03/30/2009 08:00 AM House EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| HB204 | |
| HB58 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 204 | TELECONFERENCED | |
| += | HB 58 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE EDUCATION STANDING COMMITTEE
March 30, 2009
8:04 a.m.
MEMBERS PRESENT
Representative Paul Seaton, Chair
Representative Cathy Engstrom Munoz, Vice Chair
Representative Bryce Edgmon
Representative Wes Keller
Representative Peggy Wilson
Representative Robert L. "Bob" Buch
Representative Berta Gardner
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 204
"An Act increasing the number of students pursuing a medical
education who are provided postsecondary educational services
and programs; and providing for an effective date."
- HEARD AND HELD
HOUSE BILL NO. 58
"An Act relating to a student loan repayment program for
specified occupations or fields in which a shortage of qualified
employees exists."
- MOVED CSHB 58(EDC) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 204
SHORT TITLE: POSTSECONDARY MEDICAL EDUC. PROG.
SPONSOR(s): REPRESENTATIVE(s) DAHLSTROM
03/23/09 (H) READ THE FIRST TIME - REFERRALS
03/23/09 (H) EDC, FIN
03/30/09 (H) EDC AT 8:00 AM CAPITOL 106
BILL: HB 58
SHORT TITLE: EDUC LOAN REPAYMENT PROGRAM
SPONSOR(s): REPRESENTATIVE(s) THOMAS, WILSON, MILLETT
01/20/09 (H) PREFILE RELEASED 1/9/09
01/20/09 (H) READ THE FIRST TIME - REFERRALS
01/20/09 (H) EDC, FIN
03/02/09 (H) EDC AT 8:00 AM CAPITOL 106
03/02/09 (H) Heard & Held
03/02/09 (H) MINUTE(EDC)
03/18/09 (H) EDC AT 8:00 AM CAPITOL 106
03/18/09 (H) <Bill Hearing Canceled>
03/30/09 (H) EDC AT 8:00 AM CAPITOL 106
WITNESS REGISTER
SAMUEL DIX, Staff
to Representative Nancy Dahlstrom
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 204 on behalf of
Representative Dahlstrom, prime sponsor.
SUZANNE TRICK, Regional Program Director
School of Medicine
University of Washington
WWAMI
POSITION STATEMENT: Testified in support of HB 204.
DENNIS VALENZENO, Director
Alaska WWAMI Program;
Associate Dean
Medical and Pre Medical Program
University of Alaska Anchorage
Anchorage, Alaska
POSITION STATEMENT: During hearing of HB 204, answered
questions.
SHELLY HUGHES
Alaska Primary Care Association
Address Not Provided
POSITION STATEMENT: Testified in support of HB 204.
PAT LUBY, Advocacy Director
AARP Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 204.
KATHLEEN TODD, Family Physician
Valdez, Alaska
POSITION STATEMENT: Testified in support of HB 204.
KACI SCHROEDER, Staff
to Representative Bill Thomas
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 58 on behalf of one of the
prime sponsors.
ANNETTE KREITZER, Commissioner
Department of Administration (DOA)
Juneau, Alaska
POSITION STATEMENT: Testified on HB 58.
HANNAH HARRISON, Intern
Representative Paul Seaton
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: During hearing of HB 58, provided
additional information.
DR. MARTIN LASTER, Coordinator
Education Leadership Program
University of Alaska Southeast
Juneau, Alaska
POSITION STATEMENT: Testified on HB 58.
JACK WALSH, Superintendent
Bristol Bay School District
Naknek, Alaska
POSITION STATEMENT: Testified during the discussion on HB 58.
ACTION NARRATIVE
8:04:24 AM
CHAIR PAUL SEATON called the House Education Standing Committee
meeting to order at 8:04 a.m. Representatives Seaton, Wilson,
Edgmon, Gardner, Buch, and Keller were present at the call to
order. Representative Munoz arrived as the meeting was in
progress.
HB 204-POSTSECONDARY MEDICAL EDUC. PROG.
8:04:50 AM
CHAIR SEATON announced that the first order of business would be
HOUSE BILL NO. 204, "An Act increasing the number of students
pursuing a medical education who are provided postsecondary
educational services and programs; and providing for an
effective date."
8:05:16 AM
SAMUEL DIX, Staff to Representative Nancy Dahlstrom, Alaska
State Legislature, informed the committee that the Wyoming,
Washington, Alaska, Montana, and Idaho (WWAMI) program has
evolved to provide three out of four years of medical school
education within Alaska. According to a 2006 Alaska Physician
th
Supply Task Force, Alaska ranks 17 lowest in the nation in
terms of physician-to-population ratio. The task force also
estimates that Alaska has 375 fewer doctors than needed. This
shortage is likely to worsen as Alaska's population increases
and ages. Furthermore, one-third of the state's physicians are
likely to retire within the next 10-15 years. Mr. Dix told the
committee that at this time 50 percent of Alaskans who enter the
WWAMI program ultimately practice within the state. The
aforementioned percentage increases to almost 90 percent when
WWAMI graduates from other states are included.
