JOINT COMMITTEE LEGISLATIVE BUDGET AND AUDIT August 18, 2000 2:15 P.M. MEMBERS PRESENT Representative Gail Phillips, Chair Representative Eric Croft Representative Gary Davis Representative Gene Therriault Senator Randy Phillips, Vice Chair Senator Rick Halford Senator Gary Wilken MEMBERS ABSENT Representative Con Bunde Representative Eldon Mulder (alternate) Senator Al Adams Senator Sean Parnell Senator Drue Pearce (alternate) COMMITTEE CALENDAR APPROVAL OF MINUTES - April 26, 2000 REVISED PROGRAM RECEIPTS OTHER COMMITTEE BUSINESS EXECUTIVE SESSION AUDIT REPORTS WITNESS REGISTER PAT HARTLEY, Legislative Assistant to Representative Gail Phillips 345 W. Sterling Highway, #102 B Homer, Alaska 99603 Telephone: (907) 235-2921 PAT DAVIDSON, Director Division of Legislative Audit State Office Building, Sixth Floor Juneau, Alaska 99801 Telephone: (907) 465-3830 POSITION STATEMENT: Spoke to Audit Reports GINGER BLAISDELL, Fiscal Analysts Division of Legislative Finance State Office Building, Sixth Floor Juneau, Alaska 99811 Telephone: (907) 465-5432 POSITION STATEMENT: Introduced the RPLs JEFF JESSE, Executive Director Alaska Mental Health Trust Authority Department of Revenue th 550 W. 7 Avenue, Suite #1820 Anchorage, Alaska 99501 Telephone: (907) 269-7963 POSITION STATEMENT: Spoke to RPL #02-1-0011 JANET CLARKE, Director Division of Administrative Services Department of Health and Social Services PO Box 110650 Juneau, Alaska 99811-0650 Telephone: (907) 465-3082 POSITION STATEMENT: Spoke to RPL #06-1-0030 GREG WOLF, Director Division of Trade and Development Department of Community & Economic Development th 550 West 7 Street, Suite #1770 Anchorage, Alaska 99501 Telephone: (907) 269-8115 POSITION STATEMENT: Spoke to RPL #08-1-0008 JEFF BERLINER, Trade Specialist Division of Trade and Development Department of Community & Economic Development PO Box 110804 Juneau, Alaska 99811-0804 Telephone: (907) 465-3962 POSITION STATEMENT: Spoke to RPL #08-1-0008 COL. MARK STIGAR, Aviation Officer Alaska Army National Guard Department of Military and Veterans Affairs PO Box 5800 Ft. Richardson, Alaska 99505-0800 National Guard Armory Telephone: (907) 428-6900 POSITION STATEMENT: Spoke to RPL #09-1-0009 ROBERT LOEFFLER, Director Division of Mining, Land and Water Department of Natural Resources 3601 C Street #800 Anchorage, Alaska 99503-5935 Telephone: (907) 269-8600 POSITION STATEMENT: Spoke to RPL #10-1-4015 KRAG JOHNSON Denali Commission 2002 Work Plan 510 L Street #410 Anchorage, Alaska 99501 Telephone: (907) 271-1413 POSITION STATEMENT: Update on the Denali Commission BRAD PIERCE, Senior Policy Analyst Office of Management and Budget Court Plaza Building 240 Main Street #801 Juneau, Alaska 99811-0020 Telephone:(907) 465-4677 POSITION STATEMENT: Update on the Carlson Case STEPHEN WHITE, Assistant Attorney General Natural Resources Division Department of Law PO Box 110300 Juneau, Alaska 99811-0300 Telephone:(907) 465-3600 POSITION STATEMENT: Info on the Carlson Case Update DALE ANDERSON, Staff to Representative Eldon Mulder Alaska State Legislature House of Representatives State Capitol, Room 507 Juneau, Alaska 99801-1182 Telephone:(907) 465-2647 POSITION STATEMENT: Update regarding the Regional Board of School study. ACTION NARRATIVE TAPE 00-6, Side A  Number 0001 CHAIR GAIL PHILLIPS called the Joint Committee on Legislative Budget and Audit meeting to order at 2:15 p.m. on August 18, 2000. Members present at the call to order were Representatives Phillips, Davis, and Therriault, and Senators Phillips, Halford and Wilken. Representative Croft joined the Committee meeting later. APPROVAL OF MINUTES CHAIR PHILLIPS noted that the first order of business would the approval of the minutes from the Legislative Budget and th Audit Committee meeting held April 26, 2000. SENATOR PHILLIPS MOVED approval of the minutes and asked for unanimous consent. There being NO OBJECTION, the minutes were approved and adopted. REVISED PROGRAMS (RPLs) GINGER BLAISDELL, Legislative Analysts, Division of Legislative Finance, (testified via teleconference), explained the RPLs before the Committee for review and action. RPL Number: 02-1-0011  Department of Administration Rural Long Term Care Job Development   $52.0 MHTAAR - Operating GINGER BLAISDELL stated that the requested funding would provide for a continuation of the Rural Long-Term Care Workforce Development Project begun in FY2000. Additionally, the request would increase the availability of qualified long-term care workers throughout the State. JEFF JESSE, Executive Director, Alaska Mental Health Trust Authority (AMHTA), added that the request would move some of the FY00 Mental Health authorized receipts into FY01. He noted that action had occurred after the trustees had discussion with the Administration regarding the concern. Both parties agreed it would be an appropriate course of action to develop the program for rural long-term care systems. SENATOR WILKEN noted his support for continuation of the program. REPRESENTATIVE THERRIAULT MOVED to approve RPS #02-1-0011. There being NO OBJECTION, RPL #02-1-0011 was adopted. RPL Number: 06-1-0030  Department of Health and Social