04/18/1995 10:10 AM House HES

 HB 246 - ELIMINATING PIONEERS' HOME PROGRAM                                 
                                                                               
 CO-CHAIR BUNDE apologized that not everyone wishing to testify in             
 Juneau and on teleconference would be able to do so, due to the               
 time demands of HB 226.  The bill would be rescheduled for a later            
 date, when further testimony will be taken.                                   
                                                                               
 Number 877                                                                    
                                                                               
 REPRESENTATIVE GARY DAVIS, sponsor of the bill, began by noting               
 that the short title of the bill is "Eliminating Pioneers' Home               
 Program."  That is not what the bill does at all.  The bill offers            
 an opportunity to transfer the operation of pioneers' homes to                
 private institutions, as opposed to keeping them state-operated               
 institutions.                                                                 
                                                                               
 REPRESENTATIVE DAVIS also indicated that it is his intention to               
 have HESS Committee members take no action on this bill                       
 immediately.  He would like to form a subcommittee and have the               
 subcommittee members discuss and review the intent of this                    
 legislation over the interim.  If there is an opportunity for the             
 privatization of the pioneers' homes, he requested that the bill              
 come back to the legislature next session.                                    
                                                                               
 REPRESENTATIVE DAVIS hoped those comments would alleviate a lot of            
 concerns.  Many people fear some action may be taken on this bill             
 and there will be interference with their present conditions.  The            
 intent of the bill is not to cause any upheaval or disturb the                
 current situation.  As written, it is currently an impossibility to           
 pursue this legislation.  Repercussions to current residents (which           
 is not what Representative Davis intends) would occur.                        
                                                                               
 Number 1000                                                                   
                                                                               
 CO-CHAIR BUNDE said he would take the advice of Representative                
 Davis to work on this bill in the interim in a subcommittee.  Co-             
 Chair Bunde repeated that he still would like to bring the bill up            
 at a future date so the people who would like to testify will have            
 an opportunity to do so.  Co-Chair Bunde encouraged Representative            
 Davis to seek a title amendment, as the current title is pretty               
 strong.                                                                       
                                                                               
 CO-CHAIR BUNDE asked those testifying on teleconference to limit              
 their testimony to two minutes.  He said he would try to hear                 
 testimony from as many people as possible.  Of course, written                
 testimony was always welcome.                                                 
                                                                               
 Number 1061                                                                   
                                                                               
 PATRICK KALEN, Representing the Pioneers of Alaska, said the                  
 concerns of his peers were pretty much unanimous.  The bill was               
 discussed at length at a meeting held the previous night.  The                
 morning paper seemed to put Representative Davis in the "hot seat,"           
 because as it was worded, it appeared Representative Davis wants to           
 eliminate the Pioneers' Home Program.                                         
                                                                               
 MR. KALEN now understands that is not what Representative Davis               
 wants to do.  However, the very idea of making changes in the                 
 operation of the pioneers' home was very disturbing to the                    
 pioneers.                                                                     
                                                                               
 MR. KALEN said the pioneers are looking for some evidence that                
 privatizing would solve some problems in the operation of the                 
 pioneers' home.  Mr. Kalen's biggest concern regards the residency            
 requirements.  Mr. Kalen said his organization understands that               
 everything is going to take a hit in the future.  He hopes the                
 pioneers' homes survive.                                                      
                                                                               
 MR. KALEN understands that many people feel the private operation             
 of pioneers' homes is the best solution.  Mr. Kalen did not feel              
 there was a problem with the operation of the homes, and said, "If            
 it ain't broke, don't fix it."                                                
                                                                               
 Number 1162                                                                   
                                                                               
 MR. KALEN encouraged Representative Davis to call him so they can             
 discuss ideas.  He also encouraged the HESS Committee to hold the             
 bill so pioneers can get a better understanding of the aims of the            
 bill.                                                                         
                                                                               
 CO-CHAIR BUNDE noted that there are judges who are making changes             
 that perhaps many people are not happy with.  However, those                  
 decisions are a fact of life.  HESS Committee members as well as              
 the residents of pioneers' homes have to deal with those decisions.           
 Co-Chair Bunde also encouraged Representative Davis to do more when           
 changing the title of the bill.  He suggested the words "eliminate"           
 and "Pioneer" be changed.  There are no longer pioneers' homes.               
 They are old folks homes.  The state pays a $50,000-plus subsidy              
 for those that are on the inside as opposed to those who are on the           
 outside.                                                                      
                                                                               
 CO-CHAIR BUNDE said the state is going to have to deal with this              
 problem, and HESS Committee members will appreciate the guidance              
 and direction of Mr. Kalen.                                                   
                                                                               
 Number 1238                                                                   
                                                                               
 BEAVER BENTLEY testified via teleconference that he too is a little           
 wary of the bill's current wording, which reads eliminating the               
 pioneers' home.  He said that benefits are being cut at the federal           
 and state levels to the point at which programs and people are                
 beginning to suffer.  If his health conditions worsen, he may have            
 to reside at an assisted care facility.  He does not like the idea            
 of private care.                                                              
                                                                               
 Number 1305                                                                   
                                                                               
 DOROTHY WESTPHAL testified via teleconference that she is a 33-year           
 resident of Alaska.  She is very proud that she finally reached the           
 age at which she could join a pioneer group.  She said she can see            
 many flaws in HB 246.   Basically, the plan is supposed to save               
 money.  However, in order to get those homes into saleable                    
 condition, much money would be spent to replace equipment and keep            
 up the homes.  The mechanics of handling the sales and clearing the           
 titles would be very costly.   Ms. Westphal can see many obstacles.           
                                                                               
