Legislature(2015 - 2016)CAPITOL 106
02/26/2015 08:00 AM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s): Department of Administration | |
| Department of Corrections | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
February 26, 2015
8:04 a.m.
MEMBERS PRESENT
Representative Bob Lynn, Chair
Representative Wes Keller, Vice Chair
Representative David Talerico
Representative Liz Vazquez
Representative Louise Stutes
Representative Max Gruenberg
Representative Jonathan Kreiss-Tomkins
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING(S):
Department of Administration, Commissioner
Sheldon Fisher - Anchorage, Alaska
- CONFIRMATION(S) ADVANCED
Department of Corrections, Commissioner
Ronald Taylor - Anchorage, Alaska
- CONFIRMATION(S) ADVANCED
Lieutenant Governor Successor Designee
Craig Fleener - Anchorage, Alaska
- CONFIRMATION(S) POSTPONED
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SHELDON FISHER, Commissioner Designee
Department of Administration
Anchorage, Alaska
POSITION STATEMENT: Testified as commissioner designee of the
Department of Administration (DOA).
RON TAYLOR, Appointee as Commissioner
Department of Corrections
Anchorage, Alaska
POSITION STATEMENT: Testified as commissioner appointee to the
Department of Corrections (DOC).
ACTION NARRATIVE
8:04:44 AM
CHAIR BOB LYNN called the House State Affairs Standing Committee
meeting to order at 8:04 a.m. Representatives Gruenberg,
Keller, Kreiss-Tomkins, Stutes, Talerico, Vazquez, and Lynn were
present at the call to order.
^CONFIRMATION HEARING(S): DEPARTMENT OF ADMINISTRATION
CONFIRMATION HEARING(S)
DEPARTMENT OF ADMINISTRATION
8:05:00 AM
CHAIR LYNN announced that the first order of business was the
confirmation hearing for Sheldon Fisher, Commissioner Designee,
Department of Administration.
8:05:35 AM
[Due to technical difficulties, portions of Commissioner
Fisher's testimony were reconstructed from the secretary's log
notes.]
SHELDON FISHER, Commissioner Designee, Department of
Administration, testified as commissioner designee of the
Department of Administration. He related a story from his youth
when he and his brother shirked their berry-picking duties on
the family farm to play in the woods, and when they returned
home late that night their mother sent them out with a
flashlight to pick the berries, which taught him a lesson in
follow-through and diligence. He said he thinks he can bring
dedication, hard work, and commitment to the job of
commissioner.
8:07:35 AM
COMMISSIONER FISHER stated that after law school, he practiced
for a while, but then changed careers to work first for Hughes
Electronics Products Corporation, followed by Sprint
Corporation, and then, after moving to Alaska, for Alaska
Communications. He said he enjoyed the complexity of the
telecommunications industry. He stated that he is accustomed to
"getting things done in a challenging environment." He relayed
Sprint had invested money in one of its divisions, whose
business model failed, and subsequently he was put in charge of
the division and successfully redefined its purpose and
operations. He said the foundation of that organization became
the foundation of Sprint Corporation's wireless data strategy
for the next seven to eight years. He stated that he is
accustomed to being presented with operational and fiscal
challenges and "finding a way through them."
8:09:15 AM
COMMISSIONER FISHER talked about his decision to move to Alaska,
and he related that his nine-member family has made Alaska home.
He said he had been on the job for five weeks, and although he
expected "an interesting time for the state," he had not
anticipated how much he would enjoy the work. He said the
issues are complex, the people are smart, and he is glad to be
here at this point in time. He opined that the governor
assigned a diverse cabinet, and the budget challenges that exist
become the framework for all decision making. He expressed his
hope that he will be able to make a difference.
COMMISSIONER FISHER said he has identified five priorities for
the department. The first addresses the way the department
manages its labor force. In particular, he stressed the
importance of preserving the department's best employees by
ensuring that "as we right-size government," the most capable
employees have long-term opportunities. He also highlighted the
importance of making those employees more productive, which he
said is a joint effort made by management and employees.
Commissioner Fisher stated that the second priority is to
continue to address the cost of health care, which is higher
than other places in the country. He said he thinks the prior
administration had some success in changing the cost curve;
however, there are still challenges to address.
8:12:40 AM
COMMISSIONER FISHER stated that the third priority is
information technology (IT), which he said can be "an enabler of
a lot of things in the state and a lot of efficiencies." He
stated that the department has a responsibility to ensure that
the data it collects is secure. He said the department is
currently conceptualizing how IT should be delivered in Alaska,
and he thinks it can be done more efficiently and effectively.