Services CIP Ketchikan Juvenile Treatment Center $263.0 Statutory Designated Program Receipts (SDPR)   Capital Appropriation    GINGER BLAISDELL pointed out the funding would provide for the Department of Health and Social Services, Division of Juvenile Justice, an allocation for capital construction of the Ketchikan Juvenile Detention/Diagnostic and Treatment Center. The City of Ketchikan would provide funds to cover all facility construction costs exceeding the estimates. Ms. Blaisdell noted that the Department of Transportation and Public Facilities required contingency money which amounted to more than the actual costs of the construction. The City of Ketchikan has agreed that these funds would be the last money spent on the project. JANET CLARKE, Director, Division of Administrative Services, Department of Health and Social Services, explained that all five bids provided to the Department of Transportation and Public Facilities for the facility were in excess of the cost estimator. She advised that the Department of Transportation and Public Facilities and the Department of Health and Social Services had taken the following action to deal with that concern: · Reduced the scope of the project, eliminating the added alternate; and · Contacted the City of Ketchikan, at which time, the City agreed to provide the additional needed funding plus other local funds to allow the Department of Transportation and Public Facilities to award the base bid. Ms. Clarke continued, approval of the funds is needed in order that the Department of Health and Social Services can meet the requirement that the Department of Transportation and Public Facilities has for a 10% contingency fund. The funds are not currently available. SENATOR PHILLIPS asked if the contribution made by the City of Ketchikan was a direct contribution or if it had been State funded. MS. CLARKE understood that it was a direct contribution from local government. She admitted the possibility that they could have received some revenue sharing, however, there was not a direct appropriation made to them that they "turned around and gave back to the State". REPRESENTATIVE G. THERRIAULT warned that no money had been received from the City of Ketchikan to date. He questioned if they actually intended to spend any of their own money. MS. CLARKE clarified that the City of Ketchikan had pledged the required amount through local ordinances. The funds have not yet been expended because the Department has not yet begun construction. She emphasized that it was a real pledge. REPRESENTATIVE G. DAVIS asked when the bids had been accepted and opened. st MS. CLARKE responded the bids were opened on June 1, 2000. She noted that building can occur all year long in Ketchikan, as the winters tend to be mild. REPRESENTATIVE G. DAVIS MOVED to adopt the requested funding. There being NO OBJECTION, RPL #06-1-0030 was adopted. RPL Number: 08-1-0008  Department of Community & Economic Development Alaska-Russia Far East Project $440,000 Federal - US Agency for International Development  (USAID) part 1 of a 2 part grant Total of $745,835 GINGER BLAISDELL explained that the requested money would be federal funds made available by the United States Agency for International Development (USAID). USAID would provide funding to the Division of International Trade and Market Development (DITMD) for Alaskan projects providing technical assistance for development in Sakhalin. GREG WOLF, Director, Division of Trade and Development, Department of Community & Economic Development, commented that the Department is seeking additional receipt authority for the grant to provide for continued funding for projects in Sakhalin, located in Russia. He suggested that raising Alaska's profile in that area would be beneficial to the State. Companies in the oil and gas industry support the construction and are actively pursuing business opportunities in that area. Funding would help to further open the doors for Alaska development on the island. Mr. Wolf emphasized that there would be no State financial match required by accepting this grant. REPRESENTATIVE THERRIAULT questioned how the $20,000 for personal services would be used. MR. WOLF assumed that it would be used for unanticipated costs associated with other projects which the Division is working toward in outside areas. He clarified that the funds would allow the Department to do a "little more" in outside projects. In response to Representative Therriault, Mr. Wolf acknowledged that there is an environmental project occurring on the island. The project envisions paying for actual "out-of-pocket" costs and consultants going to Sakhalin and should be defined based on the needs of that area. He added that it would be a project of the Alaska- Sakhalin working group, which would be comprised of a number of committees. The Committees on Energy, Ecology and Training developed the project. It currently is being narrowed down. REPRESENTATIVE G. DAVIS MOVED to adopt the requested funding for the Alaska-Russian Far East project. SENATOR PHILLIPS OBJECTED. He suggested that the request should be funded through the private sector. MR. WOLF responded