Legislature(2001 - 2002)
04/02/2001 02:00 PM Senate HES
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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
SB 149 - TEACHER/HEALTH CARE PROVIDER INCENTIVES
CHAIRWOMAN GREEN asked Senator Leman, the sponsor of SB 149, to
present the bill.
SENATOR LEMAN said he introduced SB 149 because of the shortage of
teachers and health care providers, most noticeably of nurses, in
Alaska. To address this problem, he believes the state needs to
provide incentives to reverse this trend. The University of Alaska
(UA) is doing a capable job of filling some of the shortages, but
it is unable to fill them all so Alaska must attract professionals
from outside of the state.
SB 149 attracts newly trained people, it promotes retention of the
existing workforce, and it will therefore attract retirees back
into the workforce. It provides financial incentives to motivate
entry-level teachers and health care providers to the state. It
has a partial loan assumption element that provides up to $10,000
in state-paid loan payment support. In addition, it contains a
loan forgiveness provision for teachers in rural areas. He
believes that provision should be expanded to include certain
teachers in urban areas.
SENATOR LEMAN explained that the bill also targets employed
professionals by increasing medical benefits for those teachers who
work 25 years instead of 20. For the additional five years of
work, their coverage would increase to 100 percent upon retirement.
Another provision of the bill recognizes out-of-state teaching
certificates and provides for a teaching excellence award program.
That program provides a $1500 award to up to 20 percent of the
teachers in Alaska school districts. The districts would determine
the methods to decide who the awards will go to. He expects that
program to motivate teachers to improve our education system. The
bill contains a fiscal note, which he expects the committee to work
on to fit within the budget gap.
SENATOR LEMAN pointed out that under SB 149, retired teachers would
be able to come back into the system and work. They could continue
to receive benefits but, if they chose not to, they could work at a
higher salary. He offered to go into more detail on that section
if necessary.
Number 1501
SENATOR GREEN asked if the Department of Law has issued an attorney
general's opinion on the question of whether it is discriminator to
grant forgiveness on student loans for a certain segment of the
population.
SENATOR LEMAN stated that SB 149 has discrimination built into it.
He believes the question is whether the discrimination is
appropriate and, in his opinion, it is. He said he would welcome
testimony from the Department of Education and Early Development
and the assistant attorney general who represents that department
on that question.
SENATOR WARD commented that special housing loans were given to
police officers in the Mountainview area of Anchorage. He asked
Senator Leman whether he considered offering a further subsidized
housing loan program through the Alaska Housing Finance Corporation
to provide incentive to teachers to move to certain areas.
SENATOR LEMAN thought that is a good idea and said he sees the bill
as a work in progress. He recognizes that the bill has a large
fiscal note and that it will have to be constrained.
SENATOR WARD asked the committee to consider a housing subsidy and
thought the police program was subsidized with federal money.
SENATOR WILKEN asked when the ACPE will provide a fiscal note.
CHAIRWOMAN GREEN said she would request one.
SENATOR WILKEN asked whether the Department of Community and
Economic Development is the appropriate agency to administer the
loan program [page 9, line 14].
SENATOR LEMAN said that provision refers to the grants that are
given directly to whoever made the loan.
CHAIRWOMAN GREEN asked participants to keep their testimony brief
to allow everyone time to testify.
Number 1713
DR. TINA DELAPP, UAA School of Nursing, said she is pleased to see
the addition of health care providers to the bill as the greatest
shortage of workers in Alaska is in the category of registered
nurses. Alaska has a severe shortage of registered nurses, and a
substantial number of the existing nurses in the workforce is
expected to retire within 15 years. The same shortage exists in
the other 49 states. In the past, Alaska has been able to rely on
recruitment from other jurisdictions; it can no longer do that so
it is crucial to retain the nurses who have been educated in
Alaska. Given the heavy indebtedness that most nursing students
have accumulated at the time of graduation, forgiving a portion of
that indebtedness will give many a powerful incentive to remain in
the state. Nursing is a physically, emotionally and intellectually
demanding profession and those demands increase in times of
shortage. The burnout rate is high. It is not uncommon for a
recent graduate to be overcome by the demands and elect to seek
employment in a less demanding field. Extending the rate of loan
repayment over a five year period may be useful in keeping nurses
actively employed in the field until they have had sufficient time
to gain experience and comfort. The shortage in Alaska is most
severe in rural areas therefore she applauds the provision that
adds an incentive for individuals who elect to practice in rural
areas, however she does not believe that was intended to be based
on a cumulative GPA. Improving the quality of preventive, acute
and long term health care services will ultimately reduce costs and
provide economic advantages to communities that seek to attract and
retain workers to fill jobs both in and outside of the health care
arena. She believes SB 149 will attract and increase the retention
of nurses in Alaska, and especially in rural areas of the state.
