GENERAL SUBJECT(S): Review Departments Accomplishments Department of Fish and Game Department of Environmental Conservation Military and Veterans Affairs The following overview was taken in log note format. Tapes and handouts will be on file with the House Finance Committee through the 21st Legislative Session, contact 465-2156. After the 21st Legislative Session they will be available through the Legislative Library at 465- 3808. Time Meeting Convened: 1:40 p.m. Tape(s): HFC 00 - 5, Side 1 HFC 00 - 5, Side 2 HFC 00 - 6, Side 1 HFC 00 - 6, Side 2 PRESENT: Representative G. Davis Co-Chair Therriault Representative Foster Co-Chair Mulder Representative Grussendorf Vice Chair Bunde Representative Moses Representative Austerman Representative Phillips Representative J. Davies Representative Williams ALSO PRESENT: Frank Rue, Commissioner, Department of Fish and Game; Michelle Brown, Commissioner, Department of Environmental Conservation; Barbara Frank, Director, Division of Administrative Services, Department of Environmental Conservation; Kevin Brooks, Director, Division of Administrative Services, Department of Fish and Game; Adjutant General BG Phil Oates, Commissioner, Department of Military and Veterans Affairs; Carol Carroll, Director, Division of Support Services, Department of Natural Resources; Kurt Fredriksson, Acting Deputy Director, Department of Environmental Conservation. LOG SPEAKER DISCUSSION TAPE HFC 00-5, SIDE 1 000 Co-Chair Mulder Convened the House Finance Committee meeting at 1:40 p.m. 133 FRANK RUE, COMMISSIONER, DEPARTMENT OF FISH AND GAME Discussed the department's mission to protect and maintain the state's resources as contained in the statutes. Maintained that the sustained yield principle remains a good mission. Department staff could not improve on the mission. Commissioner Rue Looked at the question: Who are the customers? The people of the state that wish to use fish and wildlife resources are the customers. They include: sport fisherman, commercial fisherman, tourism, flying services, barge lines and others. 394 Commissioner Rue Maintained that departmental programs reflect the department's mission of achieving sustained yield. The department has four primary functions: protect habitat, provide good science and information; maintain a good management program (managers with authority to make decisions in the field based on good information), and have a fair and open public process (boards, public access) and good communication.) 606 Vice Chair Bunde How do you resolve conflicting management decisions and when does the public becomes involved? 668 Commissioner Rue There is an internal process to resolve disputes in data interpretation. The resource coordinator gets the experts together and listens to all sides. The public is informed through board meetings and advisory councils. Efforts are also used to communicate through newspapers and letters. 841 Vice Chair Bunde Maintained that there is a lot of politics at the Department of Fish and Game. 864 Commissioner Rue Stressed that the goal is to keep politics separate. 879 Commissioner Rue The department is divided into divisions. The divisions pursue the four goals. The Division of Habitat protects the habitat. The Division of Commercial Fisheries manages the resource, etc. 984 Commissioner Rue How do you measure success in the four areas? Noted that the department has an obligation to give an opportunity to harvest the available surplus. Harvesting of the available surplus is a measure of the department's success. 1065 Co-Chair Mulder Referred to the mission of the Division of Commercial Fisheries as contained in SB 169, page 12, line 19. Asked if the department succeeded. 1121 Commissioner Rue Did not have the statistics at the meeting. 1155 KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF FISH AND GAME Questioned if the 10-year average is the best assumption to use. 1227 Vice Chair Bunde Observed that the run size is not a measure of the department's success. 1275 Commissioner Rue Referred to Bristol Bay noted that the available harvest was still well managed even though the size of the catch was smaller. Observed that the department needs to assure that escapement is also sufficient. Productivity of resource is another measure of success. 1397 Commissioner Rue Was habitat protected? Concluded that the habitat was well protected and pointed to the number of permits as a measure of success. 1467 Commissioner Rue In response to a question by, Vice Chair Bunde, Commissioner Rue emphasized that the department looks at the opportunity to harvest resources. A decline in the number of sport licenses would be an indicator of problems. 1559 Mr. Brooks The number of licenses has gradually increased from a flat growth. 1626 Discussion continued regarding measures of success in regards to licenses. 1648 Commissioner Rue Did the public have an opportunity at the public process? 1669 Vice Chair Bunde How is the public's satisfaction measured? 1690 Representative Foster Active and energized advisory committees are an indicator of success. 