HOUSE FINANCE COMMITTEE January 17, 2001 1:34 PM TAPE HFC 01 - 11, Side A TAPE HFC 01 - 11, Side B TAPE HFC 01 - 12, Side A CALL TO ORDER Co-Chair Mulder called the House Finance Committee meeting to order at 1:34 PM. MEMBERS PRESENT Representative Eldon Mulder, Co-Chair Representative Bill Williams, Co-Chair Representative Con Bunde, Vice-Chair Representative Eric Croft Representative John Davies Representative Carl Moses Representative Richard Foster Representative John Harris Representative Bill Hudson Representative Ken Lancaster Representative Jim Whitaker MEMBERS ABSENT None ALSO PRESENT Representative Gretchen Guess; Karen Perdue, Commissioner, Department of Health and Social Services; Janet Clarke, Director, Division of Administrative Services, Department of Health and Social Services; Joseph Perkins, Commissioner, Department of Transportation and Public Facilities; Kurt Parkan, Deputy Commissioner, Department of Transportation and Public Facilities; Nancy Slagle, Director, Division of Administrative Services, Department of Transportation and Public Facilities. GENERAL SUBJECT (S): Review of Departments Accomplishments  Department of Transportation and Public Facilities Department of Health and Social Services The following overview was taken in log note format. Tapes and handouts will be on file with the House Finance Committee through the 22nd Legislative Session, contact 465- 2156. After the 22nd Legislative Session they will be available through the Legislative Library at 465-3808. LOG SPEAKER DISCUSSION  DEPARTMENT OF TRANSPORTATION & PUBLIC TAPE HFC 00 - 11  FACILITIES  SIDE A  000 JOSEPH PERKINS, Reviewed rewards received; update on COMMISSIONER, recent public opinion survey; update on DEPARTMENT OF measures from SB 261.  TRANSPORTATION AND PUBLIC FACILITIES 182 Commissioner Perkins Outlined the responsibilities of the department. He spoke to the mission of the department to develop, operate, maintain, and manage facilities, vehicles, and transportation modes.  268 Commissioner Perkins Outlined the number of outstanding awards that the department and the employees had received this past year.  399 Commissioner Perkins Emphasized that the department has the top engineers in the nation. He listed the committees in which he participates. Alaska should be proud of the accomplishments of the department.  478 Commissioner Perkins Discussed how the customers view the department. He mentioned that the department had improved over the past two years. Satisfaction with highways and roads has increased 52%. He noted that 78% were satisfied with the Alaska Marine Highway System. Those who use bikes and walking trails are more satisfied. Reviewed areas of concern. Only 7% of Alaskans had participated in a DOT plan process.  600 Commissioner Perkins Need to improve public awareness of the programs implemented by the department.  650 Representative Croft Thought that the process is made for frustration. He recommended taking another approach.  727 Commissioner Perkins Addressed the performance measures. All divisions are tracking legislatively assigned performance measures. The department has not determined how to measure the percentage but will provide that info next year.  786 Commissioner Perkins The percentage of state national highway system lane miles of roads that meet standards of the American Association of state highway and transportation officials. There are many that do not meet the progress.  855 Commissioner Perkins Reviewed the percentage of requested  engineering firm audits and desk reviews completed in the previous fiscal year.  886 Commissioner Perkins Discussed the percentage of required compliance reviews for responsiveness to disadvantaged business enterprise and on the job training contract requirements completed.  921 Commissioner Perkins Reviewed the environmental impact statement phase due on the Ketchikan Airport access by December 31, 2001.  1024 Commissioner Perkins Answered questions of the Committee regarding the Dalton Highway.  1089 Representative Asked the total miles the state is Hudson responsible for.  1102 Commissioner Perkins 600,000 miles.  1111 Commissioner Perkins Compared the percentage of cost effective private maintenance contracts at non- certified airports compared to the total number of non-certified airports.  1146 Commissioner Perkins Discussed the percent pass level of annual federal airport certification inspections for response and safety standards set out in federal aviation regulations.  1204 Commissioner Perkins Reviewed the 5% target for annual increase in cargo landings at the international airports measured on a three year rolling average.  1235 Commissioner Perkins Responded to Representative Hudson, noting that there would be an increased cost. The problem is with the structural engineering. The problem is complex and will need to be earthquake proof. The big contract has not yet been awarded. It is generating interest at this point.  1324 Commissioner Perkins Discussed the percentage of airport development master plans that are completed and airport layout plans that are adopted by Region.  