Legislature(2011 - 2012)HOUSE FINANCE 519

02/01/2011 01:30 PM House FINANCE


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01:36:07 PM Start
01:38:14 PM Fy12 Budget Overview: Department of Military and Veterans Affairs
02:10:15 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Budget Overview: TELECONFERENCED
Dept. of Military & Veterans' Affairs
- University of Alaska Subcommittee of the Whole
will begin immediately after the House Finance
meeting adjourns
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 1, 2011                                                                                           
                         1:36 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:36:07 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Thomas  called the House Finance  Committee meeting                                                                    
to order at 1:36 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Bill Thomas Jr., Co-Chair                                                                                        
Representative Anna Fairclough, Vice-Chair                                                                                      
Representative Mia Costello                                                                                                     
Representative Mike Doogan                                                                                                      
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Reggie Joule                                                                                                     
Representative Mark Neuman                                                                                                      
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None.                                                                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative Dan Saddler; Major  General Thomas H. Katkus,                                                                    
Adjutant General,  Commissioner, Department of  Military and                                                                    
Veterans Affairs; Mike O'Hare,  Deputy Director, Division of                                                                    
Homeland   Security/Emergency   Management,  Department   of                                                                    
Military  and Veterans  Affairs;  Susan Colligan,  Director,                                                                    
Division of  Administrative Services, Military  and Veterans                                                                    
Affairs                                                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
^FY12 BUDGET  OVERVIEW: DEPARTMENT OF MILITARY  AND VETERANS                                                                  
AFFAIRS                                                                                                                       
                                                                                                                                
1:38:14 PM                                                                                                                    
                                                                                                                                
MAJOR   GENERAL   THOMAS   H.  KATKUS,   ADJUTANT   GENERAL,                                                                    
COMMISSIONER, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                       
introduced  the  Power  Point presentation  titled,  "Alaska                                                                    
Department   of  Military   and  Veterans   Affairs:  FY2012                                                                    
Overview;  February 1  2011,  Office  of the  Commissioner".                                                                    
Commissioner  Katkus  referred  to Slide  2,  "Securing  the                                                                    
State, Defending the Nation".  He shared that throughout the                                                                    
nation,  every  state  has  a  National  Guard  or  military                                                                    
component  that   is  commanded  by  the   governor.  Alaska                                                                    
provides  direct  aid  to national  defense  through  inter-                                                                    
continental ballistic  missile protection. Slide  3 detailed                                                                    
the  departmental mission:  "to provide  military forces  to                                                                    
accomplish  military missions  in  the state  or around  the                                                                    
world;  provide  homeland  security and  defense;  emergency                                                                    
response;  veterans  services;   and  youth  military  style                                                                    
training and education.                                                                                                         
                                                                                                                                
Commissioner Katkus  continued to  Slide 4 titled,  "What We                                                                    
Do":                                                                                                                            
                                                                                                                                
   · Defend and Protect Alaska and the United States                                                                            
                                                                                                                                
Commissioner Katkus  stated the  protection was  provided by                                                                    
two  services:  the  Army  and   Air  National  Guard.  Both                                                                    
services had  approximately 2000  members trained  and ready                                                                    
to serve.  Roughly 1800 full-time Alaska  National Guardsmen                                                                    
were  engaged in  missile defense  out of  Fort Greely,  and                                                                    
space surveillance out  of Clear Air Force  Station. The Air                                                                    
Control  Squadron was  currently responsible  for responding                                                                    
to  threats from  Soviet Incursions  into U.S.  airspace. He                                                                    
stated  that pararescue  assets were  "at ready"  to provide                                                                    
rescue  and  recovery  for   flight  problems;  military  or                                                                    
otherwise. A new fleet of  military police vehicles would be                                                                    
available  in  2012  to assist  in  responding  to  civilian                                                                    
assistance or natural disaster assistance within the state.                                                                     
                                                                                                                                
