GENERAL SUBJECT(S): REVIEW OF DEPARTMENTS ACCOMPLISHMENTS DEPARTMENT OF HEALTH AND SOCIAL SERVICES DEPARTMENT OF REVENUE 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 - 9, Side 1 HFC 00 - 9, Side 2 HFC 00 - 10, Side 1 PRESENT: X Representative G. Davis Absent Co-Chair Therriault X Representative Foster X Co-Chair Mulder X Representative Grussendorf X Vice Chair Bunde X Representative Moses X Representative Austerman X Representative Phillips X Representative J. Davies X Representative Williams ALSO PRESENT: KAREN PERDUE, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVICES; JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES; PAM WATTS, EXECUTIVE DIRECTOR, GOVERNORS ADVISORY BOARD ON ALCOHOL AND DRUG ABUSE; WILSON CONDON, COMMISSIONER, DEPARTMENT OF REVENUE; LARRY PERSILY, DEPUTY COMMISSIONER, DEPARTMENT OF REVENUE; MICHAEL MAHER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF REVENUE. LOG SPEAKER DISCUSSION TAPE HFC 00 - 9 SIDE 1 000 CO-CHAIR MULDER Co-Chair Mulder convened the House Finance Committee meeting at 1:40 P.M. DEPARTMENT OF REVENUE 165 WILSON CONDON, COMMISSIONER, DEPARTMENT OF REVENUE Addressed the mission of the Department. He explained the role of that Department for the State of Alaska: *Tax division - charitable gaming laws; *Treasury division - manages the State tax flow; *Child Support Enforcement Division- distributing child support payments and establishing and modifying child support obligations. *Permanent Fund Division; and *Policy assistance for other Divisions within the Department. He continued that there are a number of *Boards within the Department of Revenue: *Alaska Housing Finance Corporation (AHFC) *Alaska Permanent Fund *Alaska Mental Health Trust Authority *Bond Bank Authority *Alaska State Pension Investment Board *ABC Board 523 COMMISSIONER CONDON Focused on the tax divisions. It is expected that the correct tax amounts are deposited into the State Treasury. He advised that the customers are everyone in the State who uses public services. 582 COMMISSIONER CONDON Charitable Gaming Program - Charities should be the beneficiaries. There is a responsibility of the Department to guarantee that the games are run lawfully. The final set of customers are the municipalities for tax distribution. There are 140 municipalities that the State shares taxes with. He stated that when collecting the correct tax, there must be an effective program. The taxpayer needs to know their obligation. To measure how effective the program is, is determined if there is enough money to pay the States bills. 749 COMMISSIONER CONDON Spoke to how the programs are currently running. Most of the money comes from a few large taxpayers and that those returns are usually audited. Determining effectiveness is concluded by how soon an audit is brought to a final conclusion to close the matter. Commissioner Condon pointed out that is how the tax program has been run for the past five years. At present time, subscribers are audited for returns from the past two years. With respect to the corporate income tax, the Department is now auditing for the past three years. With respect to the income tax, taxpayers file a number of audited returns. He stressed that it is more complex than a severance tax. He noted that the Department is now on target with the income tax. 929 COMMISSIONER CONDON Commented that there are there are several initiatives coming forward addressing tax concerns. He noted that it is difficult to determine where the State will end up with regards to the merger. The Department might need to move quickly in order to address the new marketing situation. The Department is attempting to address the motor fuel tax so as to make it more user friendly. 1018 COMMISSIONER CONDON In regard to the severance tax obligations, it is being attempted to make them more accessible to the taxpayers. He stated that there is efficiency available now and that it will be achieved this year. He explained the 20-mil property tax. Taxpayers are allowed to come in to put the facilities forward putting the field in place. They are allowed to take a depreciable value to reduce that tax obligation. The taxpayers are legally entitled to do this. The taxpayer is going to be aggressive. A few of those cases have come forward, however, he could not address specifics at this time. Commissioner Condon noted that the production facilities at Prudhoe Bay will be checked this next year. 1197 CO-CHAIR MULDER Questioned if such action would need the Legislature to change something in law at this time. 1215 COMMISSIONER CONDON Did not know but offered to get back to the Representative at a latter date. 1235 REPRESENTATIVE J. DAVIES He asked how that would impact service areas in the municipalities. 1258 COMMISSIONER CONDON Replied that the Department has not looked at that concern but would in the future. 