsibilities in reorganizing and                                                                                            
evaluation of program results for grantees                                                                                      
and state agencies.                                                                                                             
1564                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Redistricting will be an issue in FY00.                                                                                         
That process must begin as soon as                                                                                              
possible. Discussed line item                                                                                                   
readjustments. Pointed out that the                                                                                             
department has implemented a call center                                                                                        
for unemployment insurance.  Noted that it                                                                                      
has been successful.                                                                                                            
1732                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Direct deposit for unemployment insurance                                                                                       
was initiated.  Use of internet has                                                                                             
increased. Employers are posting jobs on                                                                                        
the Department of Labor web site.                                                                                               
Discussed one stop centers.                                                                                                     
1831                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Noted that their federal funds have been                                                                                        
reduced.                                                                                                                        
1851                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Discussed the Labor Standards and Safety                                                                                        
Division.  Requesting one new position in                                                                                       
this division. The boiler inspector's                                                                                           
position would be reinstated and paid with                                                                                      
program receipts.  This would reduce a                                                                                          
backlog.                                                                                                                        
1907                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Discussed Occupational Safety and Health.                                                                                       
General funds match is tight in this                                                                                            
division.                                                                                                                       
1968                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Discussed OSHA programs and federal                                                                                             
funding.  10 percent state match is                                                                                             
required.                                                                                                                       
1998                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Discussed Wage and Hour section.                                                                                                
2018                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Discussed Worker's Compensation Division.                                                                                       
Division merged three BRU's into one                                                                                            
component: Fisherman's Fund, Second Injury                                                                                      
Fund and Worker's Compensation Fund.  The                                                                                       
division will be flat funded.  The rates                                                                                        
paid to injured workers were set in 1988                                                                                        
and have not been increased.                                                                                                    
2090                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Discussed page 19, number of employees,                                                                                         
workers and funding level.                                                                                                      
2116                                                                                                                            
Co-Chair Mulder                                                                                                                 
Referred to reapportionment.                                                                                                    
2125                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Explained that the Department of Labor                                                                                          
must purchase software for census.  Did                                                                                         
not know what costs would be associated                                                                                         
with census.                                                                                                                    
2198                                                                                                                            
Representative                                                                                                                  
Austerman                                                                                                                       
Expressed concern that the automative                                                                                           
system is not functioning well in some                                                                                          
rural areas.                                                                                                                    
2249                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Discussed attempts to address concerns of                                                                                       
rural areas.                                                                                                                    
2276                                                                                                                            
Representative                                                                                                                  
Austerman                                                                                                                       
Has received complaints from businesses                                                                                         
and processors in Kodiak. Asked for more                                                                                        
information on internet functions.                                                                                              
2329                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Stressed that 1,600 Alaskan jobs are                                                                                            
advertised a day.                                                                                                               
                                                                                                                                
Representative                                                                                                                  
Austerman                                                                                                                       
Expressed concern that electronic services                                                                                      
would reduce positions in rural employment                                                                                      
offices                                                                                                                         
2351                                                                                                                            
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Pointed out that the intent not to close                                                                                        
offices in rural Alaska, but to reach                                                                                           
areas that do not have offices.                                                                                                 
2411                                                                                                                            
Representative                                                                                                                  
Austerman                                                                                                                       
Referred to labor standards.                                                                                                    
000                                                                                                                             
TAPE 8, SIDE 2                                                                                                                  
TAPE CHANGE                                                                                                                     
057                                                                                                                             
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Discussed labor standards positions.  City                                                                                      
of Fairbanks is doing electrical                                                                                                
inspections. Reductions in staff require                                                                                        
that positions be located in Anchorage,                                                                                         
Fairbanks and Juneau. These positions will                                                                                      
travel to the rest of the state.                                                                                                
159                                                                                                                             
Representative                                                                                                                  
Austerman                                                                                                                       
Asked for numbers.                                                                                                              
177                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
Asked if there are backlogs in Workers'                                                                                         
Compensation cases.                                                                                                             
205                                                                                                                             
Commissioner                                                                                                                    
Flanagan                                                                                                                        
Most cases move well.  Contested cases can                                                                                      
take a long time.  Time of hearings is not                                                                                      
getting worse.                                                                                                                  
329                                                                                                                             
Representative                                                                                                                  
Austerman                                                                                                                       
Referred to Fisherman claims.                                                                                                   
377                                                                                                                             
Commissioner                                                                                                                    
Flanagan                                                                                                                        
The Department of Labor does not get                                                                                            
involved in Jones Act issues. Fishery fund                                                                                      
pays up to $2,500 hundred dollars for                                                                                           
injuries.                                                                                                                       
681                                                                                                                             
Co-Chair Mulder                                                                                                                 
ADJOURNED                                                                                                                       
                                                                                                                                
Senator Mulder adjourned the meeting at                                                                                         
4:04 p.m.                                                                                                                       
                                                                                                                                
                                                                                                                                
HOUSE FINANCE COMMITTEE                                                                                                         
LOG NOTES                                                                                                                       
January 27, 1999                                                                                                                
HFC 11 1/27/99                                                                                                                  

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