Legislature(2015 - 2016)HOUSE FINANCE 519

03/03/2016 01:00 PM House FINANCE

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Audio Topic
01:04:18 PM Start
01:04:22 PM HB256 || HB257
01:05:51 PM Public Testimony: Bethel, Cordova, Kotzebue, Nome, Valdez, Wrangell
04:16:17 PM Public Testimony: Off-nets
05:51:47 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= HB 256 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
-- Public Testimony -- Limited to 2 minutes each
+= HB 257 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
-- Public Testimony -- Limited to 2 minutes each
1:00 - 4:00 p.m. Bethel, Cordova, Kotzebue,
Nome, Valdez & Wrangell
4:15 - 6:00 p.m. Off Net sites
Testimony Instructions:
- Please arrive 15 min. early for sign-in process
- Please arrive 15 min. prior to end of allotted
time or testimony will close early
- Select a spokesperson if you are part of a
group with the same message
- "Off Net" callers (communities with no LIO):
call only during designated time slot today &
hang up immediately after testifying to keep
lines open
- Continue to access meeting through akleg.gov
- If unable to testify during times allotted,
please send written testimony to:
lhscfin@akleg.gov
- Please call 465-4648 by 5:00 p.m. Mon. - Thurs.
to obtain call-in phone number
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                       March 3, 2016                                                                                            
                         1:04 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:04:18 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Neuman  called the House Finance  Committee meeting                                                                    
to order at 1:04 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mark Neuman, Co-Chair                                                                                            
Representative Steve Thompson, Co-Chair                                                                                         
Representative Dan Saddler, Vice-Chair                                                                                          
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative Lynn Gattis                                                                                                      
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
Representative Cathy Munoz                                                                                                      
Representative Lance Pruitt                                                                                                     
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Kathy  Hanson, Self,  Bethel; Sally  Russell, Self,  Bethel;                                                                    
David  Trantham, Self,  Bethel; Barbara  Bryson, Imagination                                                                    
Library,  Valdez; Mollie  Good,  Valdez Consortium  Library,                                                                    
Valdez;  Kimberlee  Michaud,   Valdez  Imagination  Library,                                                                    
Valdez;  Gayle  Eastwood,  Self, Petersburg;  Stephen  Todd,                                                                    
Self,  Wrangell;  Patrick  Mayer,  Superintendent,  Wrangell                                                                    
Public Schools, Wrangell; Chris  Hatton, Self, Wrangell; Kim                                                                    
Knudsen,  Norton   Sound  Health  Corporation,   Nome;  Doug                                                                    
Walrath,  NACTEC, Nome;  Steven Randall,  Parent, Nome;  Jon                                                                    
Stavig,  CFO,  City  of  Cordova,  Cordova;  Alexis  Cooper,                                                                    
Cordova District Fishermen  United, Cordova; Mike Mickelson,                                                                    
Self,   Cordova;  Denny   Weathers,   Self,  Cordova;   John                                                                    
Anderson, KCHU  Radio, Valdez;  Betsy Jumper,  Self, Bethel;                                                                    
Mary  Nanuwak, Self,  Bethel;  Nikki Hoffman,  Orutsararmiut                                                                    
Native Council  Senior Services,  Bethel; Henry  Hunter Sr.,                                                                    
Alaska  Village Council  Presidents (AVCP),  Bethel; Kristin                                                                    
Carpenter,  Copper River  Watershed  Project, Cordova;  Jeff                                                                    
Jabusch,  City  of   Wrangell,  Wrangell;  Marvin  Poyourow,                                                                    
Social  Worker,  Norton  Sound Region,  Nome;  Tim  Andrews,                                                                    
Self, Bethel;  Stephen Alexander,  Self, Elfin Cove;  Gary E                                                                    
Williams, Organized  Village of Kake, Kake;  Ivan Ivan, City                                                                    
of  Akiak, Akiak;  James Squyres,  Self, Rural  Deltana; Pam                                                                    
Goode,   Self,  Rural   Deltana;  Albert   Ningeuolk,  Self,                                                                    
Shishmaref;  Emily  Gray,  City Council  Member,  Allakaket;                                                                    
Mary Bryan, Self, Seward; Mary McMahon, President  of Alaska                                                                    
Secondary School Principles,  Palmer; Donald Hartmann, Self,                                                                    
Haines;  Melissa  Aronson,   Self,  Haines  Library;  Jeanne                                                                    
Gerhardt-Cyrus,  Self,  Kiana;   Merilee  Weyiouanna,  Self,                                                                    
Nome; Geoff  Widdows, Self,  Yakutat; Melissa  Lester, Self,                                                                    
Galena;  Steve St  Clair, Self,  Wasilla; Arlene  Soxie, XYZ                                                                    
Senior Group, Nome;  Timothy Schuerch, Maniiliq Association,                                                                    
Kotzebue; Mayor Clay Walker, Denali  Borough, Healy; T Frank                                                                    
Box,  Access Alaska  Head Injury  Support Group,  Anchorage;                                                                    
Dordie   Carter,  Hollis   Public  Library,   Hollis;  Debra                                                                    
Schnabel,  Haines Chamber  of  commerce,  Haines; Jan  Hill,                                                                    
Mayor of Haines, Haines; Carl  Kancir, Self, Anchorage; John                                                                    
Strasenburg, Self,  Talkeetna;  Ruth Wood,  Self, Talkeetna;                                                                    
Joan McBeen,  Self, Tenakee Springs; Galena  Erickson, Self,                                                                    
Seward;  Deborah  Potter,  Self,  Skagway;  Jennifer  Thuss,                                                                    
Self, Skagway;  David Stone, Self, Yakutat;  Heather Powell,                                                                    
Raven  Radio   Board  Member,  Sitka;  Mark   Halber,  Self,                                                                    
Fairbanks; Rosalind Attatayuk,     XYZ Senior Group, Nome;                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
                                                                                                                                
