Legislature(1995 - 1996)
04/22/1995 10:05 AM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
APRIL 22, 1995
10:05 A.M.
TAPE HFC 95 - 92, Side 2, #000 - end.
TAPE HFC 95 - 93, Side 1, #000 - end.
TAPE HFC 95 - 93, Side 2, #000 - end.
TAPE HFC 95 - 94, Side 1, #000 - #317.
CALL TO ORDER
Co-Chair Richard Foster called the House Finance Committee
meeting to order at 10:05 A.M.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Kelly
Representative Grussendorf Representative Therriault
Representative Parnell was not present for the meeting.
ALSO PRESENT
Nancy Slagle, Director, Division of Budget Review, Office of
Management and Budget; Janet Clarke, Director, Division of
Administrative Services, Department of Health and Social
Services; Karen Perdue, Commissioner, Department of Health
and Social Services; Randy Super, Director, Division of
Medical Assistance, Department of Health and Social
Services; Elfrida Nord, Chief, Nursing Section, Division of
Public Health, Department of Health and Social Services;
Margo Nash, Department of Health and Social Services; Dan
Fanske, Executive Director, Alaska Housing Finance
Corporation, Anchorage; Les Campbell, Budget, Alaska Housing
Finance Corporation, Anchorage; Ray Utter, Budget, Alaska
Housing Finance Corporation, Anchorage; Barbara Ritchie,
Deputy Attorney General, Civil Division, Department of Law;
Richard Pegues, Director, Division of Administrative
Services, Department of Law.
SUMMARY
HB 268 An Act making appropriations for capital project
matching grant funds and to capitalize funds;
making, amending, and repealing capital
appropriations; and providing for an effective
date.
1
HB 268 was HELD in Committee for further
consideration.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES (DHSS)
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke to the
Department's capital budget request for the adoption and
foster care analysis reporting system in the amount of $1.96
million dollars. Ms. Clarke provided background information
on the request pointing out that the majority of the request
(75%) would be provided through federal funding. In order
for the federal government to provide those matching funds,
the State must provide their share prior to September 30,
1995.
Representative Martin asked the amount of money used by the
Department for information systems in the past twelve years.
Ms. Clarke agreed that a lot of money had been placed into
that system, although, she noted that within the Department,
there are many complex federal programs. Many of those
systems have been developed to meet the requirements of the
federal system.
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, continued,
the following DHSS's capital budget request for statewide
renovation, repair and equiptment in the amount of $1.799
million dollars. She explained that this financing would
address on-going maintenance to state owned facilities. Ms.
Clarke pointed out that the request was half of the needed
amount.
Ms. Slagle continued, the Alaska family practice residency
program renovation and equipment request in the amount of
$250 thousand dollars would be used for a community health
center and training program for physicians and midlevel
practitioners in an Anchorage health care center. Ms.
Clarke added that those funds would be used to renovate a
clinic site and provide the needed equipment.
Representative Martin stated that the proposed allocation
would be for a new program and recommended that it should be
added to the operating budget. Ms. Slagle advised that the
funds would be used for renovations of an existing facility.
Ms. Slagle continued addressing DHSS's capital budget
request for the Yukon Kuskokwim (YK) public health facility
design in the amount of $500 thousand dollars. Ms. Clarke
explained that the public health nurses desperately need a
facility in order to establish outpatient services. At this
2
time, the Yukon Kuskokwim (YK) public health facility has
served nurses using the facility an eviction notice. The
request would provide funds for a combined facility where
the State public health nurses and the YKHC staff and
services could be co-located.
Ms. Clarke discussed that currently YKHC spends $600
thousand dollars in eight different Bethel leases. YKHC
would like to get out of that situation in order to
consolidate their services.
Representative Martin asked if the corporation owned the
hospital. Ms. Clarke explained that the State Public Health
Service does not lease the building nor do they provide
leasing costs. The hospital is not large enough to
accommodate YK needs and those of the nurses at this time.
Representative Brown asked if funding the proposed project
could forestall eviction of the Public Health Service.
ELFRIDA NORD, CHIEF, NURSING SECTION, DIVISION OF PUBLIC
HEALTH, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, replied
that there was a plan by YK to install modular structures
for the nurses as a temporary basis which will then be used
at a latter date by the hospital facility. Ms. Clarke noted
that YKHC is pursuing federal funding to offset the costs of
the facility.
Representative Brown asked if future operating costs would
be associated with a new facility. Ms. Clarke commented
that new staff would not be needed to pay for the new
structure operation.
Ms. Slagle continued with DHSS's capital budget request for
the department-wide computer aided productivity improvement
system in the amount of $200 thousand dollars. The request
would assist the Department in providing an upgrade in the
network and then replacing machines and equipment which have
been failing. Representative Brown requested a departmental
breakdown of those projects.
