Legislature(2011 - 2012)HOUSE FINANCE 519
02/02/2011 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Budget Overview: Mental Health Trust Authority | |
| Budget Overview: Department of Transportation and Public Facilities | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
HOUSE FINANCE COMMITTEE
February 2, 2011
1:32 p.m.
1:32:22 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:32 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 Mark Neuman
Representative Tammie Wilson
MEMBERS ABSENT
Representative Reggie Joule
ALSO PRESENT
Representative Mike Chenault; Dr. William Doolittle, Chair,
Board of Trustees, Alaska Mental Health Trust Authority;
Dr. Laraine Derr, Vice Chair, Board of Trustees, Alaska
Mental Health Trust Authority; Paula Easley,
Secretary/Treasurer, Board of Trustees, Alaska Mental
Health Trust Authority; Jeff Jessee, Chief Executive
Officer, Alaska Mental Health Trust Authority; Mark A.
Luiken, Commissioner, Department of Transportation and
Public Facilities; Laura Baker, Director, Division of
Administrative Services, Department of Transportation and
Public Facilities; Representative Alan Austerman; Captain
John Falvey, Jr., Manager, Alaska Marine Highway System,
Department of Transportation and Public Facilities.
PRESENT VIA TELECONFERENCE
SUMMARY
Budget Overviews:
Mental Health Trust Authority
Department of Transportation and Public Facilities
^BUDGET OVERVIEW: MENTAL HEALTH TRUST AUTHORITY
1:32:53 PM
DR. WILLIAM DOOLITTLE, CHAIR, BOARD OF TRUSTEES, ALASKA
MENTAL HEALTH TRUST AUTHORITY, introduced the members of
the Mental Health Trust Authority Board of Trustees: Dr.
Laraine Derr, Vice Chair; Paula Easley, Secretary/Treasurer
Mary Jane Michael, Larry Norene, Russ Webb, and Mike
Barton. He provided a PowerPoint presentation (copy on
file) and listed the trust beneficiaries (Slide 2):
· People with mental illness
· People with developmental disabilities
· People with chronic alcoholism
· People with Alzheimer's disease and related dementia
Dr. Doolittle delineated the guiding principles of the
trust (Slide 3):
· To improve the lives of Trust beneficiaries, The
Trust is committed to:
o Education of the public and policymakers on
beneficiary needs;
o Collaboration with consumers and partner
advocates;
o Maximizing beneficiary input into programs;
o Prioritizing services for beneficiaries at risk
of institutionalization;
o Useful and timely data for evaluating program
results;
o Inclusion of early intervention and prevention
components;
o Provision of reasonably necessary beneficiary
services based on ability to pay.
Dr. Doolittle cited Slide 5, "Trust Advisors":
· Alaska Mental Health Board
•Advisory Board on Alcoholism & Drug Abuse
•Governor's Council on Disabilities & Special
Education
•Alaska Commission on Aging
•Commissioners of Health and Social Services,
Natural Resources, Revenue, and Corrections
•Alaska Brain Injury Network
•Statewide Suicide Prevention Council
Co-Chair Stoltze asked why it was important that certain
agency commissioners interact with the Trustees. Dr.
Doolittle reported that the commissioners of the Department
of Health and Social Services (DHSS), Department of Natural
Resources (DNR), Department of Revenue (DOR) and the
Department of Corrections (DOC) interact with the Trust. He
noted that Trust resides in DOR and the Trust's Land Office
(TLO), located within the Department of Natural Resources,
deals with the Trust's non cash assets.
1:39:30 PM
Co-Chair Stoltze queried the evolution of the trust in the
area of resource development and future development plans.
Dr. Doolittle discussed that the easy resource assets,
i.e., timber and land had been sold as needed. The current
focus of the trust was on the development of new resources.
He reported that the director of the Trust Land Office
(TLO), Greg Jones was charged with developing new resource
based non-cash assets. The TLO developed a mechanism to
stimulate production of non-cash assets.
Co-Chair Stoltze referred to a resolution passed by the
legislature in support of the revenue stream from resource
extraction developed by the trust. He emphasized the strong
commitment from the legislature. Dr. Doolittle mentioned
that future challenges threatened development of non-cash
resources. Co-Chair Stoltze reiterated his support for
resource extraction to benefit the Trust.