MR. DIX explained that during the first year of the WWAMI
program students study at the University of Alaska Anchorage,
whereas in the second year students from all five WWAMI states
study at the University of Washington's School of Medicine in
Seattle. The third and fourth years of study consist of
clinical clerkship and rotations in the various medical
specialty areas. He noted that these clerkships can be taken in
any of the five WWAMI states. However, the Alaska track
provides students the ability to complete nearly all third- and
fourth-year clerkships in the state. Mr. Dix stated that the
overall goal of the program is to incrementally increase the
amount of students to 30. At this time, only an additional four
seats are being asked for because that's all that the University
of Alaska Anchorage can handle with its current facilities and
faculty.
8:07:09 AM
REPRESENTATIVE GARDNER noted that she was a supporter of the
past legislation that doubled the number of students allowed in
the WWAMI program. However, the House Finance University Budget
Subcommittee discussed that the strongest indicator of where a
student will practice medicine is the location of the student's
residency. Therefore, the real impediment to increasing the
number of new physicians in Alaska is having enough residency
spots in Alaska. She asked if the sponsor has explored what it
would take to simply offer more spots for residency.
MR. DIX pointed out that three out of the four years of the
WWAMI program are spent in Alaska. He then highlighted that
since the inception of the WWAMI program, the number of
physicians practicing in Alaska has increased.
8:09:09 AM
SUZANNE TRICK, Regional Program Director, School of Medicine,
University of Washington, stated support for HB 204. She
informed the committee that prior to doubling the class size for
the Alaska WWAMI program, Alaska ranked last in the nation in
the number of medical school seats per person. Although Alaska
isn't at the bottom, the state still ranks low and thus the
state has a need for more medical school slots in the state.
Ms. Trick then noted her agreement with the earlier mentioned
notion that students practice where they receive the majority of
their training. She pointed out that Alaska only has a
residency program in family medicine and thus there are only a
few types of residents that can be captured for training in the
state. Therefore, the state needs physicians in more specialty
areas than family medicine. Ms. Trick informed the committee
that she is working on a residency program in pediatrics and
psychiatry, as well as rotations in internal medicine. Many
WWAMI residency students rotate in Alaska in order to determine
whether Alaska is a site at which they would like to practice.
The WWAMI return rate of nearly 9 out of 10 physicians is very
high. In fact, it probably exceeds most residency training
programs that place physicians on the ground.
8:12:26 AM
MS. TRICK, in response to Representative Gardner, clarified that
for every 10 physicians the WWAMI program pays for about 8.8
initiate their practice in Alaska. Of those, 5 of the
physicians are from Alaska and 3.8 start in another WWAMI state.
8:12:47 AM
REPRESENTATIVE GARDNER asked if there are impediments that could
be removed to improve the residency numbers.
MS. TRICK said that there are three areas of barriers. First,
the ways in which residency programs are financed. She
explained that residency programs are usually financed with
federal funds as well as funds from the state in which the
program is located. However, since the federal funding is
capped, the program is constantly working with the federal
government regarding the number of residents they will fund.
Second, there have to be enough physicians and volume of
patients for residents to receive adequate training. The
aforementioned is particularly true in specialty areas. In
areas such as internal medicine, there aren't enough people to
train residents. The third barrier is technical assistance
residency programs take a long time to develop and the
accreditation process takes a year after the site and faculty
are identified. Ms. Trick said that at this point she didn't
see anything that she would recommend changing.
8:14:43 AM
MS. TRICK, in response to Chair Seaton, explained that the
family practice designation once was similar to being a general
practitioner. She explained that family practitioners do a
three-year residency training program while general
practitioners generally don't. She noted, "We don't really have
general practitioners much anymore." In further response to
Chair Seaton, Ms. Trick informed the committee that [the WWAMI
program] is training in primary care, which is needed the most.
Furthermore, [the WWAMI] program is training "the most primary
of primary physicians." In response to Representative Wilson,
Ms. Trick clarified that family medicine is a primary care
specialty.
8:17:22 AM
REPRESENTATIVE EDGMON inquired as to where the physicians that
don't initiate a practice in Alaska go.
MS. TRICK deferred to Mr. Valenzeno.
8:17:51 AM
DENNIS VALENZENO, Director, Alaska WWAMI Program; Associate
Dean, Medical and Pre Medical Program, University of Alaska
Anchorage, informed the committee that Alaska WWAMI graduates
who don't practice in Alaska may practice anywhere in the United
States, although there may be a higher percentage practicing in
WWAMI states. He noted his agreement that the primary factor in
determining where medical students practice is the location of
the student's residency. However, the second most important
factor is where the medical student attended medical school.
