Legislature(1999 - 2000)
03/03/1999 09:05 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
GENERAL SUBJECT(S): SB 83 Supplemental/Capital Appropriations
The following overview was taken in log note format. Tapes and
handouts will be on file with the Senate Finance Committee through the
21st legislative session, contact 465-2618. After the 21st
legislative session they will be available through the legislative
library at 465-3808.
Time meeting convened: 9:05 a.m.
TAPE(S): SFC-99 #42, Side A (000 - 589)
Side B (589 - 000)
PRESENT:
x
SENATOR PARNELL
x
SENATOR ADAMS
x
SENATOR TORGERSON
x
SENATOR P. KELLY
x
SENATOR DONLEY
x
SENATOR GREEN
x
SENATOR LEMAN
x
SENATOR PHILLIPS
x
SENATOR WILKEN
ALSO PRESENT: DAN SPENCER, Chief Budget Analyst, Office of Budget
and Management; ALISON ELGEE, Deputy Commissioner, Department of
Revenue; SHARON BARTON, Director, Division of Administrative
Services, Department of Administration; JANET CLARKE, Director,
Division of Administrative Services, Department of Health and
Social Services; ROBERT LABBE, Director, Division of Medical
Assistance, Department of Health and Social Services; THERESA
TANOURY, Administrator, Family Services, Division of Family and
Youth Services, Department of Health and Social Services; KATHRYN
DAUGHHETEE, Director, Division of Administrative Services,
Department of Law; KIMBERLY METCALFE-HELMAR, Special Assistant,
Office of the Commissioner, Department of Community and Regional
Affairs; aides to committee members and other members of the
Legislature.
LOG
SPEAKER
DISCUSSION
000
Co-Chair Parnell
Convened committee meeting and outlined
schedule.
Sharon Barton
Director, Division of Administrative Services,
Department of Administration was invited to
join the committee. She advised the committee
that Alison Elgee would be joining her before
the committee.
Alison Elgee
Deputy Commissioner, Department of
Administration was invited to join the
committee. She explained section 6(f) of the
bill.
Problems requiring one on one staffing at the
homes. $500,000 necessary to get us through
the remainder of the year and maintain staff.
Senator Donley
General understanding they have evolved into
more and more intensive care operations than
originally begun. What other states have
program like this?
Alison Elgee
Actually ahead of other states in ability to
provide care through the Pioneer Homes.
Alzheimer's related directly to longevity.
Eighty-five percent incident of Alzheimer's in
the elderly. Trying to decide the best method
to address care for Alzheimer's. Not a
psychiatric problem. Need good healthy
environment for these individuals. They are
attempting this in the Pioneer Homes.
Senator Donley
Trying to figure out original mission of the
Pioneer Homes and in comparison to what other
states are doing.
Looks for advice from other members working on
subcommittees.
Co-chair Parnell
Asked Senator Wilken to explore this question
of Senator Donley more directly in
subcommittee.
Co-chair Parnell
Asked Ms. Elgee what the Administration is
doing to address the concerns regarding this
matter. He was hearing from others, why do
they need more money?
Ms. Elgee
Personally has met with families directly
concerned. Also Commissioner Poe is addressing
this matter. Interested in trying to improve
the immediate care of these individuals.
Need extra staff to provide care...referred to
incident in Anchorage Pioneer Home last year.
Individual had caused harm to others in the
facility.
Individual was sent to API for help and will
not be replaced in the home.
Another similar situation in Sitka that the
individual is manageable, but required one on
one staffing.
Problems with limited staffing to conduct
specific care.
Not interested in warehousing individuals.
This is the worst nightmare of these kinds of
programs.
Several areas of concern they have looked into.
Have ascertained what is going on and how it
can be corrected.
She said they want to treat concerns as
legitimate.
By end of week they hope to have something in
written form to be able to present to the
committee.
Senator Green
Question regarding mechanics of this section.
All staffing would go through designated line
items after this? How would this be resolved?