DR. LARAINE DERR, VICE CHAIR, BOARD OF TRUSTEES, ALASKA
MENTAL HEALTH TRUST AUTHORITY, related that she was chair
of the Finance Committee for the Trust. She spoke to trust
funding for FY 2012 (Slide 6):
Trust Fund Payout 4.25 % $17,060,000
Prior Year Lapse 4,145,000
Land Office Income 1,800,000
Interest 1,100,000
Total Projected $24,105,000
Dr. Derr detailed that the permanent fund payout was the
dominant source of income each year. The permanent fund
decreased last year, resulting in approximately $3 million
drop in trust funding.
1:45:55 PM
Dr. Derr explained that the Trust used a four year rolling
payout that helped temper sudden declines or increases in
income. The Trust received grant money and reincorporated
lapsed funds into their budget. She added that besides land
sales, which has declined, there had been income from coal,
oil, gas, and gas leases. Some of the land income was used
to develop the land office; two additional positions were
added. The Trust kept a budget reserve in DOR that
generated $1.1 million in interest for the FY2012 budget.
Dr. Derr concluded that the Trust would pursue
opportunities in resource development in order to keep the
fund thriving in perpetuity.
1:49:21 PM
PAULA EASLEY, SECRETARY/TREASURER, BOARD OF TRUSTEES,
ALASKA MENTAL HEALTH TRUST AUTHORITY, discussed the trust's
formula for success (Slide 7):
· Identify a problem or community need
· Collaborate with governmental agencies, advisory
groups, non-profits, service providers,
philanthropic organizations and private sector
· Develop strategic, sharply focused solutions
· Make lasting system improvements for Trust
beneficiaries
Ms. Easley stressed the importance of collaboration with
government agencies at all levels, the private sector, and
most importantly, the advisory boards. She described the
many roles of the trust to help beneficiaries improve their
quality of life.
Ms. Easley directed attention to a chart depicting a
comprehensive mental health service assessment for all
communities in the state in 2004:
· levels of service
· community education
· prevention
· outreach
· assessment
· out-patient/residential services
· rehabilitation/detox services
· emergency services
She reported that the Trust must consider all assessment
factors before sound fiduciary and implementation decisions
were made.
Ms. Easley described the five focus areas of the Trust
(Slide 8):
· Bring the Kids Home
o reforming Alaska's mental health care for
children and adolescents so they are diagnosed
earlier and are treated as close to home as
possible
· Workforce Development
o creating an available and competent workforce for
Trust beneficiaries and service providers
· Disability Justice
o reducing the involvement and recidivism of Trust
beneficiaries in the criminal justice system
· Affordable, Appropriate Housing
o increasing a continuum of housing options for
Trust beneficiaries
· Beneficiary Projects Initiative
o supporting grassroots, peer-to-peer programs for
Trust beneficiaries
1:55:06 PM
JEFF JESSEE, CHIEF EXECUTIVE OFFICER, ALASKA MENTAL HEALTH
TRUST AUTHORITY, provided details about the five focus
areas beginning with the Bring the Kids Home (BTKH) program
(Slide 9):
· Problem
· FY06: 743 Alaskan children with severe emotional
disturbances received out-of-state residential
psychiatric treatment services
ƒseparated from families, communities
ƒdifficult transitions back to Alaska
ƒlength of stay varies from several months to
multiple years
ƒcost = $40 million Medicaid paid to out-of-
state providers
· Committed partners
ƒDHSS, Dept. of Education & Early
Development, Denali Commission, Trust
partner boards, Alaska Native health
providers, other service providers, parents
and youth
· Strategic thinking
· Each child treated at appropriate level of care as
close to home as possible
ƒBuild appropriate treatment facilities in
Alaska
ƒIncrease capacity/core competence for
outpatient services
ƒProvide family supports
ƒInvolve parents and youth in the solutions
Mr. Jessee voiced that a key to the success of the program
was to identify the youth early on and provide timely
intervention and prevention services to avoid more costly
residential treatment later.
Mr. Jessee directed attention to a bar graph depicting BTKH
reinvestment (Slide 10) and the shift from out-of-state
residential psychiatric treatment services (RPTC) to in-
state expenditures. The program went from a high of 435
children out-of-state in residential care to 90 today.
1:59:14 PM
Co-Chair Stoltze pointed out the legislature's initial
skepticism of the program to the recognition of its growing
success.
Representative Gara commended work on the BTKH initiative.
He asked whether the trust had enough money to complete
their initiatives. He commented on the absence of a formula
dictating the amount of matching money from the state. Mr.
