Legislature(2003 - 2004)
03/03/2004 09:15 AM Senate FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 03, 2004
9:15 AM
TAPES
SFC-04 # 28, Side A
SFC 04 # 28, Side B
SFC 04 # 29, Side A
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 9:15 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice-Chair
Senator Fred Dyson
Senator Ben Stevens
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: DAVE STANCLIFF, Administrative Regulatory Review
Committee, Office of the Senate President Senator Gene Therriault;
ANDY HEMENWAY, Hearing Officer, Procurement & Longevity Bonus,
Department of Administration; ERIC SWANSON, Administrative Services
Director, Department of Administration; KAREN REHFELD, Deputy
Commissioner, Office of the Commissioner, Department of Education
and Early Development; DIANE BARRANS, Executive Director, Alaska
Commission on Postsecondary Education, Department of Education and
Early Development; SUSAN TAYLOR, Director, Administrative Services
Division, Department of Revenue; DAN FAUSKE, CEO/Executive
Director, Alaska Housing Finance Corporation, Department of
Revenue; LES CAMPBELL, Budget Director, Alaska Housing Finance
Corporation, Department of Revenue; BRYAN BUTCHER, Legislative
Liaison, Alaska Housing Finance Corporation, Department of Revenue;
JOHN CRAMER, Director, Administrative Services Division, Department
of Military and Veterans Affairs; CRAIG SCHREIBER, Lieutenant,
Construction and Facilities Management Officer, Alaska Army
National Guard, Department of Military and Veterans Affairs; KEVIN
DUFFY, Director, Administrative Services, Department of Fish and
Game; ED FISHER, Deputy Commissioner, Department of Labor and
Workforce Development; JANET CLARKE, Director, Division of
Administrative Services, Department of Health and Social Services
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
SB 203-ADMINISTRATIVE HEARINGS/OFFICE
The Committee heard from the bill's sponsor and the Department of
Administration. The bill reported from Committee.
SB 257-APPROP: CAPITAL PROJECTS
The Committee heard capital budget request overviews from the
Department of Education and Early Development, the Department of
Revenue, the Alaska Housing Finance Corporation, the Department of
Military and Veterans Affairs, the Department of Fish and Game, the
Department of Labor and Workforce Development, and the Department
of Health and Social Services. The bill was held in Committee.
SB 1-INCREASE AMT OF BASE STUDENT ALLOCATION
This bill was scheduled but not heard.
CS FOR SENATE BILL NO. 203(JUD)
"An Act relating to administrative hearings, to hearing
officers, and to administrative law judges; establishing the
office of administrative hearings and relating to that office;
and providing for an effective date."
This was the third hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this legislation would create an
independent administrative hearing office within the Department of
Administration, which would be supervised by a Chief Administrative
Law Judge. Testimony would address Committee questions pertaining
to whether the University of Alaska would be included in this
legislation as well addressing the cost of producing and adopting
of regulations. Members' packets also contain a letter in support
of this legislation from the National Federation of Independent
Businesses (NFIB) dated March 1, 2004 [copy on file]. In addition,
discussion would be presented regarding the bill's fiscal notes.
DAVE STANCLIFF, Regulatory Review Committee, Office of the Senate
President Senator Gene Therriault, Judiciary Committee noted that,
as reflected in the memorandum [copy on file] dated February 27,
2004 to Senate President, Senator Gene Therriault, from Tam Cook,
Director, Division of Legal and Research Services, there is no
Constitutional conflict in regards to applying the standards
imposed by this legislation to both State and University of Alaska
hearing officers. However, by desire and by an exemption provided
in the State's procurement code, the University of Alaska is exempt
from the jurisdiction of the proposed central panel. He also noted
that certain State entities' jurisdictional issues are continuing
negotiations with the bill's sponsor and the Governor Frank
Murkowski Administration. The recommendation in regard to these
negotiations is that they be further addressed by the House of
Representatives Judiciary Committee, as the bill progresses.
ANDY HEMENWAY, Hearing Officer, Procurement & Longevity Bonus,
Department of Administration, communicated that efforts are being
undertaken by the sponsor to address jurisdictional issues that
have been presented by the Division of Insurance and the Department
of Revenue.
Mr. Stancliff also noted, in response to Senator Hoffman's concern
regarding a possible conflict of interest that might arise were a
full-time hearing officer to also practice law as a private
citizen, that a law book titled "Judicial Canon" [copy not
provided] would be distributed that would properly define how these
types of issues should be addressed. He noted that this book is the
national model in regards to the conduct of administrative hearing
officers, and, as specified in the legislation, this is the law
reference that must be adopted by the Chief Administrative Law
Judge. He acknowledged that the sponsor "is very much aware" of
this concern.
Senator Dyson asked for an overview of "the criticisms or any
opposition" to the bill.
Mr. Stancliff responded that there has been broad based support and
input from members of every committee that has conducted a hearing
on this bill. There is no sense of partisanship. A conflict arises
regarding how to incorporate the mechanics of this new model and
its jurisdiction with the existing process and the transition to
the new model. This transition process is the concern that has made
some employees and divisions "nervous." At this point, the tensions
have been 98-percent alleviated.
Co-Chair Wilken noted that 15 fiscal notes accompany this
legislation.
ERIC SWANSON, Administrative Services Director, Department of
Administration, summarized the Department's fiscal notes regarding
the incorporation of the new centralized office of administrative
hearings into the Department: ten positions would be transferred to
the Department and $500,000 would be required to establish the new
office during the first year with some of the funding being
transferred from other agencies as interagency funding. However, he
noted that some agencies funding sources are not transferable.
$50,000 of new general fund funding would be required the first
year to fund the new Chief Administrative Law Judge (CALJ)
position. He noted that, other than the CALJ, the majority of the
hearing officer positions would not be transferred to the office
until on or after January first 2005.
Co-Chair Wilken asked regarding the net total expected expenses.
Mr. Swanson responded that the net total increase would be $52,000
in the first year. In addition, the Division of Insurance would
experience an increase in receipt supported service expenses.
Therefore the net total increase would amount to approximately
$80,000 the first year. There would be a reduction in expenses as
other funding sources transfer over in January 2005.
Co-Chair Green moved to report the committee substitute from
Committee with individual recommendations and accompanying fiscal
notes.
There being no objection, CS SB 203 (FIN) was REPORTED from
Committee with $500,600 fiscal note #6, dated March 2, 2004, from
the Department of Administration; negative $113,600 fiscal note #7,
dated March 2, 2004, from the Department of Administration; zero
fiscal note #8, dated February 27, 2004, from the Department of
Labor and Workforce Development; negative $5,000 fiscal note #9,
dated February 27, 2004, from the Department of Public Safety; zero
fiscal note #10, dated February 25, 2004, from the Department of
Health and Social Services; negative $22,500 fiscal note #11, dated
February 27, 2004, from the Office of the Governor; indeterminate
fiscal note #12, dated February 27, 2004, from the Department of
Community and Economic Development; zero fiscal note #13, dated
March 1, 2004, from the Department of Education and Early
Development; zero fiscal note #14, dated February 24, 2004, from
the Department of Environmental Conservation; $38,300 fiscal note
#15, dated March 1, 2004, 7from the Department of Community and
Economic Development; zero fiscal note #16, dated February 27,
2004, from the Department of Community and Economic Development;
indeterminate fiscal note #17, dated February 12, 2004, from the
Department of Law; indeterminate fiscal note #18, dated March 1,
2004, from the Department of Education and Early Development;
negative $203,600 fiscal note #19, dated March 2, 2004, from the
Department of Revenue; and negative $52,400 fiscal note #20, dated
March 2, 2004 from the Department of Revenue.
