Legislature(2017 - 2018)HOUSE FINANCE 519
03/03/2017 01:00 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB57 || HB59 | |
| Public Testimony: Anchorage | |
| Public Testimony: Sitka, Petersburg, Delta Junction, Unalaska, Glennallen, Tok | |
| Public Testimony: Off-nets | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 57 | TELECONFERENCED | |
| += | HB 59 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 3, 2017
1:04 p.m.
1:04:02 PM
CALL TO ORDER
Co-Chair Seaton called the House Finance Committee meeting
to order at 1:04 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Paul Seaton, Co-Chair
Representative Les Gara, Vice-Chair
Representative Jason Grenn
Representative David Guttenberg
Representative Scott Kawasaki
Representative Dan Ortiz
Representative Lance Pruitt
Representative Steve Thompson
Representative Cathy Tilton
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Sarah Sledge, Executive Director, Coalition for Education
Equity, Anchorage; Patrick Reinhart, Governor's Council on
Disabilities and Special Education, Anchorage; Mallory
Hamilton, Self, Anchorage; Michael O'Brien, Vice President,
Fairbanks North Star Borough School District School Board,
Fairbanks; Representative Dan Saddler.
PRESENT VIA TELECONFERENCE
Deena Bishop, Anchorage School District, Anchorage; Tom
Roth, Anchorage School District, Eagle River; Jim Anderson,
Anchorage School District, Eagle River; Charles McKee,
Self, Anchorage; Stephanie Berglund, Thread, Anchorage;
Margaret Bauer, Self, Anchorage; Jim Fourtner, OCS,
Anchorage; April Stahl, Self, Anchorage; Loreen Davis,
Self, Anchorage; Paul D. Kendall, Self, Anchorage; Bill
Hauser, Self, Anchorage; Orin Seybert, Self, Anchorage; Bob
Weigle, Self, Anchorage; Andrew Hansen, Rural CAP/Parents
as Teachers, Anchorage; Cris Eichenlaub, Self, Eagle River;
Karel Hauser, Self, Eagle River; Abbe Hensley, Self,
Anchorage; Mary Ann Krasselt, Self, Anchorage; Carl Berger,
Self, Anchorage; Lindsey Sam, Self, Anchorage; Verne
Boerner, AK Native Health Board, Anchorage; Amy Simpson,
Self, Eagle River; Brenda Moore, Alaska Mental Health
Board, Anchorage; Doug White, Access Alaska, Anchorage;
Denmer Wells, Self, Anchorage; David Boyle, Self,
Anchorage; Joan Diamond, Self, Anchorage; Jody Tow, Finance
Director, Petersburg Borough, Petersburg; John Dull, Self,
Sitka; John Jay Sweeny, Chief Financial Administrative
Officer, City and Borough of Sitka, Sitka; Mary Wegner,
Superintendent, Sitka School District, Sitka; Richard
Probert, Self, Tok; Deb Harbison, Parent Educator, Parents
as Teachers, Tok; Hannah Bengston, Parent Educator, Parents
as Teachers, Glennallen; Dennis Charley, Parents as
Teachers, Glennallen; Lisa Nicolai, Gakona Village,
Glennallen; Kurt Schmidt, Self, Delta Junction; Sarah
Holmgrain, Member, Petersburg School Board, Petersburg;
Mark Curran, Self, Delta Junction; Mark Vink, Bering Strait
School District, Unalakleet; Tammy Dodd, Bering Strait
School District, Unalakleet; Ethan Berkowitz, Mayor,
Anchorage, Anchorage; Pamela Samash, Self, Nenana; Marna
Sanford, Self, Fairbanks; Natasha Singh, Tanana Chiefs
Conference, Fairbanks; Mrs. Denny Kay Weathers, Self,
Prince William Sound; Paul Verhagen, Self, Nenana; Kara
Thrasher-Livingston, Self, Anchorage; Marilyn Andon,
Behavioral Health Director, Tanana Chiefs Conference,
Fairbanks; James Squyres, Self, Rural Deltana; Pamela
Goode, Self, Rural Deltana; Brad Ryan, Interim Borough
Manager, City of Haines, Haines; Angela Hill, Self, Sitka;
Deborah Schnabel, Haines Chamber of Commerce, Haines;
Cynthia Lagoudakis, Vice Mayor, Petersburg; Evelynn Trefon,
Self, Vice Mayor of City Council, Newhalen.
SUMMARY
HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 57 was HEARD and HELD in committee for further
consideration.
HB 59 APPROP: MENTAL HEALTH BUDGET
HB 59 was HEARD and HELD in committee for further
consideration.
Co-Chair Seaton addressed the meeting agenda.