Jessee viewed that the trust was the state's mental health
venture capital fund. The trust proved versatile in
providing initiative infrastructure, such as program
coordinators, databases to gather information, evidence,
and research. He elaborated that the Trust was able to
provide hard data to the legislature to support its
strategies for treatment and resulting funding requests. He
noted the legislature's reluctance to take over program
funding. He discerned that the legislature can examine the
trust's data and decide whether the investment was worth
it. He believed that the Trust's method of providing
results, data, and venture capital to develop initiatives
drove the policy and budget options the legislature needed
to make good funding decisions.
Dr. Derr remarked that 60 percent of the Trust's funding
requested this year was for continuing existing programs.
Ms. Easley pointed out that once a BTKH project was over in
a community the facilities and programs are still in place
and helping other people.
2:03:52 PM
Mr. Jessee acknowledged concern about increased Medicaid
costs. He stated that the trust was engaged in on-going
conversations with the commissioner of DHSS regarding
containment costs as and better delivery of services to
clients. For example, he noted the use of intensive case
management. A relatively small percentage of Medicaid
recipients use most of the resources. He believed that
partnering with the department and implementing intensive
case management for high-end users to better coordinate
services for beneficiaries. The results were cost reduction
and containment. He reported that the strategy resulted in
the Medicaid cost reductions depicted in the graph on slide
11.
Mr. Jessee cited the decrease in recidivism rates depicted
on a graph (Slide 12) for youth leaving residential
psychiatric treatment centers (RPTC) in-state and out-of-
state from FY 2001 to FY 2010. The key was community
support.
Mr. Jessee discussed BTKH funding for FY 2012 (Slide 13).He
highlighted that the trust contributed over $1.5 million to
the BTKH program. He reported that the governor's
[proposed] contribution in FY 2012 was $993 thousand. He
asserted that a dialog with the legislature and
administration was needed to develop goals to end the BTKH
program. He claimed there were three ways to approach the
issue:
1) Agree on a programmatic outcome.
o Determine the irreducible number of children that
must be treated out-of-state, (estimated at 50 to
75); develop a continuum of care with associated
costs.
2) Ask how much more the trust and State are willing
to spend. The approach may not guarantee desired
results.
3) Use the current approach; the slow play of the
initiative which only stretches out the initiative and
increased costs.
Mr. Jessee stressed that a strategy was needed to
successfully conclude the initiative.
2:10:40 PM
Representative Edgmon asked if any of the BTKH funding was
related to the governor's "Choose Respect" campaign
[domestic violence and sexual assault initiative]. Mr.
Jessee emphasized that there was a direct correlation to
domestic violence in the home and the need for expensive
RPTC. He polled the BTKH residential care providers to find
out the number of residents exposed to domestic violence in
the home; estimated at 75 to 100 percent. The exposure left
the children at extreme risk for becoming victims, future
perpetrators, substance abusers and having mental health
problems. The trust in partnership with the governor's
initiative was exploring ways to break the inter-
generational transfer of the problems before the need for
high end care. He believed that the next stage of the BTKH
initiative should be "keep the kids home." He concluded
that there was a very close connection to the governor's
initiative and the next phase of BTKH.
Mr. Jessee moved on to the subject of workforce
development, Slides 14 and 15 (Slide 14):
· Problem
o shortage of health care workers in Alaska at a
near-crisis level
o health services industry fastest growing sector
of Alaska's economy, more than 7% of workforce
o burgeoning demand for increased health services
for the state's steadily growing and aging
population, some are Trust beneficiaries
o need to increase pool of qualified employees in
Alaska who serve Trust beneficiaries and keep
adequately trained
· Committed partnerships
o more than 20 partners --service providers, Dept.
of Health and Social Services, Dept. Labor and
Workforce Development, Alaska Workforce
Investment Board, non-profit and faith-based
organizations, University of Alaska system
· Strategic thinking
o key strategies
ƒRecruitment and retention
ƒWages and benefits
ƒTraining and education
"Results for Beneficiaries" (Slide 15):
· 2,449 students in 137 Alaska community received
behavioral health training through the University of
Alaska, a 16.8% increase in individuals trained from
2009
· 334 providers across Alaska attended 1,160 distance
delivery and on-site training sessions on behavioral
health related topics through the Trust Training
Cooperative
· 470 professionals across Alaska were trained through
Training and Technical Assistance for Providers
program, increasing capacity of providers to respond
to disability related abuse cases
· 1,222 individuals from around the state received
distance delivery and on-site training on autism
through the Autism Resource Center
2:14:13 PM
Dr. Derr interjected that the Trust's resource and non-cash
assets development provided jobs for about 600
beneficiaries.
