HOUSE FINANCE COMMITTEE MARCH 27, 1998 1:50 P.M. TAPE HFC 98 - 80, Side 1 TAPE HFC 98 - 80, Side 2 CALL TO ORDER Co-Chair Gene Therriault called the House Finance Committee meeting to order at 1:50 p.m. PRESENT Co-Chair Hanley Representative Kelly Co-Chair Therriault Representative Kohring Representative Davies Representative Martin Representative Davis Representative Moses Representative Foster Representative Mulder Representative Grussendorf ALSO PRESENT Dwayne Peeples, Director, Division of Administrative Services, Department of Corrections; Karen Rehfeld, Director, Division of Administrative Services, Department of Education; Barbara Thompson, Director, Teaching and Learning Support, Department of Education; Betsy Robson, Assistant Director, Division of Institutions, Department of Corrections (testified via teleconference); Arbe Williams, Director, Division of Administrative Services, Department of Corrections; Al Dwyer, Director, Division Labor Standards and Safety, Department of Labor; Sara Fisher, Staff, Representative Therriault; Karen Pearson, Health Program Manager, Division of Public Health, Department of Health and Social Services; Bob Labbe, Director, Division Medical Assistance, Department of Health and Social Services. SUMMARY HB 28 An Act repealing the Alaska Coastal Management Program and the Alaska Coastal Policy Council, and making conforming amendments because of those repeals." HB 28 was HELD in Committee for further consideration. HB 144 "An Act authorizing the Department of Environmental Conservation to charge certain fees relating to registration of pesticides and broadcast chemicals; and providing for an effective date." CSHB 144 (FIN) was REPORTED out of Committee with "no recommendation" and with a zero fiscal note by the Department of Environmental Conservation. HB 325 "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." RESULTS BASED GOVERNMENT/FINAL COMMITTEE ACTION: MEDICAID MECHANICAL INSPECTION QUALITY SCHOOLS CORRECTIONS FEMALE PSYCHIATRIC UNIT DIVISION OF FAMILY AND YOUTH SERVICES - ABUSE & NEGLECT PREVENTION HOUSE BILL NO. 144 "An Act authorizing the Department of Environmental Conservation to charge certain fees relating to registration of pesticides and broadcast chemicals; and providing for an effective date." House Bill 144 was previously heard in Committee on 2/25/98, 3/06/98, 3/20/98, 3/24/98, and 3/26/98. Co-Chair Therriault provided members with Amendment 13 (copy on file). He explained that Amendment 13 would conform section 2, which pertains to negotiated fees. Language pertaining to the fixed fee would be the same as the negotiated fee, so that the hourly rate would be identical. Co-Chair Therriault MOVED to ADOPT Amendment 13. There being NO OBJECTION, it was so ordered. Co-Chair Therriault discussed the fiscal note by the Department of Environmental Conservation. He observed that the fiscal note would need further review and negotiation to determine if the fund source changes are appropriate. He observed that $1.7 million dollars would be switched from general fund program receipts to general fund dollars. In response to a question by Representative Martin, Co-Chair Therriault explained that some fixed costs would no longer be passed into fees. Representative Davies summarized that the State would receive $1.7 million dollars less through fees. Instead of receiving $1.7 million dollars from applicants the money would come from the general fund. Co-Chair Therriault noted that general fund expenditures would not change. Expenditures by the Department of Environmental Conservation would not be increased. Representative Mulder MOVED to report CSHB 144 (FIN) out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 144 (FIN) was REPORTED out of Committee with "no recommendation" and with a zero fiscal note by the Department of Environmental Conservation. HOUSE BILL NO. 28 "An Act repealing the Alaska Coastal Management Program and the Alaska Coastal Policy Council, and making conforming amendments because of those repeals." Co-Chair Therriault provided members with a proposed committee substitute. work draft 0-LS0189\T, dated 3/26/98 (copy on file). SARA FISHER, STAFF, REPRESENTATIVE THERRIAULT reviewed the proposed committee substitute. The provision prohibiting a coastal resource district from incorporating statues and regulations into their statements of policies and regulations was not changed. A new provision was added that would require the Council to adopt regulations to provide for periodic review of approved district programs. This would ensure consistency with the guidelines and standards of the Alaska Coastal Management Program (ACMP), to ensure that the approved programs are implemented and enforced and to ensure that the program does not restrict uses of state concern. Procedures would be established to revoke a program if the district does not address the deficiencies. The provision that agencies could not stipulate onto a consistency provision was removed. The proposed committee substitute defines where the consistency determination can be made. Consistency determination could not be required outside and inland of the area subject to the ACMP. The proposed committee substitute prohibits a requirement for a consistency determination with the area that is subject to the ACMP but beyond the interim coastal zone boundary adopted in 1979. A standard 10-mile