HOUSE BILL NO. 57
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; repealing appropriations; making
supplemental appropriations and reappropriations, and
making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date."
HOUSE BILL NO. 59
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
1:04:02 PM
Co-Chair Seaton discussed the meeting agenda and public
testimony process.
^PUBLIC TESTIMONY: ANCHORAGE
Co-Chair Seaton noted that Representative Dan Saddler was
present.
1:07:03 PM
SARAH SLEDGE, EXECUTIVE DIRECTOR, COALITION FOR EDUCATION
EQUITY, ANCHORAGE, spoke in opposition to cuts to
education. She referred to a lawsuit her organization
participated in with the state [The Moore case, filed in
2004, challenged whether Alaska's public education system
was adequate under the Alaska Constitution., [The State
agreed to settle the eight-year case on January 26, 2012].
She discussed the court findings. She thought further
reductions to the education budget were not in the best
interest of a successful education system. She thought such
cuts would threaten the ability of schools to provide
instruction and standards, as well as the ability of
Department of Commerce, Community and Economic Development
to provide oversight. She spoke in support of a
comprehensive solution to the state's budget crisis, to
include a restructuring of the Permanent Fund earnings in
combination with other revenue measures such as an income
tax. She supported a forward-funded education system, and
continued support for early childhood education programs.
She specified that the coalition was in support of funding
for the highest need children identified in the
underperforming districts identified in the Moore case, and
specified an amount of $1.5 million for Pre-K grants.
1:09:23 PM
Co-Chair Seaton noted that there was a provision in the
budget on bond debt reimbursement. He continued that there
were other proposals for taking the same amount of money
out through the Base Student Allocation (BSA). He asked
that testifiers express any relative support or opposition
two one of the two proposals.
DEENA BISHOP, ANCHORAGE SCHOOL DISTRICT, ANCHORAGE (via
teleconference), testified against the proposed cut to
school bond debt reimbursement.. She relayed that she was
the Anchorage School District (ASD) Superintendent of
Schools. She stated that the taxpayers of Anchorage
supported schools, and that the municipality gave 100
percent of the allowable contribution in the statutory
school funding formula. She spoke on behalf of the
municipality in opposition to the amendment proposed by Co-
Chair Seaton. She thought shifting the state's
responsibility for former bond debt did not decrease the
budget, but rather shift the costs to some residents of
Alaska. She stated that the $18.5 million debt the
committee sent to Anchorage would cost property owners $53
per $100,000 in assessed value the subsequent year. She
thought there had been an unequitable distribution of the
debt. She asked the committee to support incorporated
boroughs and cities equitably.
1:12:21 PM
TOM ROTH, ANCHORAGE SCHOOL DISTRICT, EAGLE RIVER (via
teleconference), spoke against the proposed cut to school
bond debt reimbursement. He relayed that he was the chief
operating officer of the Anchorage School District. He
highlighted the aging infrastructure in ASD. He mentioned
the national standard for school preventative maintenance
and school repairs. He discussed the importance of bonds in
school funding. He referred to the ASD bond proposal.
1:14:47 PM
JIM ANDERSON, ANCHORAGE SCHOOL DISTRICT, EAGLE RIVER (via
teleconference), spoke in opposition to the proposed cut to
school bond debt reimbursement. He relayed that he was the
chief financial officer for ASD. He spoke to the impact of
the proposed amendment to HB 57 which would shift $18.5
million requirement from the state to the borough. He
discussed an ASD budget shortfall. He applauded the
committee for restoring full funding to the transportation
fund. He discussed wage increases for school bus drivers,
and the resultant budget impact.
1:16:50 PM
CHARLES MCKEE, SELF, ANCHORAGE (via teleconference),
testified about the government. He recommended that the
committee bring back the state constitution. He referred to
Alaska statutes. He discussed state agencies. He discussed
voter registration. He discussed the Alaska Permanent Fund
Corporation (APFC). He discussed legality and statehood. He
mentioned the Alaska Bar Association.
1:20:05 PM
STEPHANIE BERGLUND, THREAD, ANCHORAGE (via teleconference),
spoke in opposition to cuts in education. She stated that
she was the chief executive officer for Thread, Alaska's
childcare resource and referral network. She thanked the
committee for supporting early childhood programs in the
Department of Education and Early Development budget. She
highlighted that Pre-K, Parents as Teachers, and Best
Beginnings programs provided critical services to young
children and families that helped support a stronger
foundation for the future of the state. She thanked the
committee for diversifying revenue in order to reduce cuts
to the state's most vulnerable population.