SENATE BILL NO. 257
"An Act making capital appropriations and supplemental
appropriations; capitalizing funds; making other
appropriations; making appropriations under art. IX, sec.
17(c), Constitution of the State of Alaska; and providing for
an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Department of Education and Early Development
KAREN REHFELD, Deputy Commissioner, Office of the Commissioner,
Department of Education and Early Development, noted that the
Department's three requests pertain to the Alaska Commission on
Postsecondary Education.
Upgrade Alaska Commission on Postsecondary Education
Due Diligence Autodialer
$101,100 P-Sec Rcpt
Reference No: 39008
Project Type: Information Systems
Category: Education
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2006
One Time Project
ACPE uses an autodialing system to place outbound calls, leave
messages, and update loan servicing records in connection with
performing due diligence on delinquent and defaulted borrower
accounts. This project is to upgrade that system to 1) make it
compatible with Windows software, 2) ensure compliance with
federal regulations governing student loan collections, and 3)
provide staff with the ability to record messages and do
programming that currently must be contracted to a software
development vendor.
DIANE BARRANS, Executive Director, Alaska Commission on
Postsecondary Education, Department of Education and Early
Development, explained that this project would replace an eight-
year old "obsolete" auto-dialer computer system with an updated
version that would reduce the chance of system viruses and other
security issues. This request is mission critical in terms of
functionality.
AlaskAdvantage Education Gets You There! Outreach Center
$103,318 P-Sec Rcpt
Reference No: 39009
Project Type: Renovation and Remodeling
Category: Education
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30-2005
One-Time Project
This project is to establish an Anchorage-based storefront
outreach center, designed to provide information and resources
for: 1. Parents and students about planning for higher
education; 2. Parents and students about paying for higher
education; 3. Parents and students about planning for
economically sound career choices and career advancement; 4.
Professionals, non-profit and faith-based organizations to
assist them in counseling and encouraging students to stay in
school and to pursue higher education; and 5. Displaced adult
workers and working adults about retraining and career
planning opportunities.
Ms. Barrans explained that this request would provide funding to
renovate and remodel the Commission's Anchorage early awareness and
outreach campaign operation.
Co-Chair Wilken, noting that this is a one-year funding request,
asked how forthcoming years' funding would be provided.
Ms. Barrans stated that staff expenses would continue to be funded
by the Commission. The funding would exclusively be utilized to
upgrade the facility and move it to a high traffic area such as a
mall.
Co-Chair Wilken understood therefore that this would be considered
a "start-up" fund.
Senator Hoffman observed that the goal for the number of Alaskans
who attend college in the year 2010 is 49-percent. He inquired to
the current rate.
Ms. Barrans responded that it is less than 27-percent. The goal is
to establish a 50-percent increase in the number of Alaskans who
attend college.
Enhance Higher Education-Loan Management System with
Infocentre
$100,775 P-Sec Rcpt
Reference No: 39276
Project Type: Information Systems
Category: Education
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2006
One-Time Project
This project will provide the software to allow ACPE staff to
perform financial and operational queries from HELMS (Higher
Education Loan Management System) data via drop down boxes
including the ability to select, sort, and aggregate 119
different data elements from HELMS. HELMS currently does not
have this functionality at the user level. This enhancement
will allow ACPE staff to perform trend analysis on the loans
currently being serviced and view data by school of
attendance, loan type, funding source etc. This will increase
decision-making efficiency and efficacy by providing more and
better data analysis options for our education loan portfolio
management.
Ms. Barrans stated that this request would enhance the current
student loan system by implementing a query search component. This
was not a problem in 1995 when the system was installed as the
usage of the system was in its infancy; however, this upgrade would
allow Commission managers to query the higher education management
database, and analyze a large amount of data without having to
access other information support resource systems. This would allow
managers to more thoroughly review how the portfolio is performing
in terms of such things as student population or the behavior of
students attending a particular institution.
Co-Chair Wilken asked Ms. Rehfeld for an update regarding an FY 04
capital budget appropriation intended to allow the Department to
monitor costs associated with providing services to severely
disabled students. He understood those costs to be five-times that
of other students.
Ms. Rehfeld recounted that a $225,000 appropriation was granted
over a two-year period. The State Board of Education would be
meeting in March and would be adopting a regulation to clarify the
definition of an "intensive student." Once this definition is
established, a contract would be established with a firm to conduct
a survey of the students in that "intensive category" in order to
determine whether the State is appropriately funding those
children.
Co-Chair Wilken asked when the report would be available.
Ms. Rehfeld responded that the report should be available in
January 2005.
Department of Revenue
SUSAN TAYLOR, Director, Administrative Services Division,
Department of Revenue, stated that the Department would be
presenting four Information Technology (IT) project requests.
PFD Imaging System Update
$220,000 PFD Fund
Reference No: 38927
Project Type: Information Systems
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
Phased-underway Project
The mission of the Permanent Fund Dividend Division is to
distribute the annual Permanent Fund Dividend to eligible
Alaskans. Imaging of the more than two million applications
and supporting documents received each year is pivotal to
maintaining low processing costs and therefore mission
critical. The Division's image system, like all complex
computer systems, requires periodic upgrades in software and
hardware to handle growth, obsolescence, to take advantage of
efficiency improvements, and to assure adequate disaster
recovery capability. This particular upgrade is urgent. The
current system will reach the end of warranty and vendor
support in October 2004, and simultaneously hit capacity for
storage of images.
Ms. Taylor explained that the technical support for the current
software would be unavailable as of December 2004. In addition to
replacing this software, this request would upgrade the digital
document imaging system. Upgrading this system would eliminate the
need for three-point-five full time operators who manually operate
the imaging system. These and other associated enhancements would
assist the Department in achieving its performance measurement goal
of paying 100-percent of eligible Permanent Fund applicants by
October. This past year that goal was not realized until December.
In addition, these upgrades would reduce, over time, the cost of
processing PFD applications by 25-percent.
Co-Chair Wilken noted that the prior funding history depicts an
$80,000 appropriation in FY 03 and a zero appropriation in FY 04.
Therefore, he asked whether the FY 05 appropriation request is a
complement to the FY 03 funding. In addition, he asked whether it
would complete the project.
Ms. Taylor explained that, as a result of management changes and a
review of the Division's goals, the FY 03 appropriation has not
been expended. The FY 05 request should compete the project.
Co-Chair Wilken understood therefore, that the FY 05 request could
be considered as Phase Two of two.
Ms. Taylor concurred.
Senator Hoffman asked the percentage of Permanent Fund applications
that are being filed online.