Therefore, he indicated the need to capitalize on the second
factor.
8:20:24 AM
REPRESENTATIVE KELLER related his understanding that HB 204
would cover four students. He inquired as to the percentage of
the total tuition cost covered by HB 204.
MR. VALENZENO explained:
The budget for WWAMI is a two-part budget. The first
year is at the University of Alaska Anchorage. The
normal cost for a medical school nationwide is about
$75,000 per year per student. In the first year,
because of some economies of scale at this point, we
will be able to increase to 24 just based on the
tuition that our students pay as our additional
compensation. That's about $20,000 per year per
student. Years two through four, the budget runs
through the University of Washington School of
Medicine.
8:21:46 AM
MS. TRICK then explained:
For years two through four, the cost that you pay
represent the state support for medical education.
It's about $56,000 per year per student. On top of
that the students pay tuition of about $20,000.
8:22:11 AM
REPRESENTATIVE KELLER related his understanding that those
students who do not return to Alaska receive this money as a
loan, and therefore have to repay the state in full.
MS. TRICK clarified that 50 percent of state support becomes a
loan that would have to be repaid if the student practices in
another state.
CHAIR SEATON surmised then that in years two through four the
state support is in the amount of $56,000 per student per year.
Fifty percent of that amount is a loan, which would have to be
repaid if the student doesn't [practice] in Alaska. If the
student returns to Alaska, the complete loan forgiveness is
three years for those who [practice] in an urban setting versus
five years in a rural setting.
MS. TRICK stated her agreement.
8:24:08 AM
SHELLY HUGHES, Alaska Primary Care Association, stated support
for HB 204, primarily based on the shortage of medical
professionals that exist in Alaska. She opined that if nothing
is done to reverse the trend, certain areas of the state will
face a public health crisis. Therefore, the provisions in HB
204 that get WWAMI graduates in some of the harder to fill spots
are something the Alaska Primary Care Association supports. Ms.
Hughes informed the committee that the Alaska Primary Care
Association represents primary care providers throughout the
state, particularly watching out for those who are safety net
providers. In the last three weeks, there has been turnover in
about 28 of the 32 physicians in the community health center
system. In fact, there are currently about 22 vacancies for
physicians. The incentive to stay, to pay off an obligation, is
very favorable. Furthermore, the longer a person is in a
community, the more likely he/she will stay. Ms. Hughes
characterized HB 204 as a step in the right direction. However,
the shortage of physicians means that the state should not only
look to grow its own physicians but also to import them from
Outside. The physicians in the safety net health center system
makeup about 2 percent of the physicians statewide, but
represent 10 percent of the vacancies. She highlighted that it
takes health centers one year to eighteen months to fill one of
these vacancies. Furthermore, the patient load in health
centers has increased by 57 percent [between 2000 and 2006].
She informed the committee that statewide the vacancies range
from 11-27 percent, with the lower vacancy range in the urban
areas while the highest vacancy rate is in the tribal clinics.
Some of the health centers, she mentioned, are also tribal
clinics. She highlighted the cost of recruiting, which is over
$100,000. Therefore, cultivating WWAMI graduates is a cost
savings to the health care system. In conclusion, Ms. Hughes
reiterated support for HB 204.
8:28:21 AM
CHAIR SEATON asked whether WWAMI graduates currently work in the
health clinics. He also asked if the Alaska Primary Care
Association specifically recruits WWAMI program graduates.
MS. HUGHES related her understanding that there are WWAMI
graduates working in [the health care centers).
8:28:55 AM
REPRESENTATIVE GARDNER inquired as why the patient load has
increased by 57 percent in the last six years.
MS. HUGHES attributed part of the increase to the increase in
the number of health care centers. Furthermore, health care
centers accept patients regardless of the patient's insurance
status. Ms. Hughes predicted that even more people will seek
care at health care centers due to the current national economic
situation. In further response to Representative Gardner, Ms.
Hughes related that the most cost effective ways to get
physicians and other health care providers into the state is to
provide loan repayment program. Loan repayment is included in
HB 206, in a sense, because the obligation is reduced. An even
better incentive is in the form of cash, which would reach
beyond the pool of graduates to experienced graduates and thus
increase the pool of physicians. The Alaska Primary Care
Association is supporting another piece of legislation that
utilizes the direct incentive of cash.
8:31:58 AM
REPRESENTATIVE WILSON recalled that in her district there used
to be an intern program for family practice. However, that
program is no longer due to the lack of population in the area.
She asked if such a program is happening elsewhere in the state.
MS. HUGHES answered that she wasn't aware of any such program.
