JOINT COMMITTEE LEGISLATIVE BUDGET AND AUDIT October 27, 2000 1:00 P.M. MEMBERS PRESENT Representative Gail Phillips, Chair Representative Con Bunde Representative Eric Croft Representative Gary Davis (present by teleconfernce) Representative Gene Therriault Representative Eldon Mulder (alternate) Senator Randy Phillips, Vice Chair Senator Al Adams Senator Rick Halford Senator Gary Wilken (present by teleconference) Senator Drue Pearce (alternate) MEMBERS ABSENT Senator Sean Parnell COMMITTEE CALENDAR APPROVAL OF MINUTES - August 18, 2000 PRESENTATION-TELECOMMUNICATIONS SERVICES REVISED PROGRAM RECEIPTS EXECUTIVE SESSION AUDIT REPORTS OTHER COMMITTEE BUSINESS WITNESS REGISTER PAT HARTLEY, Legislative Assistant to Representative Gail Phillips 345 W. Sterling Highway, Suite #102 B Homer, Alaska 99603 Telephone: (907) 235-2921 DAVID TEAL, Director - (Testified via Teleconference) Division of Legislative Finance State Office Building, Sixth Floor Juneau, Alaska 99811 Telephone: (907) 465-3002 POSITION STATEMENT: Introduced the RPL's. PAT DAVIDSON, Director Division of Legislative Audit State Office Building, Sixth Floor Juneau, Alaska 99801 Telephone: (907) 465-3830 POSITION STATEMENT: Addressed Audit Reports KAREN MORGAN, Acting Director Chief Technology Officer Information Technology Group Department of Administration PO Box 110206 th 5 Floor, State Office Building Juneau, AK 99811-0206 Telephone: (907) 465-2220 POSITION STATEMENT: Spoke to the Telecommunication Services LARRY WALSH Information Technology Group Department of Administration PO Box 110206 th 5 Floor, State Office Building Juneau, AK 99811-0206 Telephone: (907) 465-2220 POSITION STATEMENT: Spoke to the Telecommunication Services FRED ESPOSITO, Director - (Testified via Teleconference) Alaska Vocational Technical Center Department of Education and Early Development PO Box 889 Seward, Alaska 99664-0889 Telephone: (907) 224-3322 POSITION STATEMENT: Testified on RPL 05-1-0617 KAREN REHFELD, Director - (Testified via Teleconference) Division of Administrative Services Department of Education and Early Development th 801 W 10 Street, Suite #200 Juneau, Alaska 99801-1894 Telephone: (907) 8650 POSITION STATEMENT: Testified on RPL 05-1-0617 JANET CLARKE, Director - (Testified via Teleconference) Division of Administrative Services Department of Health and Social Services PO Box 110650 Juneau, Alaska 99811-0650 Telephone: (907) 465-3082 POSITION STATEMENT: Testified on RPL 06-1-0137 & 06-1-0145 JEFF JESSEE, Executive Director - (Testified Teleconference) Alaska Mental Health Trust Authority Department of Revenue th 550 W. 7 Avenue, Suite #1820 Anchorage, Alaska 99501 Telephone: (907) 269-7963 POSTION STATEMENT: Testified on RPL 06-1-0144 & 41-1-0031 TOM LAWSON, Director - (Testified via Teleconference) Division of Administrative Services Department of Community & Economic Development P.O. Box 110803 Juneau, Alaska 99811-0803 Telephone: (907) 465-2505 POSITION STATEMENT: Testified on RPL 08-1-0061 PAT POLAND, Director Division of Community and Business Development Department of Community & Economic Development th 550 W. 7 Avenue, Suite #1790 Anchorage, Alaska 99501-3510 Telephone: (907) 269-4580 POSITION STATEMENT: Testified on RPL 08-1-0061 DEBORAH TENNYSON, Local Government Specialist Dillingham Regional Office Department of Community & Economic Development P.O. Box 790 Dillingham, Alaska 99576-0290 Telephone: (907) 842-5135 POSITION STATEMENT: Testified on RPL 08-1-0061 MARK BARKER, Supervisor Fire Service Training Department of Public Safety 5700 E. Tudor Road Anchorage, Alaska 99507-1225 Telephone: (907) 269-5789 POSITION STATEMENT: Testified on RPL 12-1-0083 ACTION NARRATIVE   TAPE 00-8, Side A  CHAIR GAIL PHILLIPS called the Joint Committee on Legislative Budget and Audit meeting to order at 1:00 P.M. on October 27, 2000. Members present at the call to order were Representatives Gail Phillips, G. Davis, Therriault, Mulder and Senators Randy Phillips, Adams, Halford, Pearce and Wilken via teleconference. Representatives Bunde and Croft arrived later during the meeting. APPROVAL OF MINUTES CHAIR PHILLIPS noted that the first order of business would be the approval of the minutes from the Legislative Budget th and Audit Committee meeting held August 18, 2000. SENATOR PHILLIPS MOVED to approve the minutes and asked for unanimous consent. There being NO OBJECTION, the minutes were approved and adopted. PRESENTATION - TELECOMMUNICATION SERVICES KAREN MORGAN, Acting Director, Chief Technology Officer, Information Technology Group, Department of Administration, introduced Larry Walsh from the Department of Administration involved with the program. LARRY WALSH, Information Technology Group, Department of Administration, voiced