SENATE BILL 292 "An Act making supplemental appropriations; making, amending, and repealing capital or other appropriations; making appropriations to capitalize funds; and providing for an effective date." Co-Chair Sharp informed the committee that the supplemental items would be discussed by department. DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT Co-Chair Sharp began with the Kodiak launch complex project. PAT LADNER, PRESIDENT AND CEO, ALASKA AEROSPACE DEVELOPMENT CORPORATION (via teleconference), explained that statutes allow authority to receive funds, but legislative approval was required in order to spend the funds. He mentioned the negotiation of contracts for the first three launches. He requested approval to spend the funding received from the three launch contracts. Co-Chair Sharp stated that the total funding for the three launch sites was $5 million. He asked if the first three launches would be performed by the Air Force. Mr. Ladner concurred that the first three launches were Air Force. YVONNE CHASE, DIVISION OF COMMUNITY AND REGIONAL AFFAIRS (via teleconference), discussed the $500 thousand request for the Head Start center. She stated that the capital funds would be used throughout the state to improve the centers and consequently their programs. The funds were targeted for securing compliance with health, safety and sanitation standards. She stated that the reason for the division's submission of the request was due to joint work with the state Head Start association to assist multiple communities. She pointed out that the items listed totaled more than $500 thousand, so needs would be prioritized if the request was approved. Co-Chair Sharp asked if the projects were listed in priority. Ms. Chase replied that the list represented a total of projects with the amounts for each community. If the request was approved, the division planned to work with the Head Start Association to help the communities prioritize based on the amount of funding available. Senator Torgerson asked if the funding was matched with local money. Ms. Chase replied yes. She stated that individual communities contributed to the Head Start centers. She indicated that the contributions were not an exact match. She offered to provide details to the committee. Senator Torgerson asked if the Head Start projects involving new buildings were for the purpose of new programs. Ms. Chase replied that new programs arose in the state along with existing buildings requiring extensive repairs. Senator Torgerson imagined that the requested funding might fund one or two projects. He felt that a priority list was important in his decision making about appropriating the funds. Ms. Chase stated that the department would not prioritize the projects. The Head Start Association and the communities would work together to determine the greatest needs. She agreed that two of the larger projects would utilize the funds in their entirety. She supposed that the Head Start Association would select many of the smaller items first and use additional funding to initiate the new projects. DEPARTMENT OF CORRECTIONS DWAYNE PEEPLES, ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS, discussed the $100 thousand supplemental capital request. The intention was to purchase new equipment and two vehicles in Bethel. The office equipment and computers were for the Smart Start Initiative in the FY 99 operating budget. The governor was implementing increased probation and parole supervision of sex predators. He stated that Alaska had 700 sex predators on probation with an anticipated 150 more over the next year. The intention was to focus on monitoring and surveillance of those considered high-risk for repeat offence. One probation officer was transferred to Bethel. He added that a request was made in the FY 99 operating budget for four probation officers. The remaining balance of the funds would go toward purchasing office equipment, personal protection equipment and creating operations for two probation officers in Anchorage, one in Fairbanks and one in Palmer. Senator Parnell asked if the sex predators were the highest priority for parole supervision. Mr. Peeples replied yes. Senator Parnell clarified that the funds were to provide supervision capabilities to increase the supervision of the high-risk individuals. Mr. Peeples concurred. Co-Chair Sharp asked if two vehicles in Bethel would help increase the supervision. Mr. Peeples responded that the additional vehicles were a part of the overall plan for the department. Senator Parnell asked how the need in Bethel had been identified. He thought that larger urban centers would house more predators. Mr. Peeples responded that Anchorage would obtain two additional parole officers. The intention was to enhance Bethel's coverage as it had a fairly high percentage of sexual predators on parole. Co-Chair Sharp asked how many people would be tracked by two vehicles in Bethel. Mr. Peeples offered to report back to the committee with an answer. Senator Parnell asked if the parole officers had vehicles in Bethel. Mr. Peeples responded that the number of vehicles was insufficient to fully implement the monitoring program. He added that two people do not have vehicles. DEPARTMENT OF EDUCATION KAREN REHFELD, DIRECTOR OF EDUCATION SUPPORT SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, began with the first request to provide funding to Mount Edgecombe High School for the removal of hazardous chemicals in the powerhouse facility. She spoke about the various chemicals and compounds existing in the facility in addition to the long range plan to demolish the building. She explained the goal of securing the building to keep the students safe. Co-Chair Sharp asked if the department was requesting $40 thousand of the $158,250. Ms. Rehfeld responded that the original request was for $158,300, which included the removal of the friable asbestos. She stated that prior to the asbestos removal, the chemicals must be disposed of and the building secured. Senator Torgerson asked if the building was locked. Ms. Rehfeld responded that plywood was nailed over the windows, but some students have displaced the wood to enter the building. She stated that the request would provide funding to place galvanized steel over the windows and remove some of the stairs and platform access to further secure the building. Co-Chair Sharp asked if the building had signage communicating the contaminated materials. OFFICE OF THE GOVERNOR JOAN BROWN, OFFICE OF MANAGEMENT AND BUDGET, stated the request was an additional $1 million in general funds to continue to work down the list of state facilities with physical barriers for compliance with the American with Disabilities Act (ADA). DEPARTMENT OF HEALTH AND SOCIAL SERVICES JANET CLARK, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, highlighted the first project for the ADA competitive grant for the mental health beneficiaries for $200 thousand. She pointed out that $100 thousand was Mental Health Trust Authority receipts and $100 thousand general fund mental health. The project would provide grants for mental health beneficiaries to upgrade their facilities. Ms. Clark addressed the next project for the Division of Family and Youth Services (DFYS) technology improvements with a request of $450 thousand [undecipherable]. She stated that the project would continue the development of the main computer system that DFYS used called Online Resources for the Children of Alaska (ORCA). The federal funds are available only with the available match. Ms. Clark continued with the Alcohol and Drug Abuse Management Information System upgrade with a request of $392 thousand in general funds. The project was itemized for committee members. She noted that the Division of Alcoholism and Drug Abuse managed a $20 million grant program annually. The division secured support to the grantees that provided management information. The funding was divided by $60 thousand for current support and training, $210 thousand for hardware and software upgrades for the grantees, and $122 thousand for computerized grants management performed annually. Senator Parnell recalled a provider testifying about the carry forward of grants to replace computers and buy software. LOREN JONES, DIRECTOR, DIVISION OF ALCOHOLISM AND DRUG ABUSE, responded that some programs had resources to purchase computer equipment. He stated that compatibility and standards for software and hardware were established within the division. Hardware purchased specifically for the required software allowed the division to maintain the standard. Ms. Clark continued with a request for the department wide client integration project. The request for the project was $800 thousand, with $400 thousand of general funds, $200 thousand of federal funds and $200 thousand from the Mental Health Trust Authority. She explained that the system was not new, but simply provided a new use of data. Co-Chair Sharp assumed that the federal government did not require more than a 100 percent match. Ms. Clark concurred. She stated that the federal funds would be applied by federal agencies for direct federal funds. Matching funds would be received by some federal agencies depending on which programs were in the data warehouse. Co-Chair Sharp observed that the item's details showed $200 thousand in federal match. Ms. Clark explained that the department applied to the federal government for $200 thousand. The amount of general funds received were an important component to the equation. Co-Chair Sharp asked about a preference for general funds or mental health trust funds. Ms. Clark responded that there was no preference. She continued with the next project for nursing communications. She noted that the section of public health nurses was the last set of employees who lacked personal computers and were therefore separated from the rest of the state government. She stated that the nurses used a computer system to track client information in the public health nursing center. The computer upgrade would allow nurses access to email and the internet and to transmit collected data. Ms. Clark introduced the next item for family and youth services field safety and transportation equipment. She explained the need to replace vehicles and safety equipment for the division of family and youth services. She stated that employees in the division requested additional cell phones, alarms and newer vehicles. Ms. Clark introduced the McLaughlin Youth Center heat and ventilation control system. The project would replace obsolete and nonfunctioning mechanical controls. She stated that the existing manual controls were approximately 30 years old and in poor condition. The plan was to replace obsolete controls with a direct digital control system to allow central monitoring of system. The upgrade would reduce energy and operating costs by 12 -17 percent. Co-Chair Sharp asked if another capital project request existed for the McLaughlin Youth Center. Ms. Clark responded that the department had another, much larger request for the youth center. Ms. Clark continued with a request for the Kenai Health Center project. She explained that in 1967 the department entered an agreement for the exchange of land, which allowed for the location of the health center in the City Hall building. She added that staff increased from four to nine, which led to a crowded work environment. She stated that the waiting room and city council meeting room were shared. She mentioned the plan for a