Joint Legislative Budget Committee meeting notice, agenda and minutes

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STATE OF ARIZONA
Joint Legislative Budget Committee
STATE HOUSE OF
SENATE 1716 WEST ADAMS REPRESENTATIVES
PHOENIX, ARIZONA 85007
DON SHOOTER JOHN KAVANAGH
CHAIRMAN 2012 PHONE (602) 926-5491 CHAIRMAN 2011
ANDY BIGGS LELA ALSTON
OLIVIA CAJERO BEDFORD FAX (602) 926-5416 STEVE COURT
RICH CRANDALL JOHN M. FILLMORE
LORI KLEIN http://www.azleg.gov/jlbc.htm JACK W. HARPER
LINDA LOPEZ MATT HEINZ
RICK MURPHY RUSS JONES
STEVEN B. YARBROUGH ANNA TOVAR
MINUTES OF THE MEETING
JOINT LEGISLATIVE BUDGET COMMITTEE
October 4, 2012
The Chairman called the meeting to order at 1:10 p.m., Thursday, October 4, 2012, in Senate
Appropriations Room 109. The following were present:
Members: Senator Shooter, Chairman Representative Kavanagh, Vice-Chairman
Senator Biggs Representative Alston
Senator Cajero Bedford Representative Court
Senator Crandall Representative Harper
Senator Lopez Representative Jones
Senator Murphy Representative Tovar
Absent: Senator Klein Representative Fillmore
Senator Yarbrough Representative Heinz
APPROVAL OF MINUTES
Hearing no objections from the members of the Committee to the minutes of June 26, 2012, Chairman
Don Shooter stated that the minutes would stand approved.
ARIZONA DEPARTMENT OF ADMINISTRATION
A. Review of Dental Self-Insurance Plan and Planned Contribution Strategy for State Employee
and Retiree Dental Plans.
Ms. Amy Upston, JLBC Staff, stated that this item is a review of the Arizona Department of
Administration (ADOA) self-funded dental plan and dental contribution strategy for state
employees. The Committee reviewed the health insurance plans at its meeting of June 26, 2012 but
the details of the dental plan were not yet available. The JLBC Staff presented options to the
Committee.
Representative Kavanagh moved that the Committee give a favorable review to the proposed ADOA
dental self-funded program and the planned contribution strategy. The motion carried.
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B. Review of Automation Projects Fund FY 2013 Expenditure Plan.
Mr. Brett Searle, JLBC Staff, stated that this item is a review of $830,000 in proposed FY 2013
expenditures from the Automation Projects Fund for an Arizona Health Care Cost Containment
System (AHCCCS) security enhancement project. The FY 2013 Government Budget Reconciliation
Bill established the Automation Projects Fund which is administered by ADOA. The JLBC Staff
presented options to the Committee.
Mr. Scott Smith, Director, ADOA, and Deputy Chief of Staff to Governor Brewer, responded to member
questions and statements.
Mr. Aaron Sandeen, Deputy Director, ADOA, and State Chief Information Officer, responded to
member questions and statements.
Representative Kavanagh moved that the Committee give a favorable review of the ADOA expenditure
plan, with the provision that the AHCCCS project be subject to approval by the Arizona Strategic
Enterprise Technology Offices (ASET). The motion carried.
AHCCCS/DEPARTMENT OF ECONOMIC SECURITY - Review of Proposed Capitation Rate
Changes.
Ms. Amy Upston, JLBC Staff, stated that this item is a review of Medicaid capitation rates for AHCCCS
and the Department of Economic Security (DES). The JLBC Staff presented options to the Committee
and answered questions from members.
Ms. Jennifer Carusetta, Chief Legislative Liaison, AHCCCS, responded to member statements and
questions.
Representative Kavanagh moved that the Committee give a favorable review to the proposed
AHCCCS/DES Acute Care, Long-Term Care for the Elderly and Physically Disabled, Long-Term Care
for the Developmentally Disabled, and Children’s Rehabilitative Services capitation rate changes, with
rates set for the beginning of the contract year. The motion carried.