1717 Commissioner Rue There are dialog forums around the state. Questionnaires could be sent out to users. 1790 Commissioner Rue How did the department do? Great in some areas and not so great in others. Where all of the pieces are in place the department did well. In areas (Kodiak) where there is insufficient data the availability to the resource is not as good. 1842 Commissioner Rue Discussed what the department intends to do differently. The department must deal differently with the federal involvement in the fisheries. Try to maintain the success. 1883 Commissioner Rue The department continues to look for opportunities for new fisheries. 1904 Representative Austerman Setting policy for development of new fisheries. 1918 Commissioner Rue The department needs to look for ways to fund stock assessment of new fisheries. 1967 Vice Chair Bunde Noted that the public is concerned with getting the best value for the dollar. Pointed out that the department needs to translate the department's work into information for the public. 2016 Vice Chair Bunde How is the department's Division of Subsistence mission changed with Federal takeover? 2035 Commissioner Rue Their mission won't change. They will still collect data for management of the resource. The department is encouraging the federal government to use the department's data and capabilities. Important not to have dueling data. 2088 Vice Chair Bunde Will the federal government pay for use of the state's data? 2093 Commissioner Rue Expect that the federal government will pay for some of the data. 2103 Representative G. Davis Noted that the federal government already pays for 50%. How much control does the department have? Noted that the Board of Fish makes decisions that the department must support. 2145 Commissioner Rue The department responds to and welcomes the direction of the Board. 2206 Representative G. Davis The Board has the opportunity to establish an escapement goal that is not consistent with sustained yield. 2224 Commissioner Rue The department would tell the Board that their goals are not realistic. The department and the Board work together. 2258 Commissioner Rue Agreed that it is our investment. Doesn't believe there is duplication between departments. Doesn't see other options. Maintained that the department has a good system. Pointed out that the Salmon Treaty talks adopted the state of Alaska's concept of availability of the resource. 2330 Vice Chair Bunde Referred to SB 146. Asked how it impacted commercial fisheries. 2352 Mr. Brooks Noted that the legislation only took effect 12 days ago. TAPE CHANGE, HFC 00- 5, SIDE 2 43 Representative Austerman Subcommittee should look at ways that the department can help small independent users. 170 Vice Chair Bunde Suggested the use of Alaska Science and Technology Foundation grants for seed money. 201 Representative Austerman Looking more at what it would take the department to do to develop resources. 229 Representative J. Davies Discussed issues pertaining to fisheries in Fairbanks. 269 Commissioner Rue Noted that there is not as much data on the interior. Agreed on the need to look at what is needed to keep the fish in the area. 341 Representative Foster Noted that there are no fish around Nome. Asked what could be done to aid the Nome fisheries. 410 Commissioner Rue Felt that the Board has done a good job in its restrictions to allow escapement. Need to understand what has happened. The department is working on the issue. 492 Representative Foster Noted that employees in the Division of Subsistence live in urban areas. 536 Commissioner Rue Pointed out that the Division of Subsistence can't be blamed for the lack of fish. The Division ensures that information about other subsistence needs in the region is available. There is subsistence fishing in Norton Sound. There are administrative advantages to being located in a Central area. 649 Representative Austerman Habitat is a primary issue. Asked if the department is in a position to provide the Committee with accountability of the measures. 734 Mr. Brooks Stated that some of the measures can be accounted for. 755 DEPARTMENT OF ENVIRONMENTAL CONSERVATION 772 MICHELLE BROWN, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION Read from prepared remarks: The mission of the Department of environmental Conservation as approved by the legislature last year in SB 169 is: "Develop, coordinate, and administer polices, programs and planning related to public health and the environment of the state." Expanded mission statements are also found in Alaska Statutes Title 46 and 44. 