He opined that some of the savings ought to be reinvested in
additional IT systems and services to enhance productivity,
while some of the savings would need to be returned to the State
of Alaska. Commissioner Fisher said the fourth priority is
related to purchasing. He said "we" purchase approximately $1.9
billion in goods and services "in the state," and even a modest
reduction of 5 percent would equal nearly $100 million in
savings. He relayed the fifth priority is to improve the way
the State of Alaska purchases, uses, leases, and manages its
facilities. He said this would include using leased space more
effectively, potentially using less space, and attempting to
negotiate more favorable rates for less expensive property.
Commissioner Fisher said his prioritization was largely driven
by the impact they may have on the budget.
8:14:30 AM
CHAIR LYNN asked what the most surprising thing was that
Commissioner Fisher discovered in his new position.
COMMISSIONER FISHER ventured it was the diversity of issues
covered by the department, including IT, purchasing, and
retirement and benefits.
CHAIR LYNN relayed his own experience with diversity, in terms
of the issues that had been brought to him by his constituents.
8:15:51 AM
REPRESENTATIVE KELLER emphasized the immensity of the health
cost containment issue, which he acknowledged Commissioner
Fisher had addressed.
8:17:16 AM
REPRESENTATIVE GRUENBERG echoed Representative Keller's remark
that that Commissioner Fisher had spoken of cost containment,
and he opined that there must be a willingness in all areas of
Alaska's government to considering restructuring, reforming, and
adopting a fresh approach. He said of all the priorities that
Commissioner Fisher listed, he thinks workforce management,
productivity, and efficiency are "huge." He said health care is
connected.
COMMISSIONER FISHER concurred. He stated that similar to the
entire department, health care is a huge and complex issue. He
said the term "cost containment" may not be the best choice,
because it assumes the state will stay at its present level. He
suggested perhaps a better description may be that the State of
Alaska needs to "bend the cost curve" in order to drive down
costs.
8:17:56 AM
REPRESENTATIVE GRUENBERG opined that it is important to consider
quality of health care as equally as cost.
COMMISSIONER FISHER said he thinks the state needs to give its
employees "a level of medical service that is sufficient and
adequate." He stated that he does not necessarily think that
quality and cost go hand in hand in the health care industry.
For example, he indicated that in the Lower 48, there is [health
care] service that is equal or higher to that in Alaska, but at
a lower cost. He said he does not disagree with Representative
Gruenberg's sentiment, but said he thinks there is a way to
provide appropriate and adequate health care at a reduced cost.
He said he has met with retirees and their association, and he
thinks there are some issues regarding quality there.
REPRESENTATIVE GRUENBERG compared health care to a three-legged
stool, [the legs of which are] the customers, the insurance
companies, and the providers. He said providers are often
overlooked. He stated that in the Lower 48, one of the ways
insurers lower the cost of health insurance is by "squeezing out
the providers; forcing them into big organizations; [and]
destroying the time-honored Alaskan tradition, which is a
different model of health care delivery." He said Alaska does
not have large HMOs, but rather has several independent
providers and independent doctors. He warned that without using
caution, the State of Alaska could significantly change the
delivery of health care in the state for the worse. He said the
average age of medical professionals in Alaska is rising;
physicians are not able to make it when, for example, insurers
delay payment of bills. He stated that delayed compensation on
worker's compensation cases is also a problem. He said a new
law was passed by the State of California that unless insurers
controvert a charge within 24 hours, it is conclusively proven
that they will approve it. He urged Commissioner Fisher to work
with the dental and medical associations [to prevent a situation
in which] the insurers continue to make money and the doctors
leave the state.
8:23:04 AM
COMMISSIONER FISHER concurred that the state wants a healthy and
robust medical system in Alaska. He said he thinks "the facts
will kind of depend on the specialty and the practice and the
individual and how that all plays out." He said the cost of
health care in Alaska has risen dramatically faster than it has
in the Lower 48, and the State of Alaska has an unfunded
liability of $10 billion overall, with $3.5 billion of that
associated with health care. He stated, "I'll be happy to work
with you and with the doctors, but I just feel like we've got to
find a different way of delivering services."
REPRESENTATIVE GRUENBERG asked Commissioner Fisher to keep that
commitment.
8:24:15 AM
REPRESENTATIVE KELLER noted that Medicaid is the biggest payor
of health care services in Alaska, and when discussing health
care, "it is the elephant in the room." He opined that the
system is flawed. He asked Commissioner Fisher if he plans to
work with the Department of Health and Social Services (DHSS) in
considering the method by which to pay back providers. He
stated his perception is that paying providers on a "fee-for-
service basis" has "gotten out of hand."