HB 256    APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 256 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 257    APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 257 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
                                                                                                                                
HOUSE BILL NO. 256                                                                                                              
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain    programs,    capitalizing   funds,    making                                                                    
     reappropriations,  making supplemental  appropriations,                                                                    
     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. 257                                                                                                              
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
1:04:22 PM                                                                                                                    
                                                                                                                                
Co-Chair Neuman discussed the meeting agenda.                                                                                   
                                                                                                                                
^PUBLIC TESTIMONY: BETHEL,  CORDOVA, KOTZEBUE, NOME, VALDEZ,                                                                  
WRANGELL                                                                                                                      
                                                                                                                                
                                                                                                                                
1:05:51 PM                                                                                                                    
                                                                                                                                
KATHY  HANSON, SELF,  BETHEL  (via teleconference),  thanked                                                                    
the  committee for  its  work. She  urged  the committee  to                                                                    
restore  funding  for  public broadcasting.  She  needed  to                                                                    
ensure that  the committee  understood how  important public                                                                    
broadcasting is to rural Alaska.  She emphasized that public                                                                    
broadcasting   was    the   only   region-wide    means   of                                                                    
communicating   emergency  messages,   search  and   rescue,                                                                    
weather, and  public safety  information. She  stressed that                                                                    
even  with local  donations the  station  could not  survive                                                                    
another round  of deep cuts.  She relayed that if  the state                                                                    
did not  fund public  broadcasting, federal  matching grants                                                                    
would be lost.                                                                                                                  
                                                                                                                                
1:07:23 PM                                                                                                                    
                                                                                                                                
SALLY  RUSSELL,  SELF,   BETHEL  (via  teleconference),  was                                                                    
willing to pay a state income  tax and forgo her PFD to keep                                                                    
money  flowing  to  seniors,  children,  mentally  ill,  and                                                                    
public broadcasting.  She shared  that public radio  ran the                                                                    
news daily  in Yupik  and in English;  it was  the community                                                                    
source for statewide, national,  and international news. The                                                                    
rural/urban  divide seemed  to be  stretching to  a breaking                                                                    
point. She  stated that the  local station would  be looking                                                                    
at  closure in  a  couple of  years if  funding  was cut  so                                                                    
drastically.                                                                                                                    
                                                                                                                                
1:09:30 PM                                                                                                                    
                                                                                                                                
DAVID  TRANTHAM, SELF,  BETHEL (via  teleconference), stated                                                                    
that during  the hard financial  times it was time  for "us"                                                                    
to  start paying  a  little  more. He  spoke  in support  of                                                                    
public  broadcasting.  He  shared  that  the  radio  station                                                                    
provided  news   to  rural  communities.  Any   support  the                                                                    
committee could give  to restore a portion of  the funds for                                                                    
public broadcasting  would be appreciated. He  stressed that                                                                    
it  was  incredibly  important   for  the  region;  it  kept                                                                    
residents informed of emergencies and  news. He did not want                                                                    
to lose federal funding.                                                                                                        
                                                                                                                                
