Legislature(1993 - 1994)
02/08/1993 01:34 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 8, 1993
1:34 p.m.
TAPE HFC 93-17, Side 1, #000 - end.
TAPE HFC 93-17, Side 1, #000 - end.
TAPE HFC 93-18, Side 1, #000 - #390.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:34 p.m.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
ALSO PRESENT
Mike Greany, Director, Legislative Finance Division; Gary
Bader, Director, Administrative Services, Department of
Education;
Duane Guiley, Finance Director, Department of Education;
Mary Lou Madden, Assistant Director, Postsecondary Education
Commission; Douglas Hanon, Postsecondary Education
Commission; Bruce Botelho, Assistant Attorney General,
Department of Law; Richard Pegues, Director, Division of
Administrative Services, Department of Law; Barry Hulin,
Executive Director, Alaska Housing Finance Corporation;
Judith DeSpain, Deputy Executive Director, Alaska Housing
Finance Corporation; Ray Utter Administrative Manager,
Division of Administrative Services, Alaska Housing Finance
Corporation.
SUMMARY INFORMATION
HB 60 FY 94 CAPITAL BUDGET
OVERVIEWS: DEPARTMENT OF LAW
DEPARTMENT OF REVENUE
DEPARTMENT OF EDUCATION
HB 60 FY 94 CAPITAL BUDGET
Co-Chair MacLean provided members with a packet of detail
information on each capital improvement project request
submitted by the Departments of Law, Education and Revenue
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(copy on file). She also presented members with three
worksheets prepared by the Division of Legislative Finance
(Attachment 1).
Co-Chair MacLean identified two areas of concern. She noted
that the FY 94 capital request emphasizes data processing
and communications related projects. There are
approximately $18 million dollars in data processing and
communications related projects. She noted that few of the
proposed projects have been approved by the
Telecommunications and Information Council in the Department
of Administration (TIC).
Co-Chair MacLean explained that the FY 93 budget placed
individual departmental information management projects in
the front section of the budget with language requiring that
projects be consistent with the state short and long range
plan developed by TIC.
Co-Chair MacLean stated that it is her plan to place
projects not reviewed by TIC in the front section of the
budget with the appropriate language requiring TIC review.
Co-Chair MacLean expressed concern with the proliferation of
operating budget items in the capital budget. She pointed
to projects in the Department of Fish and Game and
Department of Natural Resources.
DEPARTMENT OF LAW
BRUCE BOTELHO, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW
addressed the Department's CIP request for FY 94. He noted
that the Department's request is identical to their FY 93
request. The Department proposes to establish local and
wide area networks for the criminal and civil divisions. He
stressed that the Department of Law must exchange documents
between locations in an expedient manner. He gave examples
involving the exchange of documents between division
offices.
Representative Brown asked if the request included funding
for reconciling incompatible data bases.
RICHARD PEGUES, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF LAW replied that the funding is for
implementation of a local area network (LAN) and a wide area
network (WAN).
Mr. Pegues clarified that the project has been reviewed by
the Information Systems Projects Review Committee in the
Department of Administration (ISPRC).
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Representative Hanley noted that the system would be
completed in FY 95. Co-Chair MacLean asked for further
information concerning the Department's information
management plan.
Representative Brown noted operating costs were included in
the Department's request. Mr. Pegues explained that capital
money would not be used for operating expenses.
Mr. Pegues, in response to a question by Representative
Hoffman, elucidated that the Office of Budget and Management
presented the Department of Law with a $1.2 million dollar
target.
Representative Brown asked for back-up information regarding
the request which was provided to ISPRC. Co-Chair MacLean
asked for a breakdown of expenditures of the FY 93 capital
appropriation for the Department of Law, lawsuit
settlements.
Representative Hoffman noted that two additional positions
will be located in Anchorage.
Co-Chair MacLean asked if other projects went through TIC.
Mr. Pegues clarified that all the Department's projects went
through ISPRC.
Representative Brown discussed the coordination of data
bases. Mr. Botelho clarified that the LAN and WAN requested
by the Department of Law is for the internal transfer of
pleas, motions and other documents that are not of interest
to agencies outside the Department of Law in regards to the
tracking of cases or individuals within the criminal
justice.
Representative Brown asked that a cost saving benefit
analysis be provided. Representative Parnell noted the need
for an overall coordinated data base. He asked if a brief
or pleading bank is maintained. Mr. Botelho assured him
that information is indexed and available. Brief banks are
located in Juneau, Anchorage, Fairbanks and in the Criminal
Division. Briefs will not be optically scanned.