Ms. Elgee
Suggesting be recognized as designated
receipts.
Senator Green
Will this be another piece of legislation?
Ms. Elgee
Responded yes.
Senator Wilken
Stated there was an ongoing effort in the
subcommittees to address these issues.
Senator Green
Asked if this addressed the Anchorage Pioneer
Home only?
Senator Wilken
Yes?
Co-chair Parnell
Focus of claims from the Pioneer Homes.
Senator Wilken
Only place heard complaints was from Anchorage
Pioneer Home.
Co-chair Parnell
Cautions Senator Green if she has any questions
on other residents at other Pioneer Homes
should direct them to Ms. Elgee.
Ms. Elgee
Section 6(g) Replacement of boiler system at
the Fairbanks Pioneer Home.
Needed to put another mechanic on to assist
with boiler at Fairbanks Pioneer Home. Have
evacuation plan for frail, elderly patients,
but boiler must be replaced.
Section 6(h) Reappropriation of funds for the
replacement of the boiler system at the
Fairbanks Pioneer Home.
Co-chair Parnell
Why could money not be spent from Risk
Management rather than wait for a supplemental?
Ms. Elgee
This has been on the capital project list for
several years. Have only received small sum to
address needs of all six homes. Replaced roof
at Palmer Pioneer Home that was badly leaking
and causing structural damage.
There was concern that they can meet Risk
Management demands, other than direct claims.
Co-chair Parnell
Asks severity of this matter.
Ms. Elgee
Said they are managing this situation, but
doing it with crossed fingers.
Senator Wilken
Referred to 6(h).
Ms. Elgee
Will generate a little over half a million
dollars. Combination of (g) and (h) is just
over a million.
Senator Wilken
Asked if this was AHFC money?
Ms. Elgee
Indicated it was.
Co-chair Parnell
Asked to continue.
Ms. Barton
Section 20, Stale Dated Warrants.
Presented to State after expiration date for
payment, which the State must honor.
Senator Donley
Question on 6(h) about the source of funds. Is
this competitive grants? What program is this?
Ms. Elgee
Not familiar with the AHFC appropriations that
have been used. They identified this money as
being available for reappropriation.
Co-chair Parnell
Back-up does not provide additional
information.
Dan Spencer
Budget Analyst, Office of Budget and Management
was invited to join the committee. Will get
information from AHFC.
Co-chair Parnell
Asked Ms. Barton to continue.
Ms. Barton
Section 22, Ratifications
She explained this was an accounting procedure
of over expenditures from the prior year.
Needed ratification by the Legislature of the
expenditure.
(1)(b) OPA Computerization was explained. Too
late to cover this with year's operating funds.
(1)(c) Central Duplicating/Mail was explained.
Total shortfall was $195.6 approximately.
Senator Donley
Does item (c) have anything to do with
arbitration involving Central Duplicating?
Ms. Barton
Said this matter only has to do with
expenditures already made in Central
Duplicating up to closing for staff and
operating.
Ms. Elgee
Further responded. Correct in relating to
arbitration because the arbitration was the
reason for the closure, however, this cost is
not related to the arbitration itself.
Appropriation was sufficient but they fell
short on the revenue side. This would correct
that situation. That is why they need
ratification of the over expenditure from the
Legislature.
Senator Donley
Is this the same for Telcom Services?
Ms. Elgee
Indicated that was correct.
Ms. Barton
Only over expenditures in the Department of
Administration that she is aware of.
Senator Donley
Section 6(b) What is the source of funding?
Ms. Elgee
Explained the surplus property program.
Collection of funds through their intermediary
efforts of surplussing Federal property.
Co-chair Parnell
Asked for further clarification.
Ms. Elgee
Further explanation. Act as intermediary to
get property to someone who can use it.
Revenues pay the cost of operating this
program. These are the funds referenced here.
Senator Donley
Asking for additional authority to expend the
funds?
Ms. Elgee
Replied that was correct.