  · Disaster Preparedness, Response and Initial Recovery                                                                        
                                                                                                                                
Commissioner   Katkus  stated   that  a   robust  staff   of                                                                    
coordinated  state employees  was  available  to respond  to                                                                    
both small and large emergencies  in the state. The staff is                                                                    
privy to  the correct policies and  processes for addressing                                                                    
the Disaster Policy  Cabinet in order to  secure funding and                                                                    
make recommendations to the governor.                                                                                           
                                                                                                                                
   · Youth Intervention                                                                                                         
                                                                                                                                
Commissioner Katkus informed the committee that the Alaska                                                                      
Military Youth Academy produced roughly 300 graduates per                                                                       
year. He relayed that under a new director the academy had                                                                      
been reenergized to raise standards of excellence in                                                                            
achievement, and to maintain graduation numbers.                                                                                
                                                                                                                                
   · Outreach to Veterans and Military Families                                                                                 
                                                                                                                                
Commissioner Katkus  pointed out  to the committee  that due                                                                    
to servicemen  returning from current wars,  the average age                                                                    
of veterans was  getting younger. He cited his  own son, who                                                                    
is  just 21  years old,  was undergoing  his second  tour of                                                                    
duty. He believed  that the department would  need to adjust                                                                    
to reflect the change in the veteran age average.                                                                               
                                                                                                                                
Representative Guttenberg referred to  House Bill 44, passed                                                                    
in  2008,  which  allowed  veterans  to  indicate  on  their                                                                    
permanent fund applications their  veteran status. He stated                                                                    
that veteran's organizations  were responsible for informing                                                                    
veterans of the  services available to them  that they would                                                                    
otherwise not  be aware  of. He  wondered if  the department                                                                    
could   share  any   results  concerning   veteran  outreach                                                                    
activities.                                                                                                                     
                                                                                                                                
1:47:37 PM                                                                                                                    
                                                                                                                                
Commissioner Katkus  said he would  provide more  details on                                                                    
the issue.                                                                                                                      
                                                                                                                                
Co-Chair  Thomas  asked  if the  ceremonial  guard  traveled                                                                    
throughout the state to funeral services.                                                                                       
                                                                                                                                
Commissioner Katkus  replied that  the ceremonial  guard, or                                                                    
"funeral honors teams",  traveled extensively throughout the                                                                    
state.    The  department   had  received  an  abundance  of                                                                    
positive feedback regarding the program.                                                                                        
                                                                                                                                
Representative  Gara stated  that  a  veteran's advocate  in                                                                    
Anchorage had  been attempting to  battle the high  rates of                                                                    
homelessness and alcoholism faced  by veterans. One proposal                                                                    
was  to  provide  safe housing  for  veterans  with  alcohol                                                                    
issues.  He  felt  that  the  problem  was  significant  and                                                                    
wondered why it had not been listed as a major priority.                                                                        
Commissioner  Katkus responded  that ensuring  better access                                                                    
to programs  and facilities could  help. He thought  a study                                                                    
of the issue could reveal the full scope of the problem.                                                                        
                                                                                                                                
Representative  Gara asked  if  the  department intended  on                                                                    
taking   a  more   active  role   in   the  alcoholism   and                                                                    
homelessness problem faced by many Alaskan veterans.                                                                            
                                                                                                                                
Commissioner Katkus said yes.  He stated that the department                                                                    
would also  be examining  the issue of  suicide as  well. He                                                                    
added that  the Army National  Guard was currently  facing a                                                                    
historically  high suicide  rate. He  assured the  committee                                                                    
that the issues of  suicide, sexual abuse, homelessness, and                                                                    
alcoholism  among  veterans were  of  high  priority to  the                                                                    
department.                                                                                                                     
                                                                                                                                