his appreciation to be able to testify before the Committee on the scope of this major project. KAREN MORGAN provided an overview of the handout, "Overview of the State of Alaska Telecommunications Partnering Project - A Comprehensive Solicitation for Telecommunications Services". [Copy on File]. Ms. Morgan pointed out that the handout would address the size of the project, reasons that the State has undertaken the project, structure, participating agencies, objectives, scope, timeline and anticipated success factors. The project is large and will amount to approximately $22 million dollars. Currently, the State spends about $22 million dollars annually on telecommunications. That amount includes long distance costs, satellite transport costs, network, Internet services and many other items. Ms. Morgan noted that the Department of Administration began changing the present system about a year and half ago. She enumerated reasons that the Department chose to undertake the project: · Partner with one prime contractor for end-to-end communications; *Simplify procurement of telecommunications services and products; *Reduce contract/vendor management complexity; and to *Increase access to advanced telecommunications services that are readily available on the market. · To obtain cost effective telecommunications services; and · Encourage vendor build-out of high speed, advanced telecommunications services to non-state entities and residents through: *Recognition of the State's role as an anchor-tenant; and *Offering access to state telecommunication microwave (SATS) assets to vendors through a competitive process. Ms. Morgan pointed out that the State hired a consultant; the Gardner Group Consulting Firm was hired in January 2000 and has worked closely with the Department of Administration in developing the requested proposal. Ms. Morgan listed the participating agencies that had been consulted: · All the Executive Branch Agencies · Alaska Court System · Alaska State Legislature · University of Alaska · Permanent Fund Corporation · Alaska Railroad. SENATOR R. PHILLIPS asked if Alaska Industrial Development and Export Authority (AIDEA) and the Alaska Housing Finance Corporation (AHFC) had been contacted. KAREN MORGAN explained that they had been interviewed and that they have the option to "buy" from the contract. She listed the primary objectives of the project, which would expand Alaska's telecommunications partnership to the private sector: · Support the communications requirements of client agencies including the integration of rural locations; · Accommodate enhanced communications services and bandwidth growth rates; · Minimize cost by leveraging existing systems and resources; · Maintain flexibility to incorporate new products/solutions as they emerge; · Identify the most cost effective approach to provide superior, statewide telecommunications services. Ms. Morgan commented that the current State's procurement process is not quick. The Department is hoping to build more flexibility in the system. Ms. Morgan itemized the mandatory requirements for the scope of the request for proposal (RFP). She indicated that the requirements had been listed in "bundles". · Bundle 1 - Wired telephony services including basic and enhanced local services; long distance and toll free services and audio teleconferencing. · Bundle 2 - Data Network Services including the WAN connectivity and Internet access. · Bundle 3 - Video services including video teleconferencing. · Bundle 4 - Paging services including statewide paging systems and the private vendor provided paging. · Bundle 5 - Cellular Services. · Bundle 6 - Satellite Transport Services. · Bundle 7 - Support Services which would include the network monitoring and management; centralized help desk for problem resolution and inter service coordination, and integrated data security. · Bundle 8 - SATS-microwave system including management and operations and maintenance and repair. · Bundle 9 - Satellite telephony services. · Bundle 10 - Satellite earth-station maintenance and repair. Ms. Morgan advised that the timeline was aggressive and noted that the events and the milestones had been listed in the handout. SENATOR R. PHILLIPS asked the number of responses received to date. KAREN MORGAN clarified that the proposals were not due until th December 15, 2000. She pointed out that there were over eight typed pages of questions and noted that there has been a lot interest. She emphasized that one state contractor would not be able to meet all the State's needs. CHAIR GAIL PHILLIPS advised that it had been mandatory that all the agencies be included. KAREN MORGAN stressed that it was mandatory that all agencies buy services from the contract with the