COMMISSIONER FISHER confirmed that he and the commissioner of
DHSS, Valerie J. Davidson, met the day before to discuss the
subject. He indicated that they both understand there is
overlap between the commercial health care system and the
Medicaid and Medicare systems, and they are looking for
opportunities to work together.
8:25:28 AM
REPRESENTATIVE TALERICO expressed appreciation to Commissioner
Fisher for his prior remarks about purchasing, and he concurred
that there are millions of dollars that could be saved.
Regarding facilities, he observed that the state is not uniform
in its management of facilities, such as office space. He
recollected a few years ago there had been conversations aimed
at attempting to create a more uniform and efficient system. He
asked Commissioner Fisher to talk more about his plans in this
area.
8:26:15 AM
COMMISSIONER FISHER responded that there are two dimensions to
the issue. First, he noted that the department had adopted
universal space standards, which resulted in placing more people
in the same square footage. He offered his understanding that
10 to 12 of those standards had been implemented in the last
couple years. He said the issue is controversial; some people
have objected or expressed concerns. In fact, he said, an
unfair labor practice [lawsuit] has been lodged against the
State of Alaska for not going through a negotiation process. He
said he does not think the department has an obligation to
negotiate space standards; however, in part because of the
administration and the work the department is doing to redefine
its budget, it has put a pause on implementing more space
standards. He explained that he wanted to avoid a scenario
where the department would build a space only to come back a
year or two later to rebuild it because the department had
reconceptualized how it operates. He said there have been
opportunities to discuss space standards with labor
representatives. He said the standards the department adopted
were similar to those that BP adopted in North America, and he
indicated that [the spaces per individual] are actually larger
than those provided by many Fortune 500 companies.
COMMISSIONER FISHER stated that the second dimension is that the
department's budget will be defined by "a reality of the revenue
the state can ... create." He opined that in that scenario, the
department should be reducing all the costs it can that do not
impact people. He said he is reasonably confident that as the
administration finalizes DOA's work, the department will once
again implement space standards and "have the support of the
employees as part of that process." He said another focus is to
figure out an intelligent plan for space that is owned or
leased. He expressed his hope that if the economy experiences
the downturn people are predicting, then that may give the
department the ability to leverage better deals.
8:29:54 AM
CHAIR LYNN offered his understanding that retired employees of
the State of Alaska have the choice to get brand-name drugs,
which are more expensive. He asked Commissioner Fisher to look
into that.
COMMISSIONER FISHER said he would. He opined that if there is
no medical difference between the two, it would not be a
diminishment to insist that people take the generic brand drug.
CHAIR LYNN said he introduced a bill on that subject in the past
and was assured by the department that "everything was going to
be fixed," but he said apparently it was not.
8:31:44 AM
REPRESENTATIVE VAZQUEZ expressed appreciation for Commissioner
Fisher's energy and clear priorities for improving efficiency
within state government. She characterized DOA as the brain of
the state government that oversees functions critical to the
good functioning of government. She noted that HB 39 had passed
out of House Education Standing Committee and would establish a
voluntary wellness program for State of Alaska employees. She
said she has an MBA in Health Care Services Administration and
her research has shown that in the private sector, for every
dollar spent in a wellness program, most companies will "see" at
least $3 to $4. She suggested that the State of Alaska could
reduce health care costs by implementing such a program. She
said she knows a lot about health and social services, and she
welcomed Commissioner Fisher to discuss the issues with her.
8:34:15 AM
REPRESENTATIVE GRUENBERG said he "authored the generic drug law"
during his first term in the legislature, in '85-'86. He said
before then a person could not receive generic drugs unless
his/her prescription was written specifically for them; that was
changed so that a person can get the generic drug unless it is
prohibited under the prescription. He stated his hope that
Commissioner Fisher would ascertain whether that is still the
practice.
8:35:37 AM
CHAIR LYNN stated the point is that a lot of money is being
wasted when people are not being given generic drugs that could
provide the same benefit as their non-generic equivalent.
8:36:00 AM
REPRESENTATIVE KELLER moved to advance the confirmation of
Sheldon Fisher as Commissioner Appointee of the Department of
Administration to the joint session for consideration [and
signing the report regarding appointments to boards and
commissions in no way reflects individual members' approval or
disapproval of the appointees, and that the nominations are
merely forwarded to the full legislature for confirmation or
rejection]. There being no objection, the confirmation was
advanced.