1:52:41 PM                                                                                                                    
                                                                                                                                
Commissioner Katkus  continued to Slide 5  titled, "Results:                                                                    
Defend and protect Alaska and  the United Sates". He pointed                                                                    
out that  approximately 1800 Alaska National  Guardsmen were                                                                    
serving  full-time  around the  state,  and  not 2,400.  The                                                                    
department had  237 Army Guard facilities  maintained across                                                                    
Alaska, including  new Air Guard facilities.  The department                                                                    
would  move 1400  national guardsmen  from  Kulis Air  Force                                                                    
Base to Elmendorf on the  12th of February, 2011; this would                                                                    
increase   capacity    and   capability   for    the   unit.                                                                    
Additionally,  approximately 190  Alaska National  Guardsmen                                                                    
had been deployed to operations worldwide.                                                                                      
                                                                                                                                
Co-Chair Stoltze relayed the history  of the creation of the                                                                    
Veteran's Advisory  Council. He  opined the  dysfunction and                                                                    
lack   of  communication   between  the   council  and   the                                                                    
Legislature.                                                                                                                    
                                                                                                                                
Commissioner  Katkus  replied  that he  understood  Co-Chair                                                                    
Stoltze's concerns.                                                                                                             
                                                                                                                                
MIKE   O'HARE,  DEPUTY   DIRECTOR,   DIVISION  OF   HOMELAND                                                                    
SECURITY/EMERGENCY MANAGEMENT,  DEPARTMENT OF  MILITATRY AND                                                                    
VETERANS  AFFAIRS  discussed  Slide  6,  "Results:  Disaster                                                                    
Preparedness":                                                                                                                  
                                                                                                                                
   · Approximately $10 Million in grants to local                                                                               
     jurisdictions for emergency preparedness equipment,                                                                        
     training, planning, and exercises                                                                                          
                                                                                                                                
Mr. O'Hare  stated that the  focus of the division  would be                                                                    
to  provide  statewide  catastrophic planning  training  and                                                                    
exercise.  The  training  would  require  incorporating  and                                                                    
planning   with  local   communities,   state  and   federal                                                                    
agencies, non-governmental  and voluntary  organizations, as                                                                    
well as  the private sector  in order to be  better prepared                                                                    
for a catastrophic disaster.                                                                                                    
                                                                                                                                
   · 4,500 Participants in the 2010 Alaska Shield/Arctic                                                                        
     Edge emergency response exercise, one of 51 training                                                                       
     events conducted.                                                                                                          
                                                                                                                                
   · 256 individual assistance grants for disaster repair                                                                       
     of homes, personal belongings, and transportation                                                                          
     totaling over $171,000.                                                                                                    
                                                                                                                                
Mr. O'Hare said that  the department's disaster preparedness                                                                    
focus   would    be   on   statewide    disaster   emergency                                                                    
communications,   large  training   and  exercises,   and  a                                                                    
statewide preparedness campaign.                                                                                                
                                                                                                                                
Commissioner  Katkus added  that he  received a  daily 5  PM                                                                    
report   from   the   Department   of   Homeland   Emergency                                                                    
Management.  The report  was forwarded  to the  governor and                                                                    
the governor's  chief of  staff in  order to  coordinate any                                                                    
necessary resolution.                                                                                                           
                                                                                                                                
1:59:11 PM                                                                                                                    
                                                                                                                                
Commissioner Katkus  continued to  Slide 7  titled "Results:                                                                    
Youth Intervention":                                                                                                            
                                                                                                                                
   · Ranked #1 in the nation, per capita, for contacting                                                                        
     and recruiting high school dropouts into the ChalleNGe                                                                     
     program                                                                                                                    
                                                                                                                                
Commissioner  Katkus  stated   that  the  department  viewed                                                                    
misguided  youth  as  a  threat  to  national  security.  He                                                                    
testified that  through the youth  corps program,  kids were                                                                    
subject to a strict,  military style education; curtailed to                                                                    
at-risk youth.                                                                                                                  
                                                                                                                                
