Legislature(1993 - 1994)
04/02/1993 08:45 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 2, 1993
8:45 a.m.
TAPES
SFC-93, #44, Side 1 (87-end)
SFC-93, #44, Side 2 (000-355)
CALL TO ORDER
Senator Steve Frank, Co-chair, convened the meeting at
approximately 8:45 a.m.
PRESENT
In addition to Co-chairs Frank and Pearce, Senators Jacko,
Kelly, Kerttula, Rieger, and Sharp were present.
ALSO ATTENDING: Kimberly Busch, Director, Division of
Medical Assistance, Department of Health & Social Services;
Janet Clark, Director, Division of Administrative Services,
Department of Health & Social Services; Margaret Lowe,
Director, Division of Mental Health & Developmental
Disabilities, Department of Health & Social Services; Jeff
Morrison, Director, Administrative & Support Services
Division (ASSD), Department of Military & Veterans Affairs;
Mike Greany, Director, and Nancy Slagle, Jeff Hoover, Joan
Kasson, Karen Rehfeld, Fiscal Analysts, Legislative Finance
Division; and aides to committee members.
SUMMARY INFORMATION
SB 175 - An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective
date.
Subcommittee budgets were presented for the
following departments:
Department of Corrections
Department of Labor
Department of Law
Department of Health & Social Services
Department of Military & Veterans Affairs
SENATE BILL NO. 175:
An Act making appropriations for the operating and loan
program expenses of state government and to capitalize
funds; and providing for an effective date.
Department of Corrections
CO-CHAIR STEVE FRANK outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the Department of Corrections (copy of handout on file
titled "Governor's Amended FY94 DOC Budget (Total Funds)).
He said that overall the subcommittee had made reductions
from the Governor's budget but was still an increase from
last year. He said it contained funding for the Wildwood
facility. He stated that the subcommittee had worked with
the department and although the department was not happy, he
felt the budget was a good one.
SENATOR JAY KERTTULA voiced his dissatisfaction with the
short notice departments received after budget subcommittee
close-outs. He felt that had made it difficult to bring
amendments to the budgets. Co-chair Frank assured Senator
Kerttula that SB 175 would not move out of committee today
and members would have the opportunity to offer amendments.
In regard to the Department of Corrections budget
reductions, Senator Kerttula questioned the across-the-board
reduction of medical components. He felt the institutional
medical situation already had problems. Senator Frank said
the nursing staff had been reduced but a nurse would be
available to the institution. Senator Frank said that the
medical component in the Department of Corrections is an
area of escalating costs, and that the subcommittee
suggested that the department go more to a medical
administrator rather than a physician administration. He
said the department is prepared to sign a "preferred
provider agreement" with one of the Anchorage hospitals that
should result in a $500.0 reduction in fees for prisoner
major medical care.
Senator Kerttula also voiced his concern regarding the
reduction in the training component for the Department of
Corrections. Senator Frank said that the subcommittee
recognizes the importance of training.
CO-CHAIR DRUE PEARCE MOVED for ADOPTION of subcommittee
recommendations for the Department of Corrections budget
into SB 175. Senator Kerttula OBJECTED. Co-chair Frank
asked for a show of hands. The motion CARRIED on a vote of
6 to 1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and
Sharp were in support. Senator Kerttula was opposed.)
Department of Labor
SENATOR TIM KELLY outlined subcommittee decrements to the
corrections of the FY94 operating budget for the Department
of Labor (copy of handout on file, memo dated April 1, 1993,
subj: Department of Labor Subcommittee FY94 Budget
Proposal). He explained that the subcommittee took into
consideration that the department had taken reductions the
last two years. Senator Kerttula said that he had some
amendments for this budget but would hold them until later.
SENATOR BERT SHARP MOVED for ADOPTION of subcommittee
recommendations for the Department of Labor budget into SB
175. Senator Kerttula OBJECTED. Co-chair Frank asked for a
show of hands. The motion CARRIED on a vote of 6 to 1.
(Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp
were in support. Senator Kerttula was opposed.)
Senator Kerttula MOVED for ADOPTION of amendment #1 that
would add $184.4 in general funds to the labor market
information section of the budget (copy on file). Senator
Kelly OBJECTED. Co-chair Frank asked for a show of hands.
