MINUTES SENATE FINANCE COMMITTEE 2 April 1997 9:12 a.m. TAPES SFC-97, #72, Side 1, (000 - 589) 72, Side 2, (589 - 000) CALL TO ORDER Senator Bert Sharp, Co-chairman, convened the meeting at approximately 9:12 a.m. PRESENT In addition to Co-chairman Sharp, Senators Phillips and Adams were present when the meeting convened. Senators Donley, Parnell and Torgerson arrived respectively shortly thereafter. Co-chair Pearce was absent. ALSO ATTENDING: Janet Clarke, Director, Division of Administrative Services, Department of Health and Social Services; Kevin rooks, Director, Division of Administrative Services, Department of Fish and Game; Wayne Regelin, Director, Division of Wildlife Conservation, Department of Fish and Game; Nico Bus, Budget Co-ordinator, Division of Administrative Services, Department of Military and Veterans' Affairs; Mike Greany, Director, Division of Legislative Finance; aides to committee members and other legislators. via teleconference: Jeff Jessee, Executive Director, Alaska Mental Health Trust Authority from Anchorage. SUMMARY INFORMATION SENATE BILL NO. 107 "An Act making and amending capital and other appropriations and to capitalize funds; and providing for an effective date." Co-chair Sharp convened the meeting and noted the only bill to be heard today was SB 107. Janet Clarke, Director, Division of Administrative Services, Department of Health and Social Services was invited to join the committee. She said that the Johnson Youth Center was top priority for the Department. An aerial view of the Johnson Center was provided for the committee to follow along as explained by Ms. Clarke. It was built in 1980 near Bartlett Memorial Hospital. Senator Phillips asked why the Johnson Youth Center was a priority and not McLaughlin. Ms. Clarke responded by saying there was severe overcrowding in all facilities, including McLaughlin. However, the Johnson Youth Center was top priority for several reasons, including: 1. for all Southeast Alaska the Department only had an 8-bed facility; 2. children who need long-term bed space from Southeast Alaska must go to other facilities which exacerbates the overcrowding; 3. the closer to home a child is detained the family is more able to be involved and this reduces recidivism; 4. all necessary support capabilities are in place at the Johnson Youth Center. She continued to explain the lay-out of the Center. The support facility was built in anticipation of having a 20-bed addition built. It was built based on the McLaughlin Youth Center design. Even though the bed space at the Johnson Youth Center was only 8 beds, it has been operating at double capacity for a couple of years. In January 1997 they hit an all time high of twenty-six at the Center. She said the Department would be happy to arrange a tour for the committee to observe the very small living space and how awful it was to have to crowd over twenty children into a space built for eight. Management capabilities are almost impossible. The situation is occurring at all facilities. She referred to a ten-year plan of how the department saw growth being accommodated in youth facilities around the State. It also included additional beds at McLauglin, a new facility in Mat-Su, Ketchikan and Kenai. She further explained the design of the facility based on the design for McLaughlin. Expanding the Johnson Youth Center would alleviate overcrowding at other facilities. Something definitely needs to be done about this crisis. Co-chair Sharp commented briefly, noting the hearing was on teleconference. He asked if the facilities were being hardened up due to the hardened up nature of the juvenile criminals. Ms. Clarke indicated that a security study had been done on the Johnson Youth Center. There are existing funds that would be used for gates or other barriers. The main concern was of others coming too close to the facility. There had never been a break-out from the Johnson Youth Center. She continued on to the next project being Deferred Maintenance, Renewal, Replacement and Equipment. She noted the department has its' own problems for deferred maintenance, same as other departments. Roof repairs need to be undertaken on six facilities. The main areas of concern for deferred maintenance were youth facilities and the public health facilities. Co-chair Sharp asked if there was required match for federal funds. Ms. Clarke indicated there was a required match. She said there was no match specifically for juvenile detention youth facilities but there was for public health facilities and nurse centers. The next component was Welfare Reform System Modifications. It was a $2.9 million general fund project and $1 million federal participation. The Department was in the middle of changing eligibility determination on mainframe system and they need PC based systems. A more user friendly, flexible system would be available for case managers. This system would allow the caseworkers to develope more individualized self-sufficiency plans. Senator Adams asked about the recommendations from the technology subcommittee chaired by Senator Parnell. Senator Parnell said there subcommittee was still working out recommendations. Ms. Clarke continued on to the next issue of $200,000 (technology issue) to enable the Division of Family and Youth Services to be able to link to APSIN (Alaska Public Safety Information Network). This was a recommendation at the Governor's Conference on Youth and Justice that the link be developed so information could be shared. This amount would go to purchase limited software to accomplish that. Co-chair Sharp indicated that next on the list was Mental Health and noted that Jeff Jessee, Alaska Mental Health Trust Authority was available via teleconference in Anchorage. Ms. Clarke introduced the projects under the mental health bill and gave a brief description of each. 1. Client Data Integration Project: A data integration plan was developed by the Department in order to assist in determining developmental and disabled clients receiving help from medicaid. Their request was for $375,000 with $187,500 coming from GF sources and would also be matched dollar for dollar by the Alaska Mental Health Trust Authority. They as a partner in the project also want to know more about their beneficiaries and want integrated data be pursued. As a result of mutual interest the data integration plan, done internally, two main recommendations were made: 1. establish data warehouse; 2. establish council to set data standards to track individuals. There were also further recommendations on confidentiality. Ms. Clarke passed out a supplemental handout to committee members regarding the operational data systems. The department feels the system will be useful as budgets become tight. Resources can be targeted, high cost individuals can be assessed who are using all of the systems and it is believed the Department, Mental Health Trust Authority and the Legislature will have better access to information. Co-chair Sharp asked how the various sources of data coming into the warehouse would be directly connected or updated by batch (weekly, monthly or quarterly basis). Or would it be simultaneous updating from the various processor sites for the clients. Ms. Clarke indicated that it would be done on a once-a-month basis. 2. Hope Cottage Intermediate Care: This was another joint project with the Mental Health Trust Authority. The request was for $480,000; $240,000 from AHFC corporate receipts and $240,000 from the Mental Health Trust Authority receipts. The Harborview facility and the five units at Hope Cottage were the State of Alaska Intermediate Care Facilities for the Mentally Retarded (ICFMR). Hope Cottage believed that they should complete the closure of their five large homes in consistency with the closure of Harborview. Last summer they agreed to decertify the five large group homes and move the clients into smaller, local homes in local communities. This is a large risk for Hope Cottage to take on, since Alaska is the only state that does not have these particular facilities any more. The facilities serve those individuals with developmental disabilities. The project will fund phase II and phase III of Hope Cottage's effort to complete the whole decertification. In response to a question from Co-chair Sharp, Ms. Clarke indicated that the homes were in Southcentral Alaska. Co-chair Sharp continued and asked if the monies were for closure purposes or would be used for any enhancement projects. Ms. Clarke said perhaps there would be some enhancement if a facility were to be purchased and it would need improvement for sprinkler systems or ADA alterations. The facilities are private, non-profit. 3. Mental Health Competitive Grants: This was a $300,000 request for mental health competitive grants for all mental health beneficiaries the trust authority serves for facility modifications. These would be awarded on a competitive basis. $150,000 would be from AHFC receipts and $150,000 from the Mental Health Trust Authority. Co-chair Sharp asked if AHFC ever made the funds available for the particular purpose before. Ms. Clarke said she was not aware and perhaps Mr. Jessee could respond. 4. American Disability Act Improvements: She noted when the ADA came into fruition several years ago there was a lot of work done to get the sense of what the need was for State buildings. Department of Transportation and the Department of Health and Social Services with Mental Health Trust Authority monies conducted surveys. She noted there was a report available if the committee was interested. Both studies were similar and the one from the Department of Transportation is currently in use. $250,000 is funded totally from Mental Health Trust Authority receipts. The projects will be competitively awarded. 5. Competitive Grants for Equipment Purchase: This was another Mental Health Trust Authority project matched by themselves. It was for competitive grants for equipment purchases. $75,000 was from GF and $75,000 from the Mental Health Trust Authority. It would also be competitively awarded. It was noted there was a severe need for specialized equipment. 