^DEPARTMENT OF CORRECTIONS
DEPARTMENT OF CORRECTIONS
8:36:25 AM
CHAIR LYNN announced that the next order of business was the
confirmation hearing for Ronald Taylor, Commissioner Appointee,
Department of Corrections.
8:37:13 AM
RON TAYLOR, Commissioner Appointee, Department of Corrections,
relayed that his father was a police officer, and he initially
had no interest in following in his footsteps. He began college
as a statistics major, but his interest was peaked in criminal
justice and he took courses in that subject. He said he came to
Alaska in the military and, when he finished his service, began
working as a part-time probation officer with the Department of
Health and Social Services (DHSS), in the Alcohol Safety Action
Program (ASAP), and stayed there for 18 years. He said the job
afforded him the opportunity to look at what was being done in
the justice system and to look at ways that it could be
improved.
COMMISSIONER TAYLOR said no matter what probation department a
person goes to across the country, there will be the same two
common denominators: everyone will complain about his/her
caseload and say, "We need more people." He said he found that
to be true in ASAP. He stated, "In an area like that, you have
to work smarter and not harder." He said ASAP did some creative
things with its case management system that allowed caseworkers
to manage "quite a few cases." He said he was able to bring
those ideas over to the Board of Parole. He recounted that when
he first moved to the Board of Parole office as its executive
director, he was shocked by the "paper" he saw. He said each
board member had to read about 60 one- to two-inch packets in
about two weeks, and then there would be hearings on those
cases. The people who had to do the work were the probation
officers "back at the institution" and other support staff that
would help copy those cases six different times. He said one of
his first tasks was to begin an effort to streamline that
process, going to a computer process and putting the information
on a "jump drive." He said the process took about a year and a
half, but the result was that now those documents can be looked
at electronically, and there no longer is a need to waste
resources by shredding all that paper.
8:42:03 AM
COMMISSIONER TAYLOR said he thinks the probation and correction
officers in Alaska are some of the most dedicated in the
country, and he expressed pleasure in not only leading them, but
also learning from them. He said he learned how important it is
to ensure everyone is going in the same direction. He said the
focus has been on law enforcement, and officers have been doing
a good job; however, he has changed the focus to the success of
people on probation and parole. He said the change has not been
made across the board, but one area where there has been success
is in changing the focus from surveillance to "reentry" and
being successful on probation or parole. He said the
department's completion rate - when people complete their
probation or parole requirements - has increased from a low- to
mid-40 percent to 60 percent. He said there is still work to do
to further increase that percentage.
8:44:00 AM
COMMISSIONER TAYLOR said he oversees the Division of
Institutions and the Division of Probation and Parole, as well
as "the academy" and departmental programs. Of those, he stated
that the most challenging is the institutions, because they
operate 24 hours a day and there is "always something going on
inside of an institution every single day." He listed some
issues are medical care, grievance filing, food service, and
security. He said he thinks people take for granted that when
someone goes into an institution, he/she is given care, but many
processes are in play to not only keep them safe, but to ensure
the safety of those who work in the institutions.
COMMISSIONER TAYLOR emphasized the importance of looking
holistically at each person who comes through the institution's
doors, so that he/she is successful upon leaving. He said there
are some people so dangerous that any available programming will
not help them, and they need to be locked up for their own
safety and for the public's safety; however, that is not the
vast majority of the people who go through the department's
system. He said many have issues that need to be addressed, and
he does not think the department has been as proactive as it
could be in addressing them. He talked about the community
continuing the work that was done in the institution.
8:47:56 AM
REPRESENTATIVE STUTES asked if there are any programs or
potential multi-departmental programs in mind to prevent people
with mental illness from taking up so much space in Alaska's
jail system.
COMMISSIONER TAYLOR responded that that is one of the most
difficult issues. He stated that unfortunately, the Department
of Corrections is the largest mental health provider in the
state. He said DOC has not only partnered with DHSS, but also
with [The Alaska Mental Health Trust Authority (AMHTA)] to work
on programming inside the institution. Further, he said DOC
works with "the mental health courts" through the Institutional
Discharge Project Plus (IDP+) to help people transition out of
the system. He said DOC also works with other departments in
assessing, planning, identifying, and coordinating, in order to
do a better job of coordinating with community providers
beginning the last 90 days within the institution through at
least the first 30 days outside the institution. He admitted
the effort is still not enough, and indicated that DOC is not
meeting all programming needs. He mentioned a crime summit he
attended the day before, and he said the department spends about
2.9 percent of its entire budget on programs. He said it is
challenging to meet these goals when there is a budget crunch,
but he reemphasized the importance of being invested in people's
success and supporting those programs that produce the greatest
benefits.