1:12:05 PM                                                                                                                    
                                                                                                                                
BARBARA   BRYSON,    IMAGINATION   LIBRARY,    VALDEZ   (via                                                                    
teleconference),  thanked the  committee for  its work.  She                                                                    
spoke in support of funding  for the Imagination Library and                                                                    
Best Beginnings.  She stated  that unfortunately  there were                                                                    
many  communities in  the state  that  needed the  financial                                                                    
help  that  Best  Beginnings   supported.  She  shared  that                                                                    
research  showed that  kids were  more successful  in school                                                                    
when they read  regularly at home. Alaska  ranked lower than                                                                    
41 other states  based on fourth grade  testing results. She                                                                    
discussed the  high number of  kids enrolled  in Imagination                                                                    
Library  in  Alaska.  She  stated   that  about  7,000  kids                                                                    
repeated a  grade in Alaska.  She detailed that it  was much                                                                    
more cost  efficient to make  an early  financial investment                                                                    
to start  children on track  than to be forced  to intervene                                                                    
during K-12 years in order to keep a child on track.                                                                            
                                                                                                                                
1:15:00 PM                                                                                                                    
                                                                                                                                
MOLLIE   GOOD,  VALDEZ   CONSORTIUM  LIBRARY,   VALDEZ  (via                                                                    
teleconference),  testified  in  favor of  the  Online  with                                                                    
Libraries program  and early  literacy training.  She shared                                                                    
that the early  literacy training that had  been provided to                                                                    
the  Valdez  library  staff would  not  have  been  possible                                                                    
without  OWL  video  conferencing. She  discussed  that  OWL                                                                    
leveraged  federal   e-rate  funds.  She  stated   that  OWL                                                                    
broadband support and  video conferencing supported internet                                                                    
costs for 43  of the smallest Alaskan  public libraries. She                                                                    
spoke in favor of full funding for broadband.                                                                                   
                                                                                                                                
1:16:15 PM                                                                                                                    
                                                                                                                                
KIMBERLEE MICHAUD,  VALDEZ IMAGINATION LIBRARY,  VALDEZ (via                                                                    
teleconference),  spoke   in  support  of   the  Imagination                                                                    
Library.   She  shared   that  the   program  had   provided                                                                    
invaluable early literacy through  its book delivery program                                                                    
to  over 300  children in  the community.  She testified  in                                                                    
favor of  full funding  for Best  Beginnings and  Parents as                                                                    
Teachers.  She spoke  to the  importance of  early learning.                                                                    
She  encouraged the  committee to  solve  the fiscal  issues                                                                    
facing the state and to support its children.                                                                                   
                                                                                                                                
1:17:54 PM                                                                                                                    
                                                                                                                                
GAYLE  EASTWOOD,  SELF,   PETERSBURG  (via  teleconference),                                                                    
urged   the  committee   to  restore   funding  for   public                                                                    
broadcasting. She  explained that public radio  was the only                                                                    
means of  hearing the news  in the bush. She  discussed that                                                                    
public  radio was  essential in  keeping individuals  in the                                                                    
bush  connected.  She  understood  that cuts  must  be  made                                                                    
somewhere, but  she did  not support  cuts to  public radio.                                                                    
She stated  that money  could be saved  in other  areas. For                                                                    
example, she  did not  believe that  the Department  of Fish                                                                    
and  Game needed  vessels for  seasonal  use. She  suggested                                                                    
contracting for  vessels from the  commercial fleet  for the                                                                    
stock  assessment  surveys  and  other. She  asked  for  the                                                                    
elimination  of  the  fast  ferries,  but  supported  Alaska                                                                    
Marine  Highway System  (AMHS). She  stressed that  AMHS was                                                                    
the road  in Southeast.  She stated  that removing  the bars                                                                    
from the ferries was a mistake because they had made money.                                                                     
                                                                                                                                
1:20:29 PM                                                                                                                    
                                                                                                                                
STEPHEN TODD, SELF, WRANGELL  (via teleconference), spoke in                                                                    
favor  of sustainable  funding for  public broadcasting.  He                                                                    
did not  support a  100 percent cut,  which would  cause the                                                                    
local station  to shut down.  Without the funds  the station                                                                    
would  lose its  federal  funding. He  stressed that  public                                                                    
radio was crucial for the  region; it informed the community                                                                    
about  emergencies, government  issues, kids'  sports, news,                                                                    
and other.  He stated  that without public  broadcasting the                                                                    
community  would not  be connected.  The  community did  not                                                                    
have the resources to recoup the extensive loss.                                                                                
                                                                                                                                
