HOUSE FINANCE COMMITTEE January 13, 2004 1:35 P.M. TAPE HFC 04 - 1, Side A TAPE HFC 04 - 1, Side B TAPE HFC 04 - 2, Side A CALL TO ORDER Co-Chair Harris called the House Finance Committee meeting to order at 1:35 P.M. MEMBERS PRESENT Representative John Harris, Co-Chair Representative Bill Williams, Co-Chair Representative Kevin Meyer, Vice-Chair Representative Mike Chenault Representative Eric Croft Representative Hugh Fate Representative Richard Foster Representative Mike Hawker Representative Reggie Joule Representative Carl Moses Representative Bill Stoltze MEMBERS ABSENT None ALSO PRESENT Representative Jim Holm; Representative Mary Kapsner; Representative Dan Ogg; Representative David Guttenberg; Senator Gary Stevens; Cheryl Frasca, Director, Division of Management & Budget, Office of the Governor; Joan Brown, Chief Budget Analyst, Office of Management and Budget GENERAL SUBJECT(S): OVERVIEW:OFFICE OF MANAGEMENT & BUDGET  FY05 BUDGET The following overview was taken in log note format. Tapes and handouts will be on file with the House Finance Committee through the 23rd Legislative Session, contact 465- 2156. After the 23rd Legislative Session they will be available through the Legislative Library at 465-3808.   LOG SPEAKER DISCUSSION   TAPE HFC 04 - 1 SIDE A  000 Co-Chair Harris Called the House Finance Committee meeting to order at 1:35 P.M. Co-Chair Harris introduced members present.  115 Co-Chair Williams Noted the presence of Representative Jim Holm, Representative Mary Kapsner, Representative Dan Ogg, Representative David Guttenberg, and Senator Gary Stevens.  OVERVIEW: OFFICE OF MANAGEMENT & BUDGET  FY 05 BUDGET  300 CHERYL FRASCA, Commented on the budget provided by the DIRECTOR, DIVISION Governor. Ms. Frasca introduced Joan OF MANAGEMENT & Brown. She addressed the changes as BUDGET, OFFICE OF recommended by the Governor. THE GOVERNOR *Limit CBR draw to $400 million *Spend less than FY 04 which must cover $145 million in increased costs by Absorbing $34 million in employer costs Covering $7 million in merit step increases Covering $62 million in formula programs  Covering $42 million in increased debt  425 Co-Chair Harris Asked about the "rule of engagement" and the Legislature asking questions.  440 Ms. Frasca Responded that she could address the overall plan and let legislators ask question either during or after the presentation.  509 Ms. Frasca Provided information on the overall proposed Budget Plan which will: •Control spending •Make government smaller, more effective •Stabilize revenues over the short term •Increase revenues over the long term  619 Ms. Frasca The Administration's approach includes: •Policy drives spending decisions Ensure public value by Strategically align resources with mission and performance targets set, results measured  638 Ms. Frasca •Target administrative savings first; cuts to direct services last  706 Co-Chair Harris Asked if there had been a lot of administrative savings found.  721 Ms. Frasca Referenced the FY05 General Fund Spending chart on Page 3 of the handout.  734 Ms. Frasca She added that in terms of general  overall general funding spending, the current budget is less than the FY04 operating budget was. The departments were requested to target administrative savings first instead of direct services.  844 Ms. Frasca Continued her reference to Page 3 of the handout speaking to the placeholders. When the revenue versus the spending is compared, the revenue is short. The State is still $75 million dollars short. If the proposed revenue measures are approved, the State will be able to raise an additional $78 million dollars.  911 Representative Croft Asked how the new revenues compared.  928 Ms. Frasca Stated that the new revenues would require legislation and there would be fees for implementing the regulations & authority for additional revenues to bring in the $53 million dollars, different from the $78 million dollars.  957 Representative Croft Asked about last year's legislation. He thought that the bonding could create the $140 million dollars.  1008 Ms. Frasca Replied that the bond proceeds would be considered general funds. The proposed is a summary of the general funds only. The $40 million dollars would result from AHFC purchasing the State asset in which the State would receive about $40 million dollars and would be corporate receipts. Then it would move to the "other fund" column.  1101 Representative Croft Asked about the Student loan bonding and if it would affect it.  1120 Ms. Frasca Responded that they are not general funds and would be listed in the other chart.  1123 Vice Chair Meyer Asked about the revenue based on the oil price.  Ms. Frasca Responded that it was based on $24.55 barrel price for FY05.  1143 Vice Chair Meyer Asked about the production and what happens when the price of oil goes down.  1202 Ms. Frasca Acknowledged that when the price goes down $1 dollar, the State looses $65 million dollars. The State could reduce the short fall by reducing spending or drawing more from the Capital Budget Reserve (CBR).  