State of Joint Legislative Audit and Review Committee (JLARC) LEGISLATIVE AUDITOR SENATORS REPRESENTATIVES Keenan Konopaski Joe Fain Jake Fey 106 11th Ave SW Bob Hasegawa PO Box 40910 Mark Miloscia Olympia, WA 98504-0910 Mark Mullet, Assistant Secretary Rebecca Saldaña , Secretary Phone: 360-786-5171 Shelly Short FAX: 360-786-5180 Dean Takko Derek Stanford, Chair E-mail: [email protected] TDD: 1-800-635-9993 , Vice Chair Web site: www.jlarc.leg.wa.gov

January 10, 2019

JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE REGULAR COMMITTEE MEETING MINUTES COMMITTEE BUSINESS TVW Recording • Representative Stanford, JLARC Chair, called the meeting to order at 1:38 p.m. • Chair Stanford called for a motion to approve the minutes from the December 12, 2018 JLARC meeting. The motion was seconded and carried unanimously. (See TVW recording at 00:32:11) • Keenan Konopaski, Legislative Auditor, noted a proposed change to the 2017-19 work plan regarding the Opportunity Scholarship and Expansion Program study. • Chair Stanford called for a motion to approve the 2017-19 revised workplan. The motion was seconded and carried unanimously. (See TVW recording at 00:32:30)

REPORTS, PRESENTATIONS, DISCUSSIONS TVW Recording Employment and Community Inclusion Services for People with Developmental Disabilities – Proposed Final Report Legislative Auditor’s Conclusion: The Developmental Disabilities Administration prioritizes services that help clients get jobs in the community. It does not determine how its services impact individual clients’ quality of life. Ryan McCord and Melanie Stidham from the JLARC staff presented the proposed final report. The 2017 operating budget directed JLARC to evaluate employment and community inclusion services offered by the Developmental Disabilities Administration. While the Developmental Disabilities Administration (DDA) prioritizes individual supported employment, few clients meet the objective of earning a living wage. DDA does not measure quality of life outcomes and policies may limit switching to community inclusion. The following agency staff answered member questions: • Deborah Roberts, Acting Deputy Assistant Secretary, Developmental Disabilities Administration (DDA) • Saif Hakim, Chief of Residential, Employment, and Day Programs (DDA) • Branda Matson, Employment and Day Program Unit Manager (DDA) Chair Stanford called for a motion to approve the Employment and Community Inclusion Services for People with Developmental Disabilities Proposed Final Report. The motion to approve the report for distribution was seconded and carried unanimously. (See TVW recording at 00:31:32) Joint Legislative Audit and Review Committee January 10, 2019 Page 2 Analyzing Development Costs for Low-Income Housing – Proposed Final Report Legislative Auditor’s Conclusion: Development costs for six projects are consistent with independent estimates. Department of Commerce can improve cost controls, and the Housing Finance Commission has opportunities to lower costs by examining for-profit developer involvement. Aaron Cavin and Amanda Eadrick from the JLARC staff presented the proposed final report. In 2017, the Legislature directed JLARC to analyze the costs of developing low-income housing and compare them with the market-rate costs. Comparable market-rate data was not available, so JLARC staff analyzed development costs for state low-income housing development programs. Six case studies found that development costs were within or below estimates from independent experts. The Housing Finance Commission has opportunities to lower costs by examining for-profit developer participation. Commerce should collect development cost data to improve cost controls. (See TVW recording at 00:34:55) The following agency staff answered member questions: • Kim Herman, Executive Director, Housing Finance Commission • Corina Grigoras, Housing Trust Fund Managing Director, Department of Commerce • Lisa Vatsky, Director, Multifamliy Housing Program, Housing Finance Commission • Chair Stanford proposed a committee addendum. The motion was carried unanimously to approve the proposed committee addendum. (See TVW recording at 01:14:33) • Chair Stanford called for a motion to approve the Analyzing Development Costs for Low-Income Housing Proposed Final Report. The motion to approve the report for distribution was seconded and carried. (See TVW recording at 01:17:40) Performance Measurements for Homelessness Programs – Preliminary Report Legislative Auditor’s Conclusion: Commerce and local governments comply with key planning and reporting requirements. As commerce responds to 2018 legislation, it should clearly demonstrate how its actions measurably contribute to the state’s goal of ending homelessness. Suzanna Pratt and Rebecca Connolly from the JLARC staff presented the preliminary report. The 2017-19 Operating Budget directed the Joint Legislative Audit and Review Committee (JLARC) to (a) evaluate compliance with statutory performance measurement, reporting, and quality award requirements for homelessness programs and (b) evaluate the adequacy and effectiveness of performance-based contracting in the Office of Youth Homelessness. (See TVW recording at 01:20:44) AP/IB Program Credits at Higher Ed Institutions Eric Thomas from the JLARC staff introduced the presentation. Paul Francis, Executive Director of the Council of Presidents and Carli Schiffner, Deputy Executive Director of Education for the State Board for Community and Technical Colleges presented on AP/IB program credits at higher education institutions. (See TVW recording at 01:37:08) Public Records Data Reporting – Briefing Report Ashley Elliot and Suzanna Pratt from the JLARC staff presented the briefing report. RCW 40.14.026 directs the Joint Legislature Audit and Review Committee (JLARC) to (a) standardize definitions for the metric in statute and (b) develop a process to collect information from agencies subject to the Public Records Act.

Joint Legislative Audit and Review Committee January 10, 2019 Page 3 (See TVW recording at 01:55:22)

ATTENDANCE JLARC Members Present: Senators Bob Hasegawa, Mark Mullet, Rebecca Saldaña, Shelly Short, and Lynda Wilson; Representatives Jake Fey, Christine Kilduff, Vicki Kraft, Ed Orcutt, Gerry Pollet, and Derek Stanford. JLARC Staff Present: Keenan Konopaski, Legislative Auditor; Aaron Cavin, Rebecca Connolly, Geoffrey Cunningham, Amanda Eadrick, Ashley Elliot, Geneva Johnston, Joshua Karas, Emily Martin, Ryan McCord, Suzanna Pratt, Marilyn, Richter, Melanie Stidham, Eric Thomas, Liz Thomas, Peter van Moorsel, Eric Whitaker, and Valerie Whitener.

ADJOURNMENT The meeting was adjourned at 3:50 p.m.

CHAIR VICE CHAIR