 MS. WESTPHAL said there would also be a large cost to the morale of           
 the residents of Alaska who wish to reside in those homes.  She is            
 really against HB 246.  She does not think this bill will work.               
 Her main concern is for those who presently have Alzheimer's or who           
 are going to need care.  The pioneers' homes have wonderful                   
 Alzheimer's units.  She does not think this bill will make people's           
 lives better.                                                                 
                                                                               
 MS. WESTPHAL repeated that it will cost a lot money to even sell              
 the homes.  There would also be a large cost on the residents.                
 Those residents have to find somewhere else to live.  She asked               
 where those residents are going to go.                                        
                                                                               
 CO-CHAIR BUNDE assured Ms. Westphal that notes were being taken of            
 her concerns.  The goal of the HESS Committee is to help the state            
 in financial issues.  The HESS Committee does not wish to beat up             
 on people for the sake of saving money.                                       
                                                                               
 Number 1465                                                                   
                                                                               
 R.N. DeARMOND testified via teleconference from the Sitka Pioneers'           
 Home that that building was established in 1913.  Over the years,             
 it has cared for approximately 3,000 residents of the territory and           
 state of Alaska.  About a dozen of those residents were former                
 members of the Alaska Legislature.                                            
                                                                               
 MR. DeARMOND asked that a large effort be made to save the Alaska             
 Pioneers' Home system.  Perhaps some modifications should be made.            
 To that end, Mr. DeArmond suggested the creation of a special                 
 interim joint committee of the House and Senate, with the                     
 membership from the Pioneers of Alaska, to look into ways in which            
 the revenues of the system might be increased and the cost of                 
 operation might be reduced.                                                   
                                                                               
 MR. DeARMOND said he would be faxing HESS Committee members some              
 specific suggestions about enhancement.                                       
                                                                               
 Number 1552                                                                   
                                                                               
 CO-CHAIR TOOHEY asked if Mr. DeArmond had listened to testimony               
 which took place in April 1994, when Co-Chair Toohey was helping a            
 committee do exactly what he had just recommended.  The final draft           
 was something that apparently was not acceptable by just about                
 everyone.  Therefore, she does not know whether the state is going            
 to have to wait until the situation is so desperate the doors will            
 have to be shut until a solution is found.  However, major changes            
 are necessary.                                                                
                                                                               
 CO-CHAIR TOOHEY said changes must be made that involve the infusion           
 of new monies (i.e., Medicaid and Medicare).  The state must find             
 some more ways to bring money in.  There must be some criteria on             
 what allows one to be a member of the pioneers' homes.  As Mr.                
 DeArmond knows, many years ago, the homes were created for indigent           
 miners who did not have the ability to get benefits for themselves            
 saved over the years.                                                         
                                                                               
 CO-CHAIR TOOHEY said that changed in the 1960s and 1970s, and the             
 system allowed anyone to join into the system.  There are people              
 that have homes who are spending the weekends at their homes and              
 the weeks at the pioneer home.  That used to be fine, but the state           
 can no longer afford that.  Decisions must be made.  These are very           
 hard decisions to make, but solutions must be reached.                        
                                                                               
 CO-CHAIR TOOHEY encouraged everyone to get involved, and assured              
 the residents of pioneers' homes that she would never allow a                 
 resident to be put out on the street.  That will never be allowed.            
 However, ideas are needed about the future of the pioneers' homes,            
 or there will be no future for those homes.                                   
                                                                               
 Number 1644                                                                   
                                                                               
 ANNABEL APPLING, Resident, Sitka Pioneers' Home, testified via                
 teleconference that she has lived in Sitka for 79 years.  She knows           
 what the pioneers' home means. It is a great place for senior                 
 citizens.  However, it sounds like the sponsor of the bill wants to           
 make street people out of them.  Ms. Appling thought the homes                
 should be saved for the seniors.  They have worked hard.  The Sitka           
 home is the most beautiful in Alaska, and it should be kept that              
 way.                                                                          
                                                                               
 CO-CHAIR BUNDE informed others wishing to testify that after                  
 testimony is taken in Sitka, public testimony will be closed on HB
 for the day.  Interested parties will be notified about the               
 bill's next hearing.                                                          
                                                                               
 Number 1673                                                                   
                                                                               
 ART NIELSEN, Resident, Sitka Pioneers' Home, testified that he has            
 resided at the pioneers' home for the last year and a half. He                
 asked HESS Committee members to not pass the bill.                            
                                                                               
 Number 1706                                                                   
                                                                               
 ANN JENSEN, Resident, Sitka Pioneers' Home, said that one of the              
 residents spent two hours at the legislative information office               
 last week, and waited for an hour and a half to testify at the                
 current hearing.  She is in a wheelchair.  She asked Ms. Jensen to            
 tell HESS Committee members that she is very anxious about the                
 bill.  She has no place to go.  She cannot afford to pay any more             
 money.                                                                        
                                                                               
 MS. JENSEN noted that in the 1960s, the state expanded the                    
 pioneers' home system, adding new units between 1972 and 1988.                
 Other homes were expanded.  That was marvelous for those residing             
 in the homes.  But it also means that no private organization was             
 able to compete with those homes.  The residents now have no place            
 to go.                                                                        
                                                                               
 CO-CHAIR BUNDE apologized for the long discussion on HB 226.  He              
 thanked all those testifying.