Legislature(1999 - 2000)

01/13/2000 01:40 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
GENERAL SUBJECT(S):  Review Departments Accomplishments                                                                         
    Department of Fish and Game                                                                                                 
    Department of Environmental Conservation                                                                                    
    Military and Veterans Affairs                                                                                               
                                                                                                                                
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: 1:40 p.m.                                                                                                
                                                                                                                                
Tape(s):   HFC 00 - 5, Side 1                                                                                                   
  HFC 00 - 5, Side 2                                                                                                            
  HFC 00 - 6, Side 1                                                                                                            
  HFC 00 - 6, Side 2                                                                                                            
                                                                                                                                
                                                                                                                                
PRESENT:                                                                                                                        
                                                                                                                                
Representative G. Davis                                                                                                         
                                                                                                                                
Co-Chair Therriault                                                                                                             
                                                                                                                                
Representative Foster                                                                                                           
                                                                                                                                
Co-Chair Mulder                                                                                                                 
                                                                                                                                
Representative Grussendorf                                                                                                      
                                                                                                                                
Vice Chair Bunde                                                                                                                
                                                                                                                                
Representative Moses                                                                                                            
                                                                                                                                
Representative Austerman                                                                                                        
                                                                                                                                
Representative Phillips                                                                                                         
                                                                                                                                
Representative J. Davies                                                                                                        
                                                                                                                                
Representative Williams                                                                                                         
                                                                                                                                
ALSO PRESENT: Frank Rue, Commissioner, Department of Fish and Game;                                                             
Michelle Brown, Commissioner, Department of Environmental                                                                       
Conservation; Barbara Frank, Director, Division of Administrative                                                               
Services, Department of Environmental Conservation; Kevin Brooks,                                                               
Director, Division of Administrative Services, Department of Fish                                                               
and Game; Adjutant General BG Phil Oates, Commissioner, Department                                                              
of Military and Veterans Affairs; Carol Carroll, Director, Division                                                             
of Support Services, Department of Natural Resources; Kurt                                                                      
Fredriksson, Acting Deputy Director, Department of Environmental                                                                
Conservation.                                                                                                                   
                                                                                                                                
                                                                                                                                
LOG                                                                                                                             
SPEAKER                                                                                                                         
DISCUSSION                                                                                                                      
                                                                                                                                
TAPE HFC 00-5, SIDE 1                                                                                                           
                                                                                                                                
                                                                                                                                
000                                                                                                                             
Co-Chair Mulder                                                                                                                 
Convened the House Finance Committee                                                                                            
meeting at 1:40 p.m.                                                                                                            
133                                                                                                                             
FRANK RUE,                                                                                                                      
COMMISSIONER,                                                                                                                   
DEPARTMENT OF FISH                                                                                                              
AND GAME                                                                                                                        
Discussed the department's mission to                                                                                           
protect and maintain the state's                                                                                                
resources as contained in the statutes.                                                                                         
Maintained that the sustained yield                                                                                             
principle remains a good mission.                                                                                               
Department staff could not improve on the                                                                                       
mission.                                                                                                                        
                                                                                                                                
Commissioner Rue                                                                                                                
Looked at the question: Who are the                                                                                             
customers? The people of the state that                                                                                         
wish to use fish and wildlife resources                                                                                         
are the customers. They include: sport                                                                                          
fisherman, commercial fisherman, tourism,                                                                                       
flying services, barge lines and others.                                                                                        
394                                                                                                                             
Commissioner Rue                                                                                                                
Maintained that departmental programs                                                                                           
reflect the department's mission of                                                                                             
achieving sustained yield. The department                                                                                       
has four primary functions: protect                                                                                             
habitat, provide good science and                                                                                               
information; maintain a good management                                                                                         
program (managers with authority to make                                                                                        
decisions in the field based on good                                                                                            
information), and have a fair and open                                                                                          
public process (boards, public access)                                                                                          
and good communication.)                                                                                                        
606                                                                                                                             
Vice Chair Bunde                                                                                                                
How do you resolve conflicting management                                                                                       
decisions and when does the public                                                                                              
becomes involved?                                                                                                               
668                                                                                                                             
Commissioner Rue                                                                                                                
There is an internal process to resolve                                                                                         
disputes in data interpretation. The                                                                                            
resource coordinator gets the experts                                                                                           
together and listens to all sides. The                                                                                          
public is informed through board meetings                                                                                       
and advisory councils. Efforts are also                                                                                         
used to communicate through newspapers                                                                                          
and letters.                                                                                                                    
841                                                                                                                             
Vice Chair Bunde                                                                                                                
Maintained that there is a lot of                                                                                               
politics at the Department of Fish and                                                                                          
Game.                                                                                                                           
864                                                                                                                             
Commissioner Rue                                                                                                                
Stressed that the goal is to keep                                                                                               
politics separate.                                                                                                              
879                                                                                                                             
Commissioner Rue                                                                                                                
The department is divided into divisions.                                                                                       
The divisions pursue the four goals. The                                                                                        
Division of Habitat protects the habitat.                                                                                       
The Division of Commercial Fisheries                                                                                            
manages the resource, etc.                                                                                                      
984                                                                                                                             
Commissioner Rue                                                                                                                
How do you measure success in the four                                                                                          
areas? Noted that the department has an                                                                                         
obligation to give an opportunity to                                                                                            
harvest the available surplus. Harvesting                                                                                       
of the available surplus is a measure of                                                                                        
the department's success.                                                                                                       
1065                                                                                                                            
Co-Chair Mulder                                                                                                                 
Referred to the mission of the Division                                                                                         
of Commercial Fisheries as contained in                                                                                         
SB 169, page 12, line 19. Asked if the                                                                                          
department succeeded.                                                                                                           
1121                                                                                                                            
Commissioner Rue                                                                                                                
Did not have the statistics at the                                                                                              
meeting.                                                                                                                        
1155                                                                                                                            
KEVIN BROOKS,                                                                                                                   
DIRECTOR, DIVISION                                                                                                              
OF ADMINISTRATIVE                                                                                                               
SERVICES, DEPARTMENT                                                                                                            
OF FISH AND GAME                                                                                                                
Questioned if the 10-year average is the                                                                                        
best assumption to use.                                                                                                         
1227                                                                                                                            
Vice Chair Bunde                                                                                                                
Observed that the run size is not a                                                                                             
measure of the department's success.                                                                                            
1275                                                                                                                            
Commissioner Rue                                                                                                                
Referred to Bristol Bay noted that the                                                                                          
available harvest was still well managed                                                                                        
even though the size of the catch was                                                                                           
smaller. Observed that the department                                                                                           
needs to assure that escapement is also                                                                                         
sufficient. Productivity of resource is                                                                                         
another measure of success.                                                                                                     
1397                                                                                                                            
Commissioner Rue                                                                                                                
Was habitat protected? Concluded that the                                                                                       
habitat was well protected and pointed to                                                                                       
the number of permits as a measure of                                                                                           
success.                                                                                                                        
1467                                                                                                                            
Commissioner Rue                                                                                                                
In response to a question by, Vice Chair                                                                                        
Bunde, Commissioner Rue emphasized that                                                                                         
the department looks at the opportunity                                                                                         
to harvest resources. A decline in the                                                                                          
number of sport licenses would be an                                                                                            
indicator of problems.                                                                                                          
1559                                                                                                                            
Mr. Brooks                                                                                                                      
The number of licenses has gradually                                                                                            
increased from a flat growth.                                                                                                   
1626                                                                                                                            
                                                                                                                                