The motion FAILED on a vote of 6-1. (Senators Frank, Jacko,
Kelly, Pearce, Rieger, and Sharp were opposed. Senator
Kerttula was in support.)
Department of Law
Senator Kelly outlined subcommittee decrements and
increments to the corrections of the FY94 operating budget
for the Department of Law (copy of handout on file, memo
dated April 1, 1993, Subj: Department of Law Subcommittee
FY94 Budget Proposal). He said that in order to reach the
cap recommended by the chair, the subcommittee recommended a
reduction in Exxon funding by $1.5M, and denial of an
increment of 12 new positions (4 were allowed). Overall, a
2.8 percent reduction was recommended. He believed that
next year it would be much more difficult to reach the cap.
Discussion followed between Senator Kerttula, Kelly, and
Frank regarding the tremendous legal costs for the mental
health trust lands settlement.
Senator Kerttula MOVED for ADOPTION of subcommittee
recommendations for the Department of Law budget into SB
175. No objections being raised, it was ADOPTED.
At Ease 9:07am
Reconvene 9:12am
Department of Health & Social Services
SENATOR STEVE RIEGER outlined subcommittee decrements to the
corrections of the FY94 operating budget for the Department
of Health & Social Services (copy of handout on file titled
"FY94 Senate Finance DHSS Subcommittee Recommendations").
Senator Kerttula asked for an explanation to the Waivers
Program on page 3 of the handout. KIMBERLY BUSCH, Director,
Division of Medical Assistance, DH&SS, said the department
applied for a waiver to the Medicaid Program under the
direction of the legislature, and it has been granted. She
explained that it allows the department, with the help of
federal funds, to cover special services for children who
would be eligible in an institution income-wise, but are not
eligible in the community because of the parents' income.
Senator Kerttula asked who in the department recommended the
transfer of clients out of Harborview. JANET CLARK,
Director, Division of Administrative Services, DH&SS, said
the department did not recommend the transfer of DD clients
out of Harborview. She said the department worked with the
House to ensure that the numbers would be correct in the
event funding was provided in the DD component to transfer
residents out of Harborview. She restated that the
Governor's budget retained those individuals in Harborview.
In answer to Senator Kerttula, Ms. Busch said that Project
Choice was a project in which federal funds can be directed
to people in the community so that they have a choice
between a nursing home, a hospital, a group home, or an
assisted living situation. The federal money would follow
the individual rather than the institution.
End SFC-93 #44, Side 1
Begin SFC-93 #44, Side 2
Senator Rieger MADE a motion to RESCIND his motion made in
an earlier meeting, and provided the committee with a
handout that outlined reductions that would be
reincorporated into the mental health component in the drug
and alcohol grants in the amount of $67.7 (copy on file).
No objections having been raised, the amendment was ADOPTED.
SENATOR GEORGE JACKO asked if the 3 percent reduction to
community health aid training was the same as in the House
budget. Senator Rieger answered affirmatively.
Senator Kerttula MADE a motion to amend the DH&SS budget by
transferring funds of $300,000 from the Community DD program
back to Harborview (copy on file). Senator Kerttula
expressed his concern over the reduction to Harborview.
Senator Rieger informed the committee that there is a
transfer in of $172.3 as well as the transfer out of $300.0.
He said the trend is away from institutionalization of
individuals. Senator Kerttula said he agreed with the move
away from institutionalization but spoke to the population
of those individuals in crisis. Senator Kerttula said that
Harborview had received 47 referrals in the last year for
difficult and special-needs patients.
Senator Rieger said his understanding was that 13 patients
in Harborview would like to leave to live in their own
community. He understood that the transfer of $300.0 would
help facilitate that. Senator Kerttula asked what would be
done with the other individuals that were unable to leave
Harborview.
Ms. Clark explained that Harborview had two distinct
populations. Three wings hold the developmentally disabled
and those individuals could move into the community. The
fourth wing, the sour dough unit, serves long-term,
medically-fragile individuals who have dementia, some of
whom are elderly. The Governor's budget would have added
another wing for this population because of the waiting
list. She said that the $300.0 grant would be appropriate
for this population group.
