Legislature(2003 - 2004)
04/25/2003 02:53 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 211
"An Act relating to a student loan repayment program
for nurses, and amending the duties of the Board of
Nursing that relate to this program; and providing for
an effective date."
REPRESENTATIVE PEGGY WILSON, SPONSOR, provided information
about the legislation. She emphasized the nursing shortage
in the state of Alaska. She noted that the vacancy rate was
11.5 percent. Traveling nurses from other states were being
used to fill these vacancies. The bill would create an
incentive in assisting nurses in repaying their school
loans. To qualify for the loan reimbursement program an
individual would have to be hired as a nurse in Alaska after
July 1 of 2003, be licensed in the state, work in Alaska and
have an outstanding school loan from a recognized
institution. The program would reimburse $2 thousand per
year, up to a total of $10 thousand. She noted that this
amount would not cover a nurse's entire education expense,
but would serve as a tool in recruitment. She explained
that the State Board of Nursing would adopt the criteria
guidelines for the loan program in consultation with the
Alaska Commission on Post-secondary Education. She added
that it would be appropriated from the student loan
corporation dividend.
Representative Wilson pointed out that currently 5,200
nurses are working in Alaska and that the university
produced 110 nurses per year. The intent is to double the
amount (220 per year). In next seven years, due to growth
in health care needs, Alaska will need an additional 1,400
nurses. She maintained that the proposed bill is crucial to
meeting that need.
Co-Chair Harris asked whether loan reimbursement programs
were being created for any other groups, such as teachers.
Representative Wilson stated that a program already existed
for teachers, which was used as a model for the proposed
program for nurses. Co-Chair Harris asked for an
explanation of the repayment program. Representative Wilson
explained that if a hospital were attempting to hire a nurse
into the state, the reimbursement program would be an
additional incentive in providing reimbursement of $2
thousand per year, up to $10 thousand, of their outstanding
student loans. She also noted that if a new nurse lived in
Alaska, they might choose to stay in the state and take
advantage of the program.
Co-Chair Harris observed that the student loan program,
would incur a cost of $918,000 in FY 04, up to a possible
$5.1 million in FY 09.
Representative Wilson noted that if the state of Alaska
could not recruit nurses, then nurses would be brought in
from other states. She emphasized that since the traveling
nurses cost nearly double the salary of instate nurses, this
would escalate health care costs in the state.
In response to a question by Co-Chair Harris, Representative
Wilson noted that nearly every hospital, from small to
large, was paying large amounts for traveling nurses. She
speculated that in Southeast Alaska some hospitals pay over
$100 per year just on traveling nurses. She noted that
these nurses demanded higher salaries.
Co-Chair Harris asked if there was a provision offering
benefits to students who attended school in Alaska.
Representative Wilson noted that there was no provision, but
added that there were enough vacancies to fill with nurses
from any location.
DIANE BARRANS, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION
COMMISSION, DEPARTMENT OF EDUCATION pointed out a correction
in the analysis of the fiscal note that inaccurately totaled
the number of nurses (2,525).
Representative Croft asked for explanation of the
progression in the number of nurses. Ms. Barrans explained
that they used projections from the Department of Labor from
a report of trends for April 2003. The figures were
extracted based on new positions, estimating that they would
be most likely to have student loans outstanding.
LINDA FINK, ASSISTANT DIRECTOR, ALASKA STATE HOSPITAL AND
NURSING HOME ASSOCIATION testified in support of the
legislation. She stated that they had worked closely with
the University of Alaska to double the number of nurses, but
emphasized that this would not meet projected needs. She
also noted their work to develop distance delivery programs
and other training programs. They also work with advance
training programs for nurses, K-12 education, and job
centers to increase health care opportunities. She observed
that the bill presents another avenue to increase retention
and recruitment for nurses.
HB 211 was heard and HELD in Committee for further
consideration.
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