Discussion continued regarding measures                                                                                         
of success in regards to licenses.                                                                                              
1648                                                                                                                            
Commissioner Rue                                                                                                                
Did the public have an opportunity at the                                                                                       
public process?                                                                                                                 
1669                                                                                                                            
Vice Chair Bunde                                                                                                                
How is the public's satisfaction                                                                                                
measured?                                                                                                                       
1690                                                                                                                            
Representative                                                                                                                  
Foster                                                                                                                          
Active and energized advisory committees                                                                                        
are an indicator of success.                                                                                                    
1717                                                                                                                            
Commissioner Rue                                                                                                                
There are dialog forums around the state.                                                                                       
Questionnaires could be sent out to                                                                                             
users.                                                                                                                          
1790                                                                                                                            
Commissioner Rue                                                                                                                
How did the department do? Great in some                                                                                        
areas and not so great in others. Where                                                                                         
all of the pieces are in place the                                                                                              
department did well. In areas (Kodiak)                                                                                          
where there is insufficient data the                                                                                            
availability to the resource is not as                                                                                          
good.                                                                                                                           
1842                                                                                                                            
Commissioner Rue                                                                                                                
Discussed what the department intends to                                                                                        
do differently. The department must deal                                                                                        
differently with the federal involvement                                                                                        
in the fisheries. Try to maintain the                                                                                           
success.                                                                                                                        
1883                                                                                                                            
Commissioner Rue                                                                                                                
The department continues to look for                                                                                            
opportunities for new fisheries.                                                                                                
1904                                                                                                                            
Representative                                                                                                                  
Austerman                                                                                                                       
Setting policy for development of new                                                                                           
fisheries.                                                                                                                      
1918                                                                                                                            
Commissioner Rue                                                                                                                
The department needs to look for ways to                                                                                        
fund stock assessment of new fisheries.                                                                                         
1967                                                                                                                            
Vice Chair Bunde                                                                                                                
Noted that the public is concerned with                                                                                         
getting the best value for the dollar.                                                                                          
Pointed out that the department needs to                                                                                        
translate the department's work into                                                                                            
information for the public.                                                                                                     
2016                                                                                                                            
Vice Chair Bunde                                                                                                                
How is the department's Division of                                                                                             
Subsistence mission changed with Federal                                                                                        
takeover?                                                                                                                       
2035                                                                                                                            
Commissioner Rue                                                                                                                
Their mission won't change. They will                                                                                           
still collect data for management of the                                                                                        
resource. The department is encouraging                                                                                         
the federal government to use the                                                                                               
department's data and capabilities.                                                                                             
Important not to have dueling data.                                                                                             
2088                                                                                                                            
Vice Chair Bunde                                                                                                                
Will the federal government pay for use                                                                                         
of the state's data?                                                                                                            
2093                                                                                                                            
Commissioner Rue                                                                                                                
Expect that the federal government will                                                                                         
pay for some of the data.                                                                                                       
2103                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
Noted that the federal government already                                                                                       
pays for 50%. How much control does the                                                                                         
department have? Noted that the Board of                                                                                        
Fish makes decisions that the department                                                                                        
must support.                                                                                                                   
2145                                                                                                                            
Commissioner Rue                                                                                                                
The department responds to and welcomes                                                                                         
the direction of the Board.                                                                                                     
2206                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
The Board has the opportunity to                                                                                                
establish an escapement goal that is not                                                                                        
consistent with sustained yield.                                                                                                
2224                                                                                                                            
Commissioner Rue                                                                                                                
The department would tell the Board that                                                                                        
their goals are not realistic. The                                                                                              
department and the Board work together.                                                                                         
2258                                                                                                                            
Commissioner Rue                                                                                                                
Agreed that it is our investment. Doesn't                                                                                       
believe there is duplication between                                                                                            
departments. Doesn't see other options.                                                                                         
Maintained that the department has a good                                                                                       
system. Pointed out that the Salmon                                                                                             
Treaty talks adopted the state of                                                                                               
Alaska's concept of availability of the                                                                                         
resource.                                                                                                                       
2330                                                                                                                            
Vice Chair Bunde                                                                                                                
Referred to SB 146. Asked how it impacted                                                                                       
commercial fisheries.                                                                                                           
2352                                                                                                                            
Mr. Brooks                                                                                                                      
Noted that the legislation only took                                                                                            
effect 12 days ago.                                                                                                             
                                                                                                                                
TAPE CHANGE, HFC 00-                                                                                                            
5, SIDE 2                                                                                                                       
                                                                                                                                
43                                                                                                                              
Representative                                                                                                                  
Austerman                                                                                                                       
Subcommittee should look at ways that the                                                                                       
department can help small independent                                                                                           
users.                                                                                                                          
170                                                                                                                             
Vice Chair Bunde                                                                                                                
Suggested the use of Alaska Science and                                                                                         
Technology Foundation grants for seed                                                                                           
money.                                                                                                                          
201                                                                                                                             
Representative                                                                                                                  
Austerman                                                                                                                       
Looking more at what it would take the                                                                                          
department to do to develop resources.                                                                                          
229                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
Discussed issues pertaining to fisheries                                                                                        
in Fairbanks.                                                                                                                   
269                                                                                                                             
Commissioner Rue                                                                                                                
Noted that there is not as much data on                                                                                         
the interior. Agreed on the need to look                                                                                        
at what is needed to keep the fish in the                                                                                       
area.                                                                                                                           
341                                                                                                                             
Representative                                                                                                                  
Foster                                                                                                                          
Noted that there are no fish around Nome.                                                                                       
Asked what could be done to aid the Nome                                                                                        
fisheries.                                                                                                                      
410                                                                                                                             
Commissioner Rue                                                                                                                
Felt that the Board has done a good job                                                                                         
in its restrictions to allow escapement.                                                                                        
Need to understand what has happened. The                                                                                       
department is working on the issue.                                                                                             
492                                                                                                                             
Representative                                                                                                                  
Foster                                                                                                                          
Noted that employees in the Division of                                                                                         
Subsistence live in urban areas.                                                                                                
536                                                                                                                             
Commissioner Rue                                                                                                                
Pointed out that the Division of                                                                                                
Subsistence can't be blamed for the lack                                                                                        
of fish. The Division ensures that                                                                                              
information about other subsistence needs                                                                                       
in the region is available. There is                                                                                            
subsistence fishing in Norton Sound.                                                                                            
There are administrative advantages to                                                                                          
being located in a Central area.                                                                                                
649                                                                                                                             
Representative                                                                                                                  
Austerman                                                                                                                       
Habitat is a primary issue. Asked if the                                                                                        
department is in a position to provide                                                                                          
the Committee with accountability of the                                                                                        
measures.                                                                                                                       
734                                                                                                                             
Mr. Brooks                                                                                                                      
Stated that some of the measures can be                                                                                         
accounted for.                                                                                                                  
755                                                                                                                             
                                                                                                                                
                                                                                                                                
DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                        
                                                                                                                                
772                                                                                                                             
MICHELLE BROWN,                                                                                                                 
COMMISSIONER,                                                                                                                   
DEPARTMENT OF                                                                                                                   
ENVIRONMENTAL                                                                                                                   
CONSERVATION                                                                                                                    
Read from prepared remarks: The mission                                                                                         
of the Department of environmental                                                                                              
Conservation as approved by the                                                                                                 
legislature last year in SB 169 is:                                                                                             
"Develop, coordinate, and administer                                                                                            
polices, programs and planning related to                                                                                       
public health and the environment of the                                                                                        
state."                                                                                                                         
                                                                                                                                