1:22:48 PM                                                                                                                    
                                                                                                                                
PATRICK  MAYER,  SUPERINTENDENT,  WRANGELL  PUBLIC  SCHOOLS,                                                                    
WRANGELL (via  teleconference), urged the committee  to keep                                                                    
education  in  the  forefront   of  budget  discussions.  He                                                                    
supported  the   increase  of  $50   to  the   Base  Student                                                                    
Allocation  (BSA).  He  discussed that  costs  continued  to                                                                    
escalate.  He  shared that  monies  in  the Wrangell  School                                                                    
District and  others across the  state were put to  good use                                                                    
for  the students.  He was  concerned about  the significant                                                                    
proposed  cuts   to  Department   of  Education   and  Early                                                                    
Development. He emphasized that  districts relied on support                                                                    
they received from  the department. He believed  that if the                                                                    
department's  budget was  cut any  further it  would not  be                                                                    
able to adequately address  compliance issues that supported                                                                    
the state's ongoing receipt of  federal dollars for programs                                                                    
like Title  1. He spoke  against the cuts that  would reduce                                                                    
personnel.                                                                                                                      
                                                                                                                                
1:24:29 PM                                                                                                                    
                                                                                                                                
CHRIS  HATTON, SELF,  WRANGELL  (via teleconference),  urged                                                                    
the committee  to restore  funding for  public broadcasting.                                                                    
She relayed  that the  local public  radio station  kept the                                                                    
community informed  of local,  regional, and  national news.                                                                    
She shared  that living  in small  town Alaska  afforded her                                                                    
the  luxury in  choosing whether  to engage  in the  broader                                                                    
issues; she  chose to  be informed.  She stated  that public                                                                    
broadcasting  kept  the   community  connected  about  local                                                                    
events  and   updates  related   to  safety   and  emergency                                                                    
services. Without  the radio station  she would  have little                                                                    
information about state government.                                                                                             
                                                                                                                                
1:26:44 PM                                                                                                                    
                                                                                                                                
KIM  KNUDSEN, NORTON  SOUND  HEALTH  CORPORATION, NOME  (via                                                                    
teleconference),  testified   in  support  of   funding  for                                                                    
behavioral  health  services. She  had  worked  for a  youth                                                                    
residential program  early in  her career,  but it  had been                                                                    
shut down due to a lack  in state funding. The goal had been                                                                    
to  keep the  region's children  in the  communities without                                                                    
sending  them out.  After the  program had  closed kids  had                                                                    
been sent  out of  the region and  some had  never returned.                                                                    
She was concerned that it  would happen again. She had heard                                                                    
that the  Nome youth facility may  have to shut down  due to                                                                    
cuts. She  stated that  sending kids out  of the  region was                                                                    
costly  and  inefficient.  She stressed  the  importance  of                                                                    
maintaining services  for families, adults, and  children in                                                                    
rural  Alaska. She  spoke to  Medicaid expansion  and stated                                                                    
that the  revenue increase  had not  yet been  realized. The                                                                    
cuts to  behavioral health grants would  dramatically impact                                                                    
rural Alaska.                                                                                                                   
                                                                                                                                
1:28:36 PM                                                                                                                    
                                                                                                                                
DOUG WALRATH,  NACTEC, NOME (via  teleconference), supported                                                                    
more time spent on revenue  generation for the state. He was                                                                    
opposed to  the cuts to  pre-K grants and education.  He was                                                                    
concerned  that  the  cuts  would  hamper  children  at  the                                                                    
expense  of the  state's future  workforce. Cuts  made today                                                                    
were  not  true budget  reducing  measures;  a dollar  saved                                                                    
today  was not  a savings  if  it cost  the state  $3 in  10                                                                    
years. He stressed  that one way or another  the state would                                                                    
pay for services. He thanked the committee for its work.                                                                        
                                                                                                                                
1:30:46 PM                                                                                                                    
                                                                                                                                
STEVEN   RANDALL,   PARENT,   NOME   (via   teleconference),                                                                    
testified in opposition  to education cuts. He  had seen how                                                                    
pre-K education  had enhanced  his child's  growth mentally,                                                                    
physically,  and  socially.  He  did not  believe  that  his                                                                    
daughter  would  be  ready  to  apply  herself  without  the                                                                    
education. He believed education  should be the forefront of                                                                    
a  child's life.  He stressed  that preschool  gave children                                                                    
the ability to move forward.                                                                                                    
                                                                                                                                