811 Commissioner Brown "With the funds appropriated by the legislature, DEC promotes and protects healthy people and a healthy environment. All of the people in our department, in some capacity, work for clean air, clean water, clean land, safe food, safe handling of oil and chemicals, safe public facilities and businesses, and pollution prevention. This mission has been fairly constant over the years. However, the tools we use to promote the mission of public health and a healthy environment have changed in recent years. Our staff are dedicated to a partnership with the people and industries of Alaska. In the not too distant past, feedback from the public was not good. There was too much emphasis on investigation, legislation, regulation and litigation. Today, we don't rule out those tools, but we try first to anticipate, collaborate, negotiate, educate and communicate. Enforcement of clean air and water rules will always be necessary, because some people refuse to follow those rules. But at DEC, we begin with the assumption that the people and industries that operate in our state have both the corporate conscience and the technical ability to work with us on constructive solutions to basic environmental management issues." 889 Commissioner Brown "In general, I look at DEC's work as fitting into two basic categories: Doing it Right and Healthy Safe Communities. For doing it right, we strive to deliver services that strengthen the overall economy and create and maintain good jobs for Alaskans by prudent and sustainable management of our air, water and natural resources. I have several examples of the return on the investment in Doing it Right at DEC. I offer these examples as representative cases because in each area these results were replicated many fold." 932 Commissioner Brown "The first is to get contaminated property cleaned up and available for economic re-use. An excellent example of a good return on the state's investment in DEC is our actions on the site of the former Sitka Pulp Mill. In April of last year we took the "closed" sign out of the window and gave the City and Borough of Sitka the opportunity to put a new industry in its place. EPA wanted to list this site on the superfund list. City officials feared that stigma would daunt any future development. We stepped in and assumed leadership over the cleanup. We finished it in half the time and at substantially less cost than it would have taken if EPA had supervised it." 970 Commissioner Brown "We also worked with Sitka and the Alaska Pulp Corporation to create an innovative agreement that enabled the community to take possession of the property without fear of liability, and clearly spelled out in advance monitoring and maintenance protections for the site so that new users would be able to plan well for the site's re-use." 991 Commissioner Brown "A second investment example is issuing state air permits that make sense for Alaska, despite federal opposition. DEC issues permits to control air pollution from diesel generators, which supply basically all of rural utility and rural industrial energy in Alaska. Mineral reserves at the Red Dog Mine outside Kotzebue have increased in recent years and it needed a power supply increase to support a higher rate of ore processing. DEC granted Cominco a permit to install a new diesel generator to fill that need and required a pollution control technology that would substantially reduce emissions, but still be affordable. For EPA, that wasn't enough. EPA preferred another, far more expensive control technology, even though it would result in no measurable difference in air pollution at the Cominco property line. Over EPA's objections, and in fact, contrary to an EPA order directing us not to issue the permit, DEC issued the permit. A similar battle was fought over Nome's utility where EPA tried to impose this same pet technology that would have increased Nome's utility rates 25%." 1032 Commissioner Brown "The third example is to tailor or seek a waiver of federal requirements that don't make sense in Alaska. It is a good investment to help Alaska's communities succeed where federal laws and regulations set some Alaska villages and cities up for failure. It is simply impossible - financially and sometimes literally - for Alaska's numerous small remote landfills to meet federal landfill standards. It was extremely expensive for municipal landfills to satisfy federal requirements. DEC fought for and then completed a waiver on federal requirements for small landfills and put in place reasonable requirements for municipal landfills that save municipalities millions of dollars previously spent in unnecessary one size fits all federal requirements. DEC's alternative plan to provide protections through more flexible means was finally approved by EPA." 1097 Commissioner Brown "The fourth example is to make the permit process less labor intensive. The quicker people get permits, the more productive they'll be. DEC developed a permit questionnaire on our web site which allows many business owners to go through a series of questions and find out what, if any, permits are necessary for a job or a new operation. By answering questions on the possible effects on the environment and public health, like air emissions, wastewater needs, and food processing, the business can get a list of any permits, approvals, and licenses it may need from DEC, and who to contact to get them." 1135 Commissioner Brown "Cruise ships plying our waters don't fall right now within the state or federal permit system. Yet, they are discharging wastewater at a rate that exceeds many of our small towns and those towns are subject to permit rules. DEC convened over thirty cruise ship operators who operate in Alaska waters, as well as the EPA, the Coast Guard and the Southeast Conference to get to the bottom line on cruise ship waste dumping and air emissions in Southeast Alaska. Our goal is to develop a plan to assure Alaskans that the cruise ship industry will keep Alaska clean. We made it clear to industry that we expect them to respect Alaska's values for doing it right." 