Ms. Taylor could not specify the number of online filings, however,
she stated that the Division feels that over time, this would be
the direction of growth. Online filings would save a tremendous
amount of money. She acknowledged that some technical difficulties
this past filing period hindered online filings.
Senator Hoffman asked whether these funds would improve the online
filing process.
Ms. Taylor was uncertain as to whether this funding would be
utilized in that manner, but assured the Committee that the online
filing system problems are being addressed.
Senator Hoffman pointed out that the backup material indicates that
625,000 Alaskans are customers of the online filing system.
Therefore, streamlining the online filing system should be a
priority. He asked that information be provided in regards to the
efforts being exerted to streamline the online filing, as he is
aware that many people were unable to file in that manner due to
"glitches" in the system. Those people had to revert to filing
paper documentation. This resulted in more work for the applicant
and more work for the State. Efforts should be made to minimize the
process.
Ms. Taylor agreed that online filing is "the wave of the future."
Specifics in regard to the number of online filings and the efforts
that are being undertaken to enhance the process would be provided.
Child Support Enforcement Case File Imaging Project Phase 2
$574,000
$378,840 Fed Rcpts
$195,160 Rcpt Svcs
Reference No: 37886
Project Type: Information Systems
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates:07/01/2004-06/30-2006
State Match Required, Phased-underway Project
This is phase 2 of a project to provide paperless case files
to be used for child support cases. All information regarding
cases including support orders from the court, correspondence,
forms, applications, etc. are currently in over 50,000 paper
files. A file center staff of 3 full-time employees is devoted
to delivering them to caseworkers as requested, retrieving,
updating and re-filing. As the number of documents that are
handled by CSED grows over the coming years, the ability to
create imaged files instead of paper files will greatly
increase the efficiency of the caseworkers, accounting and
audit staff. It will also allow file center personnel to be
reallocated to provide even more client service.
Ms. Taylor informed that while the Permanent Fund Dividend Division
has been conducting document imaging since the year 2000, the Child
Support Division's efforts in this regard are in their infancy. The
components of the system were designed and purchased in Phase One.
This request would implement the system and allow the Department to
image all existing case files. This would result in significant
personnel and other cost savings.
Child Support Enforcement Computer Replacement Project-Phase 5
$210,000
$138,600 Fed Rcpts
$ 71,400 Rcpt Svcs
Reference No: 37810
Project Type: Equipment
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30-2006
State Match Required, On-Going Project
This is a continuation of the computer and printer replacement
project initiated in FY2000. The agency objective is to
replace personal computers, printers and servers that have
exceeded their useful life. With approximately 300 computers
in use within the division, a five year replacement plan has
60 computers in that situation, as well as several servers and
duplex printers. By replacing these units, we will be able to
serve our clients quicker and more effectively as well as
saving repeated costly repairs to equipment that has exceeded
it useful life. The end result is increased customer
satisfaction and a better use of state funds.
Ms. Taylor stated that a two-to-one federal/State match would fund
this project. The consultants involved in the Department's IT
planning process recommended that the request highlight the fact
that the Department is on a five-year replacement schedule whereas
the State standard is four-years.
Co-Chair Wilken asked the reason this on-going project does not
reflect any funding projections after FY 05.
Ms. Taylor responded that the forward funding projections would be
provided.
Co-Chair Wilken expressed that, at minimal, funding projections for
FY 06 and FY 07 would be helpful.
Ms. Taylor acknowledged.
Tax Document Imaging
$120,000 Gen Fun
Reference No: 39278
Project Type: Information Systems
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2005
One-Time Project
A key element of the mission of the Tax Division is to
optimize tax collections. Competent and timely management of
taxpayer accounts through efficient and accurate processing of
returns and claims is critical to meeting this objective. The
transfer of physical documents between offices and work units
is a significant bottleneck representing a material
restriction of our ability to achieve our mission timely and
at minimum cost. Imaged files will compliment our electronic
workflow routing for enhanced operational excellence.
Ms. Taylor stated that the Tax Division's mission is to optimize
tax collection; however this process is hindered by the fact that
tax reviews are conducted in Anchorage while the tax accounting is
conducted in Juneau. Implementation of this tax document imaging
system would allow, going forward, documents to be imaged and
thereby accessible from either location without the requirement to
physically transfer files. Over time, this streamlining would
eliminate 1.25 staff positions.
Alaska Housing Finance Corporation (AHFC)
DAN FAUSKE, CEO/Executive Director, Alaska Housing Finance
Corporation, Department of Revenue, noted that the projects being
presented are detailed in the booklet titled "Alaska Housing
Finance Corporation Executive Budget Summary 'Results-Oriented'
FY2005 Proposed Draft Capital Budget" [copy on file] dated March
3,2004.
Homeless Information Management System
$35,000 Corporate Receipts
Reference No: 39023
Project Type: Transitional
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
One-Time Project
The purpose of this program is to establish a database to
manage and track grant activity for persons using the Homeless
Service Delivery programs statewide, excluding Anchorage.
LES CAMPBELL, Budget Director, Alaska Housing Finance Corporation,
Department of Revenue, stated that this new project would allow for
the development of an interactive database to provide unduplicated
accounting of persons in the Homeless Service Delivery program
throughout Alaska, outside of Anchorage as Anchorage has its own
program. Approximately 30 agencies would be sharing information via
this system. This project is federally required.
Housing Loan Program/Teacher/Health Professionals Housing
$4,000,000 Corporate Receipts
Reference No: 37918
Project Type: Transitional
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of this program is to increase home ownership for
low-income borrowers by subsidizing interest rates based on
family income and family size.
Mr. Campbell stated that this request would supplement and expand
this "popular" housing program.
Supplemental Housing Development Program
$4,300,000 Corporate Receipts
Reference No: 6323
Project Type: Construction
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of the program is to supplement federal housing
funds provided to Regional Housing Authorities to ensure safe,
decent, affordable housing throughout Alaska.
Mr. Campbell stated that this request would supplement the existing
federal Housing and Urban Development (HUD) housing development
programs and would provide such things as water distribution
systems, sewer hookups, electrical distributions, site development,
and road construction in 20 urban and rural communities. The State
match is 20-percent of the total HUD development costs per unit.
Use of these funds for administrative purposes is prohibited.
Co-Chair Wilken asked that a list of the communities that would
benefit from this funding be provided.
Mr. Campbell noted that this funding would assist in addressing the
total $12 million backlog in housing needs.
Co-Chair Wilken asked that, were this funding allocated, a list of
the projects that would be addressed be provided. Additionally, he
asked whether some Village Safe Water issues might be addressed in
this request.
Mr. Campbell stated that a list would be developed. The Village
Safe Water issues would be addressed provided they were connected
to a subdivision system being worked upon.
Co-Chair Wilken informed that a recent Legislative Budget & Audit
report [copy not provided] reflected concern in regards to some
Village Safe Water program management problems. He suggested that
AHFC review that audit in order to prevent similar issues from
occurring.
Low-Income Weatherization Program
$4,329,000
$1,800,000 Federal Receipts
$2,529,000 Corporate Receipts
Reference No: 6332
Project Type: Renovation and Remodeling
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
On-Going Project
The purpose of the program is to provide cost effective energy
improvements to homes of low-income families.