joint facility where the city provided land with city and state government sharing a facility. Ms. Clark examined the funding of planning and design appropriations for youth correctional facilities throughout the state. She stated that the request was for $1,500,000 for a new facility in the Ketchikan area to serve the southern southeast. She noted that FY 95 saw 20 percent of admissions to the Johnson Youth Center in Juneau from Ketchikan. She explained that Ketchikan was without a youth center, which made work difficult for local law enforcement. The initial plan budgeted for four beds and the local community decided to supplement with beds for emotionally disturbed youth and those with substance abuse issues. The community was seeking the funds from private foundations and the Mental Health Trust Authority. Co-Chair Sharp understood that the facility might cost more than $3 million. Ms. Clark responded that the addition of the beds for substance abuse and mental health would increase the cost to approximately $2.7 million. Co-Chair Sharp asked if the proposed amount of beds was ten. Ms. Clark concurred. She noted that the department wished to minimize the use of beds, but was supportive of the need for mental health services. Co-Chair Sharp asked about the efficiencies associated with a four bed facility. Ms. Clark responded that a four bed facility was not particularly efficient. She stated that an eight bed facility and a four bed facility incurred similar operating costs. Ms. Clark continued by providing photographs and history of past legislative appropriation for the McLaughlin Youth Center detention. She noted last year's appropriation for replacement of an abandoned cottage and planning funds to upgrade the detention facility at McLaughlin. The $5.2 million request for McLaughlin would fund the remaining portion of the project. The project would provide detention facilities and additional detention beds. GEORGE BUHITE, MCLAUGHLIN YOUTH CENTER SUPERINTENDENT (via teleconference), stated that the youth center housed 300 children in their 220 bed capacity with the rate of new entrants increasing each year. Co-Chair Sharp referred to an aerial photograph of the layout provided to the committee members. Ms. Clark helped to explain the photograph's location. She mentioned that McLaughlin Youth Center was situated on Mental Health Trust Authority land, which was provided in a settlement. Ms. Clark continued with the next item. She stated that the legislature funded planning and design for the initial stages of the Matanuska Susitna Detention and Support Facilities. The current request was for $4.1 million. She stated that the Matanuska Susitna valley lacked a facility. The department recognized the need to serve the population, since 9 percent of the detention admissions were from the Matanuska Susitna area. She explained that the planning funds allowed for a 15 bed facility with the opportunity to expand. She stated that the issue of finding land was large. Senator Parnell understood that the cost would be approximately $410 thousand per bed. Ms. Clark agreed and stated that the project was "starting from scratch." Co-Chair Clark asked if the facility required kitchen and laundry facilities. Ms. Clark stated that the department preferred to contract the kitchen and laundry services. Mr. Buhite contributed that probation offices and educational space was incorporated into the plan for the sake of efficiency. Ms. Clark introduced the last item for competitive grants for statewide family inhalant treatment program for the cost of $800 thousand. She noted that Alaska lacked a treatment facility for inhalants. She stated that the problem in rural areas was increasing with surveys showing as many as 20 percent of high school students trying inhalants. Inhalant abuse led to permanent brain damage, which incurred long-term costs. Senator Parnell asked if the Mental Health Trust Authority had shown interest in the issue. Ms. Clark responded yes. She stated that the project had not gone through the Mental Health Trust Authority's process although they were interested in the problem. Senator Parnell understood that the item was intended for substance abuse treatment. Co-Chair Sharp asked if Ms. Clark envisioned a competitive grant. He asked about the term competitive. Ms. Clark explained that the proposal would be competitive by seeking interest in the facility. Senator Parnell asked if other forms of substance abuse used separate facilities for separate addition issues. He wondered if the item might be included in operating grants. Ms. Clark responded that the department sought specific types of grant programs. Some facilities competed for a variety of programs. She added that the request was not for operating dollars but instead for capital dollars to purchase or renovate a facility to create a treatment facility. The competitive grant proposal would allow the department to ascertain interest in the project. Co-Chair Sharp asked if the request was similar to a designated grant. Ms. Clark chose not to designate it. She preferred to evaluate the interested entities. Co-Chair Sharp requested further information about operating funds. He asked if the project would fall under substance and alcohol abuse for operating budget purposes. Ms. Clark concurred and noted that requests to the federal government would be submitted as well. Senator Parnell wondered why a grant to purchase a facility was preferable to purchasing the treatment service. Ms. Clark stated that she had finished discussing her list of items. SB 231 was HEARD and HELD in committee for further consideration. SB 230 was HEARD and HELD in committee for further consideration. SB 292 was HEARD and HELD in committee for further consideration.