6. Special Needs Housing Programs: This project has been funded for the past three years. These were all AHFC corporate receipts. This project has been very successful in helping the State with de-institutionalization. In FY '95 the funds were focused on helping individuals being relocated into communities from API. In FY '96 and '97 Harborview has been focused on. Homes in Valdez and Anchorage have been funded in order to move individuals from API into their local communities. For the future the department will continue to use this as a means to allow the individuals with special needs, mental health beneficiaries, achieve independence. Being able to live independently and not in a large group institution saves a lot of money. She noted the four beneficiary groups included; developmental and disabled individuals, mentally ill, Alzheimer patients, the elderly and chronic alcoholics with psychosis. Co- chair Sharp asked who would administer the distribution to the ultimate users of the $1.8 million. Ms. Clarke indicated that the department would continue to work with Alaska Housing Finance Corporation staff in developing a joint request for proposals that would meet both their needs and the department's needs. However, the department had taken most of the lead in responsibility for administering the request for proposals and grant management. There is a joint RFP so that individuals only have to deal with one administrative unit. The Harborview program up until now has been very individualized. In response to continued questions from Co-chair Sharp, Ms. Clarke indicated that in some cases there were purchase of homes that had to be modified and in other cases some homes were built with special modifications. It has been a combination of projects tailored to the specific individual. Co-chair Sharp further asked what happened to the investments into the modifications. Ms. Clarke said they have security arrangements on the properties. Deeds of trust were initiated on the properties for 20 - 25 years so the State would continue their interest in the titles for the specific properties. It would not just be turned over to an individual. Ms. Clarke indicated that her testimony at this point was completed. Co-chair Sharp asked that Mr. Jeff Jessee, Executive Director, Alaska Mental Health Trust Authority offer his comments on the foregoing. Jeff Jessee, Executive Director, Alaska Mental Health Trust Authority testified via teleconference from Anchorage. He noted two specific components not with the Department of Health and Social Services. 1. Competitive Grant for Beneficiary Transportation and Vehicles: This was a $150,000 capital increment through Department of Transportation and Public Facilities who is the administering agency. He said the trustees were looking at special needs transportation. Individual, non-profits or local governments could purchase accessible vans, but the use was restricted to the clientele of the particular agency, creating cost inefficiencies. Vehicles are sitting for large amounts of time, maintenance, operating and insurance costs are maximized. The Trust Authority has worked with the Department of Transportation and Public Facilities, including leveraging some federal funds to develope an integrated transportation plan for local communities. The program assists communities in inventorying the transportation resources they have for individuals with special needs, look at how they can develope centralized maintenance, dispatch, pool for liability insurance purposes and a reduction of benchmarks. Those they were looking at were the number of trips per vehicle per day, trying to increase the utilization of the vehicles that were purchased; and decreasing the cost per trip for each individual served. They do recognize some communities were not ready for such integration. There was also expectation that some of the funds would be used to purchase vans to replace aging vans or to meet existing needs. 2. Completion or Renovation to the Sitka and Palmer Pioneer Homes Dementia Units: This was under the Department of Administration. It was a matching program to upgrade treatments and facilities to deal with Alzheimer's disease. The $105,000 was the amount needed to complete the renovations. (Tape #72 switched to side 2.) Mr. Jessee further continued saying the trustees feel the project is important because it insures public policy development around the mental health program and the expenditure of funds for the development of that specific program, whether they be general funds, trust funds or AHFC funds, are part of an overall public policy strategy developed jointly between the entities. Rather than the trust trying to fund some things, the Legislature funding some other things, that may not be integrated or even compatible, they feel that approaching these projects in a matching way is very effective in keeping us all moving down the same track. He commented on the ownership of either the modifications facilities or other things being done with the capital money. This was an issue of significant interest to the trustees. In FY '97 they funded the entire Chugiak Senior Day Care Center, a capital project. The issue of who owns the facilities is very important. because both the State and the Trust Authority have invested very large sums of money in the projects. Mr. Jessee also responded to a very controversial component, the Americans With Disabilities Act Modification. It is entirely funded through Trust income even though many feel that these modifications