In response to Co-chair Parnell she said the
amount is approximately one half million
dollars.
Senator Donley
Add to half million they authorized it could be
anticipated they would need about $600,000 for
next year?
Ms. Elgee
Explained that this particular effort was a one
time issue. Not an ongoing one.
Asked to assess damage done to land in Bethel.
Will provide environmental assessment in the
amount of $100,000.
Senator Donley
Surplussing land that the City of Bethel
purchased and there is a question of an oil
spill on the property?
Ms. Elgee
Had been acting as intermediary in surplus fuel
oil. Acquired the fuel, sold to City of
Bethel. However, at time of transfer tap on
fuel oil tank was inadvertently left open and
some of the fuel oil spilled onto the ground.
Bethel Native Association now looking for
cleanup costs and sued State, Federal and City
of Bethel for adequate cleanup.
Senator Donley
State being sued because they were an agent for
the Federal Government?
Ms. Elgee
Indicated that was correct.
Co-chair Parnell
Asked for clarification of the litigation.
Ms. Elgee
Will not know what the total exposure is for
the State until they move forward. There are
no guarantees in an ongoing lawsuit such as
this.
Co-chair Parnell
Is the Department of Law working on this case?
Or will it be handed over to an adverse case?
Ms. Elgee
Advised that this was at the request of the
Department of Law.
Senator Wilken
How many gallons of fuel?
Ms. Elgee
106,000. Will get additional information.
Suggested that perhaps the attorney handling
the case could come before the committee.
Senator Donley
"This $100,000 is this additional money coming
in? Or money raised from some unrelated sale
to this particular problem?"
Ms. Elgee
Not a direct relationship between the fuel oil
and the property. The fund represents all the
monies the State has earned in conducting this
program.
Co-chair Parnell
The ten cents per gallon the City of Bethel
paid went into the fund?
Ms. Elgee
Yes.
Senator Donley
Does any balance go to the Federal Government?
Ms. Elgee
Explained they have no obligation beyond the
revenues that belong to the State as they are
collected.
Senator Donley
Direct impact on our State budget in addition
to helping out the Federal Government. His
concern was that $37,000 sale equaled to
$100,000 for cleanup plus litigation costs.
Ms. Elgee
Does not know all the mechanics involved in
this incident. Special provisions for
municipalities acquiring surplus properties.
Senator Donley
Employee leaving valve opened.should be their
liability.
Ms. Elgee
Believed that is what the outcome will be.
Co-chair Parnell
Asked to continue to Section 7 Power Cost
Equalization and Rural Electric Capitalization
Fund.
Percy Frisby
Power Project Loan Committee, Division of
Municipal and Regional Assistance, Department
of Community and Regional Affairs was invited
to join the committee. He explained Section 7
and the PCE funding requirement.
Co-chair Parnell
Asked about $1.7 reduction.
Mr. Frisbee
Reduction of costs to rural Alaska for fuel.
Senator Donley
"What has the department done to reduce demand
for electricity under this program?"
Mr. Frisby
Generation efficiencies have been successful;
also eliminations in their line loss and
updating their generators.
Senator Donley
What is the cutoff for programs when you decide
a community is now self-sufficient?
Mr. Frisby
Have not set any cutoff at this point. Systems
are very expensive to operate.
Co-chair Parnell
If this appropriation is not approved, what
will happen to the program?
Mr. Frisby
Would have to notify REC.
Co-chair Parnell
Went to Section 10, Department of Education.
Karen Rehfeld
Director, Division of Education Support
Services, Department of Education was invited
to join the committee.
Section (a) AVTEC - Maritime Vessel Simulator
upgrade.
Section (b) Foundation Formula Reduction,
Alyeska Central School summer school program.
Helping students that have basic education
needs. Reduction in the amount of $1.5
million.
Section (c) Vocational Rehabilitation, change
funding source from statutory designated PR to
the Vocational Rehabilitation Small Business
Enterprise Fund. Also requested this fund
source change in FY 00 operating budget.