1:21:00 PM
MARGARET BAUER, SELF, ANCHORAGE (via teleconference),
testified in support of education funding. She shared that
she was the chair of the Alaska Early Childhood Advocacy
Group. She thanked the committee for the work on the
budget, and expressed appreciation for the full funded
early care and learning programs as mentioned by the
previous testifier.
1:21:33 PM
JIM FOURTNER, OCS, ANCHORAGE (via teleconference), spoke in
support of funding for the Office of Children's Services
(OCS). He stated that he had volunteer as a chaplain for
OCS. He understood that there was pending legislation that
would add positions to OCS. He discussed caseloads and
staffing at OCS and the challenge that was presented when
staff was decreased.
1:22:56 PM
APRIL STAHL, SELF, ANCHORAGE (via teleconference),
testified in support of funding for OCS. She relayed that
she had worked for OCS, but was not testifying on behalf of
the agency. She discussed abuse and neglect in Alaskan
communities. She discussed the challenge of working for the
safety and welfare of Alaskan children while missing time
with her own family. She emphasized the dedication and
competence of OCS staff, and the need for more staff. She
supported funding for first responders.
1:25:17 PM
LOREEN DAVIS, SELF, ANCHORAGE (via teleconference),
testified in favor the Permanent Fund Protection Act
(PFPA). She discussed economic volatility. She discussed
taxes and opposed deep cuts. She discussed the importance
of services. She spoke against regressive taxes, and
supported an income tax. She asked the committee to
consider a draw on the Earnings Reserve Account (ERA) as
outlined in the PFPA.
1:27:15 PM
PAUL D. KENDALL, SELF, ANCHORAGE (via teleconference),
testified about accountability in the political process. He
stated he had no conflicts of interest. He discussed
corruption. He thought testifiers should be compelled to
divulge conflicts of interest. He did not think the
legislature was prepared for what was to come. He remarked
on the short time individuals were allotted for testimony.
1:30:07 PM
BILL HAUSER, SELF, ANCHORAGE (via teleconference), spoke in
support of education funding from early childhood education
through the university level. He thought that enough budget
cuts had been made, with the exception of oil tax credits.
1:31:13 PM
ORIN SEYBERT, SELF, ANCHORAGE (via teleconference), urged
the committee to pass HB 115. He had spoken to individuals
who were willing to help bridge the fiscal gap. He thought
it was important for the state to divest itself of
dependence on only one source of revenue. He supported an
income tax. He discussed out of state employees taking
money outside the state. He referred to Department of
Revenue and thought it would have the ability to reinstate
the state income tax easily and efficiently. He spoke in
support of using the earnings reserves, and mentioned SB
70. He testified against cuts to education funding. He
mentioned a school head tax.
1:33:55 PM
Co-Chair Seaton encouraged testifiers to confine remarks to
HB 57 and HB 59.
BOB WEIGLE, SELF, ANCHORAGE (via teleconference), testified
in support of cuts to OCS. He claimed that OCS had
falsified its caseload. He suggested that the numbers were
subjective. He discussed mandatory reporting. He discussed
reporting in OCS, and was concerned about a lack of
integrity. He discussed corruption. He discussed a meeting
with Vice-Chair Gara. He mentioned Representative Charisse
Millett and testimony about corruption. He thought OCS
should be required to demonstrate positive results before
getting funding.
1:37:45 PM
ANDREW HANSEN, RURAL CAP/PARENTS AS TEACHERS, ANCHORAGE
(via teleconference), spoke in support of early childhood
education. He thanked the committee for funding the Parents
as Teachers program, Best Beginnings, Pre-K programs, and
Head Start programs across the state. He relayed that his
spouse was a kindergarten teacher.
1:39:24 PM
CRIS EICHENLAUB, SELF, EAGLE RIVER (via teleconference),
spoke in opposition to using the Permanent Fund earnings
reserves. He discussed the administration under former
Governor Tony Knowles, when the price of oil was low. He
referred to a proposal that included giving $25,000 to each
resident. He discussed resident's dependence upon the
Permanent Fund Dividend (PFD). He thought it was
disingenuous to say that the Permanent Fund was being
preserved when it was being drawn from to pay for state
government.
1:41:12 PM
KAREL HAUSER, SELF, EAGLE RIVER (via teleconference), spoke
in support of using the Permanent Fund earnings reserves,
and a state income tax. She did not support further cuts.
She supported funding for education at all levels. She
supported funding for public safety and mental health
services. She was opposed to resource development that
adversely affected water quality and wildlife. She spoke in
support of maintaining the state's infrastructure.
1:42:14 PM
ABBE HENSLEY, SELF, ANCHORAGE (via teleconference), spoke
in support of early childhood education. She thanked
members for the transparency during the budget process. She
thanked the committee for the intent language in the budget
pertaining to early learning coordination in the Department
of Education and Early Development (DEED). She supported
funding for Parents as Teachers, Head Start, Best
Beginnings, and the Pre-K grant program.