1364 Commissioner Perkins Discussed deferred maintenance projects. The department received $8 million in FY01. The backlog has increased by 14 percent and public facilities continue to deteriorate.  1409 Commissioner Perkins Referred to mechanical systems and noted that 100 percent passed safety inspections  1429 Commissioner Perkins Reviewed airport regulations.  1445 Commissioner Perkins Noted that the legislation passed bond funding for the transfer of some harbors. No community has taken advantage of the bonding.  1472 Co-Chair Williams Asked the problem  1481 Commissioner Perkins Noted that the community has to bond and then the state repays their bond Some communities cannot bond; communities would like the state to bond and the communities take over the harbor.  1587 Co-Chair Mulder Continued discussion on community vs. state bonding. He noted that there would have to be statutory changes to allow the use of GAVEE bonds.  1653 Commissioner Perkins Concluded that once a problem is recognized it can be addressed.  1704 Representative Asked for information regarding fish Hudson taxes that have been paid.  1717 Commissioner Perkins Noted that regional numbers were collected for asphalt road surfacing. The total was 157 miles.  1757 Commissioner Perkins Discussed the Dalton Hwy. He noted that approximately 30 miles were paved. The Taylor Hwy had 10 - 15 miles paved. Additional paving will be under contract by this summer on the Dalton highway.  1837 Commissioner Perkins The northern region maintains highway and airport lane miles with 42.1 miles per full time equivalent position. The average is 38.1 per FTE position. The average of other western states is 21.7 miles. The state of Alaska is doing almost twice the work per employee of other states.  1982 Commissioner Perkins Stated that the department is not doing the maintenance that he would like to see. He would like to do more.  2026 Commissioner Perkins The state transferred 22.6 lane miles to other municipal governments.  2054 Commissioner Perkins Observed that the department would implement a maintenance management system to establish specific maintenance criteria. It should be completed by 2003.  2086 Commissioner Perkins In response to a question by Representative Lancaster, Commissioner Perkins felt that the transfer of lane miles would stay about the same.  2109 Commissioner Perkins Noted that a better schedule is needed for preventive maintenance on the fleet.  2134 Commissioner Perkins He did not know the average down time for light duty equipment.  2153 Commissioner Perkins In response to a question by Representative Whitaker, Commissioner Perkins explained that the state does maintenance on equipment that is not owned by the state. This is called light  duty equipment.  2203 Representative Asked if the cost per mile would be Lancaster available. Commissioner Perkins affirmed. He added that the equipment fleet for the department is stable.  2234 NANCY SLAGLE, Explained that agencies can continue to DIRECTOR, DIVISION hold onto vehicles after the replacement OF ADMINISTRATIVE cost has been fully depreciated. This SERVICES, DEPARTMENT would allow the fleet to enlarge OF TRANSPORTATION slightly.  AND PUBLIC FACILITIES 2280 Representative John Questioned if down time is a maintenance Davies measure. Ms. Slagle affirmed.  2308 Ms. Slagle Stated that the heavy-duty equipment fleet stays even.  2338 Commissioner Perkins The state equipment fleet has ranged from less than 10 percent to 86 percent of blue book rate.    TAPE HFC 01 - 11,  Side B  027 Commissioner Perkins Noted that actual performance was 145.53 inspections per full-time-equivalent employee. This is an increase.  071 Commissioner Perkins There were a total of 14,813 weighing and measuring devices inspected.  112 Commissioner Perkins Observed that 100 percent of the federal highway funds were obligated. The state received an additional $1.5 million dollars in federal funds.  170 Commissioner Perkins Noted that it is difficult to measure the percentage of projects in the capital budget that have been designed.  220 Commissioner Perkins Noted that 14 percent of total project costs were spent on development.  243 Commissioner Perkins Implemented a system which will provide information on difference between projection and actual.  283 Commissioner Perkins Observed that 55 percent of the design and engineering work was performed by private contractors.  344 Commissioner Perkins Noted that outsourcing is generally more expensive than doing the work in house.  365 Commissioner Perkins Observed that approximately $500 million dollars of planned project work is completed each year; this is 6.6 percent of the $7.5 billion dollar needs list.  411 Commissioner Perkins Stated that 100 percent of the required federal data was collected.  445 Commissioner Perkins Discussed highway costs and reviewed contract administration costs. Administration costs were approximately  18 percent.  477 Commissioner Perkins Discussed change order costs.  501 Commissioner Perkins Noted that there is a 77 percent on time departure rate for ferries.  