Mr. Campbell stated that this project would increase recipients'
energy efficiency by improving furnaces, chimney, and wood stove
performances, electrical systems, and egress windows.
Senior Citizen's Housing Development Fund (SCHDF)
$2,000,000 Corporate Receipts
Reference No: 6334
Project Type: Transitional
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of the program is to provide funds for the
development of senior citizen housing.
Mr. Campbell stated that this project would provide funds to
municipalities and public and private non-profit organizations for
developing senior housing. Uses could include site preparation,
materials, construction or the re-habilitation of existing senior
housing.
HUD Federal HOME Grant Program
$3,925,000
$ 750,000 Corporate Receipts
$3,175,000 Federal Receipts
Reference No: 6347
Project Type: Renewal and Replacement
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of this program is to expand the supply of
affordable, low- and moderate-income housing and to strengthen
the ability of the State to design and implement strategies to
achieve an adequate supply of safe, energy-efficient, and
affordable housing.
Mr. Campbell stated that this request requires corporate matching
funds for the federal funds that would be dedicated to expanding
the supply of affordable low and moderate income housing through
the Home Investment Partnership Program. Another goal of the
program would be to strengthen the State's ability to achieve an
adequate supply of safe and efficient affordable housing.
Mr. Fauske stated that, while the federal program has provided this
level of funding for several years to small states such as Alaska,
Delaware and Hawaii, efforts are being undertaken, at the federal
level, to increase the funding to five million dollars, primarily
to counter inflation.
Senator Olson asked how the federal increase to five million
dollars would affect the corporate match.
Mr. Campbell replied that the program does require a 25-percent
corporate match.
Senator Hoffman asked regarding the application process involved in
accessing these funds.
Mr. Campbell stated that municipalities, private partnerships, and
non-profit organizations could apply for these grants.
Senator Hoffman asked what is considered to be the range to qualify
for low to medium income housing.
Mr. Campbell stated that qualifications are based on the federal
HUD medium income parameters. This information would be provided.
Mr. Fauske expressed that this would vary for each region in the
State.
HUD Capital Fund Program (formerly CGP)
$500,000 Federal Receipts
Reference No: 6342
Project Type: Renewal and Replacement
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of this program is to provide management
improvements to the Public Housing program.
Mr. Campbell stated that these federal funds would be used to
renovate public housing developments in the State. Administrative
expenses, tenant education projects, drug elimination, safety
projects, and management improvements could also be funded. The
total federal grant would be $3.5 million; however, the funds are
split in order to provide management improvement funding. That
portion is reflected elsewhere in the capital budget.
Federal and Other Competitive Grants
$4,000,000
$1,000,000 Corporate Receipts
$3,000,000 Federal Receipts
Reference No: 6348
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of this program is to allow AHFC to apply for HUD,
other federal agency, and private foundation grants that
target the housing needs, and supportive services, of
low0income and special needs groups; such as senior citizens,
the mentally, physically, or developmentally disabled or the
homeless. AHFC will also apply for energy related grants as
they relate to housing. When required, AHFC will provide the
needed matching funds. Some of the funds received will be
passed through to local non-profit sub-grantee organizations
that deliver housing and/or services.
Mr. Campbell read the project purpose.
Competitive Grants for Public Housing
$1,000,000
$250,000 Corporate Receipts
$750,000 Federal Receipts
Reference No: 6350
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of this program is to allow AHFC to apply for HUD,
other federal agency, and private foundation grants that
target the housing needs of low-income and special needs
groups; such as senior citizens, the mentally ill, disabled,
or the homeless who are eligible for public and/or assisted
housing. AHFC will also apply for grants to prevent crime and
substance abuse in public housing and assist public housing
families attain economic self-sufficiency. When required, AHFC
will provide the needed match.
Mr. Campbell read the project purpose.
Energy Efficiency Monitoring Research
$500,000 Corporate Receipts
Reference No: 6351
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of this project is to conduct research, analysis,
information dissemination and interchange among members of the
industry, as well as, between the industry and the public.
Mr. Campbell stated that this request would provide grants to the
Cold Climate Housing Research Center.
State Energy Program (SEP) Special Projects
$533,500
$ 50,000 Corporate Receipts
$483,500 Federal Receipts
Reference No: 32526
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of this program is to allow the State to
participate in special project grants offered by the Federal
Department of Energy to promote energy related technologies
and research.
Mr. Campbell noted that the energy related technologies of this
federal/corporate match program include such things as building
technologies, codes and standards, wind and power technology,
renewable energy for remote areas and transportation technology.
Homeless Assistance Program Mental Health Bill
$750,000
$250,000 Corporate Receipts
$500,000 Mental Health Trust Fund Receipts
Reference No: 6359
Project Type: Transitional
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of this program is to support programs that
prevent homelessness by providing assistance to families in
imminent danger of becoming homeless, or those who are
currently homeless.
Mr. Campbell stated that this Mental Health Bill would provide
grants to communities and agencies that develop programs to address
homeless issues. The program is funded via an AHFC/Mental Heath
Trust match. The list of applicants and recipients is listed in the
booklet on page 3-26. This FY 05 $750,000 request would fund the
requests for the first ten applicants and a portion of the eleventh
entity's request. The remaining applicants' requests would be un-
funded. The total grant requests of the qualified applicants
amounts to $2,240,516.
Beneficiary and Special Needs Housing, Mental Health Bill
$1,200,000 Corporate Receipts
Reference No: 6360
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of this program is to provide funds for Alaskan
non-profit service providers and housing developers to
increase housing opportunities to Alaska Mental Health Trust
beneficiaries and other special needs populations throughout
Alaska.
Mr. Campbell read the project summary and stated that these funds
could either be used for housing development or residential
accessibility modifications.
Mr. Fauske, referencing the Housing Loan Program/Teacher/Health
Professionals Housing Program, Reference No: 37918, shared that as
the result of FY 04 funding, the Corporation would be constructing
22 condominiums in Kotzebue "that would be for sale to teachers."
This program would also benefit AHFC by providing it the
opportunity to get into the homes for sale market. He also noted
that a similar project is underway for the community of Savoonga.
This project received attention when the national Secretary of
Education toured the State last year.
SFC 04 # 28, Side B 10:03 AM#
Mr. Fauske continued that insufficient funds were available to
address two other such projects, however, additional funding is
being sought on the federal level for those projects. Therefore, he
anticipated that the program would continue to grow as it is a good
grant program through which to solve education housing needs,
particularly in Rural areas of the State.
Mr. Fauske also acknowledged the successful outcome of a bill that
Co-Chair Wilken sponsored through which AHFC has been able to
provide, beginning in August 2003, 48 loans to K-12 teachers and 21
loans to nurses. He assumed that the success of the program could
result in it being expanded. This program would continue to be
important in the efforts to recruit and retain teachers and nurses
in Alaska.
Co-Chair Wilken asked the percentage of these 69 people who were
new to the State.
BRYAN BUTCHER, Legislative Liaison, Alaska Housing Finance
Corporation, Department of Revenue, recalled that the recipients
were a mix of residents and newcomers. The interest in the program
is growing and word of the program is being advanced by medical
facilities.