1214 Representative Questioned the $40 million dollars short Hawker spending line would correspond with Line 2 under new revenues.   Ms. Frasca Replied that was correct. In FY04, the  amount is $27.70. Department of Revenue predicts $24.65 dollars per barrel for FY05.  1325 Co-Chair Williams Asked how those numbers had been determined.  1338 Ms. Frasca Stated that the Department of Revenue determines those proposals not Office of Management and Budget (OMB). They are based upon analysis from the previous fiscal year.  1405 Co-Chair Williams Understood that in the FY04 budget, it was projected $27 per barrel.  1423 Ms. Frasca Clarified that was the updated number from last December.  1431 Co-Chair Williams Thought that was what the FY04 budget had been built upon.  Ms. Frasca Reiterated that $24.28 is today's project amount.  1460 Co-Chair Williams Inquired the rational for determination of these numbers.  1512 Ms. Frasca Responded that the Department goes through a long process to determine the prices and evaluating the world price of oil.  1531 Co-Chair Williams Requested to find out the "rational" used to determine these prices.  1546 Co-Chair Harris Added that the Department would be testifying regarding the price determinations.  1609 Vice Chair Meyer Commented that the Iraq situation will influence the supply prices. He agreed that the Department should provide the Committee the updated information.  1638 Co-Chair Harris Thought that the numbers suggested are reasonable and that if the price averages higher, it will be better for the State of Alaska.  1715 Ms. Frasca Compared FY04 to FY05, referencing Page 3 of the handout. She noted that the State would be down 402 positions.  1810 Co-Chair Harris Asked if those positions had been filled.  1819 Ms. Frasca Commented that 60% were vacant positions.  1833 Ms. Frasca Some of those positions could move into an already existing position and would not warrant a "pink" slip.  1902 Ms. Frasca Commented on administrative savings. *Consolidate Human Resources in Administration *Enterprise-wide IT standards, coordination *Consolidate administrative functions within departments  2056 Representative Joule Asked about the supplemental proposal and if it was for FY04 or FY05.  2115 Ms. Frasca Responded that it is for FY05. She added that the number for FY04 for $15 million dollar placeholder.  2145 Representative Questioned the $31 million dollar Hawker difference in other state funds on the th fiscal summary released on December 15, 2003.  2240 Ms. Frasca Stated that the OMB analysts work with those from Legislative Finance Division; they found category differences. She offered to provide that information to th Committee members. There is a January 9 updated fiscal summary.  2324 Representative Stressed that there had been a change in Hawker total spending between the two.  2337 JOAN BROWN, CHIEF Stated that it related to the Permanent BUDGET ANALYST, Fund adjustment. She offered to OFFICE OF MANAGEMENT investigate that information.  AND BUDGET 2410 Ms. Frasca Continued listing the administrative savings: *Reduce layers of mid-management *Eliminate funded, but vacant positions  2540 Representative Inquired where the funds in last year's Hawker budget had been placed.  2558 Ms. Frasca Some of the funding was only partially funded. Otherwise, the departments could use those funds for step or PERS increases. They are not allowed to use that money for something outside that appropriation or BRU.  2651 Representative Asked if most of those positions were now Hawker out of the budget.  2700 Ms. Frasca Stated that this is the type of "house keeping" used by the Governor.  2719 Ms. Frasca Listed the last administrative proposed savings: *Maximize charges to grants to cover administrative costs  2739 Ms. Frasca Referenced the Missions and Measures. *Strategic framework for each department: -Mission -Desired end results -Strategies to achieve end result -Performance targets -Measure of success in achieving target  2835 Co-Chair Harris Inquired if OMB had all the missions and projected measures for each department. He noted that the legislature is  "missing" some of those.  2853 Ms. Frasca Replied that they were all complete. She offered to follow-up on that information.  2915 Ms. Frasca Acknowledged the value of the process for state services.  2935 Ms. Frasca Spoke to the Missions & Measures: *Ensures public value *Strategically aligns resources with mission *Sets targets and measure results *Reports accountability to Legislature, citizens *Gives managers information by which program performance can improve  3017 Ms. Frasca Noted that some departments have requested more broad appropriation authority. As resources get tighter, it is important to question the "results" achieved for the dollars appropriated. "Checks & Balances" for flexibility.  