exception of those agencies that are precluded from statute at this time. She indicated, it is anticipated that the evaluation th will be completed by February 15, 2001, and that the th contracts will be awarded by March 15, 2001. It is expected that the implementation phase will take up to ninety days. Ms. Morgan listed the key success factors: · A cost effective approach to accommodate increased demand for new services; · A genuine desire to form a strategic partnership; · Careful consideration of current and future needs; · Willingness to consider alternative approaches; · Adequate resource commitment; · Awareness of impact in rural communities; · Appropriate consideration for affected State employees; and · Sensitivity to unintended consequences. CHAIR GAIL PHILLIPS requested that Ms. Morgan provide an update of the project at the next scheduled Legislative Budget and Audit (LBA) meeting. REVISED PROGRAMS (RPLs) DAVID TEAL, Director, (Testified via Teleconference), Division of Legislative Finance, explained the RPLs before the Committee. RPL Number: 04-1-0017  Department of Revenue ASPIB Bank Custody and Management Fees WITHDRAWN    RPL Number: 05-1-0617 Department of Education and Early Development Alaska Vocational Technical Center Operations $275.0 Statutory Designated Program Receipts (SDPR)    DAVID TEAL explained that the original request was for $150 thousand dollars, however, that fund source is not eligible for LBA consideration. The Office of Management and Budget (OMB) resubmitted the request for statutory designated program receipts. He noted that the $150 thousand dollars would have been combined with the $125 thousand dollars that was already budgeted for that type project. Mr. Teal explained that the purpose of the funding would provide Alaska Vocational Technical Center Operations (AVTEC) use of the funds from the First Alaskans Foundation (formerly AFN Foundation) to provide two education and training programs for construction/management training and foundation skills. Without the additional authority, AVTEC cannot provide the services during the current school year. AVTEC was not aware of the availability of the funds during the previous legislative session. He added that grants were applied for in July 2000 and that the award had been made in August 2000. Existing positions would be used to deliver the services to comply with the grants. SENATOR WILKEN asked if the money was restricted for use by Native students only. FRED ESPOSITO, Director, Alaska Vocational Technical Center, Department of Education and Early Development, Seward, Alaska, (Testified via Teleconference), stated that the Native Alaskans are targeted for these funds, but that they were not exclusionary. He noted that the funds would be used in rural Alaska and would be targeting all students, recruiting them into the programs. Regardless, all interested parties will be enrolled into the programs. SENATOR WILKEN asked about the receipt-supported services. He questioned if there had been discussion to change those to statutory designated program receipts. DAVID TEAL acknowledged that was correct and that receipt supported services was one of the fund sources that would affect HB 418, which would convert several funds to other groups. The Department was unaware that those services were not eligible for LBA consideration. SENATOR R. PHILLIPS asked if there was adequate space for all applicants. FRED ESPOSITO replied that there is additional classroom space available and room to provide the services. SENATOR R. PHILLIPS asked if there were any other similar groups associated with AVTEC. FRED ESPOSITO explained that there are certain situations where other groups will contract with AVTEC to provide services for other constituents. SENATOR R. Phillips questioned the selection criteria used. FRED ESPOSITO noted that if a student was interested in applying, they would call the AVTEC admissions office and request information and/or an application for enrollment. SENATOR HALFORD noted that if the program is totally funded by AFN, they should be the ones who decide who is chosen. He questioned if the Committee intended to indicate that private individuals or a minority group could not contract with a State entity to provide a service for that group. REPRESENTATIVE G. DAVIS agreed that the record had gotten complicated. REPRESENTATIVE BUNDE inquired why the issue was being debated as the money belongs to a private organization. CHAIR GAIL PHILLIPS explained that it is money that is going into a State public institution. KAREN REHFELD, Director, Division of Administrative Services, Department of Education and Early Development, Juneau, Alaska, (Testified via Teleconference), offered to answer any questions