Mr. Botelho, in response to a question by Representative
Therriault, clarified that the two new positions will
maintain the network. The network installation will be
contracted. Positions to maintain the system will be
included in the FY 95 operating budget.
Representative Hoffman expressed concern that the positions
will add to the cost of future operating budgets. Mr.
Botelho stressed that there will be a cost savings
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associated with the project. He added that charge backs
will be used to pay for the positions.
Representative Brown noted that there are 16 - 20 EMAIL
systems in the state agencies. Mr. Botelho emphasized that
the Department of Law currently uses the state EMAIL system.
He observed that the state EMAIL system is inappropriate for
the transfer of documents that are in final form.
ALASKA HOUSING FINANCE CORPORATION - DEPARTMENT OF REVENUE
BARRY HULIN, EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION observed that AHFC has not submitted a CIP
request since 1983. He stated that programs within the
Administration were transferred to AHFC from Department of
Community and Regional Affairs to the Corporation. The
request by AHFC will continue programs begun in the
Department of Community and Regional Affairs. He noted that
the request will be matched by federal or corporation
dollars.
RAY UTTER, ADMINISTRATIVE MANAGER, DIVISION OF
ADMINISTRATIVE SERVICES, ALASKA HOUSING FINANCE CORPORATION
detailed AHFC's CIP requests. He referred to AHFC's CIP
request for the HOME Investment Partnership Program to
supply affordable, low and moderate income housing. There
is a state match requirement of approximately $1,050.0
million dollars in corporate receipts.
Mr. Utter reviewed AHFC's CIP request for federal
competitive grants. He detailed the funding source and
amount for each program.
* Transitional Housing: $500.0 thousand dollars
federal funds - $500.0 thousand dollars in
corporation match
* Permanent Housing for Handicapped Homeless:
$500.0 thousand dollars in federal funds - $500.0
thousand dollars in corporation match
* Shelter Plus $700.0 thousand dollars in federal
funds -$700.0 thousand dollars in corporation
match
* Supplemental Assistance for Facilities to Assist
the Homeless: $1,900.0 million dollars in federal
funds
* Housing Opportunities for Persons with Aids:
$500.0 thousand dollars in federal funds
* Multi-Family Home-Ownership Planning Grant:
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$200.0 thousand dollars in federal funds
* Single Family Home-Ownership Planning Grant:
$100.0 thousand dollars in federal funds
* Economic Empowerment for Low Income Families:
$50.0 thousand dollars
Mr. Utter discussed AHFC's CIP request for program receipt
authority to fund $500.0 thousand dollars in Alaska Housing
Finance Corporation Grants. He explained that there is a
need to supplement federal funds. He gave as an example the
Fairbanks Public Housing Development Project.
Representative Brown asked if AHFC discussed the possibility
of funding programs regarding mental disabilities through
the Mental Health Trust Fund. Mr. Hulin stated that AHFC
had not considered the Mental Health Trust Fund as a funding
source.
Co-Chair MacLean asked if AHFC had previously received
discretionary grant authority. Mr. Hulin stated that AHFC
has not traditionally given grants.
(Tape Change, HFC 93-17, Side 2)
Representative Hoffman expressed concern with a
discretionary grant program. He felt that the Legislature
would be providing a "blank check."
Representative Martin asked if AHFC understood that it would
receive grant authority under the merger. Mr. Hulin noted
that AHFC received specific authority to provide grants that
were in the AHFC budget and were reviewed by the
Legislature. Mr. Hulin emphasized that the ASHA Board of
Directors made a commitment to the Fairbanks Public Housing
Development before its demise. He noted that the remaining
$164.0 thousand dollars would be for similar projects. Co-
Chair MacLean clarified that corporate funds would be used
as a federal match.
Representative Brown discussed the Hollywood Vista site in
Anchorage. Mr. Hulin noted that the project cost is
undetermined. He expressed his reluctance to commit AHFC
funds to the project.
Mr. Utter discussed AHFC's CIP request for Affordable
Housing and Energy Efficiency Grants. He noted that the
project began in the Department of Community and Regional
Affairs. There is a $1,625.0 million dollar federal
contribution for weatherization. Corporate matches of
$500.0 thousand dollars will be made by the Alaska Craftsman
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Home Program and Energy Rated Homes of Alaska.
Mr. Utter referred to AHFC's CIP request for $1 million
dollars in authorization for Oil Overcharge Settlement
Funds. This program was also transferred from Department of
Community and Regional Affairs.
Mr. Hulin commented on AHFC's request for authorization to
expend corporate receipts of $9.2 million dollars in the
Supplemental Housing Development Program. He noted that the
program would be continued with corporate funding. The
program had been financed with general fund dollars.