Ms. Slagle addressed the Department's capital budget request
for a medicaid management information system reprocurement
in the amount of $8.069 million dollars. She stressed that
the majority of the request was federal dollars, noting that
the system was a federal requirement. Ms. Clarke pointed
out that this system was different from most other state
computer systems.
RANDY SUPER, DIRECTOR, DIVISION OF MEDICAL ASSISTANCE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, provided greater
detail regarding that request. He stated that the health
financing administration has regulations which require
3
repurchase of systems from time to time. Discussion
followed among Mr. Super and Representative Martin regarding
the information system and the possibility of double
counting.
Representative Brown questioned the possibility of the U.S.
Congress modifying rules which drive the states to
incorporate such complicated systems.
KAREN PERDUE, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, responded that, currently, the Medicaid block
grants are the subject of detailed debate. The chances of
passage of a medicaid block grant this year could be 30%
percent. A large amount of money would be at stake between
the states and the federal government in order to implement
such a grant. She added that discussions are on-going.
Commissioner Perdue urged Committee members not to pass up
an opportunity to receive the 90% federal funds in order
that Alaska could manage costs better.
Ms. Slagle continued listing DHSS's capital budget request
line item in the amount of $1.05 million dollars for the
Eligibility Information System (EIS). Those funds would
provide for a feasibility study and needed enhancements to
the eligibility information systems.
(Tape Change, HFC 95-93, Side 1).
Ms. Clarke commented that the request would create a new
eligibility information system which could then increase
productivity from workers and would protect the State from
fraud within the food stamp program especially in rural
communities.
MARGO NASH, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke
to the eligibility information system. She noted that the
funding requested would provide for three major systems.
She added that there would be two main projects for adding
child care and supportive services to the JOBS program and
that funding the request would also fund state project staff
to work with the contractors for design and implementation.
Representative Martin recommended that those costs should be
placed in the operating budget. Ms. Clarke advised that
traditionally this type of project had been requested
through the capital budget given that some of the
enhancements are time limited.
Representative Brown voiced hesitation in preceding with
implementation of a program which will soon be obsolete
given changes to the federal programs. Ms. Nash stated that
the changes made to that system will help the State in
making future welfare changes. If federal welfare reform is
4
passed, it will take a long time to implement. The new
system will allow the State to function smoothly while those
new systems are being developed.
DEPARTMENT OF REVENUE
ALASKA HOUSING FINANCE CORPORATION (AHFC)
Ms. Slagle spoke to the Department's capital budget request
for the Alaska Housing Finance Corporation (AHFC).
DAN FANSKE, EXECUTIVE DIRECTION, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE, ANCHORAGE, noted that
with the proposed changes, the total capital budget request
for the corporation would be $76.9 million dollars using
corporate receipts of $54 million dollars and federal
receipts of $22.367 million dollars. He pointed out that
AHFC is a tremendous resource for the State of Alaska. With
foresight and prudent management, it is uniquely qualified
to provide a crucial service for the State for the rest of
this decade. He concluded that the service could be defined
as meeting the critical housing needs of all Alaskans.
[Attachment #1].
Representative Martin provided Committee members with a
handout addressing housing needs in the State and the
responsibilities of AHFC. [Attachment #2]. He asked
specifically about the Cedar Park allocation provided last
year for $8 million dollars followed by the same request
this year. Mr. Fanske noted that AHFC had been granted
approval from Housing and Urban Development (HUD) to
demolish and replace the fifty units of housing at Cedar
Park. The project differs from the FY95 capital project,
and that the final approved FY95 project was changed to the
Riverbend Development project.
Representative Martin questioned the authority AHFC had to
change the project.
RAY UTTER, BUDGET, ALASKA HOUSING FINANCE AUTHORITY
CORPORATION, ANCHORAGE, pointed out that the funding changed
from corporate funds to federal funds and that the Riverbend
project had been included in a project description. He
stressed that AHFC has the authority to change the name of
the project prior to the passage of the bill.
Ms. Slagle addressed the capital budget request for the
housing and urban development comprehensive grant program in
the amount of $4.326 million dollars.
LES CAMPBELL, BUDGET, ALASKA HOUSING FINANCE CORPORATION,
ANCHORAGE, explained that the request was included in last
5
year's budget request. The request combines three years of
proposals, and noted that it had been a formula driven
program.
Ms. Slagle continued, the Cedar Park reconstruction request
in the amount of $8.501 million dollars would cover
replacement of those units. Representative Martin voiced
his concern with the lack of legislative oversight. Mr.
Fanske thought that the current process was providing the
necessary and appropriate legislative scrutiny
Representative Brown agreed.
Ms. Slagle addressed the low income weatherization program
request in the amount of $10.3 million dollars. She noted
that $8.5 million dollars would be received from corporate
receipts. Mr. Utter explained that the request would
provide for long term affordability for existing homes. He
commented on the standards currently used and noted that the
request was $3 million dollars above last year's.