1191 Commissioner Brown "Already, the industry has committed that it will not dump in doughnut holes, and it will get prepared to respond to an oil spill. Work groups are being set up to assess the discharges, to monitor the industry, and to see that Alaska's resources are protected." 1220 Representative J. Davies If the ships are not going to dump in the doughnut holes, where are they going to dump? There is a variety of things that are discharged. Asked if the department has a process to measure what is in each discharge? 1253 Commissioner Brown Stated that the department does not know what is in the discharge. The work groups are designed to determine what is in the discharge, how much is being discharged and where is it going. 1274 Representative J. Davies Referred to gray waters. He asked if cruise ships discharge gray water in state waters and if they are required to have a permit. 1295 Commissioner Brown Stated that they do discharge gray water in state waters and are not required to have a permit. The state may have the statutory authority to require a permit, but it never has. 1301 Co-Chair Mulder Asked if there are problems. 1309 Commissioner Brown Responded that there is an air emission problem in Juneau. The Environmental Protection Agency (EPA) tracked emission concerns in Juneau over the past summer. The department does not know if there is a wastewater problem. The federal criminal action against the Royal Caribbean for massive illegal dumping brought the issue forward. 1347 Representative Phillips Referred to the air emission issue and asked if there was a problem in any other cities besides Juneau. 1372 Commissioner Brown Stated that Juneau is the site that receives the most complaints and is the only town that has measured the problem. 1380 Co-Chair Mulder Asked if cruise ships are under federal jurisdiction. 1394 Commissioner Brown The Coast Guard and EPA have some jurisdiction. There are holes in the supervisory network. Standards are old and were developed when vessels were small. Ships are now the size of floating cities and there are as many as five a day. The question is; Are the standards sufficient? The Coast Guard monitors the treatment levels of technology on board. The Royal Caribbean violated many points. 1450 Co-Chair Mulder Asked if that was sufficient. He asked if this was a political concern. He pointed out that the Coast Guard believed that oversight was sufficient. 1493 Commissioner Brown Argued that the public is concerned, as is the Coast Guard. She agreed that it is important to come to an agreement with industry to identify emission levels. The department will make a report addressing those concerns. This is a systematic way to address the problem and assess the need. 1546 Representative Phillips Asked if the intent is to create provisions that are already in place. 1577 Commissioner Brown Stated that all states were caught off guard by the strength of the criminal case. Florida has an aggressive plan in place. The assumption was that it was being handled by the federal govt. 1611 Commissioner Brown Continued from written remarks: "The next general area of accomplishments I'd like to address is the state's investment in DEC for public health issues such as safe food, pure drinking water, and better sanitation. Elsewhere in the country, many of these services are provided by local government, but in Alaska, the state retains most of the duties for assuring the basics we take for granted in modern life. We believe that part of our mission is to keep Alaska a model for public health and an inviting vacation destination for visitors. Some examples are: First, providing clean water and sanitation facilities for all Alaskans. As of the end of the 1999 construction season, two thirds of rural Alaska households have access to a basic, but safe, level of drinking water and sewage service. That means from either a haul or piped water and sewer system. When all the projects started today are completed, the number of rural households with access to basic drinking water and sewer systems will be 85 percent." 