Co-Chair Wilken appreciated the fact that the medical field is
advertising the program.
Senator Hoffman asked about the DHSS-Residential Housing Programs,
Mental Health Bill, reference number 37901, located in the booklet
on page 3-31.
DHSS-Residential Housing Programs, Mental Health Bill
$250,000 Corporate Receipts
Reference No: 37901
Project Type: Transitional
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
The purpose of this program is to provide funding to develop
special needs housing that cannot be funded under AHFC, due to
statutory limitations. The funding can be used for
acquisition, rehabilitation, new construction, and
accessibility modification projects.
Mr. Campbell stated that this project is included in the booklet
because while it would be funded by the Corporation; it, in
actuality, is a Department of Health and Social Services program
and would be explained during their capital budget presentation.
Department of Military and Veterans Affairs
Bethel Readiness Center New Construction
$11,250,000
$8,062,500 Fed Rcpts
$2,187,500 G/F Match
$1,000,000 Gen Fund
Reference No: 34848
Project Type: Construction
Category: Public Protection
Location: Bethel
Election District: Bethel
Estimated Project Dates: 07/01/2004-06/30-2009
State Match Required, Phased-underway Project
The Bethel National Guard Readiness Center is currently in the
design phase to replace the existing undersized and outdated
facility. Construction of a new facility is necessary to meet
the minimum requirements established by the National Guard
Bureau. The Federal Government requires 25% matching funds for
construction and 100% state funding for building site work.
JOHN CRAMER, Director, Administrative Services Division, Department
of Military and Veterans Affairs, read the summary of need.
Army Guard Deferred Maintenance, Renewal & Replacement
$1,287,000
$400,000 AHFC Bonds
$887,000 Fed Rcpts
Reference No: 38963
Project Type: Deferred Maintenance
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
State Match Required, On-Going Project
With 237 buildings at 96 various locations and an average age
of the buildings at approximately 30 years old, deferred
maintenance and renewal and replacement are a high priority.
Preventable maintenance is performed on a schedule, yet
building components have a limited life thus renewal and
replacement is required. Priority projects for deferred
maintenance contain a mix of federal funding ratios which
require a 38% general fund match. The deferred maintenance
goal is to achieve an annual 5% reduction in backlogged
projects.
Mr. Cramer read the summary of need.
Co-Chair Wilken asked whether this "is a hard match."
Mr. Cramer affirmed that it is.
Anchorage Armory Expansion
$250,000 Fed Rcpts
Reference No: 39011
Project Type: Construction
Category: Public Protection
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2004-06/30-2009
One-Time Project
This project is for the first floor roof demolition and the
construction of a 1,790 square foot second floor addition to
the Anchorage National Guard Armory. The department is
pursuing federal reimbursement from the U.S. Department of
Justice, Federal Emergency Management Agency and the National
Guard Bureau.
Mr. Cramer read the summary of need.
Storage Buildings
$1,500,000 Fed Rcpts
Reference No: 38956
Project Type: Construction
Category: Public Protection
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2004-06/30-2009
One-Time Project
Federal authority for National Guard Bureau approved storage
buildings. 100% Federal Funds are provided by National Guard
Bureau for this construction project.
Mr. Cramer read the summary of need. This project would allow for
the construction of five 4,000 square foot, unheated, pre-
engineered metal buildings at Fort Richardson.
Federal Scout Readiness Centers Energy Projects
$150,000 Fed Rcpts
Reference No: 32560
Project Type: Construction
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003-06/30/2008
On-Going Project
This is for Federal Authority only. 100% Federal Funds are
provided by the National Guard Bureau.
Mr. Cramer read the summary of need. He noted that this energy
project would serve to lower operating expenses relating to heating
and electrical requirements in facilities.
Federal Scout Readiness Centers and Storage Facilities
$1,700,000 Fed Rcpts
Reference No: 6913
Project Type: Construction
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
On-Going Project
This request is for Federal Authority Only. These projects are
100% Federally Funded provided by the National Guard Bureau.
Provides for the construction of 2 Federal Scout Readiness
Centers and 3 storage facilities located throughout rural
Alaska. The facilities are included in the Long Range
Construction Plan provided to the National Guard Bureau.
Mr. Cramer read the summary of need.
Co-Chair Wilken observed that this request, combined with the $3.4
million remaining from the FY 03 and FY 04 appropriations, would
amount to $5.1 million. Therefore, he asked where and when these
facilities would be constructed.
CRAIG SCHREIBER, Lieutenant, Construction and Facilities Management
Officer, Alaska Army National Guard, Department of Military and
Veterans Affairs, stated that the exact sites have not been
finalized. Determining factors in this decision would include
facility age, location, stationing plans, and number of personnel.
Co-Chair Wilken asked therefore whether the intent is to accumulate
funding until the overall plan is finalized.
Lieutenant Schreiber stated that the objective is to move away from
constructing Readiness Centers and to construct storage facilities
to protect snow machines and other equipment from the weather as
well as from such things as vandalism.
Senator Dyson asked whether these projects would be constructed by
military personnel or would be put out to bid.
Lieutenant Schreiber responded that the projects are being bid out.
Alaska National Guard Counterdrug Support Program
$80,000 Fed Rcpts
Reference No: 31915
Project Type: Health and Safety
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30-2009
On-Going Project
This program participates in the US Dept. of Justice
Forfeiture Program. This federal program's primary purpose is
to deter crime by depriving criminals of profits and proceeds
from their illegal activities.
Mr. Cramer read the project summary and stated that the funding
source results from the sale of criminals' forfeited items.
Co-Chair Wilken noted that while both the Department of Military
and Veterans Affairs and the Department of Transportation and
Public Facilities highly leverage federal dollars for projects, the
federal funding of Department of Military and Veterans Affairs
projects "trump" the Department of Transportation and Public
Facilities.
Department of Fish and Game
KEVIN DUFFY, Director, Administrative Services, Department of Fish
and Game, noted that while the total funding for the nine projects
being presented today is $6.9 million, only $150,000 of that amount
is general fund requests. The balance consists of bonds and federal
funds.
Deferred Maintenance Facilities
$400,000 AHFC Bonds
Reference No: 30128
Project Type: Deferred Maintenance
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
On-Going Project
This project will provide for repair, maintenance and
renovation of department facilities statewide.
Mr. Duffy stated that this is an annual request to address the
"most pressing" of the Department's four million dollar backlog of
deferred maintenance needs.
Co-Chair Wilken noted that the list is in alphabetical rather than
priority order.
Mr. Duffy affirmed.
Vessel and Aircraft Repair and Maintenance
$150,000 Gen Fun
Reference No: AMD 30129
Project Type: Renovation and Remodeling
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
On-Going Project, Amendment
This project will provide funding to maintain the department's
research vessels and aircraft, which are used to support
fishery monitoring efforts and stock assessment programs.
Maintenance work to be done includes replacing the gensets,
sandblast and paint, overhaul engines, general yard work and
inspection, and replacing fishing gear and aircraft manuals.
Mr. Duffy noted that this request is the Department's share of a
collaborative effort between departments to best deploy and utilize
vessels and aircrafts. This would address approximately ten-percent
of the maintenance needs for large research vessels.