In addition, the Committee would like AHCCCS to provide the JLBC with information on how many
people are expected to be receiving the new treatment for Hepatitis C, and further what the cost of a liver
transplant is for one individual.
DEPARTMENT OF HEALTH SERVICES - Review of Behavioral Health Medicaid Capitation
Rate Changes.
Mr. Art Smith, JLBC Staff, stated that this item is a review of Medicaid behavioral health capitation
rates for the Department of Health Services (DHS). The JLBC Staff presented options to the Committee.
Representative Kavanagh moved that the Committee give a favorable review to the proposed Medicaid
Behavioral Health Program Capitation rate changes for DHS, with rates set for the beginning of the
contract year. The motion carried.
ATTORNEY GENERAL - Review of Allocation of Settlement Monies.
Mr. Andrew Hartsig, JLBC Staff, stated that this item is a review of the Attorney General’s (AG)
expenditure plan for a total of $215,100 from 2 settlements: 1) a $100,000 allocation to the AG from a
consent judgment with QuinStreet, Inc., the former owner of the website GIBill.com; and 2) a $115,100
settlement from a consent judgment with Skechers USA, Inc., a footwear company. The JLBC Staff
recommended a favorable review of this item.
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Representative Kavanagh moved that the Committee give a favorable review of the AG allocation plans
from the $100,000 consent judgment with QuinStreet, Inc. and the $115,100 settlement with Skechers
USA, Inc. The motion carried.
ARIZONA DEPARTMENT OF CORRECTIONS - Review of FY 2012 Bed Capacity Report.
Mr. Brett Searle, JLBC Staff, stated this item is for a review of the Arizona Department of Corrections
(ADC) FY 2012 bed capacity report. The report also explains the reasons for any changes in the level of
bed capacity during the past year. The JLBC Staff presented options to the Committee and answered
questions from members.
Mr. Chuck Ryan, Director, ADC, responded to member questions.
Representative Kavanagh moved that the Committee give a favorable review of the ADC FY 2012 bed
capacity report. The motion carried.
In addition, the Committee would like ADC to provide JLBC members with information on building
deficiencies at the Cheyenne Unit.
ARIZONA BOARD OF REGENTS - Review of FY 2013 Tuition Revenues.
Ms. Leatta McLaughlin, JLBC Staff, stated this item is for a review of the Arizona Board of Regents
(ABOR) tuition collections. The JLBC Staff presented options to the Committee and answered
questions from members.
Ms. Christine Thompson, Assistant Vice President for Government Relations, ABOR, responded to
member questions.
Representative Kavanagh moved that the Committee give a favorable review of the ABOR expenditure
plan for tuition revenue amounts appropriated by the Legislature, and all non-appropriated tuition and
fee revenue expenditures for the current fiscal year. The motion carried.
REVIEW OF AGENCY LEGAL SERVICES CHARGES
Ms. Marge Zylla, JLBC Staff, stated this item was for a review of technical changes to agency payments
for the legal services charges that go to the AG’s office.
Representative Kavanagh moved that the Committee give a favorable review of the of the fund source
reports for the AG legal services charges with the provision that the following 4 agencies be exempt
from the charge: Office of Tourism, School Facilities Board, Governor’s Office of Equal Opportunity,
and the State Mine Inspector. The motion carried.
The payment ability of another agency, the Department of Emergency and Military Affairs (DEMA),
will be resolved at a later date.
Without objection, the meeting adjourned at 2:10 p.m.
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Respectfully submitted:
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Alanna Carabott, Secretary
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Richard Stavneak, Director
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Senator Don Shooter, Chairman
NOTE: A full audio recording of this meeting is available at the JLBC Staff Office, 1716 W. Adams.
A full video recording of this meeting is available at http://www.azleg.gov/jlbc/meeting.htm.