Mr. Jessee stated that the Trust's first workforce priority
was funding for creation of a psychiatric residency program
in Alaska. He explained that the state must hire and house
very expensive temporary psychiatrists due to a severe
shortage (20 psychiatrists) in the state. Research has
shown that Alaska was not an option to psychiatric interns
because the state does not have a residency program. He
argued that Alaska could not programmatically or
financially afford to rely on visiting psychiatrists. He
identified that the initial residency cost was $202,000
(Slide 17). He warned that the program was expensive. The
entire cost amounted to $1.6 million general fund. He
stressed that the residency was a solution to a critical
problem in the state.
2:18:20 PM
Mr. Jessee turned to affordable appropriate housing (Slide
18):
· Problem
o 4,982 Alaskans homeless in HUD point-in-time
survey January 20101
ƒFamilies w/children and households nearly
doubled in one year
o 2,836 people in families w/children -
822 households (January 2010)1
o 1,507 people in families w/children -
494 households (January 2009)
o 1,270 individuals reported at least one prior
episode of homelessness in Department of
Corrections survey 2
· Committed partners
o Alaska Council on the Homeless: Alaska Housing
Finance Corporation, DHSS, DOC, DOL, Public
Safety, Veterans
o Housing development organizations and social
service agencies
o Local affordable housing and homeless coalitions
· Strategic thinking
o Adapting programs for sustainability -replicating
housing
o trust strategies (Special Needs Housing and
Homeless Assistance Program -HAP)
o Replicating Housing First model in numerous
settings
1.http://www.ahfc.state.ak.us/grants/homeless_survey_repo
rts.cfm
2. Department of Corrections 2010 Homeless Offender
survey
Mr. Jessee offered that over 5,000 Alaskans were homeless
at any given time. He stressed that beneficiaries would not
be successful without housing.
Mr. Jessee referenced Slide 19 depicting a bar graph of
pilot programs that provide safe and affordable housing to
beneficiaries in psychiatric or correctional facilities. He
noted the connection between recidivism and homelessness in
the corrections population.
Mr. Jessee pointed to Slide 20 "Ahead in FY12".
· Policy -Governor's Council on the Homeless
o State interagency collaboration modeled on
federal agencies' efforts
o 10-year homeless plan and budget
recommendations being implemented
· Budget -$10 million annual recommendation
for 10-year plan
o The Trust, AHFC, GF/MH and other funding
sources
o Housing units requested through Special
Needs Housing grant program and Homeless
Assistance Program increased
o Housing units targeted at chronically
homeless and low income people with
disabilities
· Effective program models implemented
o Trust/DHSS Bridge Home pilot project
expansion to serve most challenging of
individuals cycling through API and DOC
o Replication of Housing First to serve
beneficiaries who are homeless with alcohol
addiction reductions
ƒResulted in cost reductions of $4
million in Seattle in 12-month period
(Medicaid reduced to56%, sobering
center down 87%, homeless shelter use
down 92%)
ƒDrinking decreased 30%in Seattle
participants due to engagement and
assistance with goal setting/compliance
while stable in housing
· Long Term Care strategic planning for Alaska
o Cost containment through emphasis on lower
levels of care for seniors and people with
disabilities.
Mr. Jessee noted an Anchorage program that offered homeless
housing without sobriety as a pre-condition. He stated that
chronic inebriate care was very expensive. Dramatic results
were experienced in the chronic inebriate population in the
program; significant reduction in high end care costs and
drinking problems.
2:22:15 PM
Ms. Easley added that many of the people in the homeless
facilities have jobs at the facilities or find jobs in the
community, resulting in improved quality of life for the
beneficiaries.
Representative Gara expressed frustrations with the gap
between need and services for substance abuse treatment. He
asked whether there was a comprehensive blueprint for a
successful solution rather than "nickel and diming" the
problem. He related a story about a mother who waited a
year to get treatment while the state paid for her
children's foster care.
2:26:49 PM
Mr. Jessee replied that the state lacked a comprehensive
needs assessment to assess what it would take to meet the
unmet demand for treatment. He noted a recent partnership
with the Trust, Rasmussen Foundation and the Mat Su Health
Foundation that created an alcohol/substance abuse
initiative to develop strategies to address the problem.
The ex-commissioner of the DHSS, Dan Hogan will coordinate
the public and private sector partnership for the
initiative.
Mr. Jessee furthered that the state lacked substance abuse
treatment on demand for domestic violence and sexual
assault victims.
Dr. Doolittle elaborated that the problem directly related
to the inadequate number of psychiatric health care
providers in the state.