527 Commissioner Perkins Discussed costs per rider mile: marine hwy was .51. The Washington State Ferry System reports a ratio of .60 per rider mile.  562 Commissioner Perkins Fuel prices have increased 50 percent, which has increased the cost  585 Commissioner Perkins Ridership increased about 1 percent.  619 Commissioner Perkins Average onboard costs declined.  663 Commissioner Perkins Customer satisfaction was good with 75 percent at very good.  682 Commissioner Perkins Concluded that 2000 was a good year for the department. There was $80 million in extra federal that did not require a state match; $30 million of this will be spent on the Dalton Highway.  775 Representative John Discussed roads in his district. He noted Davies that during the paving process gravel flows into the road shoulder, which could be a problem.  830 Commissioner Perkins Noted that the department is looking at precoated gravel.  875 Commissioner Perkins In response to a question by Representative John Davies, Commissioner Perkins discussed the ability to keep winter maintenance workers during the summer. Most summer workers are on the federal dollar.   DEPARTMENT OF HEALTH & SOCIAL SERVICES  986 Karen Perdue, Highlighted performance measures. He Commissioner, provided members with a handout (copy on Department of Health file). Reviewed page 19. He discussed and Social Services ATAP. Noted that 38 percent of families were working; 58 percent were working but not all had enough hours of participation to count as the federal participation. No state has ranked higher.  1162 Commissioner Perdue Discussed Page 20; 80 percent of the clients are keeping their jobs after one year. The success is not as great after 2 years; about 30 percent come back to assistance.  1255 Commissioner Perdue Reviewed childcare; 1,000 children in 600 families are in childcare Pass II.  1298 Commissioner Perdue Discussed page 22 - earned income. Noted that 31 percent were getting a pay check while on assistance; this reflects that some of those working are in training or volunteering. The average wage is $10.20  an hour for those leaving public assistance.  1356 Commissioner Perdue Reviewed page 24 - immunizations. Would like to modify by percentage at age 2. Now at 80 percent for age 2. Outreach and the outbreak of measles have resulted in a higher percentage.  1465 Commissioner Perdue Noted that the department will work to immunize for hepatitis.  1506 Representative Questioned if the numbers take into Hudson account those whose parents opt out of immunizations.  1530 Commissioner Perdue Discussed page 25 - infant learning. Noted that 84 percent of those qualified are enrolled in the program. There is a 307-child waiting list. The program works with infants and toddlers. The children with the most challenge are taken first. The problem is that children with slight disabilities that could be helped are not addressed.  1620 Commissioner Perdue Reviewed page 26 - tuberculosis. The state has the highest rate of tuberculosis in a decade. There has been an outbreak in Anchorage. She gave a brief history of tuberculosis procedures.  1716 Commissioner Perdue Discussed page 27 - rate of child hospitalizations and fatalities. This number is declining. Accident injury is the leading cause of deaths in children over 1yrs.  1807 Representative Croft Noted that suicide rates have increased. She discussed measures to prevent suicides. There is a relationship to drug and alcohol use.  2000 Commissioner Perdue Discussed the need for helmet and life jacket uses.  2020 Commissioner Perdue Reviewed page 29 - acute or binge drinking. In response to a question by Vice-Chair Bunde, Commissioner Perdue noted that the data comes from surveys. Risk information is difficult to gather.  2105 Representative Croft Clarified that acute equals binge.  2117 Commissioner Perdue Noted that the numbers for acute or binge drinking is greater than for chronic drinking.  2137 Commissioner Perdue Discussed page 31 - new and repeat convictions for driving while intoxicated. There were 317 felony convictions for DWI's in FY99. This is down from 326 in FY98. Felony convictions result from multiple arrests. Arrests are  going up.  2248 Co-Chair Mulder Concluded that not much has changed in the last 3 years. He observed that efforts to tighten enforcement are the result of a few instances.  2273 Representative John Observed that over 50 percent of driving Davies related fatalities had alcohol or drugs as a contributing factor.  2307 Commissioner Perdue Noted that ASAP offices have been closed.  2326 Commissioner Perdue Discussed page 32 - infant fetal alcohol syndrome (FAS). The state of Alaska has the highest rate in the nation; 134 children in 1998 were born with prenatal exposure to alcohol.    TAPE HFC 01 - 12,  Side A  30 Commissioner Perdue Noted that most FAS children have been adopted and do not reside with their parents.  57 Commissioner Perdue Discussed page 33 - new admissions for alcohol and drug treatment.  150 Representative Croft Asked about client admissions.  