of the Committee. REPRESENTATIVE BUNDE asked the "rush" for the funding. He asked if it could wait until the new legislative session. KAREN REHFELD commented that if the request was not addressed at this time, the services would not be offered this school year. SENATOR RANDY PHILLIPS MOVED to approve RPL #05-1-0617. CHAIR GAIL PHILLIPS asked that a roll call vote be taken on the MOTION. IN FAVOR: Representatives Therriault, Bunde, G. Davis, Croft, Chair Phillips Senators Adams, R. Phillips, Halford, Wilken, Pearce OPPOSED: 0 Representative Mulder and Senator Parnell were not present for the vote. The MOTION PASSED (10-0). RPL Number: 06-1-0137 Department of Health and Social Services Energy Assistance Program $2,954.5 Federal Funds    DAVID TEAL explained that these funds would be used as a special emergency supplement made available in response to sharp increases in heating fuel costs and to the western Alaska fisheries disaster. Residents of communities affected by the fish disaster may receive as much as $2,000 per household. The funds would be used to increase the number of households that can receive assistance up to 8,600. Last winter 7,300 households received an average grant amount of $643 dollars. Mr. Teal noted that the funds are available immediately and are 100% federally funded. The Department seeks authority to disburse funds to the Energy Assistant Program receipts quickly in order to pay for this winter's fuel. Denial of the RPL could delay receipt of the federal funds available to low income Alaskans for heating fuel cost relief. However, previous years' payment patterns and the FY01 to date expenditures indicate that the already approved expenditure authority of $5.5 million dollars could suffice through March 2001. April has traditionally been the highest expenditure month and current authorization will not last through April. JANET CLARKE, Director, Division of Administrative Services, Department of Health and Social Services, (Testified via Teleconference), commented that she would answer specific questions of the Committee regarding the RPL. SENATOR R. PHILLIPS asked where the 1,300 households were located. JANET CLARKE advised that those households were located in the areas in Alaska that are not served by the tribal grantees. The program is statewide. She believed that over half of the numbers were located in the Anchorage area. The funds would be used primarily for the heating assistance program, not for weatherization. To qualify for the program, a family would need to be low income and responsible for paying heating costs, either directly or indirectly through their rent. Low income would be determined by 150% of the Alaska poverty level which depends on the household size. A family of three with an annual income of $26,000 dollars or less would qualify. REPRESENTATIVE THERRIAULT asked if there was a compelling reason for the Department to take action now. He believed that last year's supplement could carry the program through March. JANET CLARKE reiterated that the request was a larger amount than last year and management of the federal funds is causing concern. The first funds would be used for the elderly and disabled. The first payment is scheduled for st November 1 in the amount of $650 thousand dollars. There is federal authority to cover that expenditure, however, the State does not have the federal receipts at this time for the grant award, which is not unusual. Program managers prefer to have the cash in order to pay the bills, as that is better business policy. REPRESENTATIVE BUNDE asked if federal or State law had declared the Western Alaskan fisheries disaster. JANET CLARKE replied that it was a disaster declared by Governor Knowles. REPRESENTATIVE BUNDE inquired if a person did not live in a disaster area, would they receive a larger portion of funds. JANET CLARKE replied that the 8,600 figure was the number of households, not the amount received. (Tape Change, LBA 00-8, Side 2). JANET CLARKE indicated that the recipients typically have high fuel costs. The $643 dollars would be an average statewide figure. The grants in Anchorage and Mat-Su are typically lower as they have natural gas heat. The grants average from $200 dollars to $2500 dollars under the regular program. SENATOR ADAMS MOVED to approve RPL #06-1-0137. There being NO OBJECTION, it was approved. RPL Number: 06-1-0143    Department of Health and Social Services General Community Mental Health Grants $64.2 MHTA Authorized Receipts    DAVID TEAL explained that the RPL requests authority to receive and expend $64,200 of Mental Health Trust Authority Authorized Receipts (MHTAAR) to support the continuation of itinerant counseling services for deaf and hearing impaired consumers