1:44:23 PM
MARY ANN KRASSELT, SELF, ANCHORAGE (via teleconference),
spoke in support of using the earnings reserves. She
thought the money should be paid back within a specific
time frame and with interest. As an alternative she
suggested a balloon payment to Alaskan residents.
1:45:13 PM
CARL BERGER, SELF, ANCHORAGE (via teleconference), spoke in
support of funding for education and senior services. He
discussed the personal benefits of legislators and believed
that elected representatives should lead by example. He
referred to legislators receiving extra funds. He thought
it was important for legislators to be part of the effort
in reducing spending. He discussed per diem and state
travel as examples.
1:47:43 PM
LINDSEY SAM, SELF, ANCHORAGE (via teleconference), spoke in
support of funding for mental health and human services.
She relayed that she worked for Cook Inlet Tribal Council;
which served Alaska Natives, a population that was
disproportionately affected by mental health and behavioral
health issues. She asserted that mental health and human
services personnel were concerned with funding, and urged
members to consider the needs rather than considering only
reelection.
1:49:13 PM
VERNE BOERNER, AK NATIVE HEALTH BOARD, ANCHORAGE (via
teleconference), spoke in opposition of cuts to the
Department of Health and Social 6Services that might impact
Medicaid expansion and Medicaid programs. She asserted that
cutting Medicaid eligibility or services would not save the
state money nor help the economy. She discussed the
efficacy of Medicaid services. She discussed the possible
savings and better outcomes with preventative health care,
and pointed out the contribution by the Federal government.
She mentioned tooth decay as an example of a preventable
cause of morbidity and mortality that could be treated at
an earlier stage to save money. She discussed the possible
effects of reductions in pharmacy services. She supported
stable funding for behavioral health.
1:51:48 PM
AMY SIMPSON, SELF, EAGLE RIVER (via teleconference),
supported funding for early childhood programs such as
Parents as Teachers, Best Beginnings, and Head Start. She
relayed that she was an early intervention provider and
director of an early intervention program in Anchorage. She
thanked the committee for maintaining funding for early
childhood programs. She supported a state income tax and
other revenue measures. She thought that further cuts to
education, social services, and mental health would only
degrade the state's infrastructure and have long term
consequences. She felt that out of state workers should
also pay for infrastructure.
1:53:58 PM
BRENDA MOORE, ALASKA MENTAL HEALTH BOARD, ANCHORAGE (via
teleconference), spoke in support of funding for home and
community-based services. She encouraged the committee to
look at a diverse revenue stream as part of a fiscal plan
to help maintain state services. She described that
community-based services included mental health and
substance abuse treatment, healthcare, housing assistance,
assisted living, family care giver and natural support,
case management, education and training for providers, peer
support, and transportation and senior support. She
discussed the value of preventative care, and the
importance of home and community-based services in
preventing the need for acute care. She stated that she
served on the board for the Alaska Psychiatric Institute.
She discussed a lack of follow-up services after acute
care, which created a high rate of re-admission.
1:56:54 PM
DOUG WHITE, ACCESS ALASKA, ANCHORAGE (via teleconference),
spoke in support of funding for seniors and people with
disabilities. He thanked the committee for maintaining most
of the appropriations from the governor's proposed budget,
particularly community-based programs. He spoke in support
of increased revenue measures. He highlighted the
community-based care services provided jobs and contributed
to the local economy. He mentioned important support
services such as mental health services, substance abuse
treatment services, health care, housing assistance,
assisted living, in-family caregiver, case management, care
provider training, and senior support. He noted that people
with disabilities were more likely to lead productive lives
with appropriate support, and would be less likely to need
more acute care. He supported a fiscal plan based on
diverse revenue sources.
1:59:34 PM
PATRICK REINHART, GOVERNOR'S COUNCIL ON DISABILITIES AND
SPECIAL EDUCATION, ANCHORAGE, spoke in support of funding
for home and community-based services. He noted that the
governor's council had taken a position that revenues were
needed to balance the budget. He thought there had been
enough cuts to home and community-based services. He
discussed the cut that would be replaced through
refinancing some items through Medicaid programs.
Co-Chair Seaton stated that the committee would take a
break until 2:30 p.m.
2:01:47 PM
AT EASE
2:34:15 PM
RECONVENED
DENMER WELLS, SELF, ANCHORAGE (via teleconference),
testified in support of education funding. He thought
discussing the deficit in terms of percentages implied that
there was a fundamental revenue problem. He encouraged the
committee to fully fund education. He spoke in opposition
to using the earnings reserves, specifically to cutting the
PFD. He thought cutting the PFD was regressive. He
supported an income tax. He did not support a sales tax.