Co-chair Parnell
What is the source of revenue for the small
business enterprise fund.
Ms. Rehfeld
Commissions from vending machines on Federal
properties. On State side machines in State
facilities. Trying to link both programs so
they can access these funds.
Co-chair Parnell
Back-up not sufficient. Asked for
clarification.
Ms. Rehfeld
Blind vendors receive the benefits from this
program.
Senator Adams
What is the budget?
Ms. Rehfeld
Budget authorization $106,000.
Referred to stale dated warrants in section 20.
These were based on human error. Would have
been paid before the last two years had it been
possible.
Section 22(b), page 13, line 8 This was the
closure of the Adak School District and legal
services related to the closure of this school
as paid by the Department of Education.
Several issues related to the Superintendent.
Senator Phillips
Said he thought the Superintendent should be in
prison. Has lost his teaching certificate and
was limited on his retirement.
Particular case is a very sore issue.
Ms. Rehfeld
Explained monies paid to the Department of Law
for their legal services during this period of
time.
Co-chair Parnell
Any funds collected by the Department of Law
for this matter?
Ms. Rehfeld
Does not know all the specifics of this matter.
Has never closed a school district before.
Co-chair Parnell
Who was the Assistant AG?
Ms. Rehfeld
Assistant Attorney General Tom Dahl handled the
case.
Co-chair Parnell
Called Department of Health and Social
Services.
Janet Clarke
Explained section ll(a) for upgrades for
emergency medical equipment in the amount of
$311,600. Upgrades have been delayed
presently.
They have five years to spend capital
appropriations.
Section 11(b) Vital Statistics Archive Imaging
and System Replacement in the amount of
$320,000 not included in Y2K fix.
Section 11(c) Welfare Reform Information System
and Office Automation in the amount of
$2,217,200.
Section 11(d) Client Date Integration.
Section 11(e) Catastrophic and Acute Illness
Assistance. Serves same individuals as old GF
clients with the exception of abortions.
Requirements are a monthly income of $300, less
than $500 assets and individual must require
immediate medical care.
Cannot do any internal transfers due to
legislation.
Referred to page five of their backup there is
list of how their funds have been spent.
Co-chair Parnell
Working with the Department to try and find the
funds necessary for this request. Personally
has worked to assure this request is a high
priority. Spoke with the Commissioner and she
had been able to get pharmacies to suspend
their collections at present. Feels if they
accept Medicaid reimbursement they should
accept CAMA.
Senator Green
Appropriation from the Legislature last year
was $1.9 million?
Ms. Clarke
Indicated that was correct. Was able to pay
part of February payments. However, the
request is basically for January plus.
Related Commissioner's concerns regarding the
pharmacies.
Senator Leman
In addition to pharmaceutical what other
expenses are there?
Ms. Clarke
Would prefer Bob Labbe to respond.
Bob Labbe
Director, Division of Medical Assistance,
Department of Health and Social Services was
invited to join the committee.
Senator Leman
Referred to family planning and asked what
services were being provided and to whom they
were being provided.
Bob Labbe
There are some family planning providers they
can reimburse.
Amount of $54.00 for July very minute amount.
Senator Leman
Asked about the $2,400 dollar amount and asked
back-up be provided.
Co-chair Parnell
Said they would just review the supplemental as
is and then come back and look at possible
funding sources.
Mr. Labbe
Biggest disappointment was agreement they
thought they had with Carr's pharmacy. They
represent over fifty-percent of the business.
This latest development may cause domino
effect.
Would have difficulty placing further
requirements.
Co-chair Parnell
Anyone suggested pharmacies should refrain from
accepting CAMA receipts?
Mr. Labbe
Not to his knowledge. They do not want any
individual cut off, however, and have no intent
of goofing this up.
Senator Leman
Services valid under previous terms of GF.
Asked for description of these services.
Ms. Clarke
Would like this request withdrawn.
Senator Leman
Even if this request is withdrawn would like to
see description.