1:32:45 PM                                                                                                                    
                                                                                                                                
JON   STAVIG,   CFO,   CITY   OF   CORDOVA,   CORDOVA   (via                                                                    
teleconference), asked  the legislature  to not  make budget                                                                    
cuts  the  sole  purpose.  He spoke  to  the  importance  of                                                                    
getting  beyond the  difficult  financial  times. He  voiced                                                                    
opposition  to funding  cuts to  the  Alaska Marine  Highway                                                                    
System.  He  referred to  a  study  showing that  for  every                                                                    
dollar the  state put into  the AMHS, $2 was  generated into                                                                    
the  economy. He  stated that  the budget  removed the  fast                                                                    
ferry  funding; he  appreciated the  service, but  using the                                                                    
slower vessels would result  in decreased economic activity.                                                                    
He  relayed   that  Cordova  was   facing  its   own  budget                                                                    
challenges;  fisheries  tax  receipts had  been  well  under                                                                    
projected  estimates  in  recent years  and  federal  timber                                                                    
receipts had  steadily declined over the  past several years                                                                    
and  may   sunset  after  the  coming   year.  Additionally,                                                                    
contract  jails  funding  had   been  cut  by  $100,000  the                                                                    
preceding  year.   He  thanked  Representative   Edgmon  for                                                                    
maintaining funding at  the $7 million level  in the current                                                                    
year.   Cordova  provided   the   maximum  allowable   local                                                                    
contribution  to   its  schools.   He  wanted   to  continue                                                                    
supporting the  schools at the  current level. He  asked the                                                                    
committee to  remember the health  of the  local governments                                                                    
and economy.                                                                                                                    
                                                                                                                                
1:34:51 PM                                                                                                                    
                                                                                                                                
ALEXIS  COOPER, CORDOVA  DISTRICT FISHERMEN  UNITED, CORDOVA                                                                    
(via  teleconference), spoke  in support  of the  commercial                                                                    
fishing industry.  The success  of the businesses  relied on                                                                    
the  Department  of  Fish  and  Game's  ability  to  provide                                                                    
responsive  in-season  management. Management  that  ensured                                                                    
the   sustainability   of   the   resource   and   maximized                                                                    
opportunity  to harvest  the surpluses.  She discussed  that                                                                    
existing commercial  fisheries taxes generated  revenue that                                                                    
benefitted rural  and urban  communities. Continued  cuts to                                                                    
DFG  would  threaten  its  ability   to  maintain  its  core                                                                    
management  functions  and  the  revenue  it  generated  for                                                                    
Alaska. She  stressed that commercial fisheries  were one of                                                                    
the  state's most  sustainable  industries  and with  proper                                                                    
funding it  would generate opportunity  and revenue  for the                                                                    
state and its residents in perpetuity.                                                                                          
                                                                                                                                
1:36:52 PM                                                                                                                    
                                                                                                                                
MIKE  MICKELSON, SELF,  CORDOVA (via  teleconference), urged                                                                    
the committee  to restore  funding for  public broadcasting.                                                                    
He  testified against  cuts to  the Department  of Fish  and                                                                    
Game.  He  relayed  that cuts  to  the  department  directly                                                                    
impacted  his  bottom line  and  the  amount of  fish  taxes                                                                    
coming into the state. He  discussed that if fishing was not                                                                    
open because  Fish and Game did  not have the budget  to fly                                                                    
and  do   stream  counts,  it  would   directly  impact  all                                                                    
participants'  revenue stream.  He opined  that it  would be                                                                    
much  better to  implement an  income  tax than  to cut  the                                                                    
budget  further.  The number  of  people  he employed  could                                                                    
directly  be  impacted  by   DFG  management  decisions.  He                                                                    
supported a restructuring  of the PFD or  the elimination of                                                                    
the dividend to bring in revenue.                                                                                               
                                                                                                                                
1:38:45 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:50:34 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Neuman   noted  that   there  were   currently  no                                                                    
additional testifiers online.                                                                                                   
                                                                                                                                