2:38:17 PM
DAVID BOYLE, SELF, ANCHORAGE (via teleconference), spoke in
opposition to using the Permanent Fund earnings reserves
and against cuts to the PFD. He spoke in support of further
budget cuts. He supported cuts to education and the
Department of Transportation and Public Facilities. He
supported cuts to the Alaska Performance Scholarship
program and the Power Cost Equalization program. He
discussed funding for non-profits.
2:40:36 PM
JOAN DIAMOND, SELF, ANCHORAGE (via teleconference), spoke
in favor of restructuring the Permanent Fund. She referred
to the income tax and education tax that was formerly
enacted in the state. She spoke in support of an income
tax.
2:42:21 PM
MALLORY HAMILTON, SELF, ANCHORAGE, testified in support of
funding for disabilities services. She relayed that she had
a child with significant disabilities. She spoke in support
of additional revenue measures. She emphasized the need for
bills to get through committee to go to the House and
Senate floor.
2:44:18 PM
AT EASE
2:46:04 PM
RECONVENED
Co-Chair Seaton stated that as there was no one signed up
to testify, the committee would break until 3:15 p.m.
2:46:41 PM
AT EASE
3:15:29 PM
RECONVENED
^PUBLIC TESTIMONY: SITKA, PETERSBURG, DELTA JUNCTION,
UNALASKA, GLENNALLEN, TOK
3:15:52 PM
JODY TOW, FINANCE DIRECTOR, PETERSBURG BOROUGH, PETERSBURG
(via teleconference), opposed the proposed decrease to the
school bond debt reimbursement. She stressed that passing
major expenses to municipalities was not a solution. She
provided detail on how the expenses would impact the
community's taxpayers. She indicated that property taxes
would increase by $90 for every $100,000 of assessed value.
She discussed that the bonds had been issued to help pay
for school major maintenance, the aquatic center, and a
vocational education building expansion. She believed the
passage of the amendment would negatively influence voter
approval of any future ballot propositions for construction
projects. She thanked the committee for its time.
Co-Chair Seaton clarified that it was 50 percent of the
Unrestricted General Funds; it was really 42 percent of the
bond debt reimbursement.
Ms. Tow replied it equated to approximately $240,000 for
Petersburg.
3:18:26 PM
JOHN DULL, SELF, SITKA (via teleconference), believed HB 57
was a good bill, but he thought additional cuts were
necessary. He mentioned that the Senate was making
additional cuts without having to tax the people. He
thought cutting to the bone was appropriate. He spoke in
support of additional reductions to the education budget.
He did not believe utilizing the Constitutional Budget
Reserve (CBR) to fill the remaining budget gap was the
right solution. He thought a $6.6 billion budget was way
too high.
3:19:49 PM
JOHN JAY SWEENY, CHIEF FINANCIAL ADMINISTRATIVE OFFICER,
CITY AND BOROUGH OF SITKA, SITKA (via teleconference),
strongly urged members to vote no on HB 57. He relayed that
the city had been able to absorb a cut to school bond debt
reimbursement the prior year; however, it could not sustain
a long-term reduction. The city did not have the ability to
increase property or sales taxes without a vote. The
reduction would mean a cut of approximately $750,000 to the
city's budget. He asked members to consider the impacts of
transferring debt to the municipalities. He thanked the
committee.
3:21:48 PM
MARY WEGNER, SUPERINTENDENT, SITKA SCHOOL DISTRICT, SITKA
(via teleconference), supported public education. She
thanked the committee for prioritizing funding for early
learning and K-12 education. She spoke to the many benefits
that came with the funding levels for education in the
budget. She mentioned that the flat funding would affect
the level of service due to increased health care costs for
employees. She spoke in opposition of the reduction in
school bond debt reimbursement.
Co-Chair Seaton relayed that the bill represented a single
budget for FY 18, not a long-term change.
3:24:19 PM
RICHARD PROBERT, SELF, TOK (via teleconference), spoke of
problems he had with Adult Public Assistance. He provided
detailed information about his personal financial troubles.
He spoke to inequities surrounding the welfare system. He
wanted to see cuts made to individuals committing welfare
fraud. He advocated for funding for seniors.
3:26:41 PM
DEB HARBISON, PARENT EDUCATOR, PARENTS AS TEACHERS, TOK
(via teleconference), spoke in support of Parents As
Teachers and supported funding for the program. She
provided information about the program. She was speaking on
behalf of parents in her community. She provided
information about the merits of the program. She thanked
the committee for funding the program previously. She
thanked the committee for the opportunity to testify.