3133 Ms. Frasca New in this year's budget is the "prioritizing", which is a work in progress.  3212 Co-Chair Harris Asked what the prioritizing would be based upon. He asked if it would be the value of the service to the public.  3223 Ms. Frasca Each department determined that individually. Next time, there will be a more integrative process framework addressing that concern.  3257 Ms. Frasca Referenced the chart provided in the handout on Page 5 - Spending Per Capita in FY05 by category.  3400 Co-Chair Harris Pointed out that the largest single expenditure for the public in the State is the Permanent Fund dividends and inflation proofing.  3428 Ms. Frasca Replied it was.  3437 Representative Croft Referenced the chart regarding the University spending. Discussion between Representative Croft and Ms. Frasca followed regarding that concern. He stressed that the information was misleading.  3548 Representative Stressed that these are general funds Hawker "plus" the other funds category in the budget. He thought that was important for the University to realize. All revenue generated by the University is included in the "other" category. He thought that was a "distortion". He asked the general fund per capita number.  3743 Ms. Frasca Responded that is all "public spending" and that it is part of the appropriation bill. She referenced 1975 comparison.  3851 Representative Asked if the Governor was still Hawker interested in pursuing HB 325 to transfer some of those categories back to general funds.  3941 Ms. Frasca There will be legislation. She noted that there are other areas where the proposed budget is making "interest" investments: Department of Public Safety *20 troopers, 5 court service officers  Located primarily in rural Alaska  4007 Representative Croft Commented on that budget and the 20 new troopers. He questioned that number.  4028 Ms. Frasca Stressed that there would be 20 more/new troopers funded in the budget.  4041 Co-Chair Williams Commented on the 5 court service officers - replacing the State troopers in the rural communities with the court service officers.  4119 Ms. Frasca There are five troopers currently serving as court service officers. That will "free-up" some money.  4138 Co-Chair Williams Asked if they would need same level of training as a state trooper.  Ms. Frasca Did not know. She stated that the Department would follow up on that information.  4229 Ms. Frasca Described on the role of the state troopers. There will be federal funds to help with the Village Public Safety Officers (VPSO).  4305 Representative Joule Commented that State troopers in rural Alaska will cost more than they will in urban Alaska. He stated that there could be 3 VPSO officers per 1 State trooper based on salary. He asked if the troopers would be going to the places that where the VPSO's were last year.  4431 Representative Croft Asked if the proposed budget had restored the VPSO positions that had been cut last year.  4435 Ms. Frasca Recalled that two of the areas continue to fund the VPSO's and that one did not. She offered to follow-up on the status of the VPSO's reduced in the current fiscal year budget.  4449 REPRESENTATIVE DAN Interjected that Kodiak lost six VPSO's OGG last year. The local community picked up grants from other sources to continue funding those positions. The community  wants those officers, which was clear to the Department. If the VPSO positions are not being funded, he asked the reasoning behind that decision.  4539 Ms. Frasca Responded that Commissioner Tandeske, Department of Public Safety, would be the best person to speak to the Committee regarding these concerns.  4603 REPRESENTATIVE MARY Commented on the Public Safety KAPSNER Subcommittee discussions and the losses to the troopers and VPSO's. She hoped that with an increase in troopers, a significant portion would go back to the village safety concerns. She asked about village public health and the possible loss to public health nurses.  TAPE HFC 04 - 1, Side B  4641 Ms. Frasca Stated that the Department of Health & Social Services has been aggressive working with other rural agencies for other ways to finance public health. Commissioner Gilbert of the Department should come to the Committee to address the Department's intent with the rural organizations and the level of services.  4528 Representative Joule Asked what would happen when Senator Stevens was no longer Chairman of the Appropriations Committee.  4438 Ms. Frasca The Commissioner is working on "earmarked" projects. He is working on existing finance structures & federal programs that allow the State to leverage money.  4409 Representative Joule Asked if it would be rolled into the federal base.  4351 Ms. Frasca Correct.  Ms. Frasca Noted the addition of six criminal prosecutors in the Department of Law. There will be 14 social workers and 7 associate social workers.  