that this is federal funding coming through the United States Agency for International Development (USAID). He stressed that the private sector does make full-time contributions and that there is no in- kind funding required. REPRESENTATIVE G. DAVIS noted that he supported the request. He commented that the funding could help place the Russian government in an operating status to manage that type of facility. He asked how private enterprise should come to that status. Representative G. Davis suggested that it would be a government-to-government responsibility and reminded members of the direct benefit to Alaskans through the "marriage". JEFF BERLINER, Trade Specialist, Division of Trade and Development, Department of Community & Economic Development, addressed the benefits to the private sector. The Workforce Development Project is a follow-up of an earlier USAID project, which established Sakhalin College that trains workers in oil field skills. Many of those workers have been trained in Alaska. The benefits are primarily to the Kenai Peninsula, bringing approximately $300 million dollars to the private sector. The project is designed to increase training and provide more involvement for Alaskan companies. CHAIR PHILLIPS asked if non-approval of the request would affect the operations of Sakhalin College. MR. BERLINER replied that it would bring all of the projects to a halt. The Sakhalin Development Agency is a project establishing an agency modeled after Alaska Industrial Development Export Authority (AIDEA). That project is currently half-finished. There have been other regions in Russia that have requested similar projects from Alaska. Such a project as this has the potential to create the first true market economy and lending institution in Russia, which could be a model for all Russian regions. REPRESENTATIVE THERRIAULT asked if Representative G. Davis had contacted the congressional staff regarding support. MR. WOLF interjected that the private sector is also paying into the project. SENATOR PHILLIPS reiterated his concern if there was anything prohibiting the private sector from totally handling the concern. MR. BERLINGER explained that the first part of the environmental project had been 100% privately funded. A roll call vote was taken on the motion to adopt RPL #08- 1-0008. IN FAVOR: Representatives G. Davis, Therriault, Croft, Phillips Senators Wilken, Halford OPPOSED: Senator Phillips Representatives Bunde and Mulder and Senators Parnell, Adams, and Pearce were not present for the vote. The MOTION PASSED (6-1). RPL Number: 09-1-0009    Department of Military and Veterans Affairs Centralized Billing Point for Medivac Missions $205.0 Statutory Designated Program Receipts (SDPR)  Operating  GINGER BLAISDELL stated the purpose of the requested funding would be for the Alaska Army National Guard (AANG) to gain the ability to receive and expend total costs of medivac missions through the State of Alaska's accounting system. She noted that the process is administratively complex, burdensome and results in payment delays to the aircrews and confusion for the State and the customer. She suggested that the project could simplify the process. Ms. Blaisdell acknowledged concern of the Division of Legislative Finance that the increased authorization would raise the apparent size of that budget. The Division would like to see that no administrative charge-backs are charged against the agency. She noted that the agency has assured the Division that those costs would go toward the administrative costs to the Department of Military and Veterans Affairs. The benefit would be a consolidation of billings. COL. MARK STIGAR, Aviation Officer, Alaska Army National Guard, Department of Military and Veterans Affairs, explained that the National Guard has been trying to streamline the system for the past year. There have been many delayed payments because of confusion in the billing systems. SENATOR HALFORD asked about typical medivac facilities and equipment used. COL. STIGAR replied that the National Guard is in partnership with private companies in the Bethel area. Many of the villages do not have instrument approaches for helicopters. The primary reason that the National Guard is involved is that no one else can get into those areas. REPRESENTATIVE THERIAULT pointed out that no additional money was being spent; however, changes were being made to how it flows through the system. REPRESENTATIVE THERRIAULT MOVED that the Committee approve RPL #09-1-0009. There being NO OBJECTION, it was approved. RPL Number: 10-1-4015    Department of Natural Resources CIP-Abandoned Mine Lands Reclamation $882.0 Federal - Capital    GINGER BLAISDELL commented that the request would amend an existing capital project for the federally-funded Abandoned Mine Lands (AML) Reclamation program. The funding would allow the FY99 federal grant to be increased by the amount not expended in earlier years. ROBERT LOEFFLER, Director, Division of Mining, Land and Water, Department of Natural Resources, explained that the Department of Natural Resources had received federal funds for the reclamation of an historic and abandoned