mark was used in the previous version, work draft 0-LS0189\L. Under the new version, a consistency determination would only be required when the user activity has a direct and significant impact on coastal waters. "Coastal waters" are defined as those waters adjacent to the tidal shorelines, which contain a measurable quantity or percentage of seawater. This would allow the program to continue where the boundaries will not have to be changed. A trapping cabin well into the interior would not have a significant impact on the coast waters and would therefore not require a consistency determination. The petition process is eliminated. A municipality or Coastal Resource Service Area would have one year to amend their programs. Co-Chair Therriault explained that offshore areas would be covered. An area would have to be outside and inland for a consistency determination to not be required. He acknowledged the problem of not allowing state agencies to comment on federal projects. The state program would have more control over local district programs. Co-Chair Therriault clarified that the prohibition against agencies stipulating beyond their statute requirements has been deleted. Representative Davies agreed with the deletion and emphasized that a major benefit of the program is the coordination function. He added that this function encourages development. HB 28 was HELD in Committee for further consideration. HOUSE BILL NO. 325 "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." RESULTS BASED GOVERNMENT Final Committee Action: Medicaid Mechanical Inspection Quality Schools Corrections Female Psychiatric Unit Division of Family and Youth Services - Abuse & neglect prevention CORRECTIONS FEMALE PSYCHIATRIC UNIT BETSY ROBSON, ASSISTANT DIRECTOR, DIVISION OF INSTITUTIONS, DEPARTMENT OF CORRECTIONS (testified via teleconference). She is the program manager for inmate health care programs. She observed that the Department supports the proposed mission statement. She expressed concerns with the recidivism rate of inmates receiving services on the Psychiatric Unit compared to general recidivism rate as a performance measure. She emphasized that this encompasses more than the women's mental health unit in terms of outcome. There are factors beyond treatment provided in the women's mental health unit. Increased law enforcement could impact recidivism rate. Co-Chair Hanley maintained that there should be an incremental impact on recidivism. Ms. Robson replied that they would anticipate an impact. In response to a question by Representative Davies, Ms. Robson clarified that "open population" refers to the general population inside the prison. The function of open population is one issue and reduced recidivism is another issue. He asked if there is information regarding the recidivism rate of persons who are mentally ill but do not receive services. Ms. Robson observed that it would be difficult to identify a control group. She stated that a high recidivism rate would be an impetus to look at contributing factors to determine if there are things in the unit that might be impacting recidivism. Representative Davies questioned why the comparison would be to the general population. He suggested the rate be measured and changes noted. Representative Mulder spoke in support of measuring against the general recidivism rate. He observed that the expectation is that by more appropriately treating mentally ill inmates, that they will have a lower recidivism rate and by treating their mental illness they can be kept out of the system. Representative Davies stressed that the expectation assumes that the mental illness is treatable. Co-Chair Hanley observed that the performance measures are intent language to focus people. He emphasized that more information will determine if they are appropriate or can be improved. Representative Foster MOVED to ADOPT the mission statement and performance measures for the Department of Corrections Female Mentally Ill Offenders Psychiatric Unit as contained in Attachment 1 (copy on file). There being NO OBJECTION, it was so ordered. MECHANICAL INSPECTION AL DWYER, DIRECTOR, DIVISION LABOR STANDARDS AND SAFETY, DEPARTMENT OF LABOR stated that the Department agrees with the mission statement and performance measures. Representative Davies asked if the first performance measure should be normalized to the incident rates. Mr. Dwyer observed that their jurisdiction is to new construction or alterations of existing structures. He emphasized that the manner of measurement is by the rate of injuries in these areas. Representative Davies interpreted the first performance measure as pertaining to a geographic distribution. Mr. Dwyer observed that there are areas of the State where inspections are by the local entity. Representative Davies maintained that a population-adjusted rate should be used. Representative Foster noted that in his entire district that there is only one elevator that goes to one floor. Representative Foster MOVED to ADOPT the mission statement and performance measures for the Department of Labor, Mechanical Inspection as contained in Attachment 2 (copy on file). There being NO OBJECTION, it was so ordered. MEDICAID BOB LABBE, DIRECTOR, DIVISION MEDICAL ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL OF MEDICAL ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES stated that the Division