Co-Chair Seaton indicated that the committee would take an
"At ease" until 4:00 PM, as there was no one online
currently.
3:28:52 PM
AT EASE
4:03:11 PM
RECONVENED
HANNAH BENGSTON, PARENT EDUCATOR, PARENTS AS TEACHERS,
GLENNALLEN (via teleconference), spoke in support of
funding for Parents as Teacher. She provided some
information about what she did to support parents and
families. She thanked the committee.
Co-Chair Seaton thanked Ms. Bengston for her commitment to
education.
4:05:04 PM
DENNIS CHARLEY, PARENTS AS TEACHERS, GLENNALLEN (via
teleconference), spoke in support of the Parents As
Teachers program and urged members to support the program.
He shared how the program had benefitted his family. He
mentioned some of the benefits of the program. He thought
the program brought people confidence and encouragement.
4:07:16 PM
LISA NICOLAI, GAKONA VILLAGE, GLENNALLEN (via
teleconference), urged members to support the Office of
Child Services. She provided a professional story. She
relayed Gakona had one caseworker covering several
communities. She urged the committee to provide funding for
additional caseworkers. She thanked members for hearing her
testimony.
4:08:36 PM
AT EASE
4:09:31 PM
RECONVENED
Co-Chair Seaton relayed that the committee was hearing
testimony of people for the communities of Sitka,
Petersburg, Delta Junction, Unalaska, Glennallen, and Tok.
The committee would be taking testimony from these
communities until 4:45 PM. The cutoff time to sign up was
4:30 p.m.
4:10:14 PM
AT EASE
4:31:38 PM
RECONVENED
KURT SCHMIDT, SELF, DELTA JUNCTION (via teleconference),
spoke in opposition to HB 57. He thought the budget was
excessive and was a sure way to bankruptcy. He thought
additional reductions were in order. He mentioned being in
favor of Senator Dunleavy's bill to put the use of the PFD
to a vote of the people. He believed that taking the PFD
was a crime. He suggested that legislators were not
representing the people. He urged moving the capital to
Anchorage.
4:34:58 PM
SARAH HOLMGRAIN, MEMBER, PETERSBURG SCHOOL BOARD,
PETERSBURG (via teleconference), spoke in favor of funding
public education. She opposed the amendment that reduced
the school bond debt reimbursement. The amendment was not
the solution to resolving the state's fiscal problems. She
shared that the previous year the borough had lost $117,000
from its school bond reimbursement. She communicated that
the borough had worked creatively and had been able to
absorb the loss; however, the amendment would hit the
borough and the school in the gut. She explained that the
borough may have to increase taxes or cut services if the
amendment passed. Voters had approved the bonds years
earlier with the understanding the community would receive
agreed reimbursement from the state.
4:36:31 PM
MARK CURRAN, SELF, DELTA JUNCTION (via teleconference),
opposed using Permanent Fund monies to fund government. He
believed former Governor Jay Hammond had considered the
Permanent Fund the people's money. He thought the PFD
fueled the economy. He thought it was criminal to take the
PFD away from the people of Alaska. He thanked the
committee for hearing his testimony.
4:38:03 PM
AT EASE
4:38:16 PM
RECONVENED
Co-Chair Seaton indicated that the meeting would be
recessed until 5:00 p.m.
4:38:32 PM
AT EASE
5:02:26 PM
RECONVENED
^PUBLIC TESTIMONY: OFF-NETS
5:02:31 PM
MICHAEL O'BRIEN, VICE PRESIDENT, FAIRBANKS NORTH STAR
BOROUGH SCHOOL DISTRICT SCHOOL BOARD, FAIRBANKS, testified
in support of education funding. He shared that in the past
several years the district had made strategic cuts; it had
utilized a strategic plan for guidance to ensure students
continued to succeed. He was opposed to any additional cuts
of any form to education (e.g. to the Base Student
Allocation (BSA) or bond debt reimbursement). He believed
the bond debt reimbursement cut was inequitable across the
state. He provided examples. He elaborated on the impact
the cut would have on Fairbanks. If any cuts were made,
they should be made equitably. He spoke to transportation
costs for the school district and provided detail about
contracts. The district was looking at a very significant
hole in its budget.
Co-Chair Seaton clarified that the remainder of the
governor's budget would fill the $6.5 million in pupil
transportation.
Representative Ortiz asked how Mr. O'Brien would view an
increase to Public Employees' Retirement System (PERS) and
Teachers' Retirement System (TRS) obligations in
relationship to the other two options.
Mr. O'Brien was opposed to the idea. He communicated that
$1 taken away from the classroom was $1 taken away. He
particularly opposed the elimination of the bond debt
reimbursement due to the inequity across the state.