Expanded mission statements are also                                                                                            
found in Alaska Statutes Title 46 and 44.                                                                                       
811                                                                                                                             
Commissioner Brown                                                                                                              
"With the funds appropriated by the                                                                                             
legislature, DEC promotes and protects                                                                                          
healthy people and a healthy environment.                                                                                       
All of the people in our department, in                                                                                         
some capacity, work for clean air, clean                                                                                        
water, clean land, safe food, safe                                                                                              
handling of oil and chemicals, safe                                                                                             
public facilities and businesses, and                                                                                           
pollution prevention.                                                                                                           
                                                                                                                                
This mission has been fairly constant                                                                                           
over the years.  However, the tools we                                                                                          
use to promote the mission of public                                                                                            
health and a healthy environment have                                                                                           
changed in recent years.  Our staff are                                                                                         
dedicated to a partnership with the                                                                                             
people and industries of Alaska.  In the                                                                                        
not too distant past, feedback from the                                                                                         
public was not good.  There was too much                                                                                        
emphasis on investigation, legislation,                                                                                         
regulation and litigation.  Today, we                                                                                           
don't rule out those tools, but we try                                                                                          
first to anticipate, collaborate,                                                                                               
negotiate, educate and communicate.                                                                                             
                                                                                                                                
Enforcement of clean air and water rules                                                                                        
will always be necessary, because some                                                                                          
people refuse to follow those rules.  But                                                                                       
at DEC, we begin with the assumption that                                                                                       
the people and industries that operate in                                                                                       
our state have both the corporate                                                                                               
conscience and the technical ability to                                                                                         
work with us on constructive solutions to                                                                                       
basic environmental management issues."                                                                                         
889                                                                                                                             
Commissioner Brown                                                                                                              
"In general, I look at DEC's work as                                                                                            
fitting into two basic categories: Doing                                                                                        
it Right and Healthy Safe Communities.                                                                                          
                                                                                                                                
For doing it right, we strive to deliver                                                                                        
services that strengthen the overall                                                                                            
economy and create and maintain good jobs                                                                                       
for Alaskans by prudent and sustainable                                                                                         
management of our air, water and natural                                                                                        
resources.  I have several examples of                                                                                          
the return on the investment in Doing it                                                                                        
Right at DEC.  I offer these examples as                                                                                        
representative cases because in each area                                                                                       
these results were replicated many fold."                                                                                       
932                                                                                                                             
Commissioner Brown                                                                                                              
"The first is to get contaminated                                                                                               
property cleaned up and available for                                                                                           
economic re-use.                                                                                                                
                                                                                                                                
An excellent example of a good return on                                                                                        
the state's investment in DEC is our                                                                                            
actions on the site of the former Sitka                                                                                         
Pulp Mill.  In April of last year we took                                                                                       
the "closed" sign out of the window and                                                                                         
gave the City and Borough of Sitka the                                                                                          
opportunity to put a new industry in its                                                                                        
place.                                                                                                                          
                                                                                                                                
EPA wanted to list this site on the                                                                                             
superfund list.  City officials feared                                                                                          
that stigma would daunt any future                                                                                              
development.  We stepped in and assumed                                                                                         
leadership over the cleanup.  We finished                                                                                       
it in half the time and at substantially                                                                                        
less cost than it would have taken if EPA                                                                                       
had supervised it."                                                                                                             
970                                                                                                                             
Commissioner Brown                                                                                                              
"We also worked with Sitka and the Alaska                                                                                       
Pulp Corporation to create an innovative                                                                                        
agreement that enabled the community to                                                                                         
take possession of the property without                                                                                         
fear of liability, and clearly spelled                                                                                          
out in advance monitoring and maintenance                                                                                       
protections for the site so that new                                                                                            
users would be able to plan well for the                                                                                        
site's re-use."                                                                                                                 
991                                                                                                                             
Commissioner Brown                                                                                                              
"A second investment example is issuing                                                                                         
state air permits that make sense for                                                                                           
Alaska, despite federal opposition.                                                                                             
                                                                                                                                
DEC issues permits to control air                                                                                               
pollution from diesel generators, which                                                                                         
supply basically all of rural utility and                                                                                       
rural industrial energy in Alaska.                                                                                              
                                                                                                                                
Mineral reserves at the Red Dog Mine                                                                                            
outside Kotzebue have increased in recent                                                                                       
years and it needed a power supply                                                                                              
increase to support a higher rate of ore                                                                                        
processing.  DEC granted Cominco a permit                                                                                       
to install a new diesel generator to fill                                                                                       
that need and required a pollution                                                                                              
control technology that would                                                                                                   
substantially reduce emissions, but still                                                                                       
be affordable.                                                                                                                  
                                                                                                                                
For EPA, that wasn't enough.  EPA                                                                                               
preferred another, far more expensive                                                                                           
control technology, even though it would                                                                                        
result in no measurable difference in air                                                                                       
pollution at the Cominco property line.                                                                                         
                                                                                                                                
Over EPA's objections, and in fact,                                                                                             
contrary to an EPA order directing us not                                                                                       
to issue the permit, DEC issued the                                                                                             
permit.                                                                                                                         
                                                                                                                                
A similar battle was fought over Nome's                                                                                         
utility where EPA tried to impose this                                                                                          
same pet technology that would have                                                                                             
increased Nome's utility rates 25%."                                                                                            
1032                                                                                                                            
Commissioner Brown                                                                                                              
"The third example is to tailor or seek a                                                                                       
waiver of federal requirements that don't                                                                                       
make sense in Alaska.                                                                                                           
                                                                                                                                
It is a good investment to help Alaska's                                                                                        
communities succeed where federal laws                                                                                          
and regulations set some Alaska villages                                                                                        
and cities up for failure.  It is simply                                                                                        
impossible - financially and sometimes                                                                                          
literally - for Alaska's numerous small                                                                                         
remote landfills to meet federal landfill                                                                                       
standards.  It was extremely expensive                                                                                          
for municipal landfills to satisfy                                                                                              
federal requirements.                                                                                                           
                                                                                                                                
DEC fought for and then completed a                                                                                             
waiver on federal requirements for small                                                                                        
landfills and put in place reasonable                                                                                           
requirements for municipal landfills that                                                                                       
save municipalities millions of dollars                                                                                         
previously spent in unnecessary one size                                                                                        
fits all federal requirements.  DEC's                                                                                           
alternative plan to provide protections                                                                                         
through more flexible means was finally                                                                                         
approved by EPA."                                                                                                               
1097                                                                                                                            
Commissioner Brown                                                                                                              
"The fourth example is to make the permit                                                                                       
process less labor intensive.                                                                                                   
                                                                                                                                
The quicker people get permits, the more                                                                                        
productive they'll be.  DEC developed a                                                                                         
permit questionnaire on our web site                                                                                            
which allows many business owners to go                                                                                         
through a series of questions and find                                                                                          
out what, if any, permits are necessary                                                                                         
for a job or a new operation.                                                                                                   
                                                                                                                                