1703 Commissioner Brown "The state's investment in community infrastructures is protected and maintained through the Village Safe Water Remote Maintenance Worker program which provides training and on-site technical assistance to 71 communities. Since 1989 when the Remote Maintenance program was put in place, there have been no catastrophic system failures. Sanitation projects will pump almost 90 million dollars into the Alaska economy this fiscal year. It generated approximately 900 rural jobs this past construction season. Urban Alaska's economy also benefits greatly from these projects. On average, 70 cents on the rural sanitation dollar stays in Anchorage, Fairbanks and Juneau for materials and services. In other words, of the $62 million appropriated through Village Safe Water this year, approximately $43 million flows into our urban economies. A second example was DEC's response, with the Municipality of Anchorage, to a major food poisoning outbreak. The day after a luncheon at ARCO headquarters in Anchorage more than 300 ARCO employees called in sick with similar symptoms. These employees were suffering from food poisoning. Through prompt investigation, we found the sickness came from one of the employees working for the caterer of the luncheon and was transmitted to the ARCO employees through potato salad. The caterer did not have a catering license. The potato salad left over from the luncheon was going to be used by a restaurant until we got to the establishment and pulled the potato salad. Quick action kept this outbreak from getting worse. Following this outbreak, DEC and Anchorage officials developed and promoted a joint web site page that listed all the licensed caterers in the state. The site also included a list of questions consumers should ask a caterer to ensure safe food handling." 1724 Commissioner Brown "The third example is in minimizing the impacts of spills. DEC has signed over 20 spill response agreements with local governments and municipalities to establish oil and hazardous substance spill response partnerships at the local level. Under the terms of the agreements, DEC trains local responders, can activate local emergency response resources as needed to supplement the department's own response capability, and can reimburse costs incurred by the local government in actual response to spills. The combined response resources of local governments substantially enhance the state's overall spill response capability." 1768 Representative Williams Referred to fees for programs in the Division of Environmental Health. Asked how are customers reacting to fee increases. Noted that fees have doubled. Referred to reductions in FY00 1787 Commissioner Brown Noted that the increment for Hydaburg was denied. The food inspection program was made fee supported. Customers are not happy about the increase. Meat inspections were also turned over to the federal government due to budget reductions. Facilities were also rated by risk. Lower risk facilities were reduced. The fee is not an inspection fee. It goes to run the whole program, which includes other functions. 1955 Representative Williams What is the department going to do differently? Will the department prioritize? He questioned budget decisions by the department. 2036 Commissioner Brown Responded that the department identified public health programs and water and air permitting as areas to reduce. Noted that EPA would takeover air and water permitting. If air permitting is turned back to the federal government the state could lose highway funds. The water program would be the first choice for elimination because the federal government would takeover the permitting. 2116 Representative Williams Noted that legislation was passed to allow a study of water primacy. 2136 Commissioner Brown Industry has decided that the state would not support water primacy and did not fund the study. 2149 Commissioner Brown The FY00 reduction of $339 thousand dollars resulted in the loss of the state water program. The state did not have primacy. It would take $2 million dollars to gain state primacy 2175 Co-Chair Mulder What did we lose? 2187 Commissioner Brown The state lost the ability to certify federal permits, that provide flexibility that industry relies on. The reduction was the straw that broke the camel's back. 2241 Co-Chair Mulder Are there other sources of funding to maintain services? 2252 Commissioner Brown Fees were the only other alternative. The department feels that the public information officers (PIO) are important. One PIO is eliminated from FY00, but the funds cannot be transferred. 2294 Commissioner Brown Explained that the federal government funds technical positions and information officers, but that the funding cannot be transferred. 2350 Commissioner Brown In response to a question by Co-Chair Mulder, clarified that there are two PIO positions in the current budget and one in FY00. TAPE CHANGE, HFC 00 -6, SIDE 1 35 Representative Williams Questioned if travel was reduced. 64 Commissioner Brown Stated that there was an unallocated reduction. 99 Representative Williams Noted that a Dutch Harbor inspector was eliminated. 109 Commissioner Brown Noted that Dutch Harbor was eliminated when the priority was transferred away from low risk facilities. There is not enough facilities left in Dutch Harbor for a full time position. 214 Co-Chair Mulder Noted that inspections by EPA and DEC differ in the time that they take. 255 Commissioner Brown Stated that the inspections do not usually duplicate efforts and stressed that inspection times differ due to different emphasis. 