1:51:00 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:00:53 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
DENNY  WEATHERS, SELF,  CORDOVA (via  teleconference), spoke                                                                    
in  opposition to  the operating  and mental  health budget.                                                                    
She stated  that oil revenue  may be  a part of  the state's                                                                    
shortfall,  but  the  real problem  was  due  to  government                                                                    
overspending.  She stated  that  politicians  had created  a                                                                    
debt.  She was  opposed to  the  use of  the Permanent  Fund                                                                    
Dividend  as  a  source  of   revenue.  She  discussed  that                                                                    
Alaskans  depended on  the PFD.  She stressed  that Alaskans                                                                    
did  not   need  any  new   taxes.  She   supported  cutting                                                                    
government and end to over spending.                                                                                            
                                                                                                                                
2:03:41 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:17:37 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Thompson  noted  that   there  were  currently  no                                                                    
additional testifiers online.                                                                                                   
                                                                                                                                
2:17:59 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:34:58 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair  Saddler  noted  that  there  were  currently  no                                                                    
additional testifiers online.                                                                                                   
                                                                                                                                
2:35:30 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:50:13 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair  Saddler  noted  that  there  were  currently  no                                                                    
additional testifiers online.                                                                                                   
                                                                                                                                
2:50:36 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:10:59 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
JOHN  ANDERSON,  KCHU  RADIO, VALDEZ  (via  teleconference),                                                                    
urged   the  committee   to  restore   funding  for   public                                                                    
broadcasting. He thanked the committee  for its work. He was                                                                    
opposed to the  zeroing out of the budget  for public radio.                                                                    
He stated  that even a cut  of 50 percent was  better than a                                                                    
cut  of 100  percent.  He relayed  that  federal funds  were                                                                    
contingent  on state  funding. He  relayed  that the  Valdez                                                                    
station would close if it lost  all of its state funding. He                                                                    
thought  that  the  foundation  of  democracy  was  a  well-                                                                    
informed public.                                                                                                                
                                                                                                                                
3:13:02 PM                                                                                                                    
                                                                                                                                
BETSY JUMPER,  SELF, BETHEL (via teleconference),  urged the                                                                    
committee to  restore funding  for public  broadcasting. She                                                                    
stated that public radio was  vital for rural Alaska, and it                                                                    
was sometimes a  matter of life and  death. She communicated                                                                    
that  not everyone  had electronics  and fancy  computers or                                                                    
cell  phones. She  related that  people  depended on  public                                                                    
radio to get messages and relay very important information.                                                                     
                                                                                                                                
3:14:11 PM                                                                                                                    
                                                                                                                                
MARY NANUWAK,  SELF, BETHEL (via  teleconference), testified                                                                    
in support of funding for  mental health services. She spoke                                                                    
to  mental  health and  people  who  became discouraged  and                                                                    
turned to  alcohol and drug  use. Often time's  people ended                                                                    
up  doing  things  they  should  not do  as  a  result.  She                                                                    
believed that  money remaining in  the Alaska  Mental Health                                                                    
Trust Authority  (AMHTA) should be  going to the  regions or                                                                    
the  villages, which  would do  more good.  She stated  that                                                                    
everyone  in the  villages  worked  together and  understood                                                                    
what the problems were. She  testified in support of funding                                                                    
for  public radio  because many  times it  was the  only way                                                                    
villages  could keep  up with  news. She  relayed that  many                                                                    
village residents did not have access to computers.                                                                             
                                                                                                                                
3:16:29 PM                                                                                                                    
                                                                                                                                
NIKKI   HOFFMAN,   ORUTSARARMIUT   NATIVE   COUNCIL   SENIOR                                                                    
SERVICES,  BETHEL  (via teleconference),  testified  against                                                                    
cuts  to  senior  services.  She   asked  the  committee  to                                                                    
consider prudence when cutting  the operating budget for the                                                                    
program. She  detailed that the  senior services  program in                                                                    
Bethel served approximately 60 plus  elders. The program had                                                                    
two primary  state funding  grants including  the nutrition,                                                                    
transportation, and support service  grant and the adult day                                                                    
service  grant.  She stated  that  the  funds were  used  to                                                                    
provide  vital services  to meet  the basic  needs of  older                                                                    
Alaskans living  in Bethel. She  pointed out that  the elder                                                                    
population was  increasing, and discussed the  importance of                                                                    
nutrition. She  discussed the expense of  nutrition in rural                                                                    
parts  of the  state, and  stated  that the  seniors in  the                                                                    
region relied  heavily on  the food  that was  provided. She                                                                    
discussed that  many clients relied  on the  senior services                                                                    
program  for transportation  to  the adult  day center.  She                                                                    
encouraged the committee to increase  the funding for senior                                                                    
services.                                                                                                                       
                                                                                                                                