mine. The grant was used for the private sector to provide financing for primarily coal mines. SENATOR PHILLIPS asked if some of the funds had been used to pay the contractor in Palmer. MR. LOEFFLER replied they had. He added that there is still a contract claim pending following the completion of the contracts, which will be forth coming soon. SENATOR PHILLIPS MOVED to adopt RPL #10-1-4015. There being NO OBJECTION, it was adopted. RPL Number: 10-1-4022  Department of Natural Resources Division of Minerals, Land and Water Development Expedite Land Transfers $30.0 Statutory Designated Program Receipts (SDPR)   Operating Budget  GINGER BLAISDELL noted that the money would come from municipalities to expedite the processing for land transfer requests. During the 2000 Legislative Session, SB 283 was passed and addressed land disposals. That legislation changed all the statutory designated program receipts to State land funds. She indicated that fund was intended to be used for State purposes, not municipal monies and that the funding needs to be replenished. REPRESENTATIVE THERRIALUT MOVED to adopt RPL #10-1-4022. There being NO OBJECTION, it was adopted. OTHER COMMITTEE BUSINESS DENALI COMMISSION KRAG JOHNSON, Denali Commission 2002 Work Plan, highlighted what the Denali Commission has undertaken. The Commission was established in 1998 to deliver services from the federal government, in a cost-effective and practicable manner to communities throughout rural Alaska. To date the Commission has received approximately $20 million dollars with additional appropriations expected to be coming from the Trans-Alaska Pipeline Liability Fund for bulk fuel in the amount of $10 million dollars. In the first two years, the Commission received a total of $60 million dollars and over $50 million dollars were obligated to the bulk fuel and power generation needs throughout the State. SENATOR HALFORD asked if additional generation capacity would be put in place. MR. JOHNSON responded that the bulk fuel storage program was only one portion of the construction package of the facilities. He noted that $10 million dollars had been directly dedicated to bulk fuel of which the majority of that money would be used to up-grade the fuel storage capacity in rural Alaska. Mr. Johnson spoke to other areas of involvement such as training and economic development. The Commission was dedicated to provide training needs to local residents for the construction and operation of jobs that go along with the projects. Ten percent of the funding has been allocated to go for the training needs. Mr. Johnson pointed out that the Commission is investigating economic development opportunities. The only committed project to date is a $500 thousand dollar mini-grant program to the Department of Community & Economic Development. CHAIR PHILLIPS supported the Denali Commission not assuming a "hard line" stance on policy. (Tape Change, LBA 00-6, Side 2). MR. JOHNSON explained that the Commission is "struggling" with numerous requests for assistance in economic development. The Commission anticipates to obligate the entire amount. He noted that construction had begun on the st 1 project and that FY 2000 funds have been obligated. Following the first year construction funding of the Alaska Energy Authority (AEA), the Commission decided to review the processes. He acknowledged the request to have an independent, outside review or audit of the fund handling at the community level. Mr. Johnson added that Representative Morgan had requested an audit of the Division of Energy. He believed that could be tied into what currently has been undertaken. Mr. Johnson addressed the Commission's federal agency work. In an effort to coordinate and deliver federal resources, the Commission is closely working with the State and federal agencies. In the future, the Commission will continue to work with various energy programs and the Alaska Energy Authority, Division of Energy. Senator Stevens was successful in securing $10 million dollars for the Commission to directly appropriate for health clinic construction. At present, what remains in the budget is $30 million general appropriation dollars for the Commission's efforts, $10 million dollars for the health clinic facilities, leaving an additional $10 million dollars. Mr. Johnson noted that member's packets included a copy of the FY2002 work plan. He urged members to review the packet and provide comments. CHAIR PHILLIPS asked the response received from Senator Stevens regarding work done by the Commission. MR. JOHNSON responded that Senator Stevens had approved of the general direction taken by the Commission. He spoke to federal funds, which the Commission could expect to receive, and what the Commission should do to "fit" into those system-area needs. Thus concluded the testimony by the Denali Commission. CARLSON VERSUS STATE OF ALASKA CASE BRAD PIERCE, Senior Policy Analyst, Office of Management and Budget, spoke to developments in the Donald Carlson versus the State of Alaska case. He noted that the case was a class action lawsuit by a non-resident commercial fisherman over the license fee differential