Representative Neuman relayed an incident with a
developmentally disabled constituent who was
institutionalized against his family's wishes. He opined
that the system failed the family miserably. He asked how
the trust can ensure better outcomes. Mr. Jessee responded
that the balance between fiscal responsibility of the public
money and best meeting the needs of the community was a
difficult challenge in the field. He reiterated the need to
balance responsible disbursement of public resources and
successful outcomes for the beneficiaries.
Mr. Jessee directed attention to disability justice (slide
22).The slide depicted bar graphs showing the number of
youth and adult beneficiaries in the juvenile justice and
correctional systems. He reported that 42 percent of
incarcerated adults and 46 percent of youth involved with
the juvenile justice system were Trust beneficiaries. He
elaborated that the Trust sought to develop strategies to
reduce the number of beneficiaries in the juvenile justice
and correctional systems.
2:35:40 PM
Mr. Jessee shared that the commissioner of DOC acknowledged
the connection between the availability of social and
support services and the corrections population. He warned
against the escalating and exorbitant costs of building
more prisons and housing inmates juxtaposed with the lack
of social support services. He pointed out that other
states such as Texas and Washington have realized that
evidence based practices, i.e., Therapeutic Court and
Bridge Home programs significantly decrease prison
populations and associated costs. He cautioned that there
was not a commitment in Alaska to examine the long term
policy decisions either to build more prisons or invest in
social and support services.
2:39:36 PM
Mr. Jessee cited Slide 27, "Beneficiary Projects
Initiative":
· Community need:
o consumers active in defining, advocating and
delivering recovery support
o peer services: benefit of lower cost,
preventative, evidence-based practices resulting
in positive recovery outcomes for beneficiaries
· Partners:
o 27 beneficiary grantees since 2006
o Alaska Peer Support Consortium
o Division of Behavioral Health, Vocational
Rehabilitation, Trust Training Cooperative at
UAA-Center for Human Development
o Advisory Board on Alcohol and Drug Abuse, Alaska
Mental Health Board, Governor's Council on
Disabilities and Special Education
· Strategic thinking:
o Funding and technical assistance to support
safety, effectiveness and sustainability of peer
programs and services
o Training and education for peer support workforce
o Integration of peer-support specialists across
service delivery systems
o Mini Grants to improve beneficiaries' quality of
life
ƒ$896,939 to 722 individuals in FY2010
o Small Projects Grants for small, beneficiary-
focused projects
ƒ$250,000 annually
Mr. Jessee explained the Beneficiary Projects Initiative.
The Trust invested in supported and development of peer and
consumer driven organizations providing recovery support
and advocacy; decreasing the dependency on government
funded service providers and professionals. He noted that
peer support was recognized as a critical component of a
comprehensive mental health program. He furthered that the
Trust spent approximately $1 million each year on mini-
grants paid directly to beneficiaries to improve their
quality of life. Approximately 80 to 90 percent of the
mini-grant requested was for dental care.
2:43:04 PM
Mr. Jessee identified the Beneficiary Projects Initiative
results (Slide 29):
· Promotes recovery, stability and wellness
· Provides sense of empowerment and connection
· Reinforces consumer choice in managing recovery
· Wide range of beneficiary-led program serving
Trust beneficiaries through:
o peer-support services
o recovery-community support programs
o clubhouses
o drop-in centers
o community outreach and engagement
o illness self-management
o alternatives to residential treatment
o supported employment
o training and education
· State-wide presence
Mr. Jessee addressed joint FY 2012 legislative priorities
(Slide 31):
· Shared with all legislative advisory boards
· Ensure access to affordable high-quality Medicaid
services for Trust beneficiaries
· Fund community-coordinated transportation systems
for seniors and Alaskans with disabilities
He announced that the joint legislative priorities and the
Trust's partner advisory boards in FY 2012 are: Medicaid
and coordinated transportation systems for seniors and the
disabled.
Mr. Jessee pointed to the Trust" involvement with two new
initiatives (Slide 32):
· Governor's Domestic Violence and Sexual Assault Task
Force
· Alcohol and Other Substance Abuse Initiative
- Partnership
o Mat Su Health Foundation
o Rasmussen Foundation
o The Trust
Mr. Jessee stressed that prevention, intervention, and
access to behavioral health was essential to the success of
the Governor's initiative. Traditional law enforcement
strategies will not work. He restated that a successful
conclusion of the BTKH initiative was imperative so more
time and resources could be spent on new initiatives.
Dr. Doolittle acknowledged the importance of partnership in
problem solving. He referred to a time when the services
discussed were not available. He concluded that the key to
ensure access to services was implementation of the
psychiatric residency program.