3:20:21 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:34:47 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HENRY HUNTER SR., ALASKA  VILLAGE COUNCIL PRESIDENTS (AVCP),                                                                    
BETHEL  (via teleconference),  testified in  support of  the                                                                    
Power Cost  Equalization program  (PCE). He shared  that the                                                                    
program helped families in the  AVCP region. He related that                                                                    
the Secretary of Energy had  visited the area and understood                                                                    
the hardship associated with the  high cost of energy in the                                                                    
region  and  the  low  income  of the  majority  of  the  56                                                                    
villages in the  Yukon Kuskokwim Delta. He  thought it would                                                                    
pose a  hardship for  low income families  if the  state cut                                                                    
into  the PCE  program.  He supported  funding for  veterans                                                                    
programs. He discussed  that there was a  high percentage of                                                                    
older veterans  living in  the region who  lived on  a fixed                                                                    
income.                                                                                                                         
                                                                                                                                
3:37:36 PM                                                                                                                    
                                                                                                                                
KRISTIN CARPENTER,  COPPER RIVER WATERSHED  PROJECT, CORDOVA                                                                    
(via teleconference),  encouraged the committee  to consider                                                                    
new  revenues for  the state.  She  expressed concern  about                                                                    
cuts  to the  Department of  Fish and  Game; Cordova  relied                                                                    
heavily  on sound  fisheries management  to ensure  that its                                                                    
fishery  was  sustainable.  She  believed  there  were  many                                                                    
places where proposed cuts had  the potential to really hurt                                                                    
the  fishing industry  in Cordova.  She discussed  potential                                                                    
cuts to  research, fish weirs,  and other areas.  She voiced                                                                    
opposition  to funding  cuts to  the  Alaska Marine  Highway                                                                    
System. She discussed the importance  of the ferry system to                                                                    
communities. She  referenced a McDowell group  study related                                                                    
to the  generation of  funds for the  Alaska economy  by the                                                                    
ferry system. She mentioned a  recent presentation by fiscal                                                                    
analyst  Gunnar  Knapp  and   discussed  the  importance  of                                                                    
diversification of  revenue. She  did not see  a way  to cut                                                                    
enough from the budget. She  would rather have her Permanent                                                                    
Fund Dividend taken than see all of the proposed cuts.                                                                          
                                                                                                                                
3:40:55 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:46:37 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
JEFF    JABUSCH,   CITY    OF   WRANGELL,    WRANGELL   (via                                                                    
teleconference),  expressed support  for funding  the budget                                                                    
at the governor's proposed level  that included some funding                                                                    
of revenue  sharing, which accounted  for 10 percent  of the                                                                    
community's  general fund  budget.  He stated  that the  cut                                                                    
would  come at  a cost  of reduced  services, especially  in                                                                    
smaller communities  that did not  seem to have  the revenue                                                                    
generating options  and tax base  of larger  communities. He                                                                    
observed  that  there may  be  other  ways to  assist  local                                                                    
governments  if the  cuts were  necessary.  For example,  he                                                                    
stated that  a good look  at the property tax  exemption law                                                                    
would  be an  option.  He specified  that  Wrangell had  the                                                                    
highest  percentage of  senior exemptions  in the  state. He                                                                    
stated  that it  was  hard  to fund  services  when a  large                                                                    
percentage of  the property was  exempt for seniors.  He had                                                                    
no problem for seniors in  need receiving the exemption, but                                                                    
in many cases the exemption  was for the wealthier. He urged                                                                    
the committee  to restore  funding for  public broadcasting.                                                                    
He  pointed  out that  public  radio  was essential  to  the                                                                    
community. He supported a balanced budget.                                                                                      
                                                                                                                                
3:49:22 PM                                                                                                                    
                                                                                                                                
MARVIN POYOUROW,  SOCIAL WORKER,  NORTON SOUND  REGION, NOME                                                                    
(via teleconference),  testified in  support of  funding for                                                                    
behavioral  health services.  He  addressed  the Nome  Youth                                                                    
Facility and stated that it  would be very difficult for the                                                                    
youths to have a life if they  had to go to a community that                                                                    
was far away  from their own and in a  system where they had                                                                    
less chance  of making it  and returning home.  He discussed                                                                    
his work coordinating psychiatric  emergency services in the                                                                    
region.  He stated  that the  program had  so few  resources                                                                    
that  it was  almost outsourcing  8 out  of 10  patients. He                                                                    
estimated that  the region had  the highest suicide  rate in                                                                    
the state.  There was  significant prevention  work underway                                                                    
to  try  to  prevent  more  suicides.  He  appealed  to  the                                                                    
committee  to look  to  Medicaid as  a  revenue source,  and                                                                    
worried that  opportunities would  be lost while  the public                                                                    
was waiting.                                                                                                                    
                                                                                                                                