Mr. Fanske responded to Representative Martin's concern
regarding the ISER report. He explained that report was
paid for and solicited by AHFC. Subsequent to that report,
changes have been made to deal with some of the information
that Institute of Social and Economic Reserach (ISER)
pointed out. He pointed out that the report had used
Anchorage to test out the energy efficiency of homes. Mr.
Fanske added that Anchorage has the cheapest utilities for
energy in the State and that would not be appropriate
comparison. He provided the Committee with a memo from AHFC
to Robert Brean, Director, Rural Housing Division addressing
the effectiveness of the Weatherization Program.
[Attachment #3].
(Tape Change, HFC 95-93, Side 2).
Ms. Slagle continued, addressing the Department's capital
budget request for the supplemental housing development
program in the amount of $10.235 million dollars. Mr. Utter
provided a breakdown of that request. Representative Martin
questioned the changes that are occurring in the Housing and
Urban Development (HUD) program on the federal level and the
funding requested by the Department.
Mr. Fanske remarked that a portion of the funding would
provide for a needs assessment. Also, a portion of the
funding would be used to address needs of seniors and
disabled. The request would be recalibrated following the
decision of the federal government. He agreed that it was
possible that the federal decisions would affect the
program, although, the program was designed to supply
matching funds in order to capture federal dollars. He
6
noted that the request would affect mostly the rural
communities.
Representative Martin directed his concern's stating that
the reports provided information which create an unrealistic
situation in the housing conditions within the State. Mr.
Fanske countered Representative Martin's concern pointing
out that the reports create a realistic picture of the
housing problems in Alaska. The program addresses housing
needs in seventeen communities.
Ms. Slagle continued, AHFC's capital budget request in the
amount of $7.75 million dollars for the Golden Towers
modernization would be used to help upgrade the five story
senior housing center in Anchorage.
Mr. Campbell noted that the building has maintenance
problems and that the allocation would repair the building
to a liveable state. Representative Kelly corrected Mr.
Campbell, explaining that the Golden Towers was not a senior
citizen facility but instead was a Section 8 facility. He
stated that a problem existed when mixing seniors and those
people who have disabilities. Mr. Fanske interjected that
there has been funding provided for the immediate security
needs of those that live in the facility.
Ms. Slagle addressed AHFC's capital budget request for
public housing environmental clean/abatement in the amount
of $1 million dollars. The request would cover costs of
removal and replacement of underground storage tanks in
several communities.
Mr. Campbell responded to Representative Martin's concern
that the integrity of the tanks is marginal and that the
tanks need replacing. He added that the tanks have been
tested and some have already been replaced.
Ms. Slagle stated that the following project would provide
$500 thousand dollars for emergency repair and replacement
in order to meet any emergency which may occur in the area
of low income family housing projects.
Ms. Slagle addressed AHFC's capital request in the amount of
$250 thousand dollars for the emergency housing assistance
program which would provide assistance in preventing
homelessness. Mr. Campbell noted that this is an existing
program which had been funded through the operating budget
in the past. The program helps local communities to develop
programs to prevent homelessness by providing assistance to
families in danger of thus becoming homeless.
Ms. Slagle continued, AHFC's capital budget request in the
7
amount of $1.75 million dollars for the senior and statewide
deferred maintenance needs in order to deal with all those
maintenance concerns of current existing housing projects.
Mr. Fanske pointed out that the proposed program is already
in existence. He noted that AHFC has generated tremendous
profits thus making it a successful corporation.
Representative Kohring agreed that AHFC has demonstrated
sound fiscal management. He stressed that AHFC has not
received general fund monies over the years, but instead has
generated money as a result of excellent management. He
urged Committee to acknowledge that effort.
Ms. Slagle continued, AHFC's capital budget request in the
amount of $4 million dollars for the senior citizens housing
development program.
Mr. Utter explained that the increment would provide senior
housing to those persons 65 years of age or older.
Representative Martin recommended adding an eligibility
requirement to that program. Mr. Campbell noted that there
are varying income level housing units being built.
Ms. Slagle added, the next capital budget request in the
amount of $3.75 million dollars would be used for the
housing and urban development federal home grant for the
Home Investment Partnership Program in order to provide low
and moderate income housing. The increment would cover
rehabilitation of the basic standard tenant housing
assistance and acquisition for new construction of housing
and nonprofit community housing development organizations.
The majority of the request will come from the federal
government.
The next component for the multi-family, special needs, and
congregate housing grants request in the amount of $2.5
million dollars would be used to provide money to private
nonprofit corporations, municipalities and regional housing
authorities to provide different types of housing needs
within the communities. The request would target the very
low income families. Mr. Campbell noted that the grants
would be used as a last resort to make the projects viable.
All other funding would be exhausted before tapping these
funds.
Ms. Slagle continued, AHFC's capital budget request in the
amount of $2.1 million dollars to be used for the public
housing energy performance contracting program for low
income Alaskan's energy and specific needs. Mr. Utter
advised that the allocations was tied to the low rent
program.