MARGARET LOWE, Director, Division of Mental Health &
Developmental Disabilities, DH&SS, explained that it was
important for Harborview's budget to be slightly increased.
She said that the sour dough unit has sixteen patients who
receive itinerant psychiatric support from API (a
psychiatrist visits once a month for several days). The
individuals in the sour dough unit are long-term, many life-
time care patients and do not need the acute care of API.
She explained that they were on medication and needed the
support of a medical doctor. She also pointed out that
Harborview has developed a tremendous expertise in psycho-
social management. It can deal with difficult patients who
suffer from dementia, head injury, etc. with assaultive and
impulsive behavior. The nursing homes in the state are not
trained or have had to deal with this extreme behavior. She
reiterated that there is a waiting list from nursing homes
and families all over the state of about 40 to 50
individuals for the sour dough unit. This is separate from
the developmentally disabled people, some severely impaired,
at Harborview who, as funds are available, will be able to
move back into the community.
Senator Rieger pointed out that the Older Alaskans'
Commission and the Alzheimer's Association are opposed to
expansion of Harborview.
Ms. Lowe voiced her respect for both organizations but felt
their concern was that older people would involuntarily be
placed in institutions such as Harborview. She explained
that all the individuals on the waiting list for Harborview
were in dire need and did not have the option of community
care.
At ease 9:50am
Reconvene 9:51am
Senator Kerttula reiterated the need to expand the sour
dough wing at Harborview and asked the committee to pass his
amendment transferring $300.0 back to Harborview. Senator
Rieger said he was OPPOSED to the amendment. Discussion
followed between Senators Kerttula and Rieger regarding the
construction of API. Co-chair Frank asked for a show of
hands. The motion FAILED on a vote of 6 to 1. (Senators
Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were opposed.
Senator Kerttula was in support.)
Senator Kelly MOVED for ADOPTION of subcommittee
recommendations for the Department of Health & Social
Services budget into SB 175. Senator Kerttula OBJECTED.
Co-chair Frank asked for a show of hands. The motion
CARRIED on a vote of 5 to 1. (Senators Frank, Jacko, Kelly,
Rieger, and Sharp were in support. Senator Kerttula was
opposed. Senator Pearce was absent from the meeting at the
time the vote was taken.)
(See April 3, 1993 minutes for the adoption of letters of
intent.)
Department of Military & Veterans Affairs
SENATOR GEORGE JACKO outlined subcommittee decrements to the
corrections of the FY94 operating budget for the Department
of Military & Veterans Affairs (copy of handout on file
titled "Senate -- DM&VA departmental budget cuts" dated
April 2, 1993). He said the total reduction of $400.0 was a
4.1 percent reduction of general funds and 1.5 percent
reduction of the total budget.
In answer to Senator Kerttula, Senator Jacko said the
elimination of the VSO director was a general fund
reduction. Senator Jacko said that the reductions could
effect $60.0 in federal funds.
In answer to Senator Kelly, JEFF MORRISON, Director,
Administrative & Support Services Division (ASSD),
Department of Military & Veterans Affairs, said the state
active duty component of $100.0 is authorization to receive
funds from other state agencies or municipalities in the
event individuals are placed on active duty to fight fires,
assist troopers or other emergency situations. He said
there were no general funds involved if someone is placed on
active duty. Senator Kelly asked for a breakdown of the
department's expenditure for that component for last year.
Senator Kerttula said that he would bring up an amendment to
add $100.0 to the Veteran's Services budget for the grant
program for veteran service organizations at a later time
(copy on file).
Senator Jacko MOVED amendment #4 to delete $329.6 and insert
$429.6 in veteran's services (copy on file). Senator
Kerttula asked to be shown as co-sponsor of amendment #4.
No objections being raised, it was ADOPTED.
Senator Jacko MOVED letters of intent #5 and #6 relating to
the Veterans Service Officer grant program (copies on file).
No objections being raised, they were ADOPTED.
Co-chair Pearce MOVED for ADOPTION of subcommittee
recommendations for the Department of Military and Veterans
Affairs budget into SB 175. No objections being raised, it
was ADOPTED.
ADJOURNMENT
The meeting was adjourned at approximately 10:02 a.m.
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