in rural areas throughout the State. The program had been scheduled to end at the close of FY00. The Arc of Anchorage felt that the program was critical to addressing the needs of deaf citizens in rural Alaska and asked that MHTA consider continuing funding for two more years while the Arc of Anchorage manages the program and obtains other funding to make it financially self-sufficient. He added that it is expected that all funding would be spent in the grant line in the General Community Mental Health Grants component. The FY02 budget request will reflect the need for increased MHTAAR grant funding for services. Mr. Teal noted that according to the Department, no GF/MH are currently allocated for these services and no GF/MH would be replaced in FY01 or FY02. If the program does not acquire financial self-sufficiently by FY03, 35.0 GF/MH and 65.0 GF/MH in FY04 may be requested. He added that no new positions would be requested as part of the request. REPRESENTATIVE THERRIAULT questioned if there had been any indication given that the entity would expect GF/MH funds in the future. He noted his support for the request, however, stressed that it should not indicate future support. SENATOR ADAMS MOVED to approve RPL #06-1-0143. There being NO OBJECTION, it was approved. RPL Number: 06-1-0144    Department of Health and Social Services Governor's Council on special Education & Developmental Disabilities $95.8 MHTA Authorized Receipts    DAVID TEAL commented that the funds would be used for the continuation and completion of two projects authorized in the Council's FY00 budget. The Alaska Mental Health Trust Authority (AMHTA) for continuation in FY01 has approved both projects. Both projects are designed to address barriers that keep people with disabilities from working. The purpose of the employment initiatives project ($47.5) is to develop and implement a program to provide vocational service providers with the tools to assist disabled persons to secure and keep employment without negatively impacting their long-term support and health care requirements. The project specifically addresses lack of knowledge or use of work incentive programs and lack of comprehensive vocational services. Mr. Teal continued, for those who are eligible, the Developmental Disabilities Medicaid Waiver System broadens some income restrictions and provides a much broader range of services than are available under the general Medicaid program. An independent study of the waiver system was completed in 1999 that identified methods to improve the efficiency of the DD Medicaid Waivers and additional ways to maximize federal receipts to provide community based developmental disability services. The requested funds ($48.3) would be used to complete implementation of some of the study recommendations such as streamlining the billing process, conducting a management review and time study of the waiver procedure, and preparing a "desk manual" for use by community programs. REPRESENTATIVE BUNDE asked where the funds would lapse. DAVID TEAL advised that these were FY00 monies that were being carried forward into FY01. The funds would lapse back to Mental health. JEFF JESSEE, Executive Director, Alaska Mental Health Trust Authority, Department of Revenue, Anchorage, (Testified via Teleconference), reiterated that these were FY00 dollars being moved forward for the project. If the dollars are not approved, they would lapse back into the trust fund, which would cause an interruption to the project. REPRESENTATIVE THERRIUALT acknowledged support of past actions taken by the trust. SENATOR ADAMS MOVED to approve RPL #06-1-0144. There being NO OBJECTION, it was approved.   RPL Number: 06-1-0145    Department of Health and Social Services Governor's Council on Special Education & Developmental Disabilities $300.0 Federal Receipts    DAVID TEAL noted that the request was the same component as the above request with different fund sources. The funding would be used to better meet the needs of working people with disabilities and complement existing Alaska Works activities to address the major barriers that keep people with significant disabilities from working. The barriers include fear of losing health benefits, financial disincentives, general lack of knowledge or use of existing work incentive programs, lack of comprehensive vocational services, fragmented services and limited work opportunities. The overall goals of the project would be to improve Alaska's current Medicaid buy-in program and ensure an array of Medicaid services that most directly support working Alaskans with disabilities. According to the Department, over two thirds of Alaskans with disabilities are unemployed, sixty percent of those individuals have