Representative Hoffman asked if the Board reviewed the
capital improvement project requests. Mr. Hulin replied
that the Board has not historically been involved in the
budget process. He noted that the Board has a copy of
AHFC's budget. He expected further involvement by the
Board.
Representative Martin asked if the merger has been
successful. Mr. Hulin acknowledged that the merger of ASHA
has been challenging. He stressed that there has been a
smooth merger of programs from the Department of Community
and Regional Affairs. He observed that the Board make-up
has been changed to reflect the different emphasis of the
Corporation.
DEPARTMENT OF EDUCATION
GARY BADER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF EDUCATION stated that the Department's CIP
requests were prioritized under the current law. He
detailed the process. Six year plans are submitted by
school districts. The are evaluated and ranked according
to:
* Health, Life and Safety
* Unhoused Students
* Protection of Structure
* Code Upgrade
* Operating Cost Savings
* Functional Upgrade
* Other
He explained that other factors considered under the Life,
Health and Safety category include:
* District's ranking of projects
* District's ability to provide educational services
through alternative facilities
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* Nature and seriousness of the problem
* If funding has already been provided to start the
project
* Life cycle cost of project
Mr. Bader stressed that school districts may request public
comment on the Department's ranking. Districts can ask for
a formal hearing to dispute the ranking. Final review can
be taken to the Superior Court.
Co-Chair MacLean asked the status of the regional high
school review. Mr. Bader noted that a request for proposals
has been issued. He did not know the current status.
Mr. Bader addressed the Department's CIP request for $350.0
thousand dollars to provide materials to the State Library.
He noted that the capital budget has been used over the past
nine years to provide materials to the State Library. Co-
Chair MacLean noted that the FY 93 appropriation for library
materials was $200.0 thousand dollars. Mr. Bader observed
that the original FY 93 request was $250.0 thousand dollars.
Mr. Bader discussed the Department's CIP request of $100.0
thousand dollars for a statewide data management system.
He noted that the project was reviewed by ISPRC as included
in a previous request. He noted that a meeting of the
Department of Education, Department of Administration,
school districts and private individuals took place in 1991,
to discuss information needs relative to school districts.
The recommendations were to:
* Establish a common data base for information
sharing by all school districts and the Department
of Education;
* Establish a common accounting system for all
school districts;
* Establish a common formate for reporting test data
and other information needed for verification for
state and federal program funding;
* Establish a statewide electronic mail system for
use by all school districts and the Department of
Education
Mr. Bader emphasized that the statewide data management
system would be a pilot project. He stressed that cost
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savings would be involved. Co-Chair MacLean noted that
$800.0 thousand dollars were appropriated for this project
in FY 93.
DUANE GUILEY, DIRECTOR, SCHOOL FINANCE, DEPARTMENT OF
EDUCATION clarified that the Department of Education
received $800.0 thousand dollars of a $2.5 million dollar
request. He stated that the FY 93 appropriation will be
used to convert some existing data on the Department's Wang
computer to the AS/400 computer to develop a standard data
dictionary. The standard data dictionary will be published
through the school districts. It will define file structure
and data elements. School districts will then be
hardware/software independent from the Department of
Education. The $100.0 thousand dollar request will be the
third phase of a four year plan.
Mr. Bader clarified that utilization of the data dictionary
represents a pilot project. Districts will be able to
report data electronically to the Department of Education.
Representative Brown expressed her concern that the project
is not serving classrooms. She suggested that the
Department take the leadership to provide a transition to
compatible systems.
Mr. Bader commented on the Department's CIP request of
$236.8 thousand dollars for maintenance at the Alaska
Vocational Technical Center (AVTEC). He discussed needed
maintenance.
Representative Martin asked for the percentage of students
with disabilities. Mr. Bader did not know. Representative
Martin noted that the cost to bring all the facilities into
compliance with the American Disabilities Act would be
$218.0 thousand dollars.
Representative Brown clarified that funding for ADA
modifications will be provided by grants through the
Department of Transportation and Public Facilities.
Mr. Bader reviewed the Department's CIP request of $290.0
thousand dollars for a Micro Image Optical System. He
explained that the current system stores images in a
magnetic storage system. He noted that magnetic storage is
costly and volatile. Optical Storage cannot be written
over. The request would also include an upgrade of the
current computer. Without an upgrade in storage capacity,
the Department estimates it will be out of storage capacity
within one year. The cost of continuing magnetic storage
would be approximately $45.0 thousand dollars a year.
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Co-Chair Larson asked if it would be better to wait for the
"F" series computer. Mr. Bader agreed that the Department
would like to wait for the "F" series if possible. Mr.
Bader clarified that the AS/400 has been with the Department
for two years.