4247 Ms. Frasca Continued, commenting on the Investment in Education funding level: *K-12 -Fund as provided by law K-12 foundation program School debt Pupil transportation *University 5% ($10.6 million) for Regent  Priorities  4133 Vice Chair Meyer Commented on the "No Child Left Behind"  issue. He asked if any additional funds had been suggested to help the local school districts.  4058 Ms. Frasca There is not additional money to the formula in the proposed budget. The amount of the decrease was $7.8 million dollars to the foundation formula.  4030 Representative Croft Asked if there had been an increase required of the local contribution.  3949 Ms. Frasca Stated that there was not. Anchorage pays 3.5 mils.  3919 Representative Croft Commented on adequate funding and the impact on the local school districts. The Anchorage School District has had to make substantial cuts, with layoffs. The Administration indicating that they are adequately funding education is a fundamental problem.  3834 Ms. Frasca Clarified that she did not use the words "fully" or "adequately" funding for education. Education could never be fully funded. It is funded at the level prescribed by State law. The retirement system has added to the burden of the school districts. The Department has had to make priorities. She encouraged discussion with Commissioner Sampson from Department of Education & Early Development regarding "no child left behind".  3719 Representative Croft Emphasized what would be a higher priority than education.  3648 Ms. Frasca Replied not much. The Governor's commitment was to provide the University with a 5% increase to the degree that he could. That was not guaranteed. There was a 5% equivalent in the Capital budget and will be made available to the regions. The Administration has gone through a "top down review" of the departments that will be on going. The Administration has not had that same opportunity with the University system.  3538 Representative Croft Commented on usual capital requests.  3522 Ms. Frasca Currently, there is an expectation that the University will come to the legislative process to allocate funds.  3510 Representative Croft Clarified that was a Governor's commitment and not a guaranteed commitment.  3454 Ms. Frasca Reiterated that this will be a difficult determination and that it cannot be  guaranteed  3434 Co-Chair Harris Asked the last time was when the per student amount was researched to determine statewide accurate. He remembered the cost differential study done a couple years ago  Ms. Frasca Did not know. She offered to check with the Department.  3334 Co-Chair Harris Commented that it is important to know that number with facts and knowledge of the real numbers.  3310 Representative Joule Referenced the other post secondary institutions other than University of Alaska. He asked if there would be an increase for those places.  3234 Ms. Frasca Did not believe that they are scheduled for an increase.  3217 Representative Joule Emphasized that there are a host of other postsecondary institutions that play an equally important roll in getting Alaskans trained and putting them to work. It is an issue of parity.  3151 Ms. Frasca Responded that was correct. There have been increased dollars in capital budget for maintenance of the facilities. There have also been federal funds for those programs.  3056 Representative Joule Commented that time spent on the paperwork for federal funds takes additional manpower. He encouraged that if the funds are being allocated for the University, the Administration should consider making funds available to the other institutions.  3009 Co-Chair Williams Commented on the pupil transportation concerns.  2950 Ms. Frasca Commented that last legislative session, there was grant approval for additional $500.0 thousand for concerns. Little concern has been voiced regarding pupil transportation. She offered to check with Eddy Jeans regarding how the school districts were doing.  2850 Co-Chair Williams Asked about the exit exam and the costs associated with management of that.  Ms. Frasca Understood that there was one contract to manage that for $1.5 million dollars for the entire state.  2835 Representative Commented that his school district is Stoltze adapting to the fiscal constraints of the budget in creative ways.  2759 Ms. Frasca Spoke to the Investment in Resource  Development: Natural Resources -Oil & Gas Division new positions Alaska Peninsula oil and gas lease Gas pipeline NPR-A -Coastal Management "Permit Portal"  2710 Co-Chair Harris Asked if it was fair to assume that the Governor supported the Senate's $2 million dollar request for the pipeline authority.  2646 Ms. Frasca Stated that the Administration had asked the Authority to provide a work plan. It has not yet been received.  2621 Representative Fate Referenced the NPR-A impact litigation. He asked about the revenue that the State "might" derive and lease sale costs.  