5:07:41 PM
MARK VINK, BERING STRAIT SCHOOL DISTRICT, UNALAKLEET (via
teleconference), thanked the committee for its work and
recognized decisions on the budget was not an easy task. He
referred to a colleague who would testify.
TAMMY DODD, BERING STRAIT SCHOOL DISTRICT, UNALAKLEET (via
teleconference), testified in support of the proposed bill
to replace or add additional funds to the state's ECE
[early childhood education] grants that had been previously
funded by the Moore grant settlement. There had been three
cohort years that had gone through the program. She
referred to a study showing that children in the ECE
program were outperforming non-ECE students by 20 percent
in letter naming. She provided additional detail about the
program and its merits. She noted she had provided the data
to Co-Chair Foster and Representative Ortiz's offices. She
spoke to the importance of early childhood education for
students in the Bering Strait School District. She spoke to
costs for the district. She feared the ECE programs would
eventually lose out without additional funding.
5:12:05 PM
ETHAN BERKOWITZ, MAYOR, ANCHORAGE, ANCHORAGE (via
teleconference), spoke in opposition to the elimination of
the bond debt reimbursement. He emphasized he viewed the
change not as a budget cut, but as a shift to taxpayers in
Anchorage that would cost them approximately $53 per
$100,000 in assessed value. The change would result in an
average tax increase of $185 for Anchorage homeowners. He
stressed that the reduction was in addition to cuts made
the previous year. He urged the committee to reconsider the
proposal. He asked members to consider the moral obligation
to honor bond debt reimbursement.
5:13:35 PM
PAMELA SAMASH, SELF, NENANA (via teleconference), testified
in support of funding for education. She shared that she
had worked as a school bus driver in the past. She wanted
to see the Democrats and Republicans work together for the
people of Alaska. She stated that the CBR had a lower
interest rate and would not take money from the Permanent
Fund Dividend. She did not support taking the PFD and
believed residents could not afford the legislature's tax
plan.
5:15:18 PM
MARNA SANFORD, SELF, FAIRBANKS (via teleconference), urged
the committee to not make any additional cuts. She believed
individuals in Alaska would be amazed to find what less
government would look like. She thanked the committee for
its work. She strongly supported Co-Chair Seaton's work to
restructure the PFD and reform of oil and gas tax credits.
She spoke in support of an amendment offered by Vice-Chair
Gara related to additional social workers at the Office of
Children's Services (OCS). She shared information about her
prior work with the agency. She spoke to its merits.
5:17:22 PM
NATASHA SINGH, TANANA CHIEFS CONFERENCE, FAIRBANKS (via
teleconference), thanked the committee for its work. She
remarked on the difficulty of cutting significantly over
recent years. She did not support further cuts. She stated
that some of the cuts were hurting Alaskans. The conference
supported an amendment offered by Vice-Chair Gara related
to social workers for OCS.
5:19:12 PM
MRS. DENNY KAY WEATHERS, SELF, PRINCE WILLIAM SOUND (via
teleconference), spoke against the budgets. She believed
Alaskans had created an enormous debt by inflating the
budget. She did not support the proposal to block per diem
cuts to legislators. She cited Co-Chair Seaton's travel
expenditures and believed his annual per diem was more than
what many Alaskans earned. She believed government was
bloated. She had not seen any real cuts during Co-Chair
Seaton's 14 years with the legislature. She believed it was
time for steeper reductions.
5:23:44 PM
PAUL VERHAGEN, SELF, NENANA (via teleconference), spoke in
opposition to the proposed budget. He did not support
pulling $4.2 billion from the Permanent Fund earnings
reserve account to pay for "big" government. He believed
the legislative minority had been cut out of the process.
He stated that the new majority had made minimal efforts to
cut the budget. He did not support cuts to the bond debt
reimbursement to school districts. He urged the committee
to consider changing its strategy. He asked the committee
to look at Senator Bert Stedman's SB 21 proposal. He
supported cuts to the budget, not the people.
5:25:16 PM
KARA THRASHER-LIVINGSTON, SELF, ANCHORAGE (via
teleconference), thanked the committee for preserving
community-based services for elders and individuals with
disabilities. She shared information about her family. She
discussed individuals providing care for elderly family
members, children, and other. She did not support blanket
cuts. She explained that cuts without other options for
people would be devastating. She discussed that she spent
her earned funds in Alaska.
5:27:54 PM
MARILYN ANDON, BEHAVIORAL HEALTH DIRECTOR, TANANA CHIEFS
CONFERENCE, FAIRBANKS (via teleconference), spoke in
support of behavioral health treatment grants. The
organization used the grants to provide substance treatment
and mental health services in several communities in the
Interior, including Fairbanks. She asked the committee to
avoid further cuts. She shared that often federal dollars
had to be used to subsidize the programs.