She informed the committee of a federal Student/Resident
Experiences and Rotations in Community Health program (SERCH),
not to be confused with the Southeast Alaska Regional Health
Consortium, which brings students in their second and third year
to Alaska for a four-week rotation. Although the aforementioned
program was terminated last year, she related her understanding
that it will be in place again. This program has had a good
return rate.
8:33:20 AM
REPRESENTATIVE KELLER, referring to Ms. Hughes' comments
regarding direct grants, requested more information on the
legislation to which she referred.
MS. HUGHES explained that the proposed legislation would provide
higher direct payments to providers who take hard-to-fill
positions, which would be defined based on criteria directly
related to the situation. This would be used in employer
situations, such as with health centers as well as private
practices in a community with a known health provider shortage.
8:35:13 AM
CHAIR SEATON informed the committee that HB 204 will be referred
to the House Finance Committee, following being reported from
this committee.
8:35:47 AM
REPRESENTATIVE KELLER expressed interest in the incentive
options available.
MS. HUGHES informed the committee that the other proposed
legislation would allow a WWAMI student to be eligible [for
direct payments], as an additional incentive for him/her to
practice in Alaska.
8:37:34 AM
PAT LUBY, Advocacy Director, AARP Alaska, provided the following
testimony:
As you well know, the entire country has a physician
shortage. In Alaska, it is acute, especially access
to physicians who will see Medicare patients.
Certainly one of the most helpful things the
legislature has done in the recent past has been the
expansion of the WWAMI program from 10 to 20 slots for
Alaska medical students. HB 204 will give us another
four slots for Alaskans who want to attend med school.
Will it solve our physician access problem? No. Will
it help? Yes. AARP encourages you to pass HB 204.
8:38:51 AM
KATHLEEN TODD, Family Physician, informed the committee that her
daughter is participating in the WWAMI program. "The thing that
a lot of people don't understand is that if you don't have a
state, your chances of getting into medical school are much
lower," she opined. She explained that other states only take
their in-state residents. Without slots in the WWAMI program,
Alaskans can only attend private medical schools. As an aside,
Dr. Todd related the need for the legislature to review the
regulations regarding who is an Alaskan and who isn't. Dr. Todd
mentioned that the state needs primary care physicians as well
as family practitioners who can perform surgeries, orthopedics,
emergency room service, and obstetrics. She highlighted the
need to participate to the maximum extent possible in the WWAMI
program.
8:42:23 AM
CHAIR SEATON, upon determining no one else wished to testify,
closed public testimony.
8:42:33 AM
CHAIR SEATON reminded the committee that HB 204 would not be
referred to the House Health and Social Services Standing
Committee and announced that HB 204 would be held over.
8:43:15 AM
REPRESENTATIVE WILSON opined that it is obvious that the need
exists and no testimony [in opposition to HB 204] has been
heard. Therefore, she related her desire to move the
legislation from committee today.
8:43:59 AM
CHAIR SEATON reiterated that HB 204 would be held over in order
that there be a second hearing that provides time for the public
to comment.
HB 58-EDUC LOAN REPAYMENT PROGRAM
8:44:10 AM
CHAIR SEATON announced that the final order of business would be
HOUSE BILL NO. 58 "An Act relating to a student loan repayment
program for specified occupations or fields in which a shortage
of qualified employees exists." [Before the committee was CSHB
58, Version 26-LS0307\P, Mischel, 2/25/09.]
8:44:51 AM
KACI SCHROEDER, Staff to Representative Bill Thomas, Alaska
State Legislature, explained that since there had been several
issues with selecting who would be eligible for the program, she
spoke with several different departments. The aforementioned
resulted in an amendment, labeled 26-LS0307\P.8, Mischel,
3/27/09, that should address the concerns. She noted that
department representatives are present to relate the exact
selection procedure they will use. She also noted that the
committee packet should include other amendments for the
committee's consideration.
8:46:34 AM
MS. SCHROEDER explained that the amendment labeled 26-
LS0307\P.8, Mischel, 3/27/09, will allow the commissioners of
the Department of Labor & Workforce Development (DLWD) and the
Department of Administration (DOA) to jointly decide the needs
of the state in regard to recruitment. The aforementioned is
appropriate since commissioners of the departments are the
decision-makers. Furthermore, having the commissioners make the
decision provides fluidity to address the changing needs of the
state. She noted that the first part of the amendment specifies
that only state employees are being addressed.