are a State responsibility since they do grant funds to the providers. The reason the Trust agreed to put the money forward was because the State had not been doing anything to meet the vast majority of the Americans With Disabilities Act issues that are pending. Mostly these are very basic kinds of access modifications, i.e.; a ramp to get into a building, doors that are wheelchair accessible. The final controversial component he commented on was the Special Needs Housing Program. They were in the process of hiring a contractor to assist trustees to make better use of Trust income with AHFC funding capacity to access housing for low income beneficiaries and their families. They want the beneficiaries to be able to lead independent lives in the community and not be dependent on governmental services or expenditures from either the general fund or the Trust. It has been learned that the provision of affordable, safe, accessible housing is often very much the difference, along with health coverage, in getting individuals with disabilities to live a more independent life. Co-chair Sharp asked Mr. Jessee's comments on the $460,000 contract with the Department of Natural Resources for mental health capital trust land office. Mr. Jessee said they contracted with the Department of Natural Resources to basically provide our management of the trust lands. In doing so, the land office periodically comes upon parcels of trust land which need enhancement to become marketable. That may include laying out a subdivision project, looking at timber areas and developing strategic sale program, perhaps additional funds to get trust assets in a posture that revenue can be maximized through management by the land office. The capital appropriation was designed to enable the land office to seek professional services or otherwise enhance the assets and develope them so revenue can be maximized from them. It was also mentioned that committee members could see in the supplemental budget $150,000 in capital appropriation to the land office specifically for API. This is to take a specific look at where the land and building issues stand at the facility in order to develope an implementation package by the time the trustees make budget recommendations in August and September in order to get the project underway once again. Co-chair Sharp thanked Mr. Jessee and there being no questions by committee members he introduced the Department of Fish and Game. Kevin Brooks, Director, Division of Administrative Services, Department of Fish and Game was invited to join the committee. He briefly explained the following ten projects included in the Governor's Capital Budget; three from the general fund totalling $785,000 and the ten projects in total equal $4.125 million. 1. Statewide Facilities Repair, Maintenance & Replacement: This was $400,000 general fund and is the department's number one priority. There are over forty facilities around the State, including bunkhouses, offices, laboratories, cabins, workshops, warehouses coming under deferred maintenance. He noted an alphabetical listing of the projects that was attached to the request. 2. Fisheries Resource Assessment Vessels & Aircraft Maintenance and Repair: He noted this was the department's second priority and was for the commercial fisheries management and development division in the amount of $275,000 general fund. The division operates six research vessels and four aircraft. The request was specifically for the vessels to be maintained in a safe operating condition. 3. Statehood Defense: This was $110,000 general funds for a project in the Commissioner's office. The department provides technical assistance to the Department of Law in statehood defense litigations. We participate in Columbia Basin Salmon Recovery projects which includes increasing efforts towards potential and dangerous species listing of salmon resulting from dams in the Pacific Northwest. He further referred to several sub-projects within the request. Co-chair Sharp asked if this was mainly personnel and Mr. Brooks indicated that it was about three-fourths personnel and the rest was related to the citizen's advisory council. Both councils are supported by the department and have been very effective in Washington, D.C. concerning changes in the Magnuson Act and other federal legislation. Senator Phillips asked why this was considered a capital project versus an operating since three-fourths of it is personnel and not structures and buildings. Mr. Brooks said the department had attempted in the past to include this request in the operating budget however it was not accepted. It was not in the Governor's FY '98 request. Senator Phillips said it seemed to not be a very high priority. Mr. Brooks said it was not in the operating budget primarily because it was a separate, specific project. Co-chair Sharp asked if there was a capital component for this project funded last year. Mr. Brooks said there was and last year, along with other numerous projects the administration included this one in the operating budget. On closing date of the session it was deleted. It has, however, been in the budget since FY '93. It has been stripped down to a bare bones effort at this point. There is no new capital or operating for FY '97. 