166 Commissioner Perdue Admitted that she did not know.  219 Co-Chair Mulder Noted that it was an important issue to have a handle on.  238 Commissioner Perdue Discussed page 34 - the average time the division takes from receiving a claim to paying it. She noted that this is important to providers.  292 Commissioner Perdue Discussed page 35 - the number of errors per claim processed categorized by the type of provider. The measure of the providers' ability to file error-free claims.  348 Commissioner Perdue Discussed page 36 - the percentage of total funds that are used to pay claims compared to the percentage used for administration of the Division.  400 Commissioner Perdue Discussed page 37 - the percentage of providers who are participating in the Medical Assistance Program.  485 Vice-Chair Bunde Understood that people do not want to be involved in the program.  507 Commissioner Perdue Stated that there has been no change in nursing homes. There has been a change in dentistry.  544 Commissioner Perdue Discussed page 38 - the number of children substantiated as abused or neglected; 49% cases are substantiated.  588 Representative Croft Measure of how many of the claims end up being accurate.  630 Commissioner Perdue Noted that there are Fewer repeat phone  calls. More on target on being active. Intervening as a whole at a correct time.  664 Representative Asked if the criteria were changing.  Whitaker 677 Commissioner Perdue Replied to that they are changing to some degree due to new laws passed a couple years ago by the Legislature.  725 Representative Asked what had affected the similarity Whitaker from year to year.  741 Commissioner Perdue Pointed out that the actual number has decreased.  754 Commissioner Perdue Discussed page 39 - the number of children harmed while in state custody. Children do die in foster care, some of natural causes. She noted that 6 of the 2000 children in custody died in 2000.  816 Co-Chair Mulder Asked the break down of the six children that died.  829 Commissioner Perdue Some died from suicide, some were ill or medically fragile, and one from abuse in the foster home.  853 Commissioner Perdue Discussed page 40 - the number of children in state custody longer than 18 months and 36 months. The graph indicates 632 kids that have been in the state system for an extended time; 82% of those kids have been addressed.  916 Commissioner Perdue Discussed page 41 - the average time a child spends in state custody, considered by category. The figures represent children in custody and out of home care only.  1040 Commissioner Perdue Pointed out that 25 months is the average. There are a lot more children in some categories than the others. These are kids in foster care. For the first time, the number of children in the adoptive care is more than foster care.  1117 Commissioner Perdue In response to a question by Representative Lancaster, She explained that children in custody and are not home less.  1130 Commissioner Perdue Discussed page 42 - the number of closed cases in which there is a reoccurrence of abuse or neglect.  1187 Representative Croft Asked if it was classified by parent.  1200 Commissioner Perdue Stated yes. Some cases are closed.  1212 Commissioner Perdue Discussed page 43 - the number of foster homes operating at greater than licensed capacity; this reflects the shortage of foster parents.  1272 Commissioner Perdue Discussed page 44 - the number of  legitimate reports of harm that are investigated. Noted appreciation for the legislative support.  1329 Commissioner Perdue Reviewed page 45 - the turnover rate of the Division of Family and Youth Services staff by region. Turnover rate is declining. Turnover means someone is promoted or quitting. Anchorage has the most turnover.  1367 Commissioner Perdue Discussed page 47 - the percentage of juvenile offenders in long-term treatment who improve their grade point average during their time at the facility. The teachers are challenged to find a means to address the scholastic need of all the kids.  1443 Commissioner Perdue Reviewed page 48 - the percentage of juvenile offender court-ordered restitution and community service that is paid or performed.  1486 Commissioner Perdue Discussed page 49 - the number of escapes from juvenile justice institutions.  1505 Commissioner Perdue Reviewed page 50 - the percentage of those consumers who seek services for developmental disabilities who receive services from the division. There was a 26% increase in the past year.  1556 Commissioner Perdue Discussed page 51 - the length of time that developmentally disabled consumers are on a waitlist before receiving services.  1581 Commissioner Perdue Discussed page 52 - the percentage of mental health consumers receiving services who show improved functioning as a result of their services.  1612 Commissioner Perdue Discussed page 53 - the percentage programs designated by the department that are reviewed for consumer satisfaction; 86 percent were reviewed for consumer satisfaction in FY00.  1638 Commissioner Perdue Reviewed page 54 - the total number of publicly funded psychiatric hospital days per hospitalized person.  1672 Co-Chair Mulder Complimented the Commissioner for the informative overview.  1693 Co-Chair Mulder Adjourned the meeting at 3:40 pm