8
Ms. Slagle addressed AHFC's capital budget request in the
amount of $600 thousand dollars for the warm homes for
Alaskans program. The request would include assistance to
rural Alaskans in order to receive energy efficiency changes
to their homes.
The following component would provide $300 thousand dollars
for the public housing support building construction for use
of maintenance facilities which support housing projects.
Mr. Campbell and Representative Mulder discussed the
location of the site. They agreed that the most likely site
would be in Anchorage's Muldoon area.
Ms. Slagle addressed AHFC's capital budget request in the
amount of $3.49 million dollars for federal competitive
grants-public housing which would be used for special
purpose grants associated with the housing programs and
projects.
She continued with AHFC's capital budget request in the
amount of $6.5 million dollars for the federal competitive
grants to be used for projects not related to public housing
programs.
(Tape Change, HFC 95-94, Side 1).
Representative Martin asked who provided the match. Mr.
Campbell noted that if a grant would require a match, most
non-profits do not have the resources or capabilities to
provide that match, consequently, AHFC would then provide
it.
Ms. Slagle continued, AHFC's capital budget request for the
transition of the four star plus home incentive program in
the amount of $2 million dollars which would provide
incentive grants to purchase new homes in order to meet
residential energy requirements. Mr. Campbell pointed out
that this was an existing program and that State
requirements mandates the four star rating.
Ms. Slagle continued, the pre-development grant program
capital budget request in the amount of $500 thousand
dollars would be used to help with the expense of start-up
costs in developing a special needs housing project. Mr.
Campbell elaborated that AHFC does not provide all the
housing in Alaska. The grant program would help those other
groups to become started in housing projects.
Ms. Slagle continued to describe AHFC's capital budget
request for competitive grants in the amount of $325
thousand dollars. She pointed out that the allocation would
be a private foundation grant from the Robert Wood Johnson
9
Foundation for a study on housing needs.
The following line item request was the community service
down-payment coupons capital budget request in the amount of
$60 thousand dollars. Mr. Campbell commented that this was
a new program which would allow participants in the public
housing programs to earn a down payment for home purchasing
by providing community service work.
Ms. Slagle noted the health and social services special
needs housing program request in the amount of $1.5 million
dollars. She explained that the needs for housing for
adults with special needs has risen and that the program
would provide for a competitive grant program for non-
profits in order to help develop special needs housing.
Representative Martin understood that money had been added
to the Department of Health and Social Services (DHSS)
budget for that concern. Ms. Slagle advised that this
increment would help take care of individuals by
establishing housing facilities in communities which would
allow them to go there from institutional care. The
allocation would specifically create facilities for those
individuals and would then tie into reductions included in
the operating budget. Commissioner Perdue added that this
would be a one time investment to relocate those
individuals.
Ms. Slagle continued with AHFC's capital budget request for
the Pioneer Homes renovations and repairs in the amount of
$326 thousand dollars. Currently, there exists $6.5 million
dollars for needs within the Pioneer Homes for taking care
of life, safety improvements, corrections of code violations
and structural needs. The Governor thought that addressing
the Pioneer Home needs would fit with the policy of AHFC.
Representative Martin asked if the money requested had been
denied by the Department of Administration's operating
budget request. Ms. Slagle said that it did not, although,
an appropriate place to fund it had not yet been
established. Mr. Campbell advised that the request would
only address the emergency improvements which need to be
handled soon at the Pioneer Homes.
Representative Kohring again voiced concern with the
criticism focused toward AHFC. He emphasized that AHFC was
the best run organization in the country.
Ms. Slagle addressed AHFC's capital budget request for the
stripper well oil overcharge restitution program in the
amount of $2 million dollars. The following request would
be for the energy conservation retrofit in the amount of
10
$500 thousand dollars which would be used specifically for
low rent housing.
She concluded that the last project request by AHFC would be
$100 thousand dollars to be used for statewide research for
field testing and monitoring of construction methods in
order to eliminate premature degradation of the housing
facilities.
DEPARTMENT OF LAW
Ms. Slagle addressed the Department of Law's capital budget
request for the federal litigation/endangered species act in
the amount of $665 thousand dollars. The request would
address various cases between the State and federal
jurisdiction concerning Alaska's natural resources.
Representative Brown recommended that the request be placed
in operating expenditures. Ms. Slagle noted that this type
of request has typically been included in the capital budget
since 1993 given that they are project specific.
BARBARA RITCHIE, DEPUTY ATTORNEY GENERAL, CIVIL DIVISION,
DEPARTMENT OF LAW, provided a extensive overview of the
Department's request.
Ms. Slagle concluded with the Department's capital budget
request for computer replacement in the amount of $200
thousand dollars.
ADJOURNMENT
The meeting adjourned at 12:55 P.M.