Southeast Region Vessel Facility
$800,000 ASLC Bonds
Reference No: 30418
Project Type: Construction
Category: Development
Location: Juneau (Juneau/Downtown/Douglas)
Election District: Juneau/Downtown/Douglas
Estimated Project Dates: 07/01/2004-06/30-2009
Phased-new Project
This CIP request will replace the Southeast Region Fish and
Game vessel shop which is currently located in the Subport
building in Juneau. The Subport building was built on land
that was included in the Mental Health Trust settlement.
Mr. Duffy noted that the Department has received an eviction notice
for the current facility, which is located on Mental Health Trust
land. The site must be vacated by June 2005. This funding request
would be combined with $800,000 from the federal Pacific Coastal
Salmon Recovery funds to fund the construction of a vessel facility
in the same area that would be collaboratively shared with the
National Oceanic and Atmospheric Administration (NOAA).
Senator Olson asked the reason the Trust desires the land to be
vacated.
Mr. Duffy responded that the Trust is seeking to develop and
utilize this waterfront land for other purposes. He noted that a
number of State agencies currently utilize the Subport building and
would be required to develop alternate plans.
Senator Olson surmised therefore that other State agencies might
be requesting re-location funding.
Mr. Duffy voiced being unsure of other departments' needs. However,
the current operation conducted by Department of Fish and Game must
be re-located to a waterfront location
Senator Olson asked the percentage of vessel maintenance that is
conducted by the private sector.
Mr. Duffy responded that the entirety of the major maintenance
repair is conducted by the private sector. Minor things such as
small welding and woodworking repairs and camp development are
conducted at this location.
DIDSON Sonar Equipment Purchase
$300,000 AHFC Bonds
Reference No: 39293
Project Type: Equipment
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
Phased-new Project
The DIDSON (Dual Frequency Identification Sonar) is newly
developed imaging sonar that has demonstrated itself to be
easy to use, the data easy to interpret, and the results
highly accurate. It is a system that provides accurate passage
estimates with minimal required training and supervision. At
this time, the department has settled on the use of DIDSON
sonar built by the Applied Physics lab at the University of
Washington and has identified twelve sites for installation.
This request seeks funding to purchase three DIDSON units.
Mr. Duffy noted that the sonar currently being utilized is becoming
obsolete.
Senator Olson asked whether this sonar would be more reliable than
previous ones as the Yukon River fishery count inaccuracies have
had a negative affect on the fishing industry in the Bethel area.
Mr. Duffy stated that this system would improve the accuracy of the
fish count.
Sport Fish and Recreational Boating and Non-Boating
$2,000,000
$1,500,000 Fed Rcpts
$ 500,000 Fish/Game
Reference No: 30432
Project Type: Construction
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
State Match Required, On-Going Project
This project will provide funds to the Division of Sport Fish
to construct boating and sport fishing access facilities
throughout the state. The Sport Fish Restoration (STR) program
requires that 15% of the federal funds available to Sport Fish
be used for recreational boating access development. SFR funds
may also be used to develop access facilities for non-boating
anglers.
Mr. Duffy noted that this annual request would provide the funds
required by the federal aid program that specifies that 15-percent
of the funding amount be set aside for boating or angler access
projects such as boat launch facilities or pedestrian amenities for
stream fishing.
Interior Habitat Enhancement for Wildlife
$80,000
$60,000 Fed Rcpts
$20,000 Fish/Game
Reference No: 39001
Project Type: Renewal and Replacement
Category: Natural Resources
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2004-06/30/2009
State Match Required
Improve habitat quality for wildlife through the use of
prescribed fires, felling of mature aspen and birch groves,
and thinning of trees in mature forest to promote re-
vegetation. Past woodland fire suppression efforts, current
fire protection needs near valuable properties, and relatively
modest timber harvests have resulted in reduced amounts and
distribution of early to mid-growth forest which are essential
components of diverse productive wildlife habitats. This CIP
will continue habitat enhancement work begun under the 1996
Demonstration Project/Post-Logging Revegetation and Wildlife
Enhancement CIP.
Mr. Duffy explained that this funding, which is a 75/25-
federal/State match, would provide for controlled burns in the
Interior. These burns enhance wildlife habitat. A list of the
projects is provided in the request backup material.
Equipment for Regional Wildlife Conservation Management
$200,000
$105,000 Fed Rcpts
$ 95,000 Fish/Game
Reference No: 38984
Project Type: Equipment
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
Wildlife Conservation has field biologists in 23 locations
statewide performing field research and management of wildlife
species. They have a continuing need for reliable, efficient
and safe equipment. Unreliable equipment jeopardizes the
ability of staff to survey wildlife populations, manage hunts,
and serve the public. Equipment that becomes unsafe puts field
staff at risk of personal injury. Periodic equipment
replacement to be purchased include: snow machines, all-
terrain vehicles, skiffs and motors, aircraft engines, storage
sheds, and network computer servers.
Mr. Duffy stated that this request, which is conducted on an every
other year basis, would fund equipment replacement for such things
as all terrain vehicles, snow machines, and aircraft surveying
equipment.
Co-Chair Wilken asked whether this is a required match.
Mr. Duffy affirmed that it is.
Birch Lake Outlet Weir and Land Purchase
$75,000
$56,250 Fed Rcpts
$18,750 Fish/Game
Reference No: 39028
Project Type: Construction
Category: Natural Resources
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2004-06/30/2005
State Match Required, One-Time Project
The Birch Lake weir, in its current location since 1950s,
exists on land that has an Interagency Land Management
Agreement that was made between the Department of Fish and
Game and the Department of Natural Resources. This land is now
part of the Mental Health Lands Trust and as such will require
the purchase of the property once the agreement expires. The
agreement is due to expire on July 1, 2005. To enable
continued maintenance of the Birch Lake weir and the fishery
associated at Birch Lake, the department is requesting to
purchase the land on which the weir is located.
Mr. Duffy noted that a 75/25-percent federal/State match would fund
this project. The Birch Lake Weir has been located on this Mental
Heath Trust land site since the 1950s. This funding would allow the
State to purchase the small site and maintain the weir. Anglers in
the region heavily utilize the site.
Division of Sport Fish Access Improvement and Conservation
Program
$2,928,447 Fed Rcpts
Reference No: 38985
Project Type: Construction
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
State Match Required, Phased-underway Project
This program works cooperatively with private landowners to
develop conservation strategies to protect key fish and
wildlife habitats, including habitats for species of special
concern or species listed under the Endangered Species Act.
Working with willing sellers, this voluntary non-regulatory
program emphasizes conservation easements and fee title
acquisition to achieve long-term habitat protection or
population goals. Additional benefits include increased
economic opportunities for participating landowners, local and
regional communities; broader public access; and maintenance
of traditional uses of protected lands.
Mr. Duffy stated that this program would allow the Department to
purchase small tracts of land to protect wildlife habitat. The
criteria developed for these land purchases include the requirement
that there must be a private match and that no State funds be
utilized. The four projects that are included in this request
include Phase Two of a process to purchase a site near Gustavus as
well as a site to protect critical habitat for endangered species.
Acquisition of land would serve to protect endangered species as
well as to provide opportunities for hunters and fishermen.