indicated a desire to work. Although one third of Alaskans with significant disabilities are working, they are more likely to work part-time than full-time. Nearly half of the individuals said they would like to work more hours if that option were available to them. Mr. Teal highlighted the budgetary issues. He noted that the total amount of the federal grant from the Health Care Financing Administration (HCFA) was available through December 2004 in the amount of $2.1 million dollars. $300,000 was requested for the remainder of FY01 and an increment would be requested in the FY02 budget. There would be no impact on the general fund and that the project would end when the federal funding ends. Six new employees would be hired and continued funding would be requested in the Council's FY02 budget. He concluded that there was no anticipated impact on indirect cost recovery or fees for services. JANET CLARKE responded to a question by Representative G. Phillips. She stated that the funds would be 100% federally funded positions and that they would go away at some point. SENATOR ADAMS MOVED to approve RPL #06-1-0145. There being NO OBJECTION, it was approved. RPL Number: 06-1-0146 Department of Health and Social Services Community Mental Health Grants WITHDRAWN    RPL Number: 08-1-0046 Department of Community & Economic Development Alaska Aerospace Development Corporation $17,7.0 Federal Receipts  DAVID TEAL advised that the request included three projects, one for a long-range safety system. The system would track a launch vehicle once it is outside the immediate range. Though the Primary Range System would be located at the Kodiak Launch Complex (KLC), the Department is looking at locations along the Alaska coastline to locate the system. The second project would be funding for the infrastructure improvements and equipment required to support the needs of potential KLC users. The expenditures could range from tools to a security system. The last of the projects would be monies for a communication system. The expenditures would be necessary to support launches in 2001 and 2002. The expenditures are intended to be for purchases of equipment and for contractual services for installation. REPRESENTATIVE THERRIAULT mentioned that the State has been successful in accessing the Kodiak launching structure by using federal dollars. The State then gets the authority to use the equipment for private contractors. REPRESENTATIVE MULDER MOVED to approve RPL #08-1-0046. There being NO OBJECTION, the RPL was approved. RPL Number: 08-1-0060    Department of Community & Economic Development Community & Business Development WITHDRAWN    RPL Number: 08-1-0061    Department of Community & Economic Development Community and Business Development $7,000.0 Federal Receipts    DAVID TEAL explained that the request would address funds for a federal disaster declaration. Due to an 86% reduction in the Opilio crab harvest, Secretary Daley declared a federal commercial fishery failure of Opilio crab for communities in the Pribilof Islands and East Aleutian area of the Bering Sea. Department of Community & Economic Development has applied for funds available from the U.S. Department of Commerce, National Marine Fisheries Service (NMFS) under Section 312 of the Magnuson-Stevens Fishery Conservation and Management Act. The Pribilof Island and East Aleutian Bering Sea Disaster Grant consists of three components designed to address the commercial fishery failure. The projects are a community grants program, a loan program and a coordinated response partnership project. The Department would administer the program by establishing sub grants with local communities, tribal councils, and non-profit entities in the regions by providing loans to fishermen and by establishing the coordinated response partnership project. Mr. Teal continued, funding was not anticipated until after the disaster declaration which occurred at the end of the last legislative session. The projected date for receipt of the federal funds was October 2000 and if the RPL is delayed, funds to the affected communities and fisherman would be delayed. REPRESENTATIVE THERRIAULT asked if the $127,167 dollars was existing general fund authorization which had been re- routed. TOM LAWSON, Director, Division of Administrative Services, Department of Community & Economic Development, Juneau (Testified via Teleconference), stated that it was funds already earmarked for rural areas of the State and that it was being rerouted. REPRESENTATIVE THERRIAULT asked if these employees would receive new work duties or would they instead quantify some of the expenditures to use as the match. PAT POLAND, Director, Division of Community and Business Development, Department of