8:47:09 AM
REPRESENTATIVE BUCH moved that the committee adopt Amendment 1,
labeled 26-LS0307\P.8, Mischel, 3/27/09, which read:
Page 3, line 29, following "hired":
Insert "by the state"
Page 4, line 2, following "employed":
Insert "by the state"
Page 4, line 8:
Delete "in"
Insert "by"
Page 4, lines 9 - 11:
Delete "by the Department of Labor and Workforce
Development as having a shortage of qualified
employees in the state"
Insert "jointly by the commissioner of administration
and the commissioner of labor and workforce
development as having a shortage of qualified persons
available to be employed by the state"
The committee took an at-ease form 8:48 a.m. to 8:49 a.m.
8:49:44 AM
REPRESENTATIVE BUCH reminded the committee that Amendment 1 is
in response to questions surrounding who the qualified employees
would be. The original legislation listed qualifications as the
types of personnel, but it was confusing. He opined that using
the discretion of the commissioners on an ongoing basis is
probably the best way to make the determination as to who the
qualified employees are.
8:50:57 AM
CHAIR SEATON recalled that public testimony is still open, and
therefore he requested that the motion to adopt Amendment 1 be
withdrawn. He expressed the desire to allow the public to be
aware of the amendments prior to taking public testimony.
8:51:46 AM
REPRESENTATIVE BUCH withdrew his motion to adopt Amendment 1.
8:52:24 AM
ANNETTE KREITZER, Commissioner, Department of Administration
(DOA), explained that Amendment 1 narrows those who are covered
under the legislation to only state employees. She informed the
committee that DOA has the ability to review how people recruit
for positions. She recalled when she was appointed as
commissioner and uncovered a barrier to state employment in the
form of 10 questions, referred to as desirable qualifications.
Those 10 questions are no longer used. Furthermore, hiring
managers have been asked to review minimum qualifications and
determine whether they still fit the need. For instance, it's
redundant to require a bachelor's degree of those who are
certified in Microsoft to work on the state's computer systems.
She related that DOA's part is to review how recruiting is
occurring in order to ensure that the state isn't causing an
artificial shortage.
8:56:10 AM
REPRESENTATIVE GARDNER expressed her desire to ensure that
behaviors are actually being changed with HB 58. She posed a
scenario in which an Alaskan student receives an engineering
degree from out-of-state and returns to the state. She then
inquired as to how the funds would be used to change behavior.
MS. KREITZER said that she will be conservative in terms of the
positions that would qualify for the funds provided by HB 58.
She acknowledged that there is a risk in providing funds to
students who were going into a career in which the state has
identified shortages.
8:58:08 AM
REPRESENTATIVE GARDNER posed a scenario in which a student
attending school on a scholarship returns to the state with an
education in a high needs field and no student debt. In such a
situation, would that individual have an opportunity to
participate in the program proposed in HB 58, she asked.
MS. KREITZER remarked that there will always be gaps in regard
to who is covered with programs such as these. Therefore, it's
a policy call for the legislature.
8:58:59 AM
REPRESENTATIVE WILSON inquired as to what other steps are being
taken to recruit for state positions.
MS. KREITZER offered that other measures being pursued include:
a geographic differential study, a salary study, an independent
review of the Human Resources integration in DOA, an increase in
salary for non-union employees per House Bill 412 [which was
th
passed in the 25 State Legislature], and recruitment
representatives dispatched out of state.
9:01:24 AM
MS. KREITZER, in response to Representative Munoz, clarified
that it isn't about adding state employees. However,
considering those who are retiring, it is important to recruit
actively to maintain a healthy workforce. She expressed the
hope that salary increases will make positions more attractive.
"It really is about continuing the pipeline of talent that's
necessary to achieve the things the state needs to do," she
said.
9:02:39 AM
REPRESENTATIVE MUNOZ opined that the top 10 positions in high
need would likely expand and contract. Therefore, she asked if
the intention is to maintain flexibility to meet the current
demands.
MS. KREITZER replied yes, and added that she anticipated that
the department will continually review the situation.
9:04:06 AM
CHAIR SEATON then turned the committee's attention to proposed
Amendment 3, labeled 26-LS0307\P.4, Mischel, 3/16/09, which
read:
Page 5, line 8, following "program":
Insert "and is subject to appropriation"
Page 5, following line 21:
Insert a new subsection to read:
"(d) A repayment benefit approved under this section
may not be construed as an entitlement and is subject
to cancellation or modification by the commission at
any time."
9:04:38 AM
MS. SCHROEDER explained that Amendment 3 clarifies that the
proposed program is not an entitlement and that the needs or the
funding could change.
9:05:25 AM
MS. KREITZER said that the language in Amendment 3 is
satisfactory to ensure that people realize the proposed program
isn't an entitlement. In regard to the cap, Ms. Kreitzer
relayed that she is neutral on the cap.
9:06:02 AM
REPRESENTATIVE GARDNER asked if the legislation includes
language that takes into consideration location specifics.