By answering questions on the possible                                                                                          
effects on the environment and public                                                                                           
health, like air emissions, wastewater                                                                                          
needs, and food processing, the business                                                                                        
can get a list of any permits, approvals,                                                                                       
and licenses it may need from DEC, and                                                                                          
who to contact to get them."                                                                                                    
1135                                                                                                                            
Commissioner Brown                                                                                                              
"Cruise ships plying our waters don't                                                                                           
fall right now within the state or                                                                                              
federal permit system.  Yet, they are                                                                                           
discharging wastewater at a rate that                                                                                           
exceeds many of our small towns and those                                                                                       
towns are subject to permit rules. DEC                                                                                          
convened over thirty cruise ship                                                                                                
operators who operate in Alaska waters,                                                                                         
as well as the EPA, the Coast Guard and                                                                                         
the Southeast Conference to get to the                                                                                          
bottom line on cruise ship waste dumping                                                                                        
and air emissions in Southeast Alaska.                                                                                          
Our goal is to develop a plan to assure                                                                                         
Alaskans that the cruise ship industry                                                                                          
will keep Alaska clean.  We made it clear                                                                                       
to industry that we expect them to                                                                                              
respect Alaska's values for doing it                                                                                            
right."                                                                                                                         
1191                                                                                                                            
Commissioner Brown                                                                                                              
"Already, the industry has committed that                                                                                       
it will not dump in doughnut holes, and                                                                                         
it will get prepared to respond to an oil                                                                                       
spill.                                                                                                                          
                                                                                                                                
Work groups are being set up to assess                                                                                          
the discharges, to monitor the industry,                                                                                        
and to see that Alaska's resources are                                                                                          
protected."                                                                                                                     
1220                                                                                                                            
Representative J.                                                                                                               
Davies                                                                                                                          
If the ships are not going to dump in the                                                                                       
doughnut holes, where are they going to                                                                                         
dump? There is a variety of things that                                                                                         
are discharged. Asked if the department                                                                                         
has a process to measure what is in each                                                                                        
discharge?                                                                                                                      
1253                                                                                                                            
Commissioner Brown                                                                                                              
Stated that the department does not know                                                                                        
what is in the discharge. The work groups                                                                                       
are designed to determine what is in the                                                                                        
discharge, how much is being discharged                                                                                         
and where is it going.                                                                                                          
1274                                                                                                                            
Representative J.                                                                                                               
Davies                                                                                                                          
Referred to gray waters.  He asked if                                                                                           
cruise ships discharge gray water in                                                                                            
state waters and if they are required to                                                                                        
have a permit.                                                                                                                  
1295                                                                                                                            
Commissioner Brown                                                                                                              
Stated that they do discharge gray water                                                                                        
in state waters and are not required to                                                                                         
have a permit.  The state may have the                                                                                          
statutory authority to require a permit,                                                                                        
but it never has.                                                                                                               
1301                                                                                                                            
Co-Chair Mulder                                                                                                                 
Asked if there are problems.                                                                                                    
1309                                                                                                                            
Commissioner Brown                                                                                                              
Responded that there is an air emission                                                                                         
problem in Juneau. The Environmental                                                                                            
Protection Agency (EPA) tracked emission                                                                                        
concerns in Juneau over the past summer.                                                                                        
The department does not know if there is                                                                                        
a wastewater problem. The federal                                                                                               
criminal action against the Royal                                                                                               
Caribbean for massive illegal dumping                                                                                           
brought the issue forward.                                                                                                      
1347                                                                                                                            
Representative                                                                                                                  
Phillips                                                                                                                        
Referred to the air emission issue and                                                                                          
asked if there was a problem in any other                                                                                       
cities besides Juneau.                                                                                                          
1372                                                                                                                            
Commissioner Brown                                                                                                              
Stated that Juneau is the site that                                                                                             
receives the most complaints and is the                                                                                         
only town that has measured the problem.                                                                                        
1380                                                                                                                            
Co-Chair Mulder                                                                                                                 
Asked if cruise ships are under federal                                                                                         
jurisdiction.                                                                                                                   
1394                                                                                                                            
Commissioner Brown                                                                                                              
The Coast Guard and EPA have some                                                                                               
jurisdiction. There are holes in the                                                                                            
supervisory network. Standards are old                                                                                          
and were developed when vessels were                                                                                            
small. Ships are now the size of floating                                                                                       
cities and there are as many as five a                                                                                          
day. The question is; Are the standards                                                                                         
sufficient? The Coast Guard monitors the                                                                                        
treatment levels of technology on board.                                                                                        
The Royal Caribbean violated many points.                                                                                       
1450                                                                                                                            
Co-Chair Mulder                                                                                                                 
Asked if that was sufficient.  He asked                                                                                         
if this was a political concern. He                                                                                             
pointed out that the Coast Guard believed                                                                                       
that oversight was sufficient.                                                                                                  
1493                                                                                                                            
Commissioner Brown                                                                                                              
Argued that the public is concerned, as                                                                                         
is the Coast Guard. She agreed that it is                                                                                       
important to come to an agreement with                                                                                          
industry to identify emission levels.                                                                                           
The department will make a report                                                                                               
addressing those concerns. This is a                                                                                            
systematic way to address the problem and                                                                                       
assess the need.                                                                                                                
1546                                                                                                                            
Representative                                                                                                                  
Phillips                                                                                                                        
Asked if the intent is to create                                                                                                
provisions that are already in place.                                                                                           
1577                                                                                                                            
Commissioner Brown                                                                                                              
Stated that all states were caught off                                                                                          
guard by the strength of the criminal                                                                                           
case. Florida has an aggressive plan in                                                                                         
place. The assumption was that it was                                                                                           
being handled by the federal govt.                                                                                              
1611                                                                                                                            
Commissioner Brown                                                                                                              
Continued from written remarks:                                                                                                 
                                                                                                                                
"The next general area of accomplishments                                                                                       
I'd like to address is the state's                                                                                              
investment in DEC for public health                                                                                             
issues such as safe food, pure drinking                                                                                         
water, and better sanitation.  Elsewhere                                                                                        
in the country, many of these services                                                                                          
are provided by local government, but in                                                                                        
Alaska, the state retains most of the                                                                                           
duties for assuring the basics we take                                                                                          
for granted in modern life.  We believe                                                                                         
that part of our mission is to keep                                                                                             
Alaska a model for public health and an                                                                                         
inviting vacation destination for                                                                                               
visitors.  Some examples are:                                                                                                   
                                                                                                                                
First, providing clean water and                                                                                                
sanitation facilities for all Alaskans.                                                                                         
                                                                                                                                
As of the end of the 1999 construction                                                                                          
season, two thirds of rural Alaska                                                                                              
households have access to a basic, but                                                                                          
safe, level of drinking water and sewage                                                                                        
service.  That means from either a haul                                                                                         
or piped water and sewer system.  When                                                                                          
all the projects started today are                                                                                              
completed, the number of rural households                                                                                       
with access to basic drinking water and                                                                                         
sewer systems will be 85 percent."                                                                                              
1703                                                                                                                            
Commissioner Brown                                                                                                              
"The state's investment in community                                                                                            
infrastructures is protected and                                                                                                
maintained through the Village Safe Water                                                                                       
Remote Maintenance Worker program which                                                                                         
provides training and on-site technical                                                                                         
assistance to 71 communities.  Since 1989                                                                                       
when the Remote Maintenance program was                                                                                         
put in place, there have been no                                                                                                
catastrophic system failures.                                                                                                   
                                                                                                                                
Sanitation projects will pump almost 90                                                                                         
million dollars into the Alaska economy                                                                                         
this fiscal year.  It generated                                                                                                 
approximately 900 rural jobs this past                                                                                          
construction season.                                                                                                            
                                                                                                                                