1290 COMMISSIONER CONDON Addressed the taxing concern in ordering cigarettes over the internet. 1311 CO-CHAIR MULDER Inquired the trends that the Department anticipated for this year. 1332 REPRESENTATIVE AUSTERMAN Asked the total tax collected. 1340 COMMISSIONER CONDON Replied that in 1999, the total taxes collected were $800 million dollars. 1360 REPRESENTATIVE AUSTERMAN Asked about shared taxes. 1368 COMMISSIONER CONDON Responded the amount shared-back is about $20 million dollars per year. 1387 COMMISSIONER CONDON He noted that this year, tax revenue should be $300 million higher because of increased revenues. 1414 COMMISSIONER CONDON In response to Representative Foster, Commissioner Condon stated that in 1989, total oil revenue was $19 million dollars. 1451 REPRESENTATIVE AUSTERMAN Questioned if the royalties had been included in the above figure. 1462 COMMISSIONER CONDON Noted that the royalties are not a tax. 1470 REPRESENTATIVE G. DAVIS Suggested that the oil royalties appear connected to that number. It is oil- related revenues. 1495 REPRESENTATIVE J. DAVIES Asked if there would be a change resulting from the merger in respect to income tax. 1512 COMMISSIONER CONDON Explained that the Department is not sure about that. He noted that the State income revenue could have been $20 million dollars less by combining those two companies. Merging does make the companies more profitable. It will change a portion of income in the State revenue. It can not be efficiently determined at this time. 1605 LARRY PERSILY, DEPUTY COMMISSIONER, DEPARTMENT OF REVENUE Provided a little tobacco tax information. He noted that $15 million went into the general fund and $32 million dollars went into the school fund. Next year, there is a projected a slight drop to the general fund. 1665 COMMISSIONER CONDON Addressed charitable gaming. There is about $300 million dollars of gaming done in the State. 70% of that money is paid out in prizes, the rest is paid to the charitable entity. 1702 VICE CHAIR BUNDE Questioned if the charitable entities were receiving the amount legislatively agreed upon. 1720 COMMISSIONER CONDON Responded that the situation has become a "nightmare". A floor was established and the profit above that goes to the people running the organization. These people are being paid a lot and many times too much. He questioned how to correct this situation and still continue to create an incentive. 1814 REPRESENTATIVE AUSTERMAN Addressed electronic gambling and how much that would cost. 1827 COMMISSIONER CONDON Stated that the Department has not checked how much that would cost, but has looked at other states that use this system. He indicated that it is very complicated. 1857 MR. PERSILY Replied that the Department has looked into a multiple scenarios, and that the MPB's have generated an additional $1.1 million dollars for charities last year. 1887 REPRESENTATIVE J. DAVIES Commented that his office had received many complaints that the larger operators are taking over the smaller ones. He voiced concern regarding this matter. 1916 VICE CHAIR BUNDE Commented on the idea of a State lottery. 1935 COMMISSIONER CONDON Responded that would not be enough money to address the State's needs. That action would generated more closely to the $30-$40 million dollars. 1957 COMMISSIONER CONDON Noted that the Treasury Division helps raise money for the infrastructure. The Treasury customers are all Alaskans, through the state political subdivisions of the PERS and TERS and other political subdivision that use the bond bank authority. The Division has about $19 billion dollars and manages $17 billion dollars directly and $2 billion through the State compensation division. He addressed the various boards in that area. The commissioner is responsible for 17 separate reserve funds. All these funds are managed against a benchmark. He indicated that the retirement fund had a benchmark return for 1999 of 10.2%. The target of the CBRF was 3.55%. Public school trust fund and the children's trust are established with a target of 12.8%. 2119 COMMISSIONER CONDON Concluded that summary addressed the investment goals and asset allocation policies. 2130 REPRESENTATIVE J. DAVIES Asked if there was anything that the Legislature could do to change the rate of return on the CBR. 2145 COMMISSIONER CONDON Stated that he would not recommend that if the State might need to access it over the next five years. It is currently placed into 100% fixed income activity at this time. 2165 COMMISSIONER CONDON It is managed against the Merrill Lynch 1.5-year income. The CBR fund is allocated between two pools, treasury notes and bonds. The return last year to that fund was 3.55%. The target was 4.66%. The Department did not meet the targeted fund. That was the net return. 