She suggested providing more continuing education opportunities in
rural Alaska.
Number 1879
MS. DEBBIE OSSIANDER, a member of the Anchorage School Board,
expressed enthusiastic support for SB 149. This bill will go a
long way toward some of the challenges that public schools are
facing. Sections 3 and 4 are particularly important. The five
year timeframe on reciprocity of teacher certification is
particularly helpful. Additionally, the employment of retired
teachers is a provision that the Anchorage School District, and
others, has pushed for several years. The Anchorage School
District would like to see that provision apply to hiring teachers
in areas of shortage. The Anchorage School District is also
appreciative of being able to determine areas of shortage; that bit
of local flexibility will go along way towards benefiting it.
MS. OSSIANDER said she is confused about Sections 8 and 10,
regarding the loan forgiveness provisions. Section 10 would be
particularly helpful for urban Alaskan school districts. She also
appreciates the teacher award program. Overall, the Anchorage
School Board supports SB 149.
Number 2005
MR. STEVE CATHERS from Valdez testified on his own behalf. He
finds SB 149 to be a bold and creative bill that provides a number
of strategies to attract teachers to the state. This bill
addresses all teachers: new teachers through loan forgiveness
provisions; retired teachers by not interrupting their retirement
benefits; and it provides for teacher certification reciprocity.
He expressed concern about whether a teacher who, through
reciprocity, has received a five year certificate can reapply for a
provisional certificate when the five years is up. Regarding the
teacher award program, the State of Arizona has proven that
objective criteria for awarding incentives can be implemented. The
superintendents have discussed and strongly support the possibility
of eliminating the Tier II designation from the teachers retirement
system. SB 149 will certainly be of use to school districts but
timing is critical as the job fair will occur soon.
MS. MELISSA HILL, Alaska Teacher Placement director, expressed
support for SB 149, especially for the certification reciprocity
provision. The certification process in Alaska is very expensive.
She asked that the Institutional Recommendation Form be reviewed by
the teacher certification office. She also expressed support for
reemployment of retired members and for the loan forgiveness
provision. Other states have offered signing bonuses that do not
necessarily lead to higher retention rates. She recommended
allowing school districts in urban areas to use these incentives to
hire staff in high demand positions.
Number 2308
MS. LARRAINE DERR, representing the Alaska State Hospital and
Nursing Home Association, said she is speaking specifically to the
shortage of nurses although there is a shortage in many of the
health care provider areas. Of 33 categories of health care
providers that the Department of Labor keeps track of, 5400
vacancies are projected to occur within the next 10 years,
according to a 1998 study. Since 1998, 580 vacancies per year have
been occurring. By 2008, Alaska will need more than 1300
registered nurses (RNs) and 150 more licensed practical nurses
(LPNs). Currently the UA enrolls 60 students per year in its RN
program and 30 in the LPN program. About 15 percent of LPNs plan
to leave that field in the next five years. That extrapolates to
an additional 550 vacancies or more than 100 per year. The UA is
adding new programs but additional students must be attracted into
these areas. The legislature can help by supporting UA's budget
and by supporting SB 149. This is not an Alaska issue alone; the
American Hospital Association has named workforce development as
its number one priority in 2001. The problem is nationwide. This
legislation will help to attract students to Alaska.
TAPE 01-29, Side B
MS. DIANE BARRANS, Executive Director of the Alaska Commission on
Postsecondary Education, said she looked at the forgiveness
provision on state student loans and the provision that establishes
a program within the Department of Community and Economic
Development. The bill contains windows of opportunity for people
who have borrowed student loans from July 1, 2001 through June 30,
2004. However, this bill does not provide tools that can be used
to recruit this year. The loan forgiveness provision does not
apply to any existing loans; it will begin to apply to loans
borrowed this next year. The sunset provision will provide for a
periodic review to see whether the loan forgiveness provision would
remain.
SENATOR LEMAN asked if that window of opportunity could be changed
by making the date earlier.