Community & Economic Development, replied that they would have responsibilities for serving the communities becoming more focused on particular aspects. He clarified that there would be no shifting of money from one entity to another. REPRESENTATIVE MULDER questioned why new State employees would be added. PAT POLAND explained that the Department was there to basically administer the response to the relatively new federal program, the Magnuson-Stevens Fishery. As a consequence of that, there tends to be a high degree of oversight and more accountability asked for in order to monitor the expenditures. He mentioned that it would be a 36-month program and that the two new positions would "go away" at the end of the first six months. REPRESENTATIVE THERRIAULT voiced confusion with the hiring of new employees. PAT POLAND stated that the portion of the funding coming out of the match would come out of the salaries paid to the State employees. The two new hired persons would be paid for separately. SEANATOR PEARCE asked about the federal government administrating the program (comments inaudible). PAT POLAND replied that the federal government does not view itself as a granting agency. There is concern that substantial amounts of money would end up elsewhere if the project were turned over to the feds. DEBORAH TENNYSON, Local Government Specialist, Dillingham Regional Office, Department of Community & Economic Development, mentioned that there was a definite interest by Senator Stevens to have the funds goes to the regions that were heavily impacted. He intended that the funds be administered by the State of Alaska. SENATOR WILKEN asked if the qualification criteria had been established. DEBORAH TENNYSON advised that the local match must be non- federal funds. There is an opportunity for involvement with private enterprise. The local corporations and regional corporations may be able to provide some of the match. The match can be either cash or in-kind. In response to Senator Wilken, Ms. Tennyson stated that it is not anticipated that general fund monies would be used to seek the match. REPRESENTATIVE CROFT (comments inaudible). PAT POLAND noted that it was anticipated that a loan program would result. About forty of the participants live in Alaska and the others are in the states of Washington and Oregon. The programs would be a very low interest loan program. DEBORAH TENNYSON added that interest would be a low as one could imagine. SENATOR R. PHILLIPS asked if individuals would be receiving any money. PAT POLAND clarified that the permit holders would be eligible to apply for up to $1500 dollars. SENATOR HALFORD pointed out that the overwhelming portion of the program would be for projects in the communities. He stressed that the permit holders were a very small piece of the package in a $7 million dollar program. SENATOR PEARCE interjected that there are 140 permit holders and that only 40 of them live in Alaska. She asked if those 40 permit holders living in the State would be eligible to qualify for more than the $1500 dollars. PAT POLAND responded that the same opportunity would be made available to everyone. He added that the in-state permit holders were not always residents of the particular communities from which they fish around the State. DEBORAH TENNYSON maintained that only about five of the permit holders were residents of their specific areas. SENATOR ADAMS MOVED to approve RPL #08-1-0061. SENATOR PEARCE OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Representatives G. Davis, Croft, G. Phillips Senators Adams, Halford, Wilken OPPOSED: Representative Therriault Senators R. Phillips, Pearce Representatives Bunde and Mulder and Senator Parnell were not present for the vote. The motion PASSED (6-3). RPL Number: 11-1-0302    Department of Fish and Game Special Projects $124,465 Statutory Designated Program Receipts (SDPR)    DAVID TEAL testified that the requested funding would provide additional statutory designated program receipt authority for non-federal wildlife conservation grant projects. The Department underestimated the amount of contractual money that they would receive. Without the funds, the project could be interrupted for a full year. SEANTOR R. PHILLIPS MOVED to approve RPL #11-1-0302. There being NO OBJECTION, it was adopted.   RPL Number: 12-1-0083    Department of Public Safety Fire Service Training $119,600 Federal Receipts    DAVID TEAL explained that the requested funding would encompass two projects: $94.0 dollars of the funds would be used to conduct training for local emergency response agencies for anti-terrorism; and $25.0 dollars would be used for grants for fire training. CHAIR GAIL PHILLIPS asked if the fire training would be done in Kenai. MARK BARKER, Supervisor, Fire Service Training, Department of Public Safety, commented that the training could be done at the prison-training center in Kenai, however, the Department is planning on doing it throughout the State at each location. SENATOR ADAMS MOVED to approve RPL #12-1-0083. There being NO OBJECTION, it was adopted.   