REPRESENTATIVE STUTES asked if there is a program in place to
assess if person is mentally ill.
COMMISSIONER TAYLOR responded that screenings are done when a
person enters one of DOC's institutional facilities. He said if
a person presents with mental illness at the time of intake,
then the staff actively works with him/her; however, if the
person starts decompensating while inside of the institution,
then the department must depend on its correctional officers and
staff to recognize those signs in order to provide the person
with the appropriate mental health care. He said there probably
are not enough mental healthcare workers in the system. He
relayed that the department had its first performance review,
which showed that the department is minimally staffed across the
board. He stated his challenge is to determine what it will
take to have a fully functioning department with the appropriate
staffing level. He related that he has asked the auditors that
did the performance review to do a full staffing analysis. He
said he thinks that information will help
8:52:34 AM
REPRESENTATIVE STUTES expressed appreciation for the work that
Commissioner Taylor does, and she requested time to speak
further with him before his return to Anchorage.
8:53:00 AM
REPRESENTATIVE KELLER, in response to Representative Stutes,
noted that Commissioner Taylor serves on the Justice Reform
Commission and has been working with DHSS and [AMHTA] "on those
tough issues." He observed that the challenge of DOC is
workforce development. He acknowledged the difficulty in
spreading a new philosophy throughout the entire corrections
system, and he wished Commissioner Taylor well in the effort.
He said he is impressed with Commissioner Taylor's "heart" and
"philosophy," and he looks forward to good things from him.
8:54:13 AM
REPRESENTATIVE VAZQUEZ asked for clarification regarding
Commissioner Taylor's resume.
COMMISSIONER TAYLOR specified he had attended the University of
Florida, and explained that between 1986 and 1990, he served in
the military and worked part-time jobs.
REPRESENTATIVE VAZQUEZ asked what other priorities Commissioner
Taylor has for the department.
COMMISSIONER TAYLOR stated that reentry management is one of the
biggest priorities. Medicaid expansion, as supported by
Governor Bill Walker, is a priority for the institutional
system. Another priority, he reiterated, is to have sufficient
staff. He said the current staff is doing an incredible job,
but it is important to ensure each individual is doing the right
job. He explained that sometimes staff is overloaded, and there
is a need to streamline jobs and give staff the resources they
need to be effective.
8:56:41 AM
COMMISSIONER TAYLOR responded to follow-up questions. He said
the aforementioned performance review can be found on the
Legislative Budget & Audit's web site. He said it summarized
the mission of the department in three phases: secure
confinement, reform programs, and supervisory entry. He said
each area was rated as being efficient and effective. He
stated, "With the limited resources that we have, they commended
the department for what we were able to provide - especially in
programming." He stated that in 2007, the department had one
program for residential substance abuse treatment in two
locations, and now the department has "one of the most robust
and comprehensive programming systems in the nation." He stated
that the "justice reinvestment part of this" is the biggest
priority, because it would reshape how the department does
business throughout the system, change how officers are
supervising people when they are on probation or parole, and
require that the community step up as a more active participant
to helping people transition. He said he thinks the department
has not been as successful in working with Native organizations
and other community stakeholders to help transitions minorities
back into the community successfully. He said that includes
help with employment, job training, housing, and covering the
benefits that need to be obtained.
8:59:17 AM
REPRESENTATIVE TALERICO noted Commissioner Taylor had received a
certificate from the U.S. Army for Exceptional Meritorious
Achievement, and he expressed appreciation for Commissioner
Taylor's service.
8:59:40 AM
REPRESENTATIVE KELLER moved to advance the confirmation of
Ronald Taylor, Commissioner Appointee, Department of
Corrections, to the joint session for consideration [and signing
the report regarding appointments to boards and commissions in
no way reflects individual members' approval or disapproval of
the appointees, and that the nominations are merely forwarded to
the full legislature for confirmation or rejection]. There
being no objection, the confirmation was advanced.
9:01:13 AM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 9:01
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01 Governor Appointee - FISHER.PDF |
HSTA 2/26/2015 8:00:00 AM |
Governor's Appointment |
| 02 Governor Appointee - TAYLOR.PDF |
HSTA 2/26/2015 8:00:00 AM |
Governor's Appointment |
| 03 Governor Appointee - FLEENER.PDF |
HSTA 2/26/2015 8:00:00 AM |
Governor's Appointment |