Urban Alaska's economy also benefits                                                                                            
greatly from these projects.  On average,                                                                                       
70 cents on the rural sanitation dollar                                                                                         
stays in Anchorage, Fairbanks and Juneau                                                                                        
for materials and services.  In other                                                                                           
words, of the $62 million appropriated                                                                                          
through Village Safe Water this year,                                                                                           
approximately $43 million flows into our                                                                                        
urban economies.                                                                                                                
                                                                                                                                
A second example was DEC's response, with                                                                                       
the Municipality of Anchorage, to a major                                                                                       
food poisoning outbreak.  The day after a                                                                                       
luncheon at ARCO headquarters in                                                                                                
Anchorage more than 300 ARCO employees                                                                                          
called in sick with similar symptoms.                                                                                           
These employees were suffering from food                                                                                        
poisoning.                                                                                                                      
                                                                                                                                
Through prompt investigation, we found                                                                                          
the sickness came from one of the                                                                                               
employees working for the caterer of the                                                                                        
luncheon and was transmitted to the ARCO                                                                                        
employees through potato salad. The                                                                                             
caterer did not have a catering license.                                                                                        
                                                                                                                                
The potato salad left over from the                                                                                             
luncheon was going to be used by a                                                                                              
restaurant until we got to the                                                                                                  
establishment and pulled the potato                                                                                             
salad.  Quick action kept this outbreak                                                                                         
from getting worse.                                                                                                             
                                                                                                                                
Following this outbreak, DEC and                                                                                                
Anchorage officials developed and                                                                                               
promoted a joint web site page that                                                                                             
listed all the licensed caterers in the                                                                                         
state. The site also included a list of                                                                                         
questions consumers should ask a caterer                                                                                        
to ensure safe food handling."                                                                                                  
1724                                                                                                                            
Commissioner Brown                                                                                                              
"The third example is in minimizing the                                                                                         
impacts of spills.  DEC has signed over                                                                                         
20 spill response agreements with local                                                                                         
governments and municipalities to                                                                                               
establish oil and hazardous substance                                                                                           
spill response partnerships at the local                                                                                        
level.  Under the terms of the                                                                                                  
agreements, DEC trains local responders,                                                                                        
can activate local emergency response                                                                                           
resources as needed to supplement the                                                                                           
department's own response capability, and                                                                                       
can reimburse costs incurred by the local                                                                                       
government in actual response to spills.                                                                                        
                                                                                                                                
The combined response resources of local                                                                                        
governments substantially enhance the                                                                                           
state's overall spill response                                                                                                  
capability."                                                                                                                    
1768                                                                                                                            
Representative                                                                                                                  
Williams                                                                                                                        
Referred to fees for programs in the                                                                                            
Division of Environmental Health. Asked                                                                                         
how are customers reacting to fee                                                                                               
increases. Noted that fees have doubled.                                                                                        
Referred to reductions in FY00                                                                                                  
1787                                                                                                                            
Commissioner Brown                                                                                                              
Noted that the increment for Hydaburg was                                                                                       
denied. The food inspection program was                                                                                         
made fee supported. Customers are not                                                                                           
happy about the increase. Meat                                                                                                  
inspections were also turned over to the                                                                                        
federal government due to budget                                                                                                
reductions. Facilities were also rated by                                                                                       
risk. Lower risk facilities were reduced.                                                                                       
The fee is not an inspection fee. It goes                                                                                       
to run the whole program, which includes                                                                                        
other functions.                                                                                                                
1955                                                                                                                            
Representative                                                                                                                  
Williams                                                                                                                        
What is the department going to do                                                                                              
differently? Will the department                                                                                                
prioritize? He questioned budget                                                                                                
decisions by the department.                                                                                                    
2036                                                                                                                            
Commissioner Brown                                                                                                              
Responded that the department identified                                                                                        
public health programs and water and air                                                                                        
permitting as areas to reduce. Noted that                                                                                       
EPA would takeover air and water                                                                                                
permitting. If air permitting is turned                                                                                         
back to the federal government the state                                                                                        
could lose highway funds. The water                                                                                             
program would be the first choice for                                                                                           
elimination because the federal                                                                                                 
government would takeover the permitting.                                                                                       
2116                                                                                                                            
Representative                                                                                                                  
Williams                                                                                                                        
Noted that legislation was passed to                                                                                            
allow a study of water primacy.                                                                                                 
2136                                                                                                                            
Commissioner Brown                                                                                                              
Industry has decided that the state would                                                                                       
not support water primacy and did not                                                                                           
fund the study.                                                                                                                 
2149                                                                                                                            
Commissioner Brown                                                                                                              
The FY00 reduction of $339 thousand                                                                                             
dollars resulted in the loss of the state                                                                                       
water program. The state did not have                                                                                           
primacy. It would take $2 million dollars                                                                                       
to gain state primacy                                                                                                           
2175                                                                                                                            
Co-Chair Mulder                                                                                                                 
What did we lose?                                                                                                               
2187                                                                                                                            
Commissioner Brown                                                                                                              
The state lost the ability to certify                                                                                           
federal permits, that provide flexibility                                                                                       
that industry relies on. The reduction                                                                                          
was the straw that broke the camel's                                                                                            
back.                                                                                                                           
2241                                                                                                                            
Co-Chair Mulder                                                                                                                 
Are there other sources of funding to                                                                                           
maintain services?                                                                                                              
2252                                                                                                                            
Commissioner Brown                                                                                                              
Fees were the only other alternative. The                                                                                       
department feels that the public                                                                                                
information officers (PIO) are important.                                                                                       
One PIO is eliminated from FY00, but the                                                                                        
funds cannot be transferred.                                                                                                    
2294                                                                                                                            
Commissioner Brown                                                                                                              
Explained that the federal government                                                                                           
funds technical positions and information                                                                                       
officers, but that the funding cannot be                                                                                        
transferred.                                                                                                                    
2350                                                                                                                            
Commissioner Brown                                                                                                              
In response to a question by Co-Chair                                                                                           
Mulder, clarified that there are two PIO                                                                                        
positions in the current budget and one                                                                                         
in FY00.                                                                                                                        
                                                                                                                                
TAPE CHANGE, HFC 00                                                                                                             
-6, SIDE 1                                                                                                                      
                                                                                                                                