HOUSE FINANCE COMMITTEE
APRIL 22, 1995
10:05 A.M.
TAPE HFC 95 - 92, Side 2, #000 - end.
TAPE HFC 95 - 93, Side 1, #000 - end.
TAPE HFC 95 - 93, Side 2, #000 - end.
TAPE HFC 95 - 94, Side 1, #000 - #317.
CALL TO ORDER
Co-Chair Richard Foster called the House Finance Committee
meeting to order at 10:05 A.M.
PRESENT
11
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Kelly
Representative Grussendorf Representative Therriault
Representative Parnell was not present for the meeting.
ALSO PRESENT
Nancy Slagle, Director, Division of Budget Review, Office of
Management and Budget; Janet Clarke, Director, Division of
Administrative Services, Department of Health and Social
Services; Karen Perdue, Commissioner, Department of Health
and Social Services; Randy Super, Director, Division of
Medical Assistance, Department of Health and Social
Services; Elfrida Nord, Chief, Nursing Section, Division of
Public Health, Department of Health and Social Services;
Margo Nash, Department of Health and Social Services; Dan
Fanske, Executive Director, Alaska Housing Finance
Corporation, Anchorage; Les Campbell, Budget, Alaska Housing
Finance Corporation, Anchorage; Ray Utter, Budget, Alaska
Housing Finance Corporation, Anchorage; Barbara Ritchie,
Deputy Attorney General, Civil Division, Department of Law;
Richard Pegues, Director, Division of Administrative
Services, Department of Law.
SUMMARY
HB 268 An Act making appropriations for capital project
matching grant funds and to capitalize funds;
making, amending, and repealing capital
appropriations; and providing for an effective
date.
HB 268 was HELD in Committee for further
consideration.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES (DHSS)
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke to the
Department's capital budget request for the adoption and
foster care analysis reporting system in the amount of $1.96
million dollars. Ms. Clarke provided background information
on the request pointing out that the majority of the request
(75%) would be provided through federal funding. In order
for the federal government to provide those matching funds,
the State must provide their share prior to September 30,
1995.
Representative Martin asked the amount of money used by the
12
Department for information systems in the past twelve years.
Ms. Clarke agreed that a lot of money had been placed into
that system, although, she noted that within the Department,
there are many complex federal programs. Many of those
systems have been developed to meet the requirements of the
federal system.
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, continued,
the following DHSS's capital budget request for statewide
renovation, repair and equiptment in the amount of $1.799
million dollars. She explained that this financing would
address on-going maintenance to state owned facilities. Ms.
Clarke pointed out that the request was half of the needed
amount.
Ms. Slagle continued, the Alaska family practice residency
program renovation and equipment request in the amount of
$250 thousand dollars would be used for a community health
center and training program for physicians and midlevel
practitioners in an Anchorage health care center. Ms.
Clarke added that those funds would be used to renovate a
clinic site and provide the needed equipment.
Representative Martin stated that the proposed allocation
would be for a new program and recommended that it should be
added to the operating budget. Ms. Slagle advised that the
funds would be used for renovations of an existing facility.
Ms. Slagle continued addressing DHSS's capital budget
request for the Yukon Kuskokwim (YK) public health facility
design in the amount of $500 thousand dollars. Ms. Clarke
explained that the public health nurses desperately need a
facility in order to establish outpatient services. At this
time, the Yukon Kuskokwim (YK) public health facility has
served nurses using the facility an eviction notice. The
request would provide funds for a combined facility where
the State public health nurses and the YKHC staff and
services could be co-located.
Ms. Clarke discussed that currently YKHC spends $600
thousand dollars in eight different Bethel leases. YKHC
would like to get out of that situation in order to
consolidate their services.
Representative Martin asked if the corporation owned the
hospital. Ms. Clarke explained that the State Public Health
Service does not lease the building nor do they provide
leasing costs. The hospital is not large enough to
accommodate YK needs and those of the nurses at this time.
Representative Brown asked if funding the proposed project
could forestall eviction of the Public Health Service.
13
ELFRIDA NORD, CHIEF, NURSING SECTION, DIVISION OF PUBLIC
HEALTH, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, replied
that there was a plan by YK to install modular structures
for the nurses as a temporary basis which will then be used
at a latter date by the hospital facility. Ms. Clarke noted
that YKHC is pursuing federal funding to offset the costs of
the facility.
Representative Brown asked if future operating costs would
be associated with a new facility. Ms. Clarke commented
that new staff would not be needed to pay for the new
structure operation.
Ms. Slagle continued with DHSS's capital budget request for
the department-wide computer aided productivity improvement
system in the amount of $200 thousand dollars. The request
would assist the Department in providing an upgrade in the
network and then replacing machines and equipment which have
been failing. Representative Brown requested a departmental
breakdown of those projects.