charged by the State. The suit was brought forward in 1986. The period of time of that case is 1984 to present. A ruling was provided in June 2000. He noted that Steve White is the lead attorney on that case and requested that he testify at this time. STEPHEN WHITE, Assistant Attorney General, Natural Resources Division, Department of Law, advised that the case had been before the Alaska Supreme Court twice in the last month. The Court ruled in 1996, giving both sides a formula to be used to determine the permissible difference between a resident and non-resident limited entry permit. The formula takes the State's expenditures for commercial fishing and divides it by the number of people in Alaska, then multiples that number by the percentage of the budget coming from oil revenues. The formula provides a dollar figure, resulting in the additional amount that can be charged to non- residents for their fishing licenses. Mr. White continued, an uncertain part of the formula is the annual fisheries budget, which is a variable number each year supporting commercial fishing. The State developed a method and approach for identifying those commercial-fishing expenditures. The trial clarified that portion of the formula. Mr. White advised that the State had presented to the Court six different components and legitimate ways of measuring commercial fishery costs to the State. The judge ruled that only two of those components could be allowed in that formula. Additionally, the State used the figures from FY96 to illustrate the various budget components. Only allowing two components, the permissible differential was reduced to $155 dollars for that year. He stressed the amount does not capture the necessary fees. Mr. White continued, following that trial, the State of Alaska asked the Entry Commission to take the result from the Court and calculate what the potential refunds would be for FY96. He acknowledged that there is some uncertainty in how to calculate refunds and the interest associated with those amounts. The range of refunds for that year alone amount to $1.2 to $1.8 million dollars. The next step would be to identify the legal issues surrounding the calculation of refunds. He noted that the State would be appealing the decision; however, he believed that the action would not happen for another year or so. Mr. White pointed out that there are approximately 11,000 non-residents that paid fees in the last sixteen years, and who create the "class action" suit. The State of Alaska had requested that the judge limit the recovery to only those plaintiffs named instead of the entire class. The judge did rule against that request. MR. PIERCE added, since there is a formula, the State of Alaska's Department of Law has proposed that the Governor write legislation to indicate "good faith" to the Court, and which the State would attempt to live within. He reminded members that the "meter is running" on the action pending. REGIONAL BOARD OF SCHOOL VOCATIONAL EDUCATION UPDATE DALE ANDERSON, Staff, Representative Eldon Mulder, provided an update on the regional school study and the accomplishments it has achieved. He identified 110 schools in the State of Alaska, which in the last twelve years have averaged less than six high school students. CHAIR PHILLIPS explained that the Legislative Budget and Audit Committee had been tasked by House Finance Committee to provide a statewide task force to investigate consideration of regional boarding high schools. She noted that the information provided by Mr. Anderson was the beginning of that process. MR. ANDERSON explained that objectives had been established focusing the analysis for the study. He noted that member's packets contained a scope of ideas from sources throughout the State and that all of the 110 schools had been identified. A statewide questionnaire has been sent out and some responses have been received back. The distribution was mailed in early August to all education associations, superintendents, principals, legislators and thirteen regional corporations. REPRESENTATIVE G. DAVIS questioned the connection with the "vocational" aspect of the material. MR. ANDERSON explained that the boarding school concept is the basic schooling program being considered. Within that, many varying "tracks" could be taken such as vocational, technical or college prep programs and he suggested that there are varying opportunities at each site. REPRESENTATIVE CROFT pointed out that Kodiak was not mentioned in the report. He asked if it had been considered. CHAIR PHILLIPS mentioned that there are requests at this time from Kodiak, St. Mary's, Bethel, Seldovia, and a number of other places throughout the State. Since the questionnaire has been distributed, there have been many additional requests received in hopes of revitalizing programs which were in place in the past. Mt. Edgecumbe is currently the only boarding school operating in the State at this time. SENATOR HALFORD believed that this was a good project. He questioned how to generate local support in order to get the project to work. REPRESENTATIVE CROFT agreed that it would be difficult to decide in which villages