2559 Ms. Frasca At this point, there is no revenue projected. She offered to ask the Department regarding that concern.  2538 Co-Chair Harris Commented on the severance tax credits on the new wells. He asked if there was any new money projected from that in the proposed budget.  2517 Ms. Frasca Did not believe that there were any of those funds in the budget because of timing issues. The Department of Natural Resources budget has two positions in it associated with that.  2442 Ms. Frasca Addressed the Capital Budget: *$1.4 billion in all funds  $124 million higher than FY 04 $1.3 million Federal funds *$216 million FF for Juneau Access *$million for Gravina Island   Crossing  2400 Co-Chair Harris Asked if federal funds are provided for the Juneau access, what would the timeline be.  2341 Ms. Frasca Explained that it would be a few years out.  2327 Representative Croft Corrected the amount provided referenced by Ms. Frasca. She corrected that it would be $1.3 million higher. The State portion would be $100 million general fund dollars.  2254 Ms. Frasca Responded that it would be $40 milling dollars.  2140 Representative Croft Asked the "pure" general funds. He asked if the $40 million would come from selling buildings to Alaska Housing Finance Corporation (AHFC).  2129 Ms. Frasca Offered to provide that information.  2120 Representative Croft Asked where the $60 million dollars would come from.  2117 Ms. Frasca Dividends, student loan program, which will cover capital and principal on the debt. In response to Representative Croft' query, she noted that the Administration is still sorting the information out regarding the percentages.  2102 Ms. Frasca Referenced a slide was not included in the handout addressing the Capital Investment proposed Capital budget by category.  2029 Representative Croft Asked what the discretionary capital budget was being spent on.  2013 Ms. Frasca Offered to provide that report. She noted that there was a "priority setting process" to identify what to spend it on.  1959 Co-Chair Williams Asked how the priorities of the capital budget had been established.  1942 Ms. Frasca Transportation; limit of dollars for deferred maintenance needs were also addressed. She reinforced that there are not a "lot of dollars to spread around".  1900 Co-Chair Williams Asked about the Juneau Access Road money- $129 million dollars.  1852 Ms. Frasca The figures were based on what the Department of Transportation & Public Facilities learned from Congressman Young's Committee. She offered to provide the bases for that amount.  1818 Co-Chair Williams Commented that many amounts have been proposed for these projects. He voiced his concerns regarding the priorities as determined by the Congressional delegation.  1706 Ms. Frasca Stated that she would confer with the Governor regarding the priority rankings.  1630 Co-Chair Williams Agreed the conversation needs to happen in the Administration and within the local scene. He spoke to the Juneau Access controversy. He commented on the political "fight" within in Juneau regarding the concern. The people have voted it on; Ketchikan has voted in favor. He did not think that amount requested would be sufficient.  1528 Ms. Frasca Acknowledged that those considerations will be considered.  1500 Representative Fate Asked if the Capital would be affected by the matching that the State may have to  provide.  1431 Ms. Frasca Stated it would not.  1419 Co-Chair Harris Asked what will happen if the bond issue does not materialize.  1353 Ms. Frasca Responded what was the legislative back- up plan.  1341 Ms. Frasca It has not been considered with those thoughts. There would be a reprioritization with making more reductions in the process.  1325 Co-Chair Harris Asked if there was another revenue source consideration.  1223 Ms. Frasca Stated that there are other considerations that are being discussed but the Administration is not yet ready to provide that information. Referenced the Capital Budget handout: *Leverage state dollars with bond proceeds:  Alaska Student Loan Corporation  AHFC  1048 Ms. Frasca *Way for ASLC to repay state for initial investment *Multi-year plan  $75 million in year one $100 million in year two $85 million in year three  *No impact to student loan programs *Future loan repayments pay debt  No draw on state's general treasury  1007 Representative Croft Questioned the AHFC bond proposals for another $25 & $40 million dollars.  946 Ms. Frasca General Obligation debt authority. She addressed the current cost of debt. *Road, highway, ferry, airport projects  $977 million in Federal funds *Water, sewer, solid waste projects  $79 million for VSW projects  State's share financed by AHFC bonds  922 Ms. Frasca The future debt service will be paid from AHFC up to 15-20 years. Currently, the cost of debt is about $50 million dollars.  849 Representative Croft The State will be paying $2 million per year in debt service. He asked why that was a "good idea".  