Ms. Clarke
They have reviewed operating grants and budgets
so they could offset supplemental requests as
much as possible.
Reduction in Alcohol and Drug Abuse Services
and Training Services explained.
Section 11 (g) and (h) contain a number of
reductions. This was for Community Mental
Health Grants, Psychiatric Emergency Services;
Services to the Chronically Mentally Ill.
Trying to meet needs in individual homes rather
than placement in a facility.
Section 11(I) State Health Services - Nursing
Grants. Funds available but have not been
spent.
Section 11(j) State Health Services - Healthy
Families
Section 11(k) Community Health Grants
Section ll(l) Public Assistance Administration
Section 11(m/n) request for subsidized adoption
and guardianship supplemental in the amount of
$656.9. This program covers special needs
children being placed for adoption. Goal has
been to provide permanent placement for
children in facilities. It is good for
children to be in a permanent home rather than
foster care.
Senator Phillips
How many children does this involve?
Ms. Clarke
1,300 cases.
Senator Phillips
Is this caseload up from last year?
Theresa Tanoury
Administrator, Family Services, Division of
Family and Youth Services, Department of Health
and Social Services was invited to join the
committee. Explained increased attention in
moving children through the system. That is
why there is an increase in the caseload.
Senator Phillips
Referred to broken homes, drug and alcohol
situations and how we are dealing with this
problem. Is there an increase in drugs and
alcohol that is contributing to this increase
in case-load?
Ms. Tanoury
There are many reason that children cannot
return back to their homes.
Senator Phillips
What is being done to the parents?
Ms. Tanoury
Many have had heir parental rights terminated.
Co-chair Parnell
What was unanticipated from last May?
Ms. Tanoury
Identified children in the transition from the
old law to under the new Federal laws. One of
the provisions of the new law was a time limit
on children that are in foster care to be
identified and then create program for these
children.
Project Succeed - non-profit organizations and
tribes have helped out greatly in the past.
(Tape number 42, changed to tape number 43,
side A at log #000 at approximately 10: 50
a.m.)
Senator Phillips
Attitude of society is going to have to change
with respect to these children.
Senator Green
Amount in budget last year for this program?
Ms. Clarke
Spent a little over $6 million in FY 98. This
is above and beyond the Governor's request this
year, however.
Co-chair Parnell
Would like to get through Department of Health
and Social Services before 11:00 if possible.
Asked source of funds.
Ms. Clarke
Referred to section 11(m/n) would normally be
distributed to grantees. Based on the
Legislature's desire for net zero felt they had
an obligation to let the Legislature know there
are funds available.
Co-chair Parnell
Asked clarification of reductions. Is this
under the Governor's belt-tightening plan?
Ms. Clarke
Yes, they realize this and this is the best
solution they are able to come up with and
suggest at this time.
Co-chair Parnell
Everyone knows these are tough situations and
everyone is trying to help out.
Ms. Clarke
People actually spend less than they are
authorized to spend and therefore there are
funds to be returned or re-authorized.
Have been able to add 60,000 some individuals
under DD program.
Senator Adams
Referred to an issue discussed under Key
Campaign. Are there over 1,000 individuals on
the wait list?
Ms. Clarke
Are working to identify this.
Senator P. Kelly
Number for dental care?
Ms. Clarke
Division of Medical Assistance has looked into
this and will provide information to the
committee.
Section 11(o) are looking to withdraw this
supplemental request.
Section 20, miscellaneous claims. Requirement
they cannot pay bill more than two years old.
Items total $16,600. Three are for foster
children who were believed to be Medicaid-
eligible at the time. In seeking care for
these children they were later determined to
not be eligible. Therefore, the department had
to pay.
Co-chair Parnell
Will work on those sections they did not
complete today on Friday.
Adjourned at approximately 11:02 a.m., tape
number 43, Side A, at log number 151.
SENATE FINANCE COMMITTEE
LOG NOTES
03/03/99
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