35                                                                                                                              
Representative                                                                                                                  
Williams                                                                                                                        
Questioned if travel was reduced.                                                                                               
64                                                                                                                              
Commissioner Brown                                                                                                              
Stated that there was an unallocated                                                                                            
reduction.                                                                                                                      
99                                                                                                                              
Representative                                                                                                                  
Williams                                                                                                                        
Noted that a Dutch Harbor inspector was                                                                                         
eliminated.                                                                                                                     
109                                                                                                                             
Commissioner Brown                                                                                                              
Noted that Dutch Harbor was eliminated                                                                                          
when the priority was transferred away                                                                                          
from low risk facilities. There is not                                                                                          
enough facilities left in Dutch Harbor                                                                                          
for a full time position.                                                                                                       
214                                                                                                                             
Co-Chair Mulder                                                                                                                 
Noted that inspections by EPA and DEC                                                                                           
differ in the time that they take.                                                                                              
255                                                                                                                             
Commissioner Brown                                                                                                              
Stated that the inspections do not                                                                                              
usually duplicate efforts and stressed                                                                                          
that inspection times differ due to                                                                                             
different emphasis.                                                                                                             
280                                                                                                                             
Representative G.                                                                                                               
Davis                                                                                                                           
Noted that departments were given the                                                                                           
ability to institute fees and emphasized                                                                                        
that fees are being increased for people                                                                                        
that are not receiving services.                                                                                                
363                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
Pointed out that the departments cannot                                                                                         
do everything that they are doing and                                                                                           
reduce their funding. Policy can be made                                                                                        
by the legislature or by the departments.                                                                                       
If the legislature leaves it to the                                                                                             
departments to make the decision the                                                                                            
legislature cannot come back and                                                                                                
complain.                                                                                                                       
479                                                                                                                             
Representative                                                                                                                  
Williams                                                                                                                        
If the department cannot do the service                                                                                         
sufficiently it should be turned back to                                                                                        
the cities.                                                                                                                     
543                                                                                                                             
Co-Chair Mulder                                                                                                                 
Acknowledged that budget reductions will                                                                                        
result in fewer services, but argued that                                                                                       
it is appropriate to questioned the                                                                                             
decision process for reductions taken by                                                                                        
the department from unallocated                                                                                                 
reductions.                                                                                                                     
612                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
The budget process drives how decisions                                                                                         
are made. The cost to maintain the                                                                                              
inspections is a fraction of the cost to                                                                                        
be fee based. The problem is that the                                                                                           
general fund cap would not allow for it.                                                                                        
705                                                                                                                             
Co-Chair Mulder                                                                                                                 
Noted that fees would be doubled.                                                                                               
728                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
Argued that the service would be better.                                                                                        
795                                                                                                                             
Commissioner Brown                                                                                                              
The department does not have discretion                                                                                         
to charge fees to make up shortfalls. The                                                                                       
department does not want to raise fees,                                                                                         
but the funding source was switched from                                                                                        
general fund to statutory designated                                                                                            
program receipts. Anchorage does a food                                                                                         
inspection program. Their fees are                                                                                              
similar to the department's. The only                                                                                           
places cut in service were low risk                                                                                             
facilities and meat and poultry packaging                                                                                       
facilities, where federal inspectors are                                                                                        
providing the service.                                                                                                          
890                                                                                                                             
Commissioner Brown                                                                                                              
Continued with written remarks: "These                                                                                          
are performance measures and results for                                                                                        
the calendar year 1999 through October,                                                                                         
so it is only partial year information.                                                                                         
                                                                                                                                
For safe water, we can report on two                                                                                            
measures.                                                                                                                       
                                                                                                                                
First, the measure was a decrease in the                                                                                        
number of Boil Water Notices issued, the                                                                                        
population affected and the duration.                                                                                           
Tracking that measure indicated a result                                                                                        
of a decrease from 1998: 29 notices                                                                                             
affecting 3,439 people were issued in                                                                                           
1999 and 39 notices affecting 9,908                                                                                             
people were issued in 1998."                                                                                                    
916                                                                                                                             
Commissioner Brown                                                                                                              
"The second measure is the percentage                                                                                           
increase of Class A & B public water                                                                                            
systems in compliance with health-based                                                                                         
standards.  The result showed 94% are in                                                                                        
compliance, exceeding our goal of 91%."                                                                                         
942                                                                                                                             
Commissioner Brown                                                                                                              
"For safe food, we can report on four                                                                                           
measures.                                                                                                                       
                                                                                                                                
The first was the percent decrease in                                                                                           
violations that affect food safety and                                                                                          
wholesomeness.  The result indicated a                                                                                          
decrease in violations at inspected food                                                                                        
service facilities from 49% in 1997, to                                                                                         
46% in 1998, to 32% in 1999."                                                                                                   
999                                                                                                                             
Representative G.                                                                                                               
Davis                                                                                                                           
Questioned how the department handles                                                                                           
complaints.                                                                                                                     
1015                                                                                                                            
Commissioner Brown                                                                                                              
Stated that the department has a routine                                                                                        
inspection program and responds to                                                                                              
complaints.                                                                                                                     
1023                                                                                                                            
Commissioner Brown                                                                                                              
Continued talking about measures of                                                                                             
success. Identified the number of pounds                                                                                        
of food products detained or destroyed                                                                                          
before reaching the consumer because of                                                                                         
contamination or incorrect processing as                                                                                        
a measure of success.  "The result                                                                                              
showed, in 1999, 60,034 pounds were                                                                                             
detained and 28,814 pounds were                                                                                                 
destroyed.  In 1998, 680,006 pounds were                                                                                        
detained and 234,442 were destroyed."                                                                                           
1045                                                                                                                            
Commissioner Brown                                                                                                              
Another measure is the number of approved                                                                                       
harvesting areas closed because of PSP                                                                                          
levels.  The result showed none were                                                                                            
closed in 1999 and one was restricted in                                                                                        
1998.                                                                                                                           
1080                                                                                                                            
Commissioner Brown                                                                                                              
Observed that there were no reported                                                                                            
deaths or illnesses associated with                                                                                             
inspected food products in 1999 or 1998.                                                                                        
1129                                                                                                                            
Commissioner Brown                                                                                                              
Continued from written remarks: "For safe                                                                                       
public facilities, we report on three                                                                                           
measures.                                                                                                                       
                                                                                                                                
First, the percent decrease of critical                                                                                         
violations in inspected public facilities                                                                                       
that affect the health or safety of the                                                                                         
public.  The result was a steady decrease                                                                                       
from 77% in 1997 to 59% in 1998 to 24% in                                                                                       
1999.                                                                                                                           
                                                                                                                                
Second, the increase in percentage of                                                                                           
landfills with permit or an alternative                                                                                         
to a permit.  The result was an increase                                                                                        
of 6% from 1998.                                                                                                                
                                                                                                                                
Third, the percent increase of landfills                                                                                        
with an inspection score of 80 or higher.                                                                                       
The result was 55% had a score of 80 or                                                                                         
higher, a 1% increase from 1998."                                                                                               
1152                                                                                                                            
Commissioner Brown                                                                                                              
"In the FY 2001 budget, we have proposed                                                                                        
several measures for discussion with our                                                                                        
subcommittees. Those measures address                                                                                           
public health through measuring progress                                                                                        
in sanitation, controlling air emissions                                                                                        
and food safety."                                                                                                               
1174                                                                                                                            
Commissioner Brown                                                                                                              
Measure:  Provide basic water and                                                                                               
sewerage service to an average of 500                                                                                           
households in rural communities each                                                                                            
year.                                                                                                                           
Current Status: The average number of                                                                                           
households provided with new water and                                                                                          
sewerage service for the last two years                                                                                         
is 240."                                                                                                                        
1201                                                                                                                            
Commissioner Brown                                                                                                              
Measure: Reduce carbon monoxide pollution                                                                                       
in Anchorage to meet health standards by                                                                                        
end of 2003.                                                                                                                    
Current Status: Anchorage - 1997 and 1998                                                                                       
met health standard; 1999 one day above                                                                                         
standard as of Oct 31.                                                                                                          
1226                                                                                                                            
Commissioner Brown                                                                                                              
Measure: Percentage decrease in critical                                                                                        
violations at inspected food                                                                                                    
establishments.                                                                                                                 
Current Status: Food service facilities                                                                                         
(inspected through October, 1999) had 14%                                                                                       
fewer critical violations than in 1998.                                                                                         
1296                                                                                                                            
Commissioner Brown                                                                                                              
Spoke in support of performance measures.                                                                                       
Dilemma is that there is no monitoring                                                                                          
system in some cases.                                                                                                           
1368                                                                                                                            
Representative                                                                                                                  
Foster                                                                                                                          
What were the department's belt                                                                                                 
tightening measures in FY00?                                                                                                    
1385                                                                                                                            
Commissioner Brown                                                                                                              
Some short term reductions to FY00.                                                                                             
1413                                                                                                                            
Representative                                                                                                                  
Foster                                                                                                                          
How much do fines and penalties add up                                                                                          
to?                                                                                                                             
                                                                                                                                