MS. KREITZER answered that she didn't believe the legislation
included anything specific about location. However, it's an
issue throughout state government that the department reviews in
order to determine whether there's an actual shortage of
positions. She explained that the department would first review
recruiting and whether that needs to be addressed.
9:07:27 AM
CHAIR SEATON asked if the department supports the four-year
repayment schedule in rural areas and six-year repayment
schedule in urban areas, contained in HB 58.
MS. KREITZER stated that she is neutral on the remainder of the
legislation.
9:08:00 AM
REPRESENTATIVE EDGMON pointed out that the benefits under this
legislation are considered taxable income, although that wasn't
the case at one time. Therefore, he inquired as to whether
there is movement, nationally or otherwise, to urge the U.S.
Treasury to return to the nontaxable status for benefits such as
those proposed in HB 58.
MS. KREITZER responded that she wasn't aware of such, but
offered to ask around about such.
9:08:42 AM
CHAIR SEATON then turned the committee's attention to proposed
Amendment 2, labeled 26-LS0307\P.7, Mischel, 3/27/09, which
read:
Page 4, line 13:
Delete "on annually over a period of not more
than six years. The maximum annual repayment benefit
under this section is"
Insert "in an amount not to exceed $50,000,
payable by dividing that amount into annual payments
to be paid over a period of not more than six years,
as follows:"
Page 4, line 18:
Delete "principal plus accrued interest"
Insert "loan balance"
Page 4, line 20:
Delete "principal plus accrued interest"
Insert "loan balance"
Page 4, line 22:
Delete "principal plus accrued interest"
Insert "loan balance"
Page 4, line 24:
Delete "principal plus accrued interest"
Insert "loan balance"
Page 4, line 27:
Delete "principal plus accrued interest"
Insert "loan balance"
Page 4, line 29:
Delete "principal plus accrued interest"
Insert "loan balance"
Page 4, line 31:
Delete "principal plus accrued interest"
Insert "loan balance"
Page 5, line 2:
Delete "principal plus accrued interest"
Insert "loan balance"
Page 5, line 4:
Delete "principal plus accrued interest"
Insert "loan balance"
Page 5, line 6:
Delete "principal plus accrued interest"
Insert "loan balance"
9:08:55 AM
MS. SCHROEDER explained that Amendment 2 places a $50,000 cap on
the benefit that each student may receive. The remainder of the
amendment makes conforming changes to the repayment schedules in
order to have a better handle on the cost of the program. Ms.
Schroeder noted that although the legislature may want to remove
the cap in the future, it seems appropriate given the state's
current financial status.
9:09:33 AM
REPRESENTATIVE MUNOZ asked if the intent of the original
legislation was broader in scope, and thus addressed more than
state employees.
MS. SCHROEDER said that at this time the [sponsors] have chosen
to stay with state employees because more information is
available for state employees. She informed the committee that
DLWD has said that in a few years it will have more information
about the private sector, at which time it may be appropriate to
include the private sector.
9:10:22 AM
REPRESENTATIVE WILSON interjected that the private sector tends
to pay more than the state, and therefore it most likely doesn't
experience the same difficulties as the state.
9:10:40 AM
HANNAH HARRISON, Intern, Representative Paul Seaton, Alaska
State Legislature, related her understanding that Representative
Thomas has said that the legislation originated after a state
biologist informed him of the difficulty recruiting biologists.
The state biologist related that in the past legislation had
been introduced and he hoped a similar effort could be made.
9:11:12 AM
CHAIR SEATON highlighted that the committee also has before it
an amendment that would delete all the material on page 3, lines
27-28, which stipulates that an applicant must be a resident of
the state when submitting an application. The aforementioned
has consequences for returning students. Chair Seaton explained
that the loans are all through the Alaska Student Loan
Corporation, and therefore those who qualify for an Alaska
student loan could have them repaid. The goal, he clarified,
was to ensure that the program didn't allow for the repayment of
a student loan that wasn't within the State of Alaska.
9:12:55 AM
REPRESENTATIVE MUNOZ requested an explanation as to the source
of revenue for this program.
MS. SCHROEDER specified that the program's funding comes
directly from the legislature, and therefore is subject to
appropriation by the legislature.
9:13:22 AM
REPRESENTATIVE MUNOZ surmised then that the language suggesting
a dividend is merely suggestive.
MS. SCHROEDER explained that since the corporation can pay the
state a dividend, the legislation allows the option of the
corporation placing the dividend in a fund.
9:14:11 AM
DR. MARTIN LASTER, Coordinator, Education Leadership Program,
University of Alaska Southeast, began by commending the
committee for all the work it has done. He then expressed
concern for teachers who have been working in the state for some
time and have decided, with the support of their
superintendents, to become principals. The position of
principal is very important in terms of change and effectiveness
as well as an area in which the Institute of Social and Economic
Research (ISER) has suggested that there are significant
turnover problems. Furthermore, folks are being brought in
[from out of state] to fill these positions, which results in
the double challenge of fitting in and understanding Alaska's
climate, demographics, cultural issues, and isolation issues.