4. Maintain Research Survey and Support Aircraft: This is for wildlife conservation. Seventy-five percent is federal funds and twenty-five percent is Fish and Game funds. The division operates six aircraft and he noted his comments to coincide with the previous project. He did say there was also a $2 million charter that was used during the year. Co-chair Sharp asked if this was used only by Wildlife Conservation and Mr. Brooks indicated that was correct. 5. Survey and Catalog All Anadromous and High Value Resident Fish Streams: Mr. Brooks said that under Title 15 the department was required to catalogue anadromous fish streams. Currently there are fifteen thousand streams in the catalogue, which is estimated to be fifty percent of the total fish bearing streams. The department could basically renew efforts to get remaining fish streams catalogued and would primarily affect the Upper Cook Inlet area. It is important to accomplish this because of the Department of Transportation and certain road and logging concerns. Co- chair Sharp asked if this was AIDEA monies and Mr. Brooks indicated that it was. 6. Sikusuilaq Hatchery Contaminated Site Clean-Up: The department operated a hatchery in North Kotzebue up until two years ago. It was on a lease site and a diesel leakage and soil contamination has been identified. The State is responsible for the contamination and must clean up the site and return it to it's original state. Senator Phillips asked if this was a private hatchery and Mr. Brooks indicated that the State constructed and owned the hatchery but it was built on private land. They were involved in a long-term land lease with the owner. Senator Phillips asked if the State was responsible for this and Mr. Brooks said the Sate was. Senator Phillips also asked if the State had any other hatcheries and Mr. Brooks said there were three other hatcheries under the Sport Fish division. In response to further concerns of Senator Phillips, Mr. Brooks said that at all of the sites above-ground tanks were being put in, containment dikes around the tanks, and the technology and planning on the projects has been improved. 7. Public Access Development (sport fish): This project totals $2.2 million; seventy-five percent federal aid funds and twenty-five percent Fish and Game funds. It is required that twelve and half percent of the available federal funds be used for public access development projects. These are specifically for boat ramps and launch sites in order to enhance access for sport fishing around the State. Senator Torgerson asked if after the access was developed was it transferred to the Division of Parks to operate. Mr. Brooks said they often work with the local governments, municipalities and boroughs and they will often run the sites. They are not transferred to the Division of Parks and the Department of Natural Resources is not running them. There are concession agreements to cover operating costs. In further response to Senator Torgerson, Mr. Brooks said he would provide a list of enhancements. Senator Torgerson said he was particularly interested because he mentioned at the last committee meeting that the Division of Parks was threatening to shut down ten campgrounds and eight accesses to boat launches. He suggested the committee get together with Department of Fish and Game and the Division of Parks and decide what was going to be built and what was going to be maintained. Mr. Brooks said he would provide a list as requested. The Department of Fish and Game does work closely with the Department of Natural Resources. Senator Phillips concurred with the request of Senator Torgerson and asked the list be provided to all committee members. Mr. Brooks indicated that it was a federal requirement that each site developed has access and all precautions are taken to make sure they can be maintained in an ongoing basis. Senator Torgerson suggested that some of that strategy be transferred over to the Division of Parks. Mr. Brooks continued. 8. Hunter Education Electronic Shooting System: This was a request for $80,000; $40,000 federal funds and $40,000 Fish and Game funds. It would purchase two portable electronic firearm training systems. He said the system was also used by the military. It fires a light beam rather than ammunition and enables the hunter education instructors to teach in a safe environment. In response to Senator Phillips, the department would purchase two of these systems to be located at Rabbit Creek Rifle Range and would be available statewide. Mr. Wayne Regelin, Director, Division of wildlife Conservation was invited to join the committee. He explained further the electronic shooting system. They are encompassed in a trailer and can be moved around. Once the facility is built in Fairbanks there will be one located there. 9. Sport Fish Hatchery Repair, Renovation and Maintenance: This was for $200,000; 75% federal funds and 25% Fish and Game match. It was separated from the main repair and maintenance requests because it was specifically related to the sport fish hatcheries at Elmendorf and Ft. Rich. Co- chair Sharp asked that it be confirmed the project was a critical one, specifically the fish transport equipment. He was concerned because the Clear hatchery was to be closed. Mr. Brooks said he would provide the requested information. 