Ms. Slagle addressed the Department's capital budget request
for a medicaid management information system reprocurement
in the amount of $8.069 million dollars. She stressed that
the majority of the request was federal dollars, noting that
the system was a federal requirement. Ms. Clarke pointed
out that this system was different from most other state
computer systems.
RANDY SUPER, DIRECTOR, DIVISION OF MEDICAL ASSISTANCE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, provided greater
detail regarding that request. He stated that the health
financing administration has regulations which require
repurchase of systems from time to time. Discussion
followed among Mr. Super and Representative Martin regarding
the information system and the possibility of double
counting.
Representative Brown questioned the possibility of the U.S.
Congress modifying rules which drive the states to
incorporate such complicated systems.
KAREN PERDUE, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, responded that, currently, the Medicaid block
grants are the subject of detailed debate. The chances of
passage of a medicaid block grant this year could be 30%
percent. A large amount of money would be at stake between
the states and the federal government in order to implement
such a grant. She added that discussions are on-going.
Commissioner Perdue urged Committee members not to pass up
an opportunity to receive the 90% federal funds in order
14
that Alaska could manage costs better.
Ms. Slagle continued listing DHSS's capital budget request
line item in the amount of $1.05 million dollars for the
Eligibility Information System (EIS). Those funds would
provide for a feasibility study and needed enhancements to
the eligibility information systems.
(Tape Change, HFC 95-93, Side 1).
Ms. Clarke commented that the request would create a new
eligibility information system which could then increase
productivity from workers and would protect the State from
fraud within the food stamp program especially in rural
communities.
MARGO NASH, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke
to the eligibility information system. She noted that the
funding requested would provide for three major systems.
She added that there would be two main projects for adding
child care and supportive services to the JOBS program and
that funding the request would also fund state project staff
to work with the contractors for design and implementation.
Representative Martin recommended that those costs should be
placed in the operating budget. Ms. Clarke advised that
traditionally this type of project had been requested
through the capital budget given that some of the
enhancements are time limited.
Representative Brown voiced hesitation in preceding with
implementation of a program which will soon be obsolete
given changes to the federal programs. Ms. Nash stated that
the changes made to that system will help the State in
making future welfare changes. If federal welfare reform is
passed, it will take a long time to implement. The new
system will allow the State to function smoothly while those
new systems are being developed.
DEPARTMENT OF REVENUE
ALASKA HOUSING FINANCE CORPORATION (AHFC)
Ms. Slagle spoke to the Department's capital budget request
for the Alaska Housing Finance Corporation (AHFC).
DAN FANSKE, EXECUTIVE DIRECTION, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE, ANCHORAGE, noted that
with the proposed changes, the total capital budget request
for the corporation would be $76.9 million dollars using
corporate receipts of $54 million dollars and federal
receipts of $22.367 million dollars. He pointed out that
AHFC is a tremendous resource for the State of Alaska. With
15
foresight and prudent management, it is uniquely qualified
to provide a crucial service for the State for the rest of
this decade. He concluded that the service could be defined
as meeting the critical housing needs of all Alaskans.
[Attachment #1].
Representative Martin provided Committee members with a
handout addressing housing needs in the State and the
responsibilities of AHFC. [Attachment #2]. He asked
specifically about the Cedar Park allocation provided last
year for $8 million dollars followed by the same request
this year. Mr. Fanske noted that AHFC had been granted
approval from Housing and Urban Development (HUD) to
demolish and replace the fifty units of housing at Cedar
Park. The project differs from the FY95 capital project,
and that the final approved FY95 project was changed to the
Riverbend Development project.
Representative Martin questioned the authority AHFC had to
change the project.
RAY UTTER, BUDGET, ALASKA HOUSING FINANCE AUTHORITY
CORPORATION, ANCHORAGE, pointed out that the funding changed
from corporate funds to federal funds and that the Riverbend
project had been included in a project description. He
stressed that AHFC has the authority to change the name of
the project prior to the passage of the bill.
Ms. Slagle addressed the capital budget request for the
housing and urban development comprehensive grant program in
the amount of $4.326 million dollars.
LES CAMPBELL, BUDGET, ALASKA HOUSING FINANCE CORPORATION,
ANCHORAGE, explained that the request was included in last
year's budget request. The request combines three years of
proposals, and noted that it had been a formula driven
program.
Ms. Slagle continued, the Cedar Park reconstruction request
in the amount of $8.501 million dollars would cover
replacement of those units. Representative Martin voiced
his concern with the lack of legislative oversight. Mr.
Fanske thought that the current process was providing the
necessary and appropriate legislative scrutiny
Representative Brown agreed.
Ms. Slagle addressed the low income weatherization program
request in the amount of $10.3 million dollars. She noted
that $8.5 million dollars would be received from corporate
receipts. Mr. Utter explained that the request would
provide for long term affordability for existing homes. He
commented on the standards currently used and noted that the
16
request was $3 million dollars above last year's.