   · 194 students in residential phase, October 2010                                                                            
                                                                                                                                
  · 292 students in post-residential phase, October 2010                                                                        
                                                                                                                                
   · Over 3,218 total graduates                                                                                                 
                                                                                                                                
   · 96 percent of eligible cadets earned and received GED                                                                      
     or high school diploma by graduation                                                                                       
                                                                                                                                
Commissioner Katkus relayed that  the department intended to                                                                    
see all accepted applicants through to graduation in 2011.                                                                      
He continued to Slide 8, "Results: Outreach to Veterans":                                                                       
                                                                                                                                
   · $35.6 Million in benefits received by veterans in 2010                                                                     
     (there are 77,000 veterans and approximately 150,000                                                                       
     veteran family members across Alaska)                                                                                      
                                                                                                                                
Commissioner  Katkus  offered  that   the  amount  of  money                                                                    
brought  into the  state through  veteran's benefits  was an                                                                    
economic boon  to the state.  Slide 9 detailed  the general,                                                                    
federal, and other funds coming into the state.                                                                                 
                                                                                                                                
   · Certified over 800 programs of study in educational                                                                        
     facilities statewide                                                                                                       
                                                                                                                                
   · Yellow Ribbon Program provided outreach to 165 Alaskan                                                                     
     communities and directly assisted 1,000 veterans and                                                                       
     400 families to attain federal benefits                                                                                    
                                                                                                                                
Commissioner  Katkus  shared  that  the  department  offered                                                                    
numerous  family  programs  that support  veterans,  serving                                                                    
service members, and their families.                                                                                            
                                                                                                                                
Commissioner Katkus continued to  Slide 9, "Current Capacity                                                                    
(FY2011)",  which  illustrated  the  federal,  general,  and                                                                    
other  funds   available  for  the  four   addressed  areas;                                                                    
totaling $50.1 Million.                                                                                                         
                                                                                                                                
Co-Chair Stoltze  highlighted that  the department  had been                                                                    
successful  in extending  benefits to  military families  in                                                                    
times of need.                                                                                                                  
                                                                                                                                
SUSAN   COLLIGAN,  DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                                                                    
SERVICES, MILITARY  AND VETERANS  AFFAIRS, explained  that a                                                                    
person  working directly  with a  veteran's service  officer                                                                    
would be assured all earned benefits.                                                                                           
                                                                                                                                
Commissioner Katkus  likened the relationship to  a civilian                                                                    
working with  a tax accountant,  as opposed to  filing their                                                                    
own income taxes.                                                                                                               
Commissioner  Katkus  directed  attention to  the  chart  on                                                                    
Slide 10, "FY2012 Budget". The  298 position control numbers                                                                    
(PCN)  reflected   in  the   chart  represented   the  state                                                                    
employees   working  in   the   department.  However,   when                                                                    
examining the  combined services  of the  military personnel                                                                    
within the department, an additional  4000 members should be                                                                    
added. Ultimately,  the department had 4500  people involved                                                                    
in departmental work.                                                                                                           
                                                                                                                                
2:04:45 PM                                                                                                                    
                                                                                                                                
Commissioner Katkus  continued to Slide 11,  "Priorities for                                                                    
FY2012":                                                                                                                        
                                                                                                                                
   · Increase recruitment and retention of Alaska National                                                                      
     Guard members                                                                                                              
                                                                                                                                
Commissioner  Katkus specified  that  efforts, not  funding,                                                                    
between air and army recruitment would be combined.                                                                             
                                                                                                                                
   · Alaska Aerospace Corporation                                                                                               
                                                                                                                                
Commissioner Katkus revealed  that the project's affiliation                                                                    
with the  military would be  beneficial in  securing federal                                                                    
funding.                                                                                                                        
                                                                                                                                
Co-Chair  Stoltze asked  what  the department's  anticipated                                                                    
capital and operating investment was for the project.                                                                           
                                                                                                                                