5:28:48 PM
JAMES SQUYRES, SELF, RURAL DELTANA (via teleconference),
believed the budget was still too high. He did not like the
idea of an income tax or cuts to the Permanent Fund
Dividend. He believed government was too big. He spoke to
the state's constitution. He asked the legislature to
correct its course.
5:30:10 PM
PAMELA GOODE, SELF, RURAL DELTANA (via teleconference),
testified against the budgets. She associated herself with
remarks made by an earlier testifier. She believed
legislators had lost their minds. She did not support high
levels of government spending. She emphasized that once the
funds were gone they would not be recovered. She did not
support additional taxes or use of the Permanent Fund to
fund government.
5:31:29 PM
BRAD RYAN, INTERIM BOROUGH MANAGER, CITY OF HAINES, HAINES
(via teleconference), spoke against the proposal to cut
school bond debt reimbursement. He relayed it would impact
the Haines Borough by nearly $450,000 in a year with a
$500,000 deficit. The cut would directly impact the
community, schools, and services. He encouraged the
committee to maintain the forester position in Haines; the
community had already lost its state trooper and would like
to maintain the forester. He shared that one of the largest
timber sales in recent history was about to take place and
the community could use the forester's support.
5:32:28 PM
ANGELA HILL, SELF, SITKA (via teleconference), spoke
against cuts to pre-K. She worked as a head start
administrator in Sitka. She provided information about the
program. She spoke to working with programs to reach
additional young children. She implored the committee to
maintain funding.
5:34:02 PM
DEBORAH SCHNABEL, HAINES CHAMBER OF COMMERCE, HAINES (via
teleconference), spoke against the proposed cut to school
bond debt reimbursement. She explained the cut would
negatively impact the community. She provided information
about the community's bonds. She stated the amendment was
unfair and was crippling to the economic growth of
communities. She urged the committee to reconsider and
asked the committee to reinstate a state forester position
in the region.
Co-Chair Seaton clarified that the bill would not mean an
ongoing change over decades; it impacted only 2018.
5:37:13 PM
CYNTHIA LAGOUDAKIS, VICE MAYOR, PETERSBURG (via
teleconference), testified against cuts to school bond debt
reimbursement. She shared the community had received almost
$500,000 in state funds of the $748,000 needed to pay its
annual bond principal and interest. She detailed that
currently debt reimbursement covered three completed
projects including school major maintenance, an aquatic
center, and the expansion of vocational education building.
She specified how the cut would impact the community. She
relayed the reimbursement had already been reduced by 25
percent in FY 17. The proposed 50 percent funding in FY 18
would mean almost $250,000 in lost funding. She stated the
bill would reduce future construction. She stated that in
recent years the legislature had special sessions, lobbied
for controversial projects, focused on cutting government
positions and services, and had sought to shift costs to
municipalities. She urged the legislature to address oil
subsidies and to develop avenues of revenue generation
instead of relying on cutting state government.
5:39:24 PM
AT EASE
5:44:56 PM
RECONVENED
Co-Chair Seaton addressed the agenda for the following day
and noted one additional person was available to testify.
5:46:34 PM
EVELYNN TREFON, SELF, VICE MAYOR OF CITY COUNCIL, NEWHALEN
(via teleconference), stressed the need for new revenue
sources. She believed revenue sharing needed to be a
reliable funding source. She stressed that the city would
be forced to close its doors without the funding. She was
in favor of an income tax. She believed it would add an
additional 50 to 60 jobs into the economy. She was in favor
of capping the PFD at $1,000. She stated that it needed to
be set at a measurable rate and maintained. She supported
changes to oil taxes. She emphasized the state should not
be handing out subsidies to oil companies. She spoke about
motor fuel costs. She did not support an increase to
aviation fuel. She spoke to high costs in the region. She
underscored that more budget cuts were not the answer. She
relayed that Alaskans grandchildren would look back on the
moment in time and either applaud the actions taken by the
legislature or would wonder what legislators had been
thinking. She stressed that the can could no longer be
kicked down the road. She supported a comprehensive fiscal
plan.
HB 57 was HEARD and HELD in committee for further
consideration.
HB 59 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
5:51:35 PM
The meeting was adjourned at 5:51 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 57 Opposition Documents 2.pdf |
HFIN 3/3/2017 1:00:00 PM |
HB 57 |
| HB 57 Support Documents 2- 3.3.17.pdf |
HFIN 3/3/2017 1:00:00 PM |
HB 57 |