MS. BARRANS said it could. She also pointed out the ACPE has not
provided a fiscal note yet because there is some uncertainty about
the health care provider definition and who the benefits would be
extended to. The definition is very broad; 14 health care
professions are licensed by the state and could fit the definition
of the bill. She stated without further guidance from the sponsor,
the ACPE will craft a fiscal note for the broadest interpretation
of that definition.
CHAIRWOMAN GREEN asked Senator Leman to discuss that definition
with Ms. Barrans.
Number 2244
DR. BRUCE JOHNSON, Deputy Commissioner of the Department of
Education, commended Senators Leman and Davis for their efforts in
trying to address the teacher shortage issue. He noted the state
board of education passed, this last Friday, a provisional two-year
certificate, which is similar to what is outlined in the bill. He
asked the committee to review the provisional certification to
determine whether that will be sufficient.
SENATOR LEMAN asked if the state board has the statutory authority
to make that change.
DR. JOHNSON said the board does believe it has that authority.
MS. KAREN PEARSON, Director of Public Health, DHSS, commended
Senator Leman for including health care providers in SB 149,
especially mental health care providers. She assured the committee
that certain areas in Alaska are experiencing shortages in every
type of health care provider. She pointed out the Denali
Commission has provided funding to improve health facilities in
rural Alaska. SB 149 will help provide the staff needed to make
sure those facilities are utilized and that services can be
delivered.
CHAIRWOMAN GREEN asked Ms. Pearson to describe the Denali
Commission's program.
MS. PEARSON said that funding will be coming through the Denali
Commission to address the need for primary care health facilities,
especially in rural Alaska. The funding will be for both larger
clinics that will serve populations of over 750, and for small
clinics. There is separate funding for the two types so they will
not be competing against each other. There has been extensive work
done on looking at where the needs are, where the sustainability
exists, and to come up with technical assistance for communities
with high needs but little capacity to do their own development.
She reiterated Ms. Barran's concern that the prospective dates in
SB 149 will delay, for about two years, any ability to recruit
based on loan forgiveness.
Number 2082
SENATOR LEMAN said he agrees the dates should be changed so that
the bill has a more immediate impact. He expressed concern that
the fiscal impact of SB 149 has to be constrained so he asked Ms.
Pearson to work with him to determine where the incentives need to
be provided among the health care professions.
MS. PEARSON agreed to do so.
MS. SHARON BARTON, Director of the Division of Personnel,
Department of Administration, informed the committee that the
division is concerned about recruitment and retention programs on a
statewide level. The division appreciates the bill's focus on two
critical areas but the shortage problem is occurring across state
government and many mission-critical jobs in all agencies need
similar incentives. She provided the committee with a chart that
shows that all state departments are sharing in this problem. The
average age of a new hire in state government is 38 years old and
the average age of state employees is 44. The state has invested
in 12 years of education for its youth. Anything that can be done
to encourage those college students to return to these jobs will be
in the state's best interest. State government will be losing most
of its most qualified people in the next five to seven years so it
needs incentives to keep them in the workforce longer.
Regarding the "double dipping" issue, MS. BARTON said the provision
in this bill does not add cost to the retirement program. The
division has no compunction, on the other hand, of hiring "double
dippers." Furthermore, other employers do not mind hiring state
government retirees so the state government is cutting itself off
from keeping some of its best qualified people in its workforce
without providing an incentive to remain. The problem is not
always rural in these other job classes. The division has been
surveying applicants for state government jobs since last
September. Out of 1800 responders to the survey, only 130 were in
the 22 to 24 year old age group. She urged the committee to
consider the rest of the workforce as it considers the provisions
in SB 149.
CHAIRWOMAN GREEN asked what other specific professions are
experiencing a shortage.
MS. BARTON said engineers, accountants and other higher level
administrative positions, biologists and other natural resource and
scientific job classes, among others.
SENATOR LEMAN pointed out that he wanted the provisions of SB 149
to also apply to engineers but he did not want the bill to be too
self serving. He asked if Ms. Barton has a similar age
distribution chart from five or ten years ago so that the committee
can get a better picture of the state government workforce.
MS. BARTON said the division will be working on that data and it
will take more of a manual effort to get those figures but she will
provide the committee with a copy.
SENATOR LEMAN thought a measurable change will be evident over the
last ten years.
CHAIRWOMAN GREEN suspected the problem is nationwide.
SENATOR WARD asked Senator Leman to contact the AHFC to explore the
possibility of offering low-interest housing loans as an incentive.
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