is in agreement with the mission statement and performance measures. In response to a question by Representative Martin, Mr. Labbe noted that there are different income levels for eligibility. A family of 4 is eligible at $14 thousand dollars. The eligibility level for a family of four with a child is $20 thousand dollars. In response to a question by Representative Martin, Mr. Labbe observed that the state of Alaska holds harmless recipients that receive permanent fund dividends. Some Native dividends are also held harmless. Some groups are linked to the federal poverty level. Some increases in the program are due to federal mandates to cover new groups. There is an Alaskan federal poverty level. Representative Davies questioned how the Division of Medical Assistance maintains access to quality health care. Mr. Labbe observed that the program supports the basic health care infrastructure through reimbursement payments. It is an indirect result. The Division also licenses health care facilities. Representative Davies observed that the last performance measure pertains to the percent of nursing homes that are surveyed for licensure on an annual basis. He emphasized that the intended result is that the nursing homes pass the survey. He asked if the performance measure should be amended to "the percentage of surveys conducted and passed". Mr. Labbe noted that the suggestion was considered. He stressed that the Division works with the facilities to come into compliance. By the time the survey is completed the facilities have passed. Nursing homes are surveyed every year. Half of the hospitals are surveyed every two years. The surveys are quite extensive. Representative Foster MOVED to ADOPT the mission statement and performance measures for the Division of Medical Assistance, Medicaid as contained in Attachment 3. Representative Kohring OBJECTED. He stressed that the goal should be to reduce governmental programs. Co-Chair Hanley observed that the mission statement and performance measures support the statutory requirement. He stated that guidelines are set in statute by the state and federal governments. Representative Martin agreed with remarks by Representative Kohring. He expressed concern that the state of Alaska is moving in the wrong direction in encouraging participation in the Medicaid program. Co-Chair Hanley clarified that the state of Alaska loses federal funds in the hold harmless program. Representative Davies pointed out that the program measures more than the level of federal participation. He stressed that inspection of medical facilities is an appropriate governmental function. A roll call vote was taken on the motion. IN FAVOR: Davies, Davis, Grussendorf, Foster, Kelly, Hanley OPPOSED: Martin, Kohring Co-Chair Therriault and Representatives Moses and Mulder were absent. The MOTION PASSED (6-2). (Tape Change, HFC 98 - 80, Side 2) DIVISION OF FAMILY AND YOUTH SERVICES - ABUSE & NEGLECT PREVENTION KAREN PEARSON, HEALTH PROGRAM MANAGER, DIVISION OF PUBLIC HEALTH, DEPARTMENT OF HEALTH AND SOCIAL SERVICES stated that the Division is in support of the proposed mission statement and performance measures. Representative Foster MOVED to ADOPT the mission statement and performance measures for the Division of Family and Youth Services - Abuse & neglect prevention component. There being NO OBJECTION, it was so ordered. QUALITY SCHOOLS Representative Kelly stated that the subcommittee agreed to include assessment in the mission statement. BARBARA THOMPSON, DIRECTOR, TEACHING AND LEARNING SUPPORT, DEPARTMENT OF EDUCATION explained that the Department felt strongly that assessment is a part of student performance and achievement. Representative Kelly observed that professional development is difficult to measure through an increase in student performance. He emphasized that professional development is integrated into classroom instruction. "Percentage of teachers trained to incorporate training into classroom instruction" was added based on self-reporting surveys. Representative Grussendorf expressed concern that there are a number to teachers that are not teaching in the area of their major. Representative Kelly suggested that the problem lies with contract negotiations. Ms. Thompson noted that the Teachers Certification Unit is looking at the issue. In response to a question by Representative Davies, Ms. Thompson noted that training could constitute grants to school districts for staff development within districts. Federal and state funding in this component could be used for in-service days or for other training. One example of professional development would be time spent working on aligning curriculums to standards. Representative Davies questioned if there is a mechanism to demonstrate that student achievement would be affected. Ms. Thompson emphasized that other components assess student achievement. She stressed that continual on-going assessment based on standards leads to improvement of instruction because teachers know what they need to teach and what students need to know. Representative Grussendorf asserted that teachers should have the necessary background and degree to help students pass the standards tests. Representative Foster MOVED to ADOPT the mission statement and performance measures for the Quality Schools component. ADJOURNMENT The meeting adjourned at 3:00 p.m. House Finance Committee 8