Dr. Laster pointed out that originally HB 58 spoke to Alaska
qualified employees and actually listed education. He asked
that the committee keep in mind that there aren't many places
where teachers can go and know the additional support of the
state, as suggested in HB 58.
9:18:45 AM
DR. MARTIN, in response to Representative Wilson, explained that
a teacher has a type "A" certificate. In order to supervise
people, a type "B" certificate is required. The teachers work
through a Master's degree of leadership and then their names are
submitted to the state in order to certify that they are
eligible for a type "B" certificate. In further response to
Representative Wilson, Dr. Martin acknowledged that there are
different ways to approach this certificate. Although distance
education courses within the state can be taken, this particular
program requires teachers to come to Juneau for the better part
of the summer to build a cohort of new leaders. The teachers
then utilize distance delivery and then return to Juneau for
another summer. In response to Chair Seaton, Dr. Martin
confirmed that the teachers normally take a student loan to pay
for the program.
9:21:14 AM
JACK WALSH, Superintendent, Bristol Bay School District, thanked
the committee for the work it does. He suggested that
supporting in-state students is critical in retaining teachers.
He then noted his appreciation for Dr. Laster's testimony
regarding teachers obtaining leadership degrees. He recalled
his experience with the principal program which Dr. Laster
referenced, and related that it took him several summers to
complete the program.
9:24:11 AM
CHAIR SEATON, upon determining no one else wished to testify,
closed public testimony.
9:24:28 AM
REPRESENTATIVE WILSON moved that the committee adopt Amendment
1, labeled 26-LS0307\P.8, Mischel, 3/27/09. [Text provided
previously.]
CHAIR SEATON objected for discussion.
9:25:10 AM
CHAIR SEATON asked if the language "employed by the state" that
would be inserted by Amendment 1 means a state or political
subdivision or strictly the State of Alaska.
MS. SCHROEDER answered that it refers strictly to the State of
Alaska.
CHAIR SEATON removed his objection.
9:25:47 AM
REPRESENTATIVE GARDNER indicated her objection and inquired as
to what would occur if the two commissioners disagree with
regard to what is high need.
MS. SCHROEDER pointed out that the term "jointly" is utilized
and thus the two commissioners must agree.
9:26:22 AM
REPRESENTATIVE GARDNER removed her objection.
9:26:28 AM
There being no further objection, Amendment 1 was adopted.
9:26:39 AM
REPRESENTATIVE WILSON moved that the committee adopt Amendment
2, labeled 26-LS0307\P.7, Mischel, 3/27/09. [Text provided
previously.]
9:26:55 AM
CHAIR SEATON objected for discussion. Upon determining there
was no discussion on Amendment 2, he withdrew his objection.
9:27:15 AM
There being no further objection, Amendment 2 was adopted.
9:27:30 AM
REPRESENTATIVE WILSON moved that the committee adopt Amendment
3, labeled 26-LS0307\P.4, Mischel, 3/16/09. [Text provided
previously.]
9:27:46 AM
CHAIR SEATON objected for discussion.
9:28:01 AM
MS. SCHROEDER reminded the committee that Amendment 3 clarifies
that the program is not an entitlement.
9:28:08 AM
REPRESENTATIVE BUCH noted his appreciation that Amendment 3
provides that the program can be canceled.
9:28:32 AM
REPRESENTATIVE EDGMON asked if the language "may not be
construed as an entitlement" is fairly common language. It
appears to be a subjective statement, he said.
REPRESENTATIVE MUNOZ opined that the language suggests that the
state is not required to fund the program and thus the benefit
can't automatically be given.
9:29:35 AM
MS. SCHROEDER pointed out that CSHB 58, Version P, already
includes language specifying that the program isn't an
entitlement. However, upon the request of the department the
language in Amendment 3 was proposed to ensure that absolutely
no student would construe that they were locked into a payment.
CHAIR SEATON recalled committee discussion on this matter at a
prior hearing in which the desire was to ensure that the program
targeted needed jobs and that the state wasn't committing
repayment of loans for jobs that weren't of critical need.
9:31:35 AM
REPRESENTATIVE EDGMON expressed satisfaction with the response.
9:31:57 AM
CHAIR SEATON removed his objection. There being no further
objections, Amendment 3 was adopted.
9:32:12 AM
The committee took a brief at-ease at 9:32 a.m.
9:32:58 AM
REPRESENTATIVE WILSON moved that the committee adopt Conceptual
Amendment 4, which read [original punctuation provided]:
Page 3, Lines 27-28
DELETE ALL MATERIAL
9:33:23 AM
CHAIR SEATON objected for discussion.