Mr. Fanske responded to Representative Martin's concern
regarding the ISER report. He explained that report was
paid for and solicited by AHFC. Subsequent to that report,
changes have been made to deal with some of the information
that Institute of Social and Economic Reserach (ISER)
pointed out. He pointed out that the report had used
Anchorage to test out the energy efficiency of homes. Mr.
Fanske added that Anchorage has the cheapest utilities for
energy in the State and that would not be appropriate
comparison. He provided the Committee with a memo from AHFC
to Robert Brean, Director, Rural Housing Division addressing
the effectiveness of the Weatherization Program.
[Attachment #3].
(Tape Change, HFC 95-93, Side 2).
Ms. Slagle continued, addressing the Department's capital
budget request for the supplemental housing development
program in the amount of $10.235 million dollars. Mr. Utter
provided a breakdown of that request. Representative Martin
questioned the changes that are occurring in the Housing and
Urban Development (HUD) program on the federal level and the
funding requested by the Department.
Mr. Fanske remarked that a portion of the funding would
provide for a needs assessment. Also, a portion of the
funding would be used to address needs of seniors and
disabled. The request would be recalibrated following the
decision of the federal government. He agreed that it was
possible that the federal decisions would affect the
program, although, the program was designed to supply
matching funds in order to capture federal dollars. He
noted that the request would affect mostly the rural
communities.
Representative Martin directed his concern's stating that
the reports provided information which create an unrealistic
situation in the housing conditions within the State. Mr.
Fanske countered Representative Martin's concern pointing
out that the reports create a realistic picture of the
housing problems in Alaska. The program addresses housing
needs in seventeen communities.
Ms. Slagle continued, AHFC's capital budget request in the
amount of $7.75 million dollars for the Golden Towers
modernization would be used to help upgrade the five story
senior housing center in Anchorage.
Mr. Campbell noted that the building has maintenance
problems and that the allocation would repair the building
17
to a liveable state. Representative Kelly corrected Mr.
Campbell, explaining that the Golden Towers was not a senior
citizen facility but instead was a Section 8 facility. He
stated that a problem existed when mixing seniors and those
people who have disabilities. Mr. Fanske interjected that
there has been funding provided for the immediate security
needs of those that live in the facility.
Ms. Slagle addressed AHFC's capital budget request for
public housing environmental clean/abatement in the amount
of $1 million dollars. The request would cover costs of
removal and replacement of underground storage tanks in
several communities.
Mr. Campbell responded to Representative Martin's concern
that the integrity of the tanks is marginal and that the
tanks need replacing. He added that the tanks have been
tested and some have already been replaced.
Ms. Slagle stated that the following project would provide
$500 thousand dollars for emergency repair and replacement
in order to meet any emergency which may occur in the area
of low income family housing projects.
Ms. Slagle addressed AHFC's capital request in the amount of
$250 thousand dollars for the emergency housing assistance
program which would provide assistance in preventing
homelessness. Mr. Campbell noted that this is an existing
program which had been funded through the operating budget
in the past. The program helps local communities to develop
programs to prevent homelessness by providing assistance to
families in danger of thus becoming homeless.
Ms. Slagle continued, AHFC's capital budget request in the
amount of $1.75 million dollars for the senior and statewide
deferred maintenance needs in order to deal with all those
maintenance concerns of current existing housing projects.
Mr. Fanske pointed out that the proposed program is already
in existence. He noted that AHFC has generated tremendous
profits thus making it a successful corporation.
Representative Kohring agreed that AHFC has demonstrated
sound fiscal management. He stressed that AHFC has not
received general fund monies over the years, but instead has
generated money as a result of excellent management. He
urged Committee to acknowledge that effort.
Ms. Slagle continued, AHFC's capital budget request in the
amount of $4 million dollars for the senior citizens housing
development program.
Mr. Utter explained that the increment would provide senior
18
housing to those persons 65 years of age or older.
Representative Martin recommended adding an eligibility
requirement to that program. Mr. Campbell noted that there
are varying income level housing units being built.
Ms. Slagle added, the next capital budget request in the
amount of $3.75 million dollars would be used for the
housing and urban development federal home grant for the
Home Investment Partnership Program in order to provide low
and moderate income housing. The increment would cover
rehabilitation of the basic standard tenant housing
assistance and acquisition for new construction of housing
and nonprofit community housing development organizations.
The majority of the request will come from the federal
government.
The next component for the multi-family, special needs, and
congregate housing grants request in the amount of $2.5
million dollars would be used to provide money to private
nonprofit corporations, municipalities and regional housing
authorities to provide different types of housing needs
within the communities. The request would target the very
low income families. Mr. Campbell noted that the grants
would be used as a last resort to make the projects viable.
All other funding would be exhausted before tapping these
funds.
Ms. Slagle continued, AHFC's capital budget request in the
amount of $2.1 million dollars to be used for the public
housing energy performance contracting program for low
income Alaskan's energy and specific needs. Mr. Utter
advised that the allocations was tied to the low rent
program.