2253 CO-CHAIR MULDER Voiced concern with such a low-income return on that account. He asked if there was something the Department could undertake to improve the performance. 2276 COMMISSIONER CONDON Stated that it could be invested more aggressively but that would not be appropriate or logical if it is assumed that fund will need to be used within the next five years. 2295 COMMISSIONER CONDON Spoke to Child Support. He noted that the customers are the 50,000 children who are covered by a child support order and the parents of that child. He stressed that it is the job of the Department to do a good job in collecting that money. 2334 CO-CHAIR MULDER Spoke to the satisfaction of those paying into that account. 2343 COMMISSIONER CONDON Explained that last year, there was much stress on the performance measures. TAPE HFC 00 - 9 SIDE 2 000 COMMISSIONER CONDON Stated that in FY99, $45 million dollars was collected, which was approximately + of the amount ordered. 087 REPRESENTATIVE AUSTERMAN Asked the benchmark percentage for that Division. 101 COMMISSIONER CONDON Answered that 46.2% was collected. He acknowledged that the target would improve this year. 137 CO-CHAIR MULDER Applauded the Department, noting that the important point is to establish a benchmark. 164 VICE CHAIR BUNDE Interjected that the target should be 100%. 179 COMMISSIONER CONDON Acknowledged that this is just where the State is at this time. Arrearage information, which has been collected, is not yet available. The money repaid to the federal government was 30.6%. Commissioner Condon addressed the proportion of cases billed which are current. 308 COMMISSIONER CONDON Spoke to child support. He noted that the entire year was spent trying to get on the new computer system. It has been a several year process getting into that new system. He warned that the switchover had consumed all of FY99. DOR now has been certified by the feds and Alaska is one of thirteen states that have been certified. He noted that work has placed the State behind in other certain responsibilities and that many people have been affected by the conversion. 448 VICE CHAIR BUNDE Spoke to the backlog of arrearages for CSED. He inquired if the Department intended to write some of these off as uncollectable. 522 COMMISSIONER CONDON Stated that if the case is closed the balance can be written off. One of the reasons that the arrears are so high is that if the information is not supplied, which sometimes it is not or is so complicated that the common person can not read or understand was is needed. Many times the situation has been ignored. He acknowledged that the work must be prioritized and that the top of the list relates to actions that can pay people at present. 676 REPRESENTATIVE J. DAVIES Noted that both the State and the feds have provided extra tools to help the work of the Division identify those people that can be helped. 716 COMMISSIONER CONDON Permanent Fund Division (PFD) consists of 600,000 customers. 767 REPRESENTATIVE G. DAVIS Asked if there was a protocol in which PFD money was retained. 793 MR. PERSILY He replied that child support had the 1st position - 100% could be taken for that concern. Private collectors - 80% can be garnished for this concern. IRS - small amount of garnishes Student loans - 100% can be garnished. 879 REPRESENTATIVE WILLIAMS Addressed the PFD dividend calculation. He asked how the Department would like to see that calculation made. 940 COMMISSIONER CONDON Spoke to the calculation system used to determine the dividend. To manage the volatility of that account, market distribution is used. Currently, that system is okay. He observed that if business continues as it is, the State will need to use the PFD sometime within the future to make public services available. 1040 REPRESENTATIVE WILLIAMS Suggested that it might be a more stable atmosphere to calculate dividends. 1063 COMMISSIONER CONDON Replied that over the long term, it would be the same. Someday there is going to be volatility. 1089 REPRESENTATIVE PHILLIPS Asked if Senator Mackies proposal had been reviewed yet. 1108 COMMISSIONER CONDON Stated that plan has not yet been reviewed. 1119 VICE CHAIR BUNDE Asked about the alignment of the various boards, in specific the Alcohol Beverage Control Board (ABC). 1148 COMMISSIONER CONDON Agreed that entity was the board least appropriate within the Department of Revenue. 1173 VICE CHAIR BUNDE Inquired the percentage of federal funding of the Department of Revenue. 