3:52:23 PM                                                                                                                    
                                                                                                                                
TIM ANDREWS,  SELF, BETHEL  (via teleconference),  urged the                                                                    
committee  to restore  funding for  public broadcasting.  He                                                                    
stated that he was a  beneficiary of the local radio station                                                                    
KYUK,  and  relayed  that  it  important  programs  for  the                                                                    
community. For  example, he  spoke to  fisheries regulations                                                                    
and explained that  public radio was the only  source of any                                                                    
kind of information  when people were out at  fish camps. He                                                                    
discussed  utilization  of   public  radio  for  information                                                                    
related to  game harvest parameters. He  mentioned that many                                                                    
people  did not  have internet  services or  other means  of                                                                    
communication  beyond  public  radio.  He  stated  that  the                                                                    
station also provided weather alerts to the community.                                                                          
                                                                                                                                
3:55:02 PM                                                                                                                    
                                                                                                                                
Co-Chair  Thompson  discussed  the  afternoon  schedule  for                                                                    
public testimony.                                                                                                               
                                                                                                                                
3:55:31 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:16:17 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^PUBLIC TESTIMONY: OFF-NETS                                                                                                   
                                                                                                                                
4:16:17 PM                                                                                                                    
                                                                                                                                
STEPHEN  ALEXANDER, SELF,  ELFIN COVE  (via teleconference),                                                                    
urged   the  committee   to  restore   funding  for   public                                                                    
broadcasting.  He was  the local  tsunami  liaison in  Elfin                                                                    
Cove.  He  indicated  how  important  public  radio  was  in                                                                    
providing  emergency notifications  to  the  rural areas  of                                                                    
Alaska.  He relayed  that internet  service was  sporadic in                                                                    
the area  where he  lived and,  therefore, felt  that losing                                                                    
funding would be  a significant hit to  the area's emergency                                                                    
alert system. He  urged members to support  public radio and                                                                    
thanked the committee for allowing him to testify.                                                                              
                                                                                                                                
4:18:58 PM                                                                                                                    
                                                                                                                                
GARY  E  WILLIAMS,  ORGANIZED VILLAGE  OF  KAKE,  KAKE  (via                                                                    
teleconference), urged the committee  to restore funding for                                                                    
public  broadcasting.  He  spoke  about  the  importance  of                                                                    
public radio  because of emergency  communications stressing                                                                    
its  critical role  in his  community. He  also noted  other                                                                    
benefits   such  as   having  access   to  world   news  and                                                                    
entertainment. He  thanked the  committee members  for their                                                                    
time  and  urged  the continuation  of  funding  for  public                                                                    
radio.                                                                                                                          
                                                                                                                                
4:21:12 PM                                                                                                                    
                                                                                                                                
IVAN IVAN, CITY OF  AKIAK, AKIAK (via teleconference), urged                                                                    
the  committee to  restore funding  for revenue  sharing. He                                                                    
commended Governor  Walker for  proposing extra  funding for                                                                    
the program.  He spoke about  the removal of $35  million by                                                                    
the House  Finance Committee on  February 29, 2016.  He felt                                                                    
that  a  community  should never  be  ignored  or  forgotten                                                                    
because of  its distance or citizenship.  He asked committee                                                                    
members to  consider continued funding for  a very important                                                                    
program.  He suggested  that cities  of  Alaska were  common                                                                    
voices of  reason for the  governor and legislators  as they                                                                    
guide government.  He mentioned the  high cost of  living in                                                                    
rural  areas   of  Alaska.  He   thanked  members   for  the                                                                    
opportunity to testify  and asked for their  support for the                                                                    
revenue sharing program.                                                                                                        
                                                                                                                                
4:24:20 PM                                                                                                                    
                                                                                                                                
JAMES  SQUYRES, SELF,  RURAL  DELTANA (via  teleconference),                                                                    
urged  members  to  make  deeper  cuts  to  the  budget.  He                                                                    
disagreed with the  governor's vision of a