KURT FREDRIKSSON,                                                                                                               
ACTING DEPUTY                                                                                                                   
DIRECTOR, DEPARTMENT                                                                                                            
OF ENVIRONMENTAL                                                                                                                
CONSERVATION                                                                                                                    
Estimated fines and penalties at $200 -                                                                                         
$300 thousand dollars.                                                                                                          
1440                                                                                                                            
Representative                                                                                                                  
Phillips                                                                                                                        
Asked on a scale of 1 - 10 how would the                                                                                        
public rate the department? The business                                                                                        
of state government is to provide                                                                                               
services.                                                                                                                       
1467                                                                                                                            
Commissioner Brown                                                                                                              
Emphasized that people value clean water,                                                                                       
safe food and clean air. The department                                                                                         
would rate itself at a 7 - 8. Point is                                                                                          
who is going to pay. People want the                                                                                            
programs but they don't want to pay for                                                                                         
them. People who work with the Department                                                                                       
of Environmental Conservation rate the                                                                                          
department higher than those that do not.                                                                                       
Those that don't are afraid of them.                                                                                            
1538                                                                                                                            
Ms. Frank                                                                                                                       
Different work groups are helping to                                                                                            
bring recommendations to the department.                                                                                        
1560                                                                                                                            
Representative                                                                                                                  
Grussendorf                                                                                                                     
Customers deal directly with the                                                                                                
department and the general public should                                                                                        
be included.                                                                                                                    
1604                                                                                                                            
Commissioner Brown                                                                                                              
Most requests are to regulate things that                                                                                       
the department does not do.                                                                                                     
1625                                                                                                                            
Representative                                                                                                                  
Foster                                                                                                                          
Asked if there is an overlap of functions                                                                                       
with the federal government                                                                                                     
1669                                                                                                                            
Commissioner Brown                                                                                                              
There is a mix. Important to certify                                                                                            
water quality, but EPA could do them.                                                                                           
Other area where local entities will not                                                                                        
take over services due to an economy of                                                                                         
scale.                                                                                                                          
1735                                                                                                                            
Representative                                                                                                                  
Grussendorf                                                                                                                     
Have customers ever said they would                                                                                             
prefer to work with EPA? Is the move to                                                                                         
federal takeover a disservice to                                                                                                
Alaskans?                                                                                                                       
1759                                                                                                                            
Commissioner Brown                                                                                                              
Only the environmental groups have                                                                                              
indicated that they would like to see                                                                                           
control by EPA.                                                                                                                 
                                                                                                                                
                                                                                                                                
MILITARY AND VETERANS AFFAIRS                                                                                                   
1863                                                                                                                            
ADJUTANT GENERAL BG                                                                                                             
PHIL OATES,                                                                                                                     
COMMISSIONER,                                                                                                                   
DEPARTMENT OF                                                                                                                   
MILITARY AND                                                                                                                    
VETERANS AFFAIRS                                                                                                                
Noted that there are more opportunities                                                                                         
for the department and National Guard                                                                                           
then ever in the past without the                                                                                               
addition of more general funds.                                                                                                 
1893                                                                                                                            
Commissioner Oates                                                                                                              
Discussed the department's mission:                                                                                             
Provide strategically positioned,                                                                                               
relevant, and ready inilitaiy forces                                                                                            
capable of homeland defense, rapid                                                                                              
deployment, joint operations, and mission                                                                                       
accomplishment in the state or throughout                                                                                       
the world; and provide organizations                                                                                            
capable of performing emergency services,                                                                                       
training at-risk juveniles, coordinating                                                                                        
veterans programs and assisting other                                                                                           
state and federal agencies in suppressing                                                                                       
the use of illegal drugs.                                                                                                       
1913                                                                                                                            
Commissioner Oates                                                                                                              
The majority of the 4,200 jobs are                                                                                              
generated through federal programs. Noted                                                                                       
programs are located in 76 communities                                                                                          
across the state. Recounted programs that                                                                                       
contribute to the mission: Commissioner's                                                                                       
Office and Military Headquarters; Army                                                                                          
Guard Facilities Maintenance; Air Guard                                                                                         
Facility Maintenance; Disaster Planning &                                                                                       
Control;  Alaska Military Youth Academy;                                                                                        
State Active Duty Guard Benefits:                                                                                               
Educational and Retirement and Veterans                                                                                         
Services                                                                                                                        
1983                                                                                                                            
Commissioner Oates                                                                                                              
Customers are every citizen of the state.                                                                                       
There is also a national mission.                                                                                               
2022                                                                                                                            
Commissioner Oates                                                                                                              
Discussed measures of effectiveness.                                                                                            
2063                                                                                                                            
Commissioner Oates                                                                                                              
Discussed Alaska Military Youth Academy.                                                                                        
There is a backlog of cadet's. There is a                                                                                       
federal goal of 200 graduates a year.                                                                                           
Answered the question: Are we maximizing                                                                                        
outside source of funding? Yes. The                                                                                             
department is receiving $200 thousand                                                                                           
dollars in federal funds for the school                                                                                         
lunch program. Noted that the department                                                                                        
is also receiving funding of between $216                                                                                       
thousand dollars and $400 thousand                                                                                              
dollars through the school foundation                                                                                           
formula and $25 thousand dollars through                                                                                        
drug and alcohol grants.                                                                                                        
2190                                                                                                                            
Co-Chair Mulder                                                                                                                 
With additional funding how many more                                                                                           
enrolled in the Alaska Military Youth                                                                                           
Academy?                                                                                                                        
2199                                                                                                                            
Commissioner Oates                                                                                                              
Noted that the goal is for 200 graduates                                                                                        
per year. Important benchmark is how to                                                                                         
increase services without an additional                                                                                         
cost to the state. Federal funds will be                                                                                        
sought for federal missions.                                                                                                    
2248                                                                                                                            
Commissioner Oates                                                                                                              
Other measures of effectiveness: $93                                                                                            
million dollars of drugs were taken off                                                                                         
the street, have increased federal                                                                                              
dollars, and brought the state to a                                                                                             
greater level of disaster and emergency                                                                                         
readiness. Y2K helped to increase                                                                                               
emergency readiness with less funding                                                                                           
than other states.                                                                                                              
2335                                                                                                                            
Commissioner Oates                                                                                                              
Noted that a measure of the quality of                                                                                          
the National Guard recruits is their                                                                                            
level of education.                                                                                                             
                                                                                                                                
TAPE CHANGE, HFC 00                                                                                                             
- 6, SIDE 2                                                                                                                     
                                                                                                                                