1186 COMMISSIONER CONDON Could not answer that however, thought that without including AHFC, probably about + of the budget is federally funded. DEPARTMENT OF HEALTH AND SOCIAL SERICES 1244 KAREN PERDUE, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVICES Commissioner Perdue focused on the outcome and key performance measures of the Department. She provided a thumbnail shot of accomplishments of the Department. *KidCare expanded health care coverage to uninsured children and pregnant women making infant mortality is down; *Improved the response t reports of child abuse and neglect; *Completed first full year of operation of Family Services Training Academy; *Increased training for child protection workers; *Launched statewide "Foster a Future" foster care recruitment campaign; *Provided services to additional 169 consumers who had been on the developmental disabilities waitlist for services; *Reduced overcrowding in juvenile detention and treatment facilities by opening a new 22-bed treatment unit addition to the existing Johnson Youth Facility in Juneau and adding 20 new detention beds at McLaughlin Youth Center in Anchorage; *Implemented an aggressive immunization campaign at the State and local level; *Reduced Temporary Assistance caseload to 8,721 families; *Reduced expenditures for Temporary Assistance payments from $90.9 million dollars in FY98 to $74.3 million dollars in FY99; *Initiated a successful program to assure that all "mission-critical" systems were Y2K compliant; *Expanded State's response to fetal alcohol syndrome by conducting more than 200 medical chart reviews as part of FAS Surveillance Project. 1407 COMMISSIONER PERDUE She reiterated that there are still a number of areas for concern and that child mortality is high in the State. 1463 COMMISSIONER PERDUE Department's mission is "to promote and protect the health and well-being of Alaskan Citizens." 1513 COMMISSIONER PERDUE Reviewed the key performance measures. In the juvenile justice mission, 86 percent of restitution was collected and 95 percent of the community work service hours were completed. 1566 COMMISSIONER PERDUE Added that the Department doubled the number of youth courts. 1592 COMMISSIONER PERDUE Pointed out that the crime rate is coming down and that misdemeanors are way down. 1611 COMMISSIONER PERDUE There has been a stabilization of the daily census, with only a 30% overcrowdedness. She noted that beds have been added in four locations. 1649 CO-CHAIR MULDER Measurements pertain mostly to restoration. He asked what is the reciticism rate. 1671 COMMISSIONER PERDUE Explained that was a performance measure which the Department is working toward. A baseline of 55% has been established to respond to the offender. That number includes the amount of children that come into the system for a full education assessment. She pointed out that there are many levels of academic achievement. 1734 REPRESENTATIVE PHILLIPS Asked if the military family's youth statistics had been taken into consideration. 1748 COMMISSIONER PERDUE No not at this time, however, those kids are referenced. 1761 COMMISSIONER PERDUE Pointed out that the probation system is now accredited. 1789 COMMISSIONER PERDUE Advised that 90% of all calls are now answered. She addressed things that are working well in the child protection area, such as a pilot project to help investigate priority III's in the Mat-Su. She elaborated that now in that area, every call is being answered. This new system is working. 1848 CO-CHAIR MULDER Asked how much money had been contracted with through the other agency. 1858 COMMISSIONER PERDUE Replied that this was expensive and amounted to a $250 thousand dollar project. 1873 COMMISSIONER PERDUE Reiterated the things that are going well. Every social worker is being trained now at the University of Alaska in Anchorage. 1920 COMMISSIONER PERDUE In foster care, there are more children needing care than before and that those cases are now being moved more quickly. 1940 REPRESENTATIVE PHILLIPS Asked how the number of foster care has been traced. 1959 COMMISSIONER PERDUE Advised that there has been a 32% increase in the number of adoptions. A good percentage of the 600 children needing placement has been addressed from foster care to adoption. She noted that the subsidized adoption program has really helped. Most of these children come with large needs, mostly medical needs and the current system makes it financially possible to adopt. 2034 REPRESENTATIVE G. DAVIS Asked about the protocol and procedures used in adopting a child and the problems with previous records and abuse. 2065 COMMISSIONER PERDUE Noted that people can change. She acknowledged that this is a difficult point of consideration. Every state is struggling with these concerns. Each adoption goes through a very complete home study and that each case is addressed on an individual basis. 2123 REPRESENTATIVE G. DAVIS Encouraged that the side of safety always be followed. 2139 CO-CHAIR MULDER Continued the conversation regarding the adoptive process and the anguish involved in that decision. 2165 COMMISSIONER PERDUE Stated that there is no greater duty than being responsible for the children in foster care. In reference to past history concerns, Commissioner Perdue pointed out that there are well meaning people who experience that in which "life happens". 