280 Representative G. Davis Noted that departments were given the ability to institute fees and emphasized that fees are being increased for people that are not receiving services. 363 Representative J. Davies Pointed out that the departments cannot do everything that they are doing and reduce their funding. Policy can be made by the legislature or by the departments. If the legislature leaves it to the departments to make the decision the legislature cannot come back and complain. 479 Representative Williams If the department cannot do the service sufficiently it should be turned back to the cities. 543 Co-Chair Mulder Acknowledged that budget reductions will result in fewer services, but argued that it is appropriate to questioned the decision process for reductions taken by the department from unallocated reductions. 612 Representative J. Davies The budget process drives how decisions are made. The cost to maintain the inspections is a fraction of the cost to be fee based. The problem is that the general fund cap would not allow for it. 705 Co-Chair Mulder Noted that fees would be doubled. 728 Representative J. Davies Argued that the service would be better. 795 Commissioner Brown The department does not have discretion to charge fees to make up shortfalls. The department does not want to raise fees, but the funding source was switched from general fund to statutory designated program receipts. Anchorage does a food inspection program. Their fees are similar to the department's. The only places cut in service were low risk facilities and meat and poultry packaging facilities, where federal inspectors are providing the service. 890 Commissioner Brown Continued with written remarks: "These are performance measures and results for the calendar year 1999 through October, so it is only partial year information. For safe water, we can report on two measures. First, the measure was a decrease in the number of Boil Water Notices issued, the population affected and the duration. Tracking that measure indicated a result of a decrease from 1998: 29 notices affecting 3,439 people were issued in 1999 and 39 notices affecting 9,908 people were issued in 1998." 916 Commissioner Brown "The second measure is the percentage increase of Class A & B public water systems in compliance with health-based standards. The result showed 94% are in compliance, exceeding our goal of 91%." 942 Commissioner Brown "For safe food, we can report on four measures. The first was the percent decrease in violations that affect food safety and wholesomeness. The result indicated a decrease in violations at inspected food service facilities from 49% in 1997, to 46% in 1998, to 32% in 1999." 999 Representative G. Davis Questioned how the department handles complaints. 1015 Commissioner Brown Stated that the department has a routine inspection program and responds to complaints. 1023 Commissioner Brown Continued talking about measures of success. Identified the number of pounds of food products detained or destroyed before reaching the consumer because of contamination or incorrect processing as a measure of success. "The result showed, in 1999, 60,034 pounds were detained and 28,814 pounds were destroyed. In 1998, 680,006 pounds were detained and 234,442 were destroyed." 1045 Commissioner Brown Another measure is the number of approved harvesting areas closed because of PSP levels. The result showed none were closed in 1999 and one was restricted in 1998. 1080 Commissioner Brown Observed that there were no reported deaths or illnesses associated with inspected food products in 1999 or 1998. 1129 Commissioner Brown Continued from written remarks: "For safe public facilities, we report on three measures. First, the percent decrease of critical violations in inspected public facilities that affect the health or safety of the public. The result was a steady decrease from 77% in 1997 to 59% in 1998 to 24% in 1999. Second, the increase in percentage of landfills with permit or an alternative to a permit. The result was an increase of 6% from 1998. Third, the percent increase of landfills with an inspection score of 80 or higher. The result was 55% had a score of 80 or higher, a 1% increase from 1998." 1152 Commissioner Brown "In the FY 2001 budget, we have proposed several measures for discussion with our subcommittees. Those measures address public health through measuring progress in sanitation, controlling air emissions and food safety." 1174 Commissioner Brown Measure: Provide basic water and sewerage service to an average of 500 households in rural communities each year. Current Status: The average number of households provided with new water and sewerage service for the last two years is 240." 1201 Commissioner Brown Measure: Reduce carbon monoxide pollution in Anchorage to meet health standards by end of 2003. Current Status: Anchorage - 1997 and 1998 met health standard; 1999 one day above standard as of Oct 31. 