Senator Bunde understood that one concern is that recreational
users might be disturbing such things as nesting sites. Therefore,
he asked whether the issue of who owns the land has any bearing on
this issue.
Mr. Duffy stated that land ownership does not "necessarily dictate
land usage." This issue should be further monitored. The desire is
that the Department, though guidance and an educational process,
could inform users that proper consideration and protection of
habitat would "perpetuate the species that live there."
Senator Bunde opined that simply acquiring land would not serve to
protect a species.
Mr. Duffy acknowledged. He pointed out that these federal funds are
available solely to purchase land for habitat. It is "a difficult
issue" and the Department is taking "steps forward" to protect
critical habitat areas. He acknowledged that such things as four-
wheelers do harm critical habitat.
Senator Bunde suggested therefore that in addition to funds with
which to purchase these lands, the Department should further
allocate funds for education and enforcement.
Mr. Duffy noted that the Department does conduct educational
programs including educating hunters that steel shot is preferred
to lead shot, which is harmful to the food chain.
Co-Chair Wilken asked whether any of the four projects that are
identified in this request involve the purchase of private land
holdings.
Mr. Duffy specified that while three of the four projects involve
private land holdings, the sellers must be willing to voluntary
sell.
Co-Chair Wilken asked the specifics of the three projects.
Mr. Duffy stated that the Department could provide the specifics,
including the location of critical habitat areas. Whether a private
landowner would be willing to sell their land would be one of the
determining parcel size factors.
Senator Bunde asked whether purchasing these parcels would serve to
remove the land from any property tax roll.
Mr. Duffy replied that he was unsure.
Co-Chair Wilken stated that his staff would follow up in this
regard.
Co-Chair Wilken inquired regarding the handout titled "HR 108-401
To accompany H.R. 2673, Pacific Coastal Salmon Recovery" (copy on
file) that the Department has distributed.
Mr. Duffy stated that the Department had distributed that handout
to accompany an amendment, AMD 33647, that is included in the
Governors Amended Budget material.
AMD: Pacific Coastal Salmon Recovery Fund
$20,868,000
Reference No: AMD 33647
Project Type: Planning
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2008
On-Going Project, Amendment
Federal fiscal year 2004 (FFYO4) appropriations legislation
contains funding for the Pacific Coastal Salmon Recovery Fund
(PCSRF). Coordination of individual state funding is through
the respective Governor's offices. The Alaska portion of the
FFY04 appropriation is $20.9 million. Funding comes to the
state through a Memorandum of Understanding with the U.S.
Department of Commerce designating Alaska Department of Fish
and Game as the program manager.
Mr. Duffy stated that this amended request would lower the amount
as presented in the original Governor's Budget request. $26 million
was originally specified as Alaska's share of the total of $90
million federal funding that is shared between Alaska, Oregon,
Washington, Idaho, California, and the Northwest Tribes. The money
is transmitted to the Governor's office and then to the Department
for earmarked projects as specified in the backup material.
Department of Labor and Workforce Development
ED FISHER, Deputy Commissioner, Department of Labor and Workforce
Development noted that the four capital projects being presented
total $2,234,000.
AVTEC Deferred Maintenance
$1,500,000 AHFC Bonds
Reference No: 38979
Project Type: Deferred Maintenance
Category: Education
Location: Seward
Election District: Homer/Seward
Estimated Project Dates: 07/01/2004-06/30/2010
On-Going Project
AVTEC life and safety deferred maintenance projects. Safe and
healthy facilities are key to AVTEC's ability to train
Alaskan's for Alaskan jobs.
Mr. Fisher stated that this request would address life and safety
maintenance and replacement issues relating to such things as
mechanical system and re-roofing repairs at the 13-building Alaska
Vocational and Technical Education Center in Seward.
Vocational Rehabilitation Business Enterprise Program Facility
Development and Equipment Replacement
$500,000 Small Bus
Reference No: 39067
Project Type: Renewal and Replacement
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2007
On-Going Project
The Business Enterprise Program (AS 23.15.100) provided
employment opportunities for blind individuals through the
establishment and operation of vending facilities on federal
and state properties. This appropriation from the BEP
Revolving Fund will pay for construction of a new vending
facility at the Atwood Building in Anchorage (300.0) and
vending facility equipment replacement in the Juneau Federal
Building, Anchorage University Plaza, and Anchorage Court
House (200.0).
Mr. Fisher noted that this request would be funded via the Randolph
Sheppard Act Business Enterprise Program that assists blind
individuals in becoming self-sufficient by teaching them how to
operate vending businesses in government buildings such as the
Atwood Building in Anchorage and the Juneau Federal Building.
Wage and Hour Internet Application for Certified Payroll
$134,000 Gen Fund
Reference No: 39275
Project Type: Information Systems
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2005
One-Time Project
Chapter 111, SLA2003 (CSHB 155), requires the Department to
have a secure on-line system available for filing certified
payrolls by 7/1/2004, however no funding was provided in the
FY 04 budget. This project will fund the programming necessary
to create the system to enable contractors to file certified
payrolls online via a secure connection.
Mr. Fisher informed that the project is the result of legislation
that was enacted but not funded in the year 2004. The request would
allow the implementation of online filings of certified payrolls by
providing the funding required for a secure on-line system.
Electronic Data Interchange Expansion to the Workers'
Compensation Computer System Phase 3
$100,000 Wrkrs Safe
Reference No: 39162
Project Type: Information Systems
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2006
Phased-underway Project
This project will enable the Workers' Compensation program to
produce statutorily required reports and allow electronic
filing of First Report of Injury (FROI) information. New
programming will provide insurance companies and employers the
opportunity to submit required information directly into the
workers' compensation information handling system via
Electronic Date Interchange (EDI).
Mr. Fisher stated that this project would be the third phase of a
multi-phase software project, which would allow employers and the
insurance industry to submit electronic filing of First Report of
Injury (FROI).
Department of Health and Social Services
DELETE: State Veterans' Home Conversion-Palmer
$0
Reference No: AMD 38868
Project Type: Health and Safety
Category: Health/Human Services
Location: Palmer (Greater Palmer)
Election District: Greater Palmer
Estimated Project Dates:07/01/2004-06/30/2009
State Match Required, One-Time Project, Amendment
This project has been moved to the FY2004 supplemental
appropriation bill.
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, stated that this amended
request would allow this project to be removed from the Governor's
FY 05 Capital Budget Request and be presented instead via the FY 04
Supplemental Budget request.
Department of Health and Social Services: Deferred
Maintenance, Renovation, Repair and Equipment
$709,280
$644,800 AHFC Bonds
$ 64,480 Fed Rcpts
Reference No: 31862
Project Type: Deferred Maintenance
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
State Match Required, On-Going Project
This request is for deferred maintenance projects for 34
health centers, youth facilities and behavioral health
facilities statewide with a combined replacement value of $163
million. Funds would be used for immediate and critical
renewal, repair, replacement and equipment needs in state-
owned facilities along with selected leased facilities. This
request does not include the deferred maintenance needs for
the Pioneers' Homes or the Alaska Psychiatric Institutes
(API). In order for staff to provide services for Alaskans,
the facilities need to be secure, maintained, and safe.