2191 VICE CHAIR BUNDE Addressed the legitimate cries of harm. He asked if it is true that foster homes standards are sometimes lowered in order to accommodate all the children in need. 2222 COMMISSIONER PERDUE Acknowledged that the State is desperate. Sometimes the placement is questionable. She added that the Department was working with Rep. Dyson on Foster Care criteria so that the good foster parents are not lost through the cracks. 2259 VICE CHAIR BUNDE Pointed out that the State would ideally like to have people that do not have problems with substance abuse. 2275 COMMISSIONER PERDUE Stated that there are waivers. There is a standard and the Department tries to be flexible within that so as to place all children. 2299 COMMISSIONER PERDUE Spoke to workers safety. She noted that this is a growing issue for Department of Health and Social Services workers. She listed the numerous threats which the division workers have received. She noted that many social workers visits are done alone. TAPE HFC 00 - 10 SIDE 1 000 COMMISSIONER PERDUE Spoke to the transcription services. 043 COMMISSIONER PERDUE Vacancy rates are down from training and extra help. 067 COMMISSIONER PERDUE Spoke to the immunization program, pointing out that there has been success in lowering the States position for outbreaks. 143 VICE CHAIR BUNDE Pointed out that there is a growing resistance to having children immunized. He asked for comments regarding that concern. 197 COMMISSIONER PERDUE Stated that was not a new concern. The State immunologists recommend that all kids should be given the innoculation. The resistance is sure to continue, as the State is proposing more vaccinations. 294 VICE CHAIR BUNDE Expressed that this is a growing concern, as people become more informed regarding the health of their child. 336 COMMISSIONER PERDUE Interjected that largest measles outbreak occurring in the nation was in Anchorage brought in by a little boy from Japan. 377 COMMISSIONER PERDUE Spoke to the Denali Kid Care. That program consumes a moderate amount of dental use, but there has not been a drop in personal insurance. The cost per child has been between $600-$700 dollars per year. This is a large pool coverage and that the Indian Health Service covers all Native children. 471 CO-CHAIR MULDER Asked how many children participate in that program. 488 COMMISSIONER PERDUE Replied 12,000 496 REPRESENTATIVE G. DAVIS Asked who provides the initial referral. 509 COMMISSIONER PERDUE Explained that it was provided by insurance. There are no systems that must be used. 527 REPRESENTATIVE AUSTERMAN Questioned if all dentists were required to accept these children as patients. 550 COMMISSIONER PERDUE Responded that there has been some problems and that the issue of access must be watched. 577 COMMISSIONER PERDUE In response to Representative J. Davies query, she noted that program was 75% federally funded. 602 REPRESENTATIVE PHILLIPS Suggested that the premium was high for a child. 625 COMMISSIONER PERDUE She replied that was the yearly cost of $600 dollars not the monthly cost. 650 CO-CHAIR MULDER Reiterated that it was high. 661 COMMISSIONER PERDUE Explained that these are not premiums, but are the actual costs of the service. 705 CO-CHAIR MULDER Asked if the cost was lower because the Native population was serviced by the Native hospital. He asked how big the total appropriation is per child. 753 COMMISSIONER PERDUE Responded that the federal government covers the full cost. The Health Aid system provides much of the work. 778 CO-CHAIR MULDER Asked if that money passed through the general fund. 790 COMMISSIONER PERDUE Explained that Medicaid dollars do pass through the general fund. If the unit costs covers all beneficiaries, the federal contribution triples. 860 CO-CHAIR MULDER What is the total amount spent for kids health. 875 COMMISSIONER PERDUE Replied around $50 million dollars. 887 CO-CHAIR MULDER Suggested that was a high amount for payment for kids only. 904 REPRESENTATIVE AUSTERMAN Asked how it compared to insurance costs. 935 COMMISSIONER PERDUE Noted that the active versus the retirees system is different. 957 COMMISSIONER PERDUE Spoke to the youth smoking rate, which has been reduced by 10%. She commented that this is an area to determine if the performance measure is what is expected. In the sample of preliminary data, there is a decline in the area of middle school kids smoking. 1017 VICE CHAIR BUNDE By excluding Anchorage, then smokeless tobacco is excluded. 1051 COMMISSIONER PERDUE Agreed. The data will be available in a couple of months. 1072 REPRESENTATIVE G. DAVIS Addressed efforts made by the anti- smoking groups. He recommended that could be big assets to the Department. 