1226 Commissioner Brown Measure: Percentage decrease in critical violations at inspected food establishments. Current Status: Food service facilities (inspected through October, 1999) had 14% fewer critical violations than in 1998. 1296 Commissioner Brown Spoke in support of performance measures. Dilemma is that there is no monitoring system in some cases. 1368 Representative Foster What were the department's belt tightening measures in FY00? 1385 Commissioner Brown Some short term reductions to FY00. 1413 Representative Foster How much do fines and penalties add up to? KURT FREDRIKSSON, ACTING DEPUTY DIRECTOR, DEPARTMENT OF ENVIRONMENTAL CONSERVATION Estimated fines and penalties at $200 - $300 thousand dollars. 1440 Representative Phillips Asked on a scale of 1 - 10 how would the public rate the department? The business of state government is to provide services. 1467 Commissioner Brown Emphasized that people value clean water, safe food and clean air. The department would rate itself at a 7 - 8. Point is who is going to pay. People want the programs but they don't want to pay for them. People who work with the Department of Environmental Conservation rate the department higher than those that do not. Those that don't are afraid of them. 1538 Ms. Frank Different work groups are helping to bring recommendations to the department. 1560 Representative Grussendorf Customers deal directly with the department and the general public should be included. 1604 Commissioner Brown Most requests are to regulate things that the department does not do. 1625 Representative Foster Asked if there is an overlap of functions with the federal government 1669 Commissioner Brown There is a mix. Important to certify water quality, but EPA could do them. Other area where local entities will not take over services due to an economy of scale. 1735 Representative Grussendorf Have customers ever said they would prefer to work with EPA? Is the move to federal takeover a disservice to Alaskans? 1759 Commissioner Brown Only the environmental groups have indicated that they would like to see control by EPA. MILITARY AND VETERANS AFFAIRS 1863 ADJUTANT GENERAL BG PHIL OATES, COMMISSIONER, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS Noted that there are more opportunities for the department and National Guard then ever in the past without the addition of more general funds. 1893 Commissioner Oates Discussed the department's mission: Provide strategically positioned, relevant, and ready inilitaiy forces capable of homeland defense, rapid deployment, joint operations, and mission accomplishment in the state or throughout the world; and provide organizations capable of performing emergency services, training at-risk juveniles, coordinating veterans programs and assisting other state and federal agencies in suppressing the use of illegal drugs. 1913 Commissioner Oates The majority of the 4,200 jobs are generated through federal programs. Noted programs are located in 76 communities across the state. Recounted programs that contribute to the mission: Commissioner's Office and Military Headquarters; Army Guard Facilities Maintenance; Air Guard Facility Maintenance; Disaster Planning & Control; Alaska Military Youth Academy; State Active Duty Guard Benefits: Educational and Retirement and Veterans Services 1983 Commissioner Oates Customers are every citizen of the state. There is also a national mission. 2022 Commissioner Oates Discussed measures of effectiveness. 2063 Commissioner Oates Discussed Alaska Military Youth Academy. There is a backlog of cadet's. There is a federal goal of 200 graduates a year. Answered the question: Are we maximizing outside source of funding? Yes. The department is receiving $200 thousand dollars in federal funds for the school lunch program. Noted that the department is also receiving funding of between $216 thousand dollars and $400 thousand dollars through the school foundation formula and $25 thousand dollars through drug and alcohol grants. 2190 Co-Chair Mulder With additional funding how many more enrolled in the Alaska Military Youth Academy? 2199 Commissioner Oates Noted that the goal is for 200 graduates per year. Important benchmark is how to increase services without an additional cost to the state. Federal funds will be sought for federal missions. 2248 Commissioner Oates Other measures of effectiveness: $93 million dollars of drugs were taken off the street, have increased federal dollars, and brought the state to a greater level of disaster and emergency readiness. Y2K helped to increase emergency readiness with less funding than other states. 2335 Commissioner Oates Noted that a measure of the quality of the National Guard recruits is their level of education. TAPE CHANGE, HFC 00 - 6, SIDE 2 000 Commissioner Oates Discussed efforts of the Department to follow its mission. The Department is attempting to provide strategically positioned, relevant, and ready military forces capable of homeland defense, rapid deployment, joint operations, and mission accomplishment in the state or throughout the world; and provide organizations capable of providing emergency services. 