Ms. Slagle addressed AHFC's capital budget request in the
amount of $600 thousand dollars for the warm homes for
Alaskans program. The request would include assistance to
rural Alaskans in order to receive energy efficiency changes
to their homes.
The following component would provide $300 thousand dollars
for the public housing support building construction for use
of maintenance facilities which support housing projects.
Mr. Campbell and Representative Mulder discussed the
location of the site. They agreed that the most likely site
would be in Anchorage's Muldoon area.
Ms. Slagle addressed AHFC's capital budget request in the
amount of $3.49 million dollars for federal competitive
grants-public housing which would be used for special
purpose grants associated with the housing programs and
projects.
19
She continued with AHFC's capital budget request in the
amount of $6.5 million dollars for the federal competitive
grants to be used for projects not related to public housing
programs.
(Tape Change, HFC 95-94, Side 1).
Representative Martin asked who provided the match. Mr.
Campbell noted that if a grant would require a match, most
non-profits do not have the resources or capabilities to
provide that match, consequently, AHFC would then provide
it.
Ms. Slagle continued, AHFC's capital budget request for the
transition of the four star plus home incentive program in
the amount of $2 million dollars which would provide
incentive grants to purchase new homes in order to meet
residential energy requirements. Mr. Campbell pointed out
that this was an existing program and that State
requirements mandates the four star rating.
Ms. Slagle continued, the pre-development grant program
capital budget request in the amount of $500 thousand
dollars would be used to help with the expense of start-up
costs in developing a special needs housing project. Mr.
Campbell elaborated that AHFC does not provide all the
housing in Alaska. The grant program would help those other
groups to become started in housing projects.
Ms. Slagle continued to describe AHFC's capital budget
request for competitive grants in the amount of $325
thousand dollars. She pointed out that the allocation would
be a private foundation grant from the Robert Wood Johnson
Foundation for a study on housing needs.
The following line item request was the community service
down-payment coupons capital budget request in the amount of
$60 thousand dollars. Mr. Campbell commented that this was
a new program which would allow participants in the public
housing programs to earn a down payment for home purchasing
by providing community service work.
Ms. Slagle noted the health and social services special
needs housing program request in the amount of $1.5 million
dollars. She explained that the needs for housing for
adults with special needs has risen and that the program
would provide for a competitive grant program for non-
profits in order to help develop special needs housing.
Representative Martin understood that money had been added
to the Department of Health and Social Services (DHSS)
20
budget for that concern. Ms. Slagle advised that this
increment would help take care of individuals by
establishing housing facilities in communities which would
allow them to go there from institutional care. The
allocation would specifically create facilities for those
individuals and would then tie into reductions included in
the operating budget. Commissioner Perdue added that this
would be a one time investment to relocate those
individuals.
Ms. Slagle continued with AHFC's capital budget request for
the Pioneer Homes renovations and repairs in the amount of
$326 thousand dollars. Currently, there exists $6.5 million
dollars for needs within the Pioneer Homes for taking care
of life, safety improvements, corrections of code violations
and structural needs. The Governor thought that addressing
the Pioneer Home needs would fit with the policy of AHFC.
Representative Martin asked if the money requested had been
denied by the Department of Administration's operating
budget request. Ms. Slagle said that it did not, although,
an appropriate place to fund it had not yet been
established. Mr. Campbell advised that the request would
only address the emergency improvements which need to be
handled soon at the Pioneer Homes.
Representative Kohring again voiced concern with the
criticism focused toward AHFC. He emphasized that AHFC was
the best run organization in the country.
Ms. Slagle addressed AHFC's capital budget request for the
stripper well oil overcharge restitution program in the
amount of $2 million dollars. The following request would
be for the energy conservation retrofit in the amount of
$500 thousand dollars which would be used specifically for
low rent housing.
She concluded that the last project request by AHFC would be
$100 thousand dollars to be used for statewide research for
field testing and monitoring of construction methods in
order to eliminate premature degradation of the housing
facilities.
DEPARTMENT OF LAW
Ms. Slagle addressed the Department of Law's capital budget
request for the federal litigation/endangered species act in
the amount of $665 thousand dollars. The request would
address various cases between the State and federal
jurisdiction concerning Alaska's natural resources.
Representative Brown recommended that the request be placed
21
in operating expenditures. Ms. Slagle noted that this type
of request has typically been included in the capital budget
since 1993 given that they are project specific.
BARBARA RITCHIE, DEPUTY ATTORNEY GENERAL, CIVIL DIVISION,
DEPARTMENT OF LAW, provided a extensive overview of the
Department's request.
Ms. Slagle concluded with the Department's capital budget
request for computer replacement in the amount of $200
thousand dollars.
ADJOURNMENT
The meeting adjourned at 12:55 P.M.
22
| Document Name | Date/Time | Subjects |
|---|