1096 COMMISSIONER PERDUE Pointed out that Anchorage is about to survey for data. At this time, it is a mess. 1117 COMMISSIONER PERDUE Spoke to decreasing the publicly funded hospital rates. She noted that downsizing has been successful. The length of stay at API has decreased but the facility is more used more often than before. 1196 REPRESENTATIVE J. DAVIES Voiced concern that the long-term need is not being met. He asked if there are measures to come before the Committee addressing that concern. 1215 COMMISSIONER PERDUE Referenced the comprehensive mental health plan. There has been a great amount of work done on outcoming measures. 1247 REPRESENTATIVE J. DAVIES Asked how that would information would include various boards in order to be able to utilize that information and experience. 1275 COMMISSIONER PERDUE Agreed that information should be included. Some agencies have spent tremendous time and money in surveying conditions throughout the State. 1306 CO-CHAIR MULDER Recommended that perhaps on the Subcommittee level that consideration could be made. 1331 CO-CHAIR MULDER Stated that the Mental Health Trust Authority has helped tremendously. 1327 COMMISSIONER PERDUE Spoke to the per capita consumption concern and that the trend is moving downward. She noted that there is good outcome information available on treatment. She addressed outpatient success rate. 1425 VICE CHAIR BUNDE Asked about the consumption per capita. 1450 COMMISSIONER PERDUE Stated that she did not know. 1456 VICE CHAIR BUNDE Spoke to alcohol consumption and the effects on the youth. He stated that it is a challenge. 1500 COMMISSIONER PERDUE Stated that the alcohol problem in Alaska is a huge issue, however, public dollars has made a dramatic difference in the State's problems. 1535 CO-CHAIR MULDER Voiced concern with the effectiveness of funding the alcohol control issues in the schools. He asked if there are alternatives that should be looked at. 1571 COMMISSIONER PERDUE Responded that the Department is tracking what it is getting. She acknowledged that there is a lot of tension with how those resources are being spent. She addressed the various arguments being discussed within the State and the Criminal Justice group. The tension exists because there is not enough money to go around. 1665 COMMISSIONER PERDUE Spoke to the Title 47 usage which is declining as communities begin addressing more appropriately where individuals should be placed. She commented on various programs which address basic life skills. 1704 CO-CHAIR MULDER Asked the recidivism rate and the length of time associated with it. 1724 PAM WATTS, EXECUTIVE DIRECTOR, GOVERNORS ADVISORY BOARD ON ALCOHOL AND DRUG ABUSE Spoke to the amount of time involved in the recidivism findings. 1753 CO-CHAIR MULDER Spoke to the consumption population problems. 1784 COMMISSIONER PERDUE Briefly addressed Public Assistance. She noted that it has been beneficial providing the electronic benefit cards. 1875 COMMISSIONER PERDUE Spoke to the tracking medical assistance, which tracks to make sure what, is occurring with the benchmark services. 1902 REPRESENTATIVE G. DAVIS Noted that the legislature is looking for a task force to look at benefits for the statewide system. 1925 COMMISSIONER PERDUE Was not aware of that. 1930 REPRESENTATIVE AUSTERMAN Voiced concern with the area of extended care and the cost associated with that. 1947 COMMISSIONER PERDUE Spoke to the Nursing Care Program. She stated that Medicare does not cover long- term care and that Medicaid ends up paying the full load for many people. 1989 REPRESENTATIVE AUSTERMAN Asked if this was a statewide issue. 1997 COMMISSIONER PERDUE Replied that Anchorage is one place where there are not a lot of facilities. The size of most nursing homes is under 16 beds. This is a concern which the Department has struggled with. 2036 REPRESENTATIVE AUSTERMAN Voiced concern with what will happen in the next 15 years. 2046 CO-CHAIR MULDER Pointed out that in order to be eligible to participate in Medicaid, there are certain eligibility requirements. He warned of the spiraling costs of health care. 2082 REPRESENTATIVE G. DAVIS Discussed the Medicaid budget on the federal level. He asked if the State will need to change the mind-set and life styles. He emphasized that this is a big problem. 2125 COMMISSIONER PERDUE Stressed that the Department is trying to support community alternatives. 2137 COMMISSIONER PERDUE Noted that the Department is aware of the issue of the aging population and the heavy-duty medical costs associated with those concerns. She applauded the Pioneer Homes throughout the State which allow people to stay in their own communities. 2175 COMMISSIONER PERDUE Medicaid does not cover the alzihmiers condition. She concluded that a pension could make a person ineligible for Medicaid. 2198 CO-CHAIR MULDER ADJOURNMENT The meeting adjourned at 3:55 P.M. HOUSE FINANCE COMMITTEE LOG NOTES January 18, 2000 H.F.C. 16 1/18/00