RPL Number: 41-1-0031    Alaska Court System Trail Courts $75.0 MHTA Authorized Receipts    DAVID TEAL pointed out that the request was for case management funding for the Court Coordinated Resources Project. The services would be provided in conjunction with the Department of Corrections. The program has been running for about a year with no funding and the Court System argues that there are a substantial number of potential beneficiaries not receiving services because of the limited resources. JEFF JESSEE interjected that this project resulted from a spontaneous effort put forth by Judge Stephanie Rhoades in Anchorage. The group was unsuccessful in receiving a Bureau of Justice grant. He pointed out that this would become the third Mental Health Board in the country. SENATOR ADAMS MOVED to approve RPL #41-1-0031. There being NO OBJECTION, it was approved. EXECUTIVE SESSION SENATOR PHILLIPS made a motion, in accordance with Title 24 and 44, to move to Executive Session for the purpose of discussing audit reports, which are held confidential by law. There being NO OBJECTION, the Committee went into Executive Session at 2:50 P.M. CHAIR GAIL PHILLIPS requested that Pat Davidson (Legislative Auditor) and Pat Hartley (Legislative Budget and Audit Legislative Assistant) attend the Executive Session. The Committee resumed Open Session at 3:15 P.M. (Tape Change, LBA 00-9, Side 1). AUDIT REPORTS SENATOR R. PHILLIPS MOVED that the final audits on the agenda be released to the public: · OG/Alaska Human Rights Commission · DEED/DLWD-Little Davis Bacon Act · DCED/AEA/AIDEA-4 Dam Pool · DFG/Board of Fish-Selected Operational Practices There being NO OBJECTION, the four final audits were released to their respective Departments for public view. SENATOR R. PHILLIPS MOVED that the following preliminary audits be released for agency response: · DOR/AHFC Interest Rates · DOR/AHFC Demolition · DCED/Board of Veterinary Examiners · DCED/Board of Public Accountancy · DCED/Board of OT/PT · DCED/Board of AELS · DCED/Board of Barbers and Hairdressers · DEC/Board of Storage Tank Assistance · DNR/FY00 Departmental · DOTPF/AMHS FY00 Departmental · DOC/AK Correctional Industries There being NO OBJECTION, the preliminary audits were released to the respective agencies for further work. AUDIT REQUESTS PAT DAVIDSON, Director, Division of Legislative Audit, advised that the first audit request came from Representative John Harris. The request asks for a review of the grants issued to Deltona Community Corporation by the Department of Community & Economic Development through the unincorporated community capital project matching grant program (AS 37.06.020). The second audit was submitted by Senator Dave Donley requesting a review of compliance with AS 22.05.140(b). The statute requires that salary warrants may not be issued to a justice of the Supreme Court until the justice has filed an affidavit that no matter referred to the justice for opinion or decision had been uncompleted or undecided by the justice for a period of more than six months. CHAIR GAIL PHILLIPS asked if there was objection to undertaking the audit requested by Representative Harris. There being NO OBJECTION, the audit investigation was accepted. CHAIR GAIL PHILLIPS asked if there was any objection in moving forward with the audit request submitted by Senator Donley. There being NO OBJECTION, the audit investigation was accepted. OTHER COMMITTEE BUSINESS thst CHAIR GAIL PHILLIPS noted that on November 20 & 21, the Committee would be taking a "boarding school information trip" to St. Mary's and McGrath. She asked if any members of the Committee were interested in participating in that excursion and that if so, they should contact her office. Chair Phillips advised that there had been concern voiced by David Teal that the Office of Management and Budget (OMB) had been combining various projects into one request. She questioned if Committee members thought that direction should be sent to OMB that each RPL to be a separate item. REPRESENTATIVE BUNDE recommended that the RPL's should clearly interrelated. CHAIR GAIL PHILLIPS agreed and asked that Mr. Teal forward that instruction on to OMB. Chair Gail Phillips added that there would be a meeting th scheduled for December 6. SENATOR WILKEN stated that date would be difficult for him to participate. ADJOURNMENT CHAIR GAIL PHILLIPS adjourned the meeting at 2:40 P.M.