2:46:32 PM
AT EASE
2:52:14 PM
RECONVENED
^BUDGET OVERVIEW: DEPARTMENT OF TRANSPORTATION and PUBLIC
FACILITIES
2:52:25 PM
MARK A. LUIKEN, COMMISSIONER, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES, provided a PowerPoint presentation,
"Alaska Department of Transportation and Public Facilities
Overview, February 2, 2011" (copy on file). He described
the mission of the Department of Transportation and Public
Facilities (DOT/PF) (slide 1):
· To provide for the safe and efficient movement of
people and goods and the delivery of State services.
Commissioner Luiken reported that the department will focus
on efficiency. He felt that with reduced federal spending
looming, the department's responsibility was to maximize
resources and funding.
Commissioner Luiken cited the department's vision (Slide
3):
· Trusted performance-driven organization
· Collaborating with internal and external partners
· Delivering an efficient multi-modal transportation
system and public facilities
· Enhancing the quality of life for Alaskans
· Promoting economic resource development
Commissioner Luiken referred to the department's values
(Slide 4):
· Integrity
· Transparency
· Outstanding service provided by
ƒContinually developing our skills, tools,
expertise
ƒDeveloping internal/external relationships
ƒPioneering spirit: innovative ways of doing
business
ƒAdapting rapidly to opportunities and
challenges
ƒQuality work force
Commissioner Luiken turned to the organizational flowchart
(Slide 5). He introduced departmental staff in attendance:
Patrick Kemp, Deputy Commissioner, Highways and Public
Facilities, Steve Hatter, Deputy Commissioner, Aviation,
Captain John Falvey, Jr., Manager, Alaska Marine Highway
System, Laura Baker, Director, Division of Administrative
Services.
2:57:38 PM
Commissioner Luiken continued with the structure of the
department. He informed the committee that the Alaska
Marine Highway System (AMHS) operated 11 passenger ships,
owned 16 terminals, served 32 ports, traveled 3,500 route
miles, had 772 on-board employees, and 163 shore side
employees. Deputy Commissioner Steve Hatter, lead the
aviation section, which implemented airport planning and
design, airport development and improvement, aviation
safety, and oversaw 255 state-owned airports, including two
international airports. Deputy Commissioner Kemp managed
maintenance and operations, design and engineering
standards of highways. He planned the statewide area
transportation infrastructure development and statewide
transportation improvement plan. He administered federal
highway funds, highway safety programs, commercial vehicle
measurements and standards, and statewide planning and
construction management of state buildings.
Commissioner Luiken named the three regional directors:
Southeast Gary Davis, Northern Steve Titus, and Central Rob
Campbel. He noted his confidence in the directors.
Commissioner Luiken identified a map depicting state
facilities across Alaska (Slide 6) including state
highways, maintenance stations, and state airports. The
department manages and maintains 700 public facilities and
employs approximately 3,800 people in 85 locations.
3:01:17 PM
Commissioner Luiken listed the "Governor's Priorities" for
DOT/PF (Slide 7):
· Jobs
· Safety
· Roads to Resources
o Foothills West - road to Umiat
o Ambler mining district access
o Western access
· Deferred maintenance
Commissioner Luiken related that the department granted an
estimated $500,000,000 in contracts. He believed that lead
to job creation. He noted that the department will leverage
$673,000,000 in federal funds for highways and aviation
programs. In addition, the governor requested $27.1 million
in FY 2012 for deferred maintenance.
Vice-chair Fairclough asked how much deferred maintenance
the state had in each division. Commissioner Luiken offered
to get the information.
LAURA BAKER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, replied
that the department had over $700,000,000 in deferred
maintenance needs.
Vice-chair Fairclough shared her concern that $27 million
was a "drop in the bucket" when compared to the total and
wanted more specific numbers, broken down between what was
expected from the federal government and the state's
portion. Commissioner Luiken agreed to obtain the
information.
3:06:42 PM
Representative Gara referred to the controversial Knik Arm
crossing project and wondered if any funding was
appropriated in this year's budget. Commissioner Luiken
replied in the negative.
Representative Doogan wanted concrete numbers regarding the
construction costs for "Roads to Resources" projects, and
the costs for maintenance of the roads. Commissioner Luiken
agreed to obtain the information.
Commissioner Luiken referenced "Project Prioritization"
(Slides 8 and 9):
· Safety
· Asset Management System
· Pavement, bridges, airports, ferries, transit,
maintenance
· 2030 Long Range Transportation Plan
· Regional Transportation Plans
· Aviation Improvement Program (AIP)
· State Transportation Improvement Program (STIP)
Commissioner Luiken mentioned a few programs that the
department currently funds to promote Highway safety which
is a high priority.