000                                                                                                                             
Commissioner Oates                                                                                                              
Discussed efforts of the Department to                                                                                          
follow its mission.  The Department is                                                                                          
attempting to provide strategically                                                                                             
positioned, relevant, and ready military                                                                                        
forces capable of homeland defense, rapid                                                                                       
deployment, joint operations, and mission                                                                                       
accomplishment in the state or throughout                                                                                       
the world; and provide organizations                                                                                            
capable of providing emergency services.                                                                                        
225                                                                                                                             
Co-Chair Mulder                                                                                                                 
Requested the list of deferred                                                                                                  
maintenance needs throughout the State.                                                                                         
251                                                                                                                             
Commissioner Oates                                                                                                              
Replied that he would provide that and                                                                                          
would address all facilities throughout                                                                                         
the State including the rural                                                                                                   
communities.                                                                                                                    
300                                                                                                                             
Commissioner Oates                                                                                                              
Spoke to about the Alaska Military Youth                                                                                        
Academy (formerly the Youth Corps.)  The                                                                                        
Department would like to do better                                                                                              
tracking of that resource, but does not                                                                                         
have adequate funding to make that                                                                                              
possible.  This program trains at-risk                                                                                          
juveniles.  Benchmarking takes resources.                                                                                       
389                                                                                                                             
Representative                                                                                                                  
Phillips                                                                                                                        
Asked if the tracking could be                                                                                                  
accomplished through an auxiliary group.                                                                                        
413                                                                                                                             
Commissioner Oates                                                                                                              
Commented that the University could take                                                                                        
it over as a graduate level program.  An                                                                                        
additional effective measure was that                                                                                           
every mission was accomplished and there                                                                                        
were no loss of lives of the employees of                                                                                       
that department. The department saved the                                                                                       
lives of 150 Alaskans this past year.                                                                                           
The department will continue to develop                                                                                         
these measures to accomplish the                                                                                                
missions.                                                                                                                       
526                                                                                                                             
Commissioner Oates                                                                                                              
Listed the accomplishments of the                                                                                               
Department.  He encouraged members to be                                                                                        
proud of the National Guard and all that                                                                                        
they have done throughout the State.  He                                                                                        
stated that there is a lot of money                                                                                             
invested that has increased the benefits                                                                                        
to vets throughout the State.                                                                                                   
645                                                                                                                             
Commissioner Oates                                                                                                              
He noted that his work prioritizes                                                                                              
emergency management.  The Department has                                                                                       
considered acquiring more federal                                                                                               
funding.  He spoke to full funding for                                                                                          
biological attacks upon citizens of the                                                                                         
State.  Quick reaction will save many                                                                                           
lives.  That program will operational in                                                                                        
April 2000.                                                                                                                     
810                                                                                                                             
Commissioner Oates                                                                                                              
In response to a question by                                                                                                    
Representative Austerman, Commissioner                                                                                          
Oates stated that the program would be                                                                                          
fully funded with federal funds.                                                                                                
825                                                                                                                             
Representative                                                                                                                  
Phillips                                                                                                                        
Asked if that would be available to local                                                                                       
governments throughout the state.                                                                                               
844                                                                                                                             
Commissioner Oates                                                                                                              
Stated that it is designed to directly                                                                                          
assist all communities and even other                                                                                           
states.                                                                                                                         
875                                                                                                                             
Commissioner Oates                                                                                                              
Another significant mission is that of                                                                                          
the national missile defense.  That will                                                                                        
add a third level to the strategic                                                                                              
defense.  This will contribute to the                                                                                           
power and provide a foot in space for the                                                                                       
National Missile Defense System.  This                                                                                          
will bring high technology to the state.                                                                                        
The department is hoping to add an                                                                                              
additional position to work on this                                                                                             
dimension to create future opportunities                                                                                        
within the state.  That will take place                                                                                         
April of this year.  He stressed that                                                                                           
there is a lot of opportunity on the                                                                                            
plate.  It is all-federally funded.                                                                                             
1048                                                                                                                            
Commissioner Oates                                                                                                              
Spoke to the mission of the Clear Air                                                                                           
Force Station and how that will affect                                                                                          
the space surveillance. This will have a                                                                                        
significant impact. It will be phased                                                                                           
into in the next four years. The                                                                                                
Department is looking at weapons of mass                                                                                        
destruction, rapid assessment and initial                                                                                       
detection. Over the next five years,                                                                                            
there is the potential to add 726 new                                                                                           
jobs to the state. He added that there is                                                                                       
a possibility of an expanded combat                                                                                             
communications service within the Pacific                                                                                       
Theater.                                                                                                                        
1203                                                                                                                            
Commissioner Oates                                                                                                              
Spoke to duplication. He added that                                                                                             
duplication is not essentially bad. The                                                                                         
military model is the reason that many                                                                                          
programs are successful.                                                                                                        
1277                                                                                                                            
Commissioner Oates                                                                                                              
Emergency management has some duplication                                                                                       
due the tiered level of services.                                                                                               
1308                                                                                                                            
Commissioner Oates                                                                                                              
Maintained that there is no better                                                                                              
options to accomplish results.                                                                                                  
1332                                                                                                                            
Representative                                                                                                                  
Foster                                                                                                                          
Thanked the Commissioner for his                                                                                                
assistance.                                                                                                                     
1389                                                                                                                            
Co-Chair Mulder                                                                                                                 
Discussed suppression of illegal drug                                                                                           
use. How did this function end up in the                                                                                        
Department of Military and Veterans                                                                                             
Affairs and how does if fit into the                                                                                            
mission?                                                                                                                        
1451                                                                                                                            
Commissioner Oates                                                                                                              
No bigger threat to the nation than drug                                                                                        
use. It is federally funded. The                                                                                                
Department of Military and Veterans                                                                                             
Affairs provides direct support. They                                                                                           
train students and teachers. Military                                                                                           
equipment is provided to other                                                                                                  
departments. The department does not go                                                                                         
into houses and break the doors down.                                                                                           
Homeland defense from the federal                                                                                               
mission.                                                                                                                        
1575                                                                                                                            
Vice Chair Bunde                                                                                                                
Discussed recruiting. Noted that it is a                                                                                        
challenge.                                                                                                                      
1600                                                                                                                            
Commissioner Oates                                                                                                              
The Air National Guard did not meet its                                                                                         
goal for enrollment. Recruits have                                                                                              
greater requirements. It is a challenge                                                                                         
that must be emphasized.                                                                                                        
1668                                                                                                                            
Representative                                                                                                                  
Foster                                                                                                                          
Noted that it is difficult to find areas                                                                                        
to reduce in the Department of Military                                                                                         
and Veterans Affairs' budget. He added                                                                                          
that the department leveraged a large                                                                                           
amount of federal funds.                                                                                                        
1735                                                                                                                            
Commissioner Oates                                                                                                              
Any cut in dollars would put at risk the                                                                                        
missions and jobs, deferred maintenance                                                                                         
and result in the cut of programs. He                                                                                           
added that $200 thousand dollars in                                                                                             
additional funding from their retirement                                                                                        
actuarial were put into youth programs.                                                                                         
The Youth Corp needs to be expanded. The                                                                                        
department is looking to other funding                                                                                          
sources.                                                                                                                        
1817                                                                                                                            
Representative                                                                                                                  
Foster                                                                                                                          
Noted that the department was cut last                                                                                          
year.                                                                                                                           
1826                                                                                                                            
Representative                                                                                                                  
Phillips                                                                                                                        
Expressed appreciation for the Youth                                                                                            
Academy.                                                                                                                        
1879                                                                                                                            
Co-Chair Mulder                                                                                                                 
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 4:35 p.m.                                                                                              
                                                                                                                                
HOUSE FINANCE COMMITTEE                                                                                                         
LOG NOTES                                                                                                                       
January 13, 2000                                                                                                                
                                                                                                                                
House Finance Committee    21    01/13/00                                                                                       
                                                                                                                                
                                                                                                                                

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