825 Ms. Frasca Responded that it was a matter of leveraging State dollars, knowing that there will be savings. The State will realize a savings of $30 million dollars. Current revenue is not sufficient to cover the State's cost needs.  733 Representative Croft Questioned if that was a good idea. He asked why the Administration did not choose to use a General Obligation (GO) bond run through AHFC rather than a vote of the people.  707 Ms. Frasca The Governor's office does not believe that it could get a piece of legislation passed for a bill that is that narrow in scope.  552 Ms. Frasca Commented on options available such as selling State land. This will depend on the nature of the deals. Discussion followed with Representative Croft regarding possibilities of reducing payments in the future.  425 Ms. Frasca Admitted that she did not know the specifics and asked that the Committee wait until there were proposals submitted. Discussion followed on the Atwood Building.  356 Ms. Frasca Added that regarding the inclusion of the "other $40 million dollars". The Governor is working on other ideas for providing the amount needed. She identified a "transient accommodation tax" could generate $32 million dollars.  242 Ms. Frasca The Administration is continuing to work on other ideas. She listed the proposed $1 dollar per pack tobacco tax; cruise ship gambling tax; pull-tabs revised proposal; & shore side guided activity tax.  126 Co-Chair Williams Referenced "cruise ship gambling tax" and referenced his legislation introduced five years ago addressing that issue. He understood that the cruise ships cannot gamble within State waters, 3 miles offshore.  22 Ms. Frasca The ships cannot gamble within 3 miles of the port.  TAPE HFC 04 - 2, Side A  019 Co-Chair Williams Asserted that there should be gambling in the State to help with the current budget shortfall. Ms. Frasca clarified that the gambling referenced on the chart is currently taking place and is not new gambling.  110 Vice Chair Meyer Asked about the tobacco tax and whether the State would continue at current funding levels for nonprofits for tobacco programs, at 20% of the tobacco settlement.  148 Ms. Frasca Responded [the tobacco settlement] is different than the tax and that Department of Health & Social Services has targeted about $500 thousand to community health grants that can be used for tobacco cessation education efforts in the rural areas.  218 Vice Chair Meyer Expressed his desire to raise that amount if the tobacco tax passes.  246 Representative Croft Questioned if the "transient accommodation" statewide bed tax made to a cruise ship would already be a bed tax. Ms. Frasca responded it would and that it is set at 5% of whatever is charged on that route. Representative Croft asked if the cruise portion would be a per day amount.  332 Ms. Frasca Reiterated that it would be a $5 per day per head tax.  414 Representative Croft Asked if a dollar addition to the existing tax would make Alaska's tax on tobacco the highest in the nation. Ms. Frasca explained that New Jersey is the highest at $2.05 dollars per pack; the proposed tax would bring Alaska's tax to $2.00 per pack. Representative Croft asked Ms. Frasca about cruise ship gambling and pull-tabs.  428 Ms. Frasca Explained that the pull-tab tax would increase from 3% to 6% the ideal net, from 78% to 77%.   457 Representative Croft Continued questioning Ms. Frasca on Unrestricted GF Revenues, specifically asking about shore-side guided tour activities. Ms. Frasca responded that it would be a proposed 5% tax on, for example, guided kayak or fly-in fishing trips.  529 Co-Chair Williams Inquired about taxes affecting the cruise ship industry, how they relate to the law Congressman Young passed, and what kinds of services the cruise lines will receive in return.  606 Ms. Frasca Responded that the State treasury, local citizens' property and sales taxes contribute far more to the infrastructure of the ports and harbors and parks and roads, which benefit cruise ship passengers than the revenue expected from taxing that industry.  647 Co-Chair Williams Requested that Ms. Frasca to get back to the Committee regarding a bill which  relates to the industry tax.  712 Representative Joule Asked the breakdown in the bed tax between revenues generated from visitors coming into the State versus Alaskan's traveling around the State. Ms. Frasca did not know if those figures exist but that she would ask.  1051 Co-Chair Williams Expressed agreement over the innovative proposed management of State money in the capital budget.  1159 Co-Chair Harris asked why the budget does not reflect on- going labor negotiations and increased costs. He asked if a budget amendment would be added later. Ms. Frasca stated that increased costs were included and that the departments are making other reductions to cover those.  1256 Co-Chair Harris Thanked Ms. Frasca for the presentation.  1418 ADJOURNMENT The meeting was adjourned at 3:25 P.M.