Ms. Clarke shared that this request would address deferred
maintenance needs for facilities other than the Pioneers Home. A
handout titled "Department of Health and Social Services FY 05
Deferred Maintenance Capital Request" [copy on file] was provided
that contains descriptions and pictures of the projects. An
overview of the projects in the booklet was provided. The backup
material also depicts the projects in priority order.
Pioneers' Homes Deferred Maintenance, Renovation, Repair and
Equipment
$750,000 AHFC Bonds
Reference No: 37934
Project Type: Deferred Maintenance
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
On-Going Project
This request is for deferred maintenance projects for
Pioneers' Homes statewide, including immediate and critical
renewal, repair, replacement and equipment needs. The
Department is responsible for operating and maintaining the
six Pioneers' Home throughout the State. Locations include
Ketchikan, Sitka, Juneau, Anchorage, Palmer, and Fairbanks.
The homes all operate on a 24-hour basis and have a combined
replacement value of $128.7 million.
Ms. Clarke stated that this request would address maintenance needs
for the Pioneers Homes. This is the first year in which the
Department is responsible for these facilities and an extensive
audit of the properties was conducted. The top priority project is
the fire alarm system replacement at the Fairbanks Pioneer Home.
While a priority list has been provided, it should be noted that
the order might change were an emergency situation to occur.
Co-Chair Wilken noted that the prior year funding included $450,000
in receipt supported services; however, the FY 05 funding, in its
entirety, is AHFC Bonds.
Ms. Clarke affirmed.
Senator Hoffman observed that the projects on the list are not
fully funded.
Ms. Clarke explained that were funds insufficient to fully address
the next project on the list, the Department would skip to the next
lesser expensive project.
Comprehensive Client Database
$500,000
$350,000 Fed Rcpts
$150,000 G/F Match
Reference No: 39149
Project Type: Information Systems
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
State Match Required, One-Time Project
Develop a comprehensive client database of all clients that
receive services from the Department. This will be used by all
Service Delivery applications to insure the accurate
identification of clients.
Ms. Clarke shared that this project is commonly referred to as the
"Master Client Index Project." When Department of Health and Social
Services Commissioner Joel Gilbertson requested an unduplicated
client list, one could not be developed as independent rather than
linking databases are currently in use by various division
programs. This prohibits the sharing of client information.
Therefore, this request would allow the Department to develop a
master client demographic listing while continuing to allow the
various programs to independency determine eligibility
requirements.
McLaughlin Youth Center-Cottage Master Plan
$100,000 ASLC Bonds
Reference No: 38895
Project Type: Planning
Category: Health/Human Services
Location: Anchorage (University/Airport Heights)
Election District: University/Airport Heights
Estimated Project Dates: 07/01/2004-07/01/2009
Phased-new Project
This request will fund the planning and some design work for
the renovation or replacement of four of McLaughlin Youth
Center's five treatment cottages. The cottages are
approximately 30 years old and either need a complete
renovation or replacement.
Ms. Clarke stated that this request would allow for the development
of a master plan through which the Department could determine how
to address the needs of these detention treatment cottages
Federal Health Insurance Portability and Accountability Act
Compliance - Phase 2
$592,000
$296,000 Fed Rcpts
$296,000 G/F Match
Reference No: 35721
Project Type: Transitional
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
State Match Required, Phased-underway Project
The HIPAA project is essential to provide a superior level of
confidentiality and security of individual's private health
care information. The Health Insurance Portability and
Accountability Act (HIPAA) was enacted by the Federal
government in 1996. Deadlines for compliance with regulations
concerning electronic transmission, privacy and security of
patient and health care information will be set over the next
several years. Substantial monetary and civil penalties can be
imposed as a result of non-compliance. The Department is
compelled to implement in-depth impact analysis and
requirements assessments for its health care programs,
operations, computer systems and policies and procedures.
Ms. Clarke stated that this is the final year of a three-year
project through which the Department must align with Federal Health
Insurance Portability and Accountability Act Compliance guidelines.
She referred the Committee to page 19 of the back-up material,
which depicts the remaining privacy and security components that
must be addressed in the Department's data processing system.
Child Protection Information System - Phase 3
$480,600
$240,300 Fed Rcpts
$240,300 G/F Match
Reference No: 6816
Project Type: Information Systems
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
State Match Required, Phased-underway Project
This project continues efforts for the development of an
information system to protect the children of Alaska and the
safety of front-line Office of Children's Services (OCS)
workers and to increase worker productivity. OCS is in the
final development phase of the Online Resources for the
Children of Alaska system, and this request is critical for
its completion. Failure to meet all the goals of the planning
documents, including submission of required adoptions and
foster care data to the Administration for Children and
Families (ACF), could result in the Department having to
return over $4.5 million to the Federal government.
Ms. Clarke stated that this is the final phase of a three-phase
project regarding upgrades to the child protection information
system. The system itself would be functional this year; however,
other components such as enhanced social worker training and
corresponding computer fieldwork compatibility would be addressed.
Co-Chair Wilken voiced optimism that the project would work as
designed as a tremendous amount of money has been spent in this
regard.
Senator Bunde opined that the word "final" is difficult to accept
when stated by this Department.
Safety and Support Equipment for Public Health Nurses,
Probation Officers and Social Workers
$480,200
$130,200 Fed Rcpts
$304,542 G/F Match
$ 45,458 Gen Fund
Reference No: 32446
Project Type: Equipment
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004-06/30/2009
State Match Required, On-Going Project
Project provides funds for critical equipment needed by the
Department to enhance security, improve program efficiency and
replace aging or dysfunctional equipment for the Department's
statewide operations. Older or unsuitable vehicles have been
identified as the most dangerous equipment and operations.
There is an urgent need for this equipment so that Office of
Children's Service social workers, Juvenile Justice detention
and probation officers, front line Public Assistance workers
and Public Health nurses can perform their duties safety and
effectively. Failure to fund some equipment purchases will
result in workers being unable to perform their jobs or
placing them in danger.
SFC 04 # 29, Side A 10:51 AM
Ms. Clarke stated that this project would allow the Department to
address a variety of items including safety equipment for juvenile
officers and some one-time appropriations for vehicles in the State
equipment fleet. An itemized listing is included in the back-up
material.
Senator Dyson asked what is included in the safety equipment
category; specifically whether it would include safety cameras.
Ms. Clarke affirmed that it would include safety cameras.
Senator Dyson asked whether the Department of Transportation and
Public Facilities or the Department of Health and Social Services
would own the vehicles.
Ms. Clarke responded that the Department has recently conducted a
vehicle analysis. Most of the Department's vehicles are part of the
fleet owned by Department of Transportation and Public Facilities.
Senator Dyson requested that a vehicle replacement and maintenance
plan be developed in the future.
Ms. Clarke stated that the aforementioned report contains such
things as staff to vehicle ratios, life cycles, and age of
vehicles. This information could be provided.
Senator Dyson asked that he receive a copy of the reports.
Co-Chair Wilken stated that the Department's remaining requests
would be presented during the March 4, 2004 Committee meeting.
The legislation was HELD in Committee.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 10:53 AM
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