Commissioner Katkus  replied that  the financial  input from                                                                    
the department was  expected to be zero.  The department did                                                                    
expect to incur operating costs.  He said that the base cost                                                                    
of  the  program  would  be between  four  and  ten  million                                                                    
dollars.                                                                                                                        
                                                                                                                                
  · Increase number of graduates from ChalleNGe program.                                                                        
                                                                                                                                
   · Meet demand for post 9-11 GI Bill and increased                                                                            
     benefits                                                                                                                   
                                                                                                                                
Representative  Gara questioned  the  funding between  state                                                                    
and  federal  dollars  for  the  aerospace  corporation.  He                                                                    
pointed  out  to  the  committee  that  the  department  had                                                                    
focused on mostly private launches  which had lost money. He                                                                    
asked if the intention was  to get the federal government to                                                                    
use the  facility more  and fund  the launches  with federal                                                                    
dollars.                                                                                                                        
Commissioner Katkus replied that  the facility was a private                                                                    
business and  that state monies  would cover  base operating                                                                    
costs. The  expected economic impact  on the state  would be                                                                    
measured    in    employment   opportunities,    educational                                                                    
incentives,  and other  economic drivers.  He stressed  that                                                                    
the  program  would   not  be  a  financial   loss,  but  an                                                                    
investment.                                                                                                                     
                                                                                                                                
Representative  Gara   asked  if  the   department  expected                                                                    
federal  launches that  would result  in more  money to  the                                                                    
state.                                                                                                                          
                                                                                                                                
Commissioner Katkus  replied that it was  possible; provided                                                                    
the project maintained military affiliation.                                                                                    
                                                                                                                                
Co-Chair Thomas  asked about the relationship  between state                                                                    
school  districts  and  the army  with  regard  to  allowing                                                                    
recruitment on campus.                                                                                                          
                                                                                                                                
Commissioner Katkus said the  relationship was improving. He                                                                    
added  that the  military  had access  to  campuses and  had                                                                    
received considerable support.                                                                                                  
                                                                                                                                
2:10:15 PM                                                                                                                    
                                                                                                                                
Representative Costello  felt that the Alaska  Youth Academy                                                                    
was a  phenomenal program.  She also  expressed appreciation                                                                    
for  the management  of  veteran's  cemeteries. She  queried                                                                    
whether  the  commissioner   could  provide  the  leadership                                                                    
necessary to  lead a  task force  that would  be responsible                                                                    
for  working on  the  issue of  homelessness among  Alaska's                                                                    
veterans.                                                                                                                       
                                                                                                                                
Commissioner  Katkus   responded  that  he  was   not  fully                                                                    
enlightened of  the problem. He  assured the  committee that                                                                    
the issue  be discussed amongst  his staff with the  hope of                                                                    
reaching a greater understanding of the problem.                                                                                
                                                                                                                                
Representative  Doogan  wondered   how  long  the  aerospace                                                                    
program would have  to prove its financial  viability to the                                                                    
state.                                                                                                                          
                                                                                                                                
Commissioner Katkus replied that he did not know.                                                                               
                                                                                                                                
Representative  Gara  asked  if the  commissioner  would  be                                                                    
willing  to discuss  the problem  of homeless  veterans with                                                                    
Ric Davidge, Chairman of the  National Committee on Economic                                                                    
Opportunities, Vietnam Veterans of America, and an advocate                                                                     
for a Housing First project, in order to become better                                                                          
acquainted with the details surrounding the issue.                                                                              
                                                                                                                                
Commissioner Katkus replied yes.                                                                                                
                                                                                                                                
Co-Chair Thomas added that the homelessness and alcohol                                                                         
problem among veterans was compounded by the pride that                                                                         
kept veterans from seeking, or accepting, help.                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 2:15 PM.                                                                                           
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
DMVA Overview Presentation.pdf HFIN 2/1/2011 1:30:00 PM
DMVA FY11 Increment Letter.pdf HFIN 2/1/2011 1:30:00 PM