the schools should be located. CHAIR PHILLIPS noted that there would be several criteria used in determining the location. · Good transportation system; · Public safety; and · Health facilities. REPRESENTATIVE THERRIAULT noted that "regional" should indicate that the State wants the opportunities disbursed throughout the State; however, he thought that there need to be boundary exceptions. He foresaw that "control" would be another big issue. EXECUTIVE SESSION SENATOR PHILLIPS made a motion, in accordance with Title 24 and 44, to move to Executive Session for the purpose of discussing audit reports which are held confidential by law. There being NO OBJECTION, the Committee went into Executive Session at 3:32 P.M. CHAIR PHILLIPS requested that Pat Davidson (Legislative Auditor) and Pat Hartley (Legislative Budget and Audit Legislative Assistant) attend the Executive Session. The Committee resumed Open Session at 3:55 P.M. (Tape Change, LBA 00-7, Side 1). AUDIT REPORTS SENATOR PHILLIPS MOVED that the first four final audits on the agenda be released to the public: · OG/Alaska Human Rights Commission · DEED/DLWD - Little Davis Bacon Act · DCED/AEA/AIDEA - 4 Dam Pool · DFG/Board of Fish - Some Operational Practices There being NO OBJECTION, the four final audits were released to their respective Departments for public view. SENATOR PHILLIPS MOVED that the final audit on the agenda be released to the public: · Statewide Single Audit for FY99 PAT DAVIDSON, Director, Division of Legislative Audit, advised that the agencies would have twenty days to respond to that audit. She suggested that once all the responses had been received, the Legislature should release a copy of the report to Committee members; if no objection is received within seven days, then the audit would be released to the public. There being NO OBJECTION, the final audit on the agenda was approved. AUDIT REQUEST PAT DAVIDSON stated that the Committee had received three new requests as well as one established through legislation passed in 1996. That request was for a compliance audit for an obligation under the first amendment of the North Star Unit Police Department. The second audit request was submitted by Senator John Torgerson to look into the Statewide Training Program (STEP) in the Department of Labor and Work Force Development. Additionally, a request was submitted by Representative Carl Morgan to audit what use to be the Division of Energy (DOE) and its current placement in Alaska Industrial Development and Export Authority (AIDEA). The final audit request was submitted by Representative Jeannette James to investigate the Division of Senior Services, specifically, payment for the assisted living programs. REPRESENTATIVE THERRIAULT questioned the reason for the audit submitted by Representative Morgan. MS. DAVIDSON explained that there had been concern expressed about movement of the Division of Energy from the Department of Community and Regional Affairs. Since the move, there has been a significant amount of staff turnover. The audit would investigate what the effects are and determine if AEA could better meet its mission if placed in a different agency. SENATOR WILKEN referenced the audit regarding the assisted living rates. He asked if there had been reference to personal care attendants and how they are being to be paid. MS. DAVIDSON replied that the audit request was addressed to the concern over delayed payments in the Assisted Living Program. It does not limit the types of payment being distributed; however, the focus of the request is to determine how quickly the agency is getting payments out to the providers. SENATOR WILKEN noted that he would request that Representative James consider adding how personal care attendants are paid and the overhead taken before the funds are distributed. REPRESENTATIVE G. DAVIS MOVED to approve the four audit requests. There being NO OBJECTION, they were approved. MS. DAVIDSON pointed out that the Division of Audit had received some correspondence about a particular individual's case and whether it was covered under workman's compensation. She noted that she had been making inquiries regarding that concern and had not yet compiled a request or determined what the objectives of that would be. She recommended it could be handled "in-house". REPRESENTATIVE THERRIAULT voiced caution in turning the Legislative Budget and Audit Committee into an ombudsman's office. REPRESENTATIVE G. DAVIS questioned if there was "room" for an audit consideration given to statewide computer purchases and networking organizations. He noted that the Office of the Governor had distributed a request for telecommunication services stressing the technicalness of that field. He questioned the impact that computerization of State government will entail. MS. DAVIDSON noted that if there was interest, Karen Morgan from Information Technology Group (ITG) could be invited to discuss the scope of such a request. Members agreed that would be beneficial. CHAIR PHILLIPS noted that Ms. Morgan's presentation could be added to one of the following meeting agendas. ADJOURNMENT CHAIR PHILLIPS adjourned the meeting at 4:10 P.M.