10. South Denali Wildlife Studies: This was for $160,000; $80,000 Fish and Game funds and $80,000 AIDEA funds. He said wildlife gathering activities would be studied near the head waters of the Tok-Susitna River and the Denali National Park. Denali was the proposed site for a visitors' center and the department wanted to make sure of the least possible impact to the wildlife population in the area. Co-chair Sharp asked if this was all State Fish and Game funds and Mr. Brooks indicated that it was license fees. Mr. Regelin said federal aid funds were not included because these were primarily impact-related studies. Since this was a short term project there were adequate funds with the Department of Fish and Game. No separate contract would be set up through the federal aid project. It was required by law to match 1 - 3. Presently it was at 50/50 which was overmatched. Mr. Brooks said the department was drawing down the maximum allowable federal dollars under the federal aid contracts. Co-chair Sharp thanked Mr. Brooks and Mr. Regelin. He then introduced the Department of Military and Veterans' Affairs. Nico Bus, Budget Co-ordinator, Division of Administrative Services, Department of Military and Veterans' Affairs was invited to join the committee. He reviewed the following projects. 1. Youth at Risk: This was a $1 million request project to set up a like Anchorage program for the Bethel area to deal with the Yukon-Kuskokwim youth. This project would be in connection with the Youth Conservation Corps. They would also request federal funding for this pilot project. Senator Torgerson asked how many youth this would involve and Mr. Bus said this would be on a smaller scale involving about 40 - 50 youth. He indicated that it would be approximately $20,000 - $25,000 start up costs. Senator Torgerson asked how much federal funding was being requested. Mr. Bus said that $500,000 was requested. They would look at facilities available either to purchase or lease. For $1 million a facility could not be built. Senator Phillips asked why Bethel was chosen rather than Southeast, Barrow or the Aleutian Chain. Mr. Bus said the Bethel area was chosen in order to serve better the youth in areas other than urban Alaska. They are trying to keep the youth in the Bethel area, their familiar surroundings. 2. National Warning System Upgrade: This would convert the Division of Emergency System communication capability with twenty-seven communities. The overall project was for $220,000 to convert nine projects and allow them to do data communications and transfer files. It would provide software for those nine communities. 3. Juneau Armory and Organizational Maintenance Sh op Design and Construction: This was $120,000 for the Juneau Armory. This was the last part of the site preparation and design phase. The Juneau Armory presently consists of two buildings which are on Mental Health land property. The land exchange was just completed with the City and the armory site would be moved to Mile 7. 4. Deferred Maintenance: This was $100,000 for emergency repairs. There was a significant back-log in deferred maintenance and this amount would be the bare minimum needed. 5. Fairbanks Armory Expansion: This was basically the same as the Juneau Armory. It was $100,000 for site preparation and $600,000 for engineering. 6. Bethel Army Aviation Operating Facility, Phase II Construction: This was for $125,000 for site preparation and construction phase with corresponding increase of federal funds of $4.6 million. Senator Torgerson asked about the matching federal funds $600,000 for Fairbanks and only $125,000 for Bethel. Mr. Bus said this was a different facility and concerned also the kind of operation of the facility. He further noted this project was in phase II. $6.3 million was already on the books for this project. They do not anticipate coming back next year and asking for more GF funds on this project. 7. Emergency Wireless Communication: It would provide emergency communication independent of commercial or state networks. Presently commercial operators are depended upon to provide telephone services. This project would spend $157,300 to purchase four wireless repeater receivers and would allow independence in case of emergency from commercial operators. They would be centralized at one headquarter to provide this independent service. 8. Ft. Rich Combined Support for Maintenance Shop and Facilities: The facility currently located on Tudor Road would be moved to Fort Richardson. This was $1.5 million State funds and $11.4 million federal funds. (Tape #72 changed to #73.) 9 & 10. Ft. Rich Army Storage Building Design and Wasilla: The last two projects were 100% federal funded project to replace the storage buildings. Ft. Rich was $835,000 for three buildings and Wasilla was $275,000 for one building. Co-chair Sharp thanked Mr. Bus. He reviewed the schedule for tomorrow indicating that 9:00 a.m. tomorrow morning HB 58 would be heard followed by SB 107. ADJOURNMENT Co-chair Sharp adjourned the meeting at 10:45 a.m. until tomorrow morning at 9:00 a.m.