Co-Chair MacLean asked for the Department's long term plan.
Mr. Bader stressed that the Department intends to
discontinue using the Wang system and to consolidate into
one system. This appropriation would complete the
Department's needs for this goal.
Representative Brown addressed an imaging study contracted
for by TIC. Mr. Bader noted that the project is still
active. He expected that the Department's existing optical
storage would be compatible with standards developed by TIC.
Optical storage etches into the storage media.
Representative Hoffman noted that the estimated completion
date is 1997. Mr. Bader clarified that the system will be
implemented immediately. Transferring of data will continue
into 1997.
(Tape Change, HFC 93-18, Side 1)
Mr. Bader addressed the Department's request of $213.7
thousand dollars for the Alaska Vocational Technical Center
for equipment purchases. He noted that funds would be
distributed as follows:
* Food Service - $15.0 thousand dollars
* Fisheries - $28.0 thousand dollars
* Library - thousand dollars
* Mechanics training program - $50.0 thousand
dollars
* Administration - $80.0 thousand dollars
* Forestry - $15.8 thousand dollars
Mr. Bader referred to the Department's CIP request of $140.0
thousand dollars in federal pass-through funds for Public
Library Constructions. Libraries must match grants with 55
percent of local funds. Grants are administered by the
State Library. No state funds are required.
Mr. Bader discussed the Department's CIP request of $809.0
thousand dollars for Stabilization of Museum Environment.
He explained that the project originally contained an
additional $254.8 thousand dollars for American Disabilities
Act (ADA) repairs. Funding for ADA improvements will be
requested through the Department of Transportation and
Public Facilities. He explained that the request is a
continuation of a FY 91 Capital appropriation of $88.0
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thousand dollars to upgrade the Alaska State Museum's
heating, ventilation, and air conditioning system. Funding
for the project was not sufficient for completion. This
request will complete the project.
Representative Therriault clarified that the Department of
Education will apply for ADA funding through the Department
of Transportation and Public Facilities.
POSTSECONDARY EDUCATION COMMISSION - DEPARTMENT OF EDUCATION
MARY LOU MADDEN, ASSISTANT EXECUTIVE DIRECTOR, POSTSECONDARY
EDUCATION COMMISSION DEPARTMENT OF EDUCATION explained that
the Postsecondary Education Commission is requesting three
CIP projects. The Postsecondary Education Commission is
requesting corporate receipt authority to improve
operational efficiency. She noted that the Postsecondary
Education Commission is experiencing an expediential
increase in loans coming into repayment.
DOUG HANON, FINANCIAL OFFICER, POSTSECONDARY EDUCATION
COMMISSION, DEPARTMENT OF EDUCATION addressed the
Commission's CIP request of $210.0 thousand dollars for a
telephone intelligent dialing system. He explained that
collection personnel will be able to more efficiently
contact clients in or approaching default. The intelligent
dialing system would interface with the student loan data
base system for automatic contact. The Postsecondary
Education Commission expects up to a 300 percent staff
productivity improvement. The request would be funded from
corporation receipts.
Representative Navarre noted that the request would only
effect over due accounts. Mr. Hanon addressed steps to
alleviate backlogs in communications of borrowers. Eight
temporary positions were recently added to the Postsecondary
Education Commission. The Commission has included funding
for continuation of 6 positions beyond June 30, 1993. He
added that the Commission's request for optical imagining
would provide further technical support to Commission staff.
Mr. Hanon discussed the Department's CIP request of $25.0
thousand dollars in corporate receipts to modify and enhance
the Student Financial Aid data processing system (SFAS). He
noted that 3,000 nonstandard accounts must be maintained
manually.
Co-Chair MacLean asked for clarification of funding the
Postsecondary Education Commission received through the
Legislative Budget and Audit Committee. Mr. Hanon noted
that funding through the Legislative Budget and Audit
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Committee was used to address conversion problems and to add
communication staff.
Representative Brown noted that the original system
contained design problems. She asked if the Commission has
tried to collect on deficient work done by the original
contractor. Ms. Madden noted that the deficiency was not
the fault of the original contractor. She noted that the
Postsecondary Education Commission purchased a program
developed for federal loan programs.
Representative Brown noted that the system cost $1 million
dollars. She suggested that the process was defective. Mr.
Hanon pointed out that the program has expanded since its
inception.
Mr. Hanon referred to the Department's CIP request of $250.0
thousand dollars for data imaging analysis. The
Postsecondary Education Commission has 3 million records
that are used daily. The Postsecondary Education Commission
will work with the Department of Administration.
ADJOURNMENT
The meeting adjourned at 3:18 p.m.
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