9:33:29 AM
CHAIR SEATON, after reminding the committee of the purpose of
Conceptual Amendment 4, removed his objection. There being no
further objection, Conceptual Amendment 4 was adopted.
9:35:00 AM
REPRESENTATIVE MUNOZ moved to report CSHB 58, Version 26-
LS0307\P, Mischel, 2/25/09, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
9:35:17 AM
REPRESENTATIVE GARDNER objected. She said that although she
appreciates the intent of HB 58, it's a large amount of money to
spend on a program that may or may not alter behavior. However,
she listed a number of other means that would serve the same
purpose in a more effective manner, such as updating the state's
salary scales and possibly a retirement plan. Furthermore, she
questioned how anyone could rely on and plan to use the proposed
program if it's subject to cancelation and modification. She
then suggested that a new engineering building for the
University of Alaska should be constructed to host various
engineering programs statewide. Representative Gardner opined
that bigger bang for the buck would be achieved by providing
need and merit scholarships for the state's students attending
the state's university. In fact, those scholarships could be
focused on the high needs fields.
9:36:43 AM
REPRESENTATIVE WILSON related her belief that people who
couldn't pursue careers in high needs fields will do so due to
the state helping to repay the loan.
9:37:23 AM
REPRESENTATIVE MUNOZ noted her agreement with Representative
Wilson's comments.
9:37:50 AM
REPRESENTATIVE EDGMON said that although he wouldn't oppose HB
58 moving from committee, he associated himself with the
statements of Representative Gardner.
9:38:24 AM
CHAIR SEATON said that this legislation attempts to fill the
vacancies throughout the state with people who took out Alaska
student loans and fill critical positions. Although he noted
his agreement that constructing a science building would be good
for Alaskan students, it doesn't target the vacant jobs.
9:40:05 AM
REPRESENTATIVE BUCH acknowledged that there are other incentives
to fill jobs. However, he related his view that first there
need to be students seeking careers in the professions in which
the state faces a high need, which is what HB 58 seeks to
encourage. Therefore, Representative Buch said he would support
HB 58.
9:41:24 AM
REPRESENTATIVE KELLER related that although he won't stand in
the way of passing the legislation from committee, it may be
creating a hiring preference for those who have been helped by
the proposed program. He expressed concern that it seems the
committee isn't looking at the big picture.
9:42:30 AM
CHAIR SEATON pointed out that other programs do address specific
critical shortage areas, such as the Wyoming, Washington,
Alaska, Montana, and Idaho (WWAMI) program. In fact, the
committee heard legislation today that would repay student loans
of WWAMI students [in an effort to fill an area of critical
shortage]. The two pieces of legislation seek the same goal,
but HB 58 has a quicker repayment time for those who serve in
rural Alaska.
9:43:19 AM
REPRESENTATIVE EDGMON requested a recap of the residency
requirements.
MS. SCHROEDER recalled that the commission uses a definition of
residency that's similar to that used in other programs. She
noted that there had been concern with the requirement to be in
Alaska for 60 days before applying for a job because some people
won't return to Alaska unless they have a job.
CHAIR SEATON clarified that this is repayment of only loans
taken out under the Alaska Student Loan program. Therefore, the
student would've had to qualify for the Alaska Student Loan
program to obtain a loan and want to return to Alaska for a job.
9:44:26 AM
REPRESENTATIVE GARDNER maintained her objection.
9:44:37 AM
A roll call vote was taken. Representatives Munoz, Wilson,
Edgmon, Keller, Buch, and Seaton voted in favor of reporting
CSHB 58, Version 26-LS0307\P, Mischel, 2/25/09, as amended, out
of committee. Representative Gardner voted against it.
Therefore, CSHB 58(EDC) was reported out of the House Education
Standing Committee by a vote of 6-1.
9:45:25 AM
ADJOURNMENT
There being no further business before the committee, the House
Education Standing Committee meeting was adjourned at 9:45 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 204 information.pdf |
HEDC 3/30/2009 8:00:00 AM HEDC 4/1/2009 8:00:00 AM HEDC 4/3/2009 8:00:00 AM |
HB 204 |
| AmendingCSHB58 verP3 28.pdf |
HEDC 3/30/2009 8:00:00 AM |
HB 58 |
| HB 58 material.pdf |
HEDC 3/30/2009 8:00:00 AM |
HB 58 |
| HB 58 fiscal note.pdf |
HEDC 3/30/2009 8:00:00 AM |
HB 58 |
| HB 58 amendment.pdf |
HEDC 3/30/2009 8:00:00 AM |
HB 58 |
| HB58EduAmendPacket.pdf |
HEDC 3/30/2009 8:00:00 AM |
HB 58 |