225 Co-Chair Mulder Requested the list of deferred maintenance needs throughout the State. 251 Commissioner Oates Replied that he would provide that and would address all facilities throughout the State including the rural communities. 300 Commissioner Oates Spoke to about the Alaska Military Youth Academy (formerly the Youth Corps.) The Department would like to do better tracking of that resource, but does not have adequate funding to make that possible. This program trains at-risk juveniles. Benchmarking takes resources. 389 Representative Phillips Asked if the tracking could be accomplished through an auxiliary group. 413 Commissioner Oates Commented that the University could take it over as a graduate level program. An additional effective measure was that every mission was accomplished and there were no loss of lives of the employees of that department. The department saved the lives of 150 Alaskans this past year. The department will continue to develop these measures to accomplish the missions. 526 Commissioner Oates Listed the accomplishments of the Department. He encouraged members to be proud of the National Guard and all that they have done throughout the State. He stated that there is a lot of money invested that has increased the benefits to vets throughout the State. 645 Commissioner Oates He noted that his work prioritizes emergency management. The Department has considered acquiring more federal funding. He spoke to full funding for biological attacks upon citizens of the State. Quick reaction will save many lives. That program will operational in April 2000. 810 Commissioner Oates In response to a question by Representative Austerman, Commissioner Oates stated that the program would be fully funded with federal funds. 825 Representative Phillips Asked if that would be available to local governments throughout the state. 844 Commissioner Oates Stated that it is designed to directly assist all communities and even other states. 875 Commissioner Oates Another significant mission is that of the national missile defense. That will add a third level to the strategic defense. This will contribute to the power and provide a foot in space for the National Missile Defense System. This will bring high technology to the state. The department is hoping to add an additional position to work on this dimension to create future opportunities within the state. That will take place April of this year. He stressed that there is a lot of opportunity on the plate. It is all-federally funded. 1048 Commissioner Oates Spoke to the mission of the Clear Air Force Station and how that will affect the space surveillance. This will have a significant impact. It will be phased into in the next four years. The Department is looking at weapons of mass destruction, rapid assessment and initial detection. Over the next five years, there is the potential to add 726 new jobs to the state. He added that there is a possibility of an expanded combat communications service within the Pacific Theater. 1203 Commissioner Oates Spoke to duplication. He added that duplication is not essentially bad. The military model is the reason that many programs are successful. 1277 Commissioner Oates Emergency management has some duplication due the tiered level of services. 1308 Commissioner Oates Maintained that there is no better options to accomplish results. 1332 Representative Foster Thanked the Commissioner for his assistance. 1389 Co-Chair Mulder Discussed suppression of illegal drug use. How did this function end up in the Department of Military and Veterans Affairs and how does if fit into the mission? 1451 Commissioner Oates No bigger threat to the nation than drug use. It is federally funded. The Department of Military and Veterans Affairs provides direct support. They train students and teachers. Military equipment is provided to other departments. The department does not go into houses and break the doors down. Homeland defense from the federal mission. 1575 Vice Chair Bunde Discussed recruiting. Noted that it is a challenge. 1600 Commissioner Oates The Air National Guard did not meet its goal for enrollment. Recruits have greater requirements. It is a challenge that must be emphasized. 1668 Representative Foster Noted that it is difficult to find areas to reduce in the Department of Military and Veterans Affairs' budget. He added that the department leveraged a large amount of federal funds. 1735 Commissioner Oates Any cut in dollars would put at risk the missions and jobs, deferred maintenance and result in the cut of programs. He added that $200 thousand dollars in additional funding from their retirement actuarial were put into youth programs. The Youth Corp needs to be expanded. The department is looking to other funding sources. 1817 Representative Foster Noted that the department was cut last year. 1826 Representative Phillips Expressed appreciation for the Youth Academy. 1879 Co-Chair Mulder ADJOURNMENT The meeting adjourned at 4:35 p.m. HOUSE FINANCE COMMITTEE LOG NOTES January 13, 2000 House Finance Committee 21 01/13/00