The Highway Safety Improvement program addresses
safety corridors.
The Alaska Highway Safety Office in coordination with
the Department of Public Safety utilizes engineering,
education, and enforcement to foster safe highways.
The Safe Routes to Schools promotes safe travel to and
from school.
3:11:05 PM
Representative Neuman listed Alaskan highways with deadly
statistics. He asked if the department will continue to
address highway safety as a top priority before building
more roads. Commissioner Luiken referred to a letter sent
to the committee outlining corrective actions taken by the
department. He noted that the previous year was the safest
year on record. He remarked that the department planned to
continue to address safety needs. Representative Neuman
wanted to assure citizens that there would be a primary
focus on safety. Commissioner Luiken affirmed that the
issue was his priority.
Representative Wilson discovered that bike trails using
federal funds required more property to develop. She
queried the ability to revert to state funding for bike
trails. Commissioner Luiken offered to further examine the
issue.
3:15:16 PM
Commissioner Luiken continued with project prioritization.
He asserted that asset management was also related to
safety. He briefly discussed the Airport Improvement
Program (AIP) and the Alaska Statewide Transportation
Improvement Program (STIP). He offered that the AIP was
driven by the FAA's four cornerstone priorities: runway
safety, pavement improvement, access, and safety. He
detailed that the STIP determines the department's project
schedule. The department was currently on amendment 15 of
the STIP. Any change to a project required an amendment to
the STIP.
Vice-chair Fairclough inquired about the affect the
American Recovery and Reinvestment Act (ARRA) funding had
on project advancement related to the STIP and AIP. She
shared her concern regarding deferred maintenance for
airports and aviation facilities in rural Alaska. She
mentioned pavement violations and did not think $27 million
was enough funding.
3:19:45 PM
Commissioner Luiken replied that many of the pavement
projects were not considered deferred maintenance and
qualified for federal funding. The department recently
developed a five-year airport pavement project plan paid
with federal dollars. He related that the deferred
maintenance funds were used for prevention.
Vice-chair Fairclough requested clarification about what
projects are categorized as deferred maintenance.
Commissioner Luiken agreed that there was some confusion
defining deferred maintenance needs.
Representative Gara asked about the highway to highway
project connecting the Glen Highway to the Seward Highway
in Anchorage and asked for a status update. Commissioner
Luiken answered that the department was working on an
Environmental Impact Statement (EIS) for the project.
Commissioner Luiken moved on to discuss highways and
aviation (Slide 11). He reported that the department
improved 38 percent of the bridge deck surface on state
owned bridges, 50 percent of non-state owned bridges and 29
more bridge rehab projects were scheduled on the STIP over
the next two years. He cited the Mertarvick Project photo
on slide 11. He announced that the work to relocate the
village will begin this summer. He listed the airlines that
were adding passenger flights to Anchorage. In addition,
the department held a successful international airport
cargo summit last August.
3:25:56 PM
Commissioner Luiken reported that 75 percent of federal
airport funding goes to rural airports. He moved on to
address the marine highways (Slide 12). The AMHS had opened
the dock in Hoonah, added service to Gustavus and the
Aleutian Chain and, completed the successful Ward Cove land
transfer to allow shipyard expansion in Ketchikan. The AMHS
had installed an automated fuel management system on four
vessels; experienced significant savings on fuel usage and
planned to install the system on three additional vessels.
He noted that the AMHS route map on slide 12 depicted the
3,500 miles it services.
REPRESENTATIVE ALAN AUSTERMAN referred to the Tustumena
ferry route. He explained that Seward was eliminated from
its Kodiak-Seward-Homer route in order to provide more
efficient and economical service. He questioned why the
AMHS does not provide Lynn Canal day service to Haines and
Skagway from the end of the road in Juneau in order to cut
costs, time, and free up larger ferries for longer routes.
He believed that the AMHS should be operated using a more
economical "point-to-point" model.
3:30:36 PM
Commissioner Luiken responded that the state had made a
commitment to communities to provide ferry service, which
necessitated a state subsidy. The department will seek
efficiencies to shrink the subsidy as much as possible, and
consider all options.
Commissioner Luiken reported that the AMHS was opening up
new runs, such as non-stop service between Bellingham and
Whittier. He anticipated increased revenue from the
service.
Commissioner Luiken pointed attention to "Challenges"
(Slide 13):
· Needs exceed resources
· Federal funding/process
· Recruitment/retention
· AMHS
· Natural Disasters
Commissioner Luiken pointed out that a project can take ten
or more years to complete using federal funds because of
the federal process; the process could be cut in half when
using state general funds only. The department expected a
thirty percent turnover in personnel due to retirements.
Personnel retention was a top priority.
3:34:07 PM
Representative Doogan requested information regarding new
vessels for the ferry system. Commissioner Luiken replied
that the governor supported building a new vessel. He
committed $60 million and "de-federalized" the program in
order to control the procurement process for the vessel. In
addition, the Alaska Ship and Dry-dock expansion will allow
the shipyard to compete for the contract to build the new
vessel. Representative Doogan acknowledged the
appropriation and would believe the governor's commitment
when enough money was in the budget to build a new vessel.
Representative Austerman asked whether there was a plan to
build a new vessel now or if the governor was waiting for
completion of the shipyard expansion. Commissioner Luiken
identified plans to build an "Alaska Class Ferry". The
department was involved in completion of a functional
design of the vessel.
3:37:47 PM
CAPTAIN JOHN FALVEY, JR., MANAGER, ALASKA MARINE HIGHWAY
SYSTEM, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
confirmed that the preliminary design of the Alaska Class
ferry was complete. The department was moving ahead with
the detailed or functional design which was 10 percent
completed. Representative Austerman wondered when the
department would finish the design work and discover the
total construction costs. Captain Falvey estimated that
will take one year.
3:40:25 PM
Commissioner Luiken directed attention to Slide 14, the
department's webpage at 511.Alaska.gov.
Current Information on Alaska's Roadways
ƒWeather Cameras
ƒWeather Watches
ƒRoad Construction
ƒFuture Construction
ƒIncidents
ƒDriving Conditions
ƒAvailable by Phone or on the web
Project Information Reporting Improvements on web
He described how to use the site to look at projects. He
emphasized the desire to make work progress accessible to
the public.
Commissioner Luiken addressed Slide 15; two pie charts
depicting the FY 2012 DOT/PF Operating Budget with
$585,455.0 total funds and FY 2012 DOT/PF Capital Budget
with $871.418.9 total funds.
Commissioner Luiken briefly detailed the operating budget:
· General Funds: $328,527.0, 56 percent
· Other Funds: $252,970.2, 43 percent
o Highway Capital funds primarily International
airport system funds, Whittier Tunnel receipts,
Interagency Receipts includes $140,000,000 in
Capital Improvement Receipts from Capital
Improvement Projects (CIP) from indirect overhead
or direct project activities (represents 24% of
the departments overall budget).
Commissioner Luiken remarked that the FY 2012 budget
reflected only a 1 percent increase over the FY 2011
budget.
Commissioner Luiken briefly detailed the capital budget:
· Federal Authorizations in the AIP: $317,000,000
· Surface Transportation Programs: $273,000,000
· Other statewide federal programs: $72,400,000
· Other Funds: $90,700,000
o Aidea dividend funds: $14, 000,000
Roads to resources projects, Ward Cove
Development, Highway capital working funds:
$18,400,000
International Airport receipts: $17,200,000
International Airport Construction Bond:
$41,000,000
· General Funds are comprised of matching funds,
deferred maintenance and the AMHS funds.
3:44:29 PM
Representative Austerman asked if the one percent increase
in the department's budget was sufficient. Commissioner
Luiken believed that it was sufficient. Representative
Austerman noted problems keeping the Bethel airport open
because of a lack of manpower and asked whether the FY 2012
budget contained a solution. Commissioner Luiken replied
that the airport was open sixteen hours per day and was
able to maintain that with current funding. He recognized
that the volume of traffic justified increased need.
Representative Austerman wondered if five employees were
sufficient to keep the Kodiak airport open sixteen hours a
day, every day of the year. Commissioner Luiken reported
that the department submitted a supplemental request for
additional manpower to operate the airport.
3:47:17 PM
Representative Austerman emphasized that the department
should ask for what was needed up front instead of
depending on supplemental budget requests. He questioned
whether a one percent budget increase was enough.
Vice-chair Fairclough questioned the similar wage range for
all deputy commissioners of the various divisions within
DOT/PF. She felt that the compensation paid should be
commensurate with workload responsibilities.
Representative Edgmon agreed to explore the matter in
subcommittee.
ADJOURNMENT
The meeting was adjourned at 3:50 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Mental Health Trust Overview HFC 2.2.11.pdf |
HFIN 2/2/2011 1:30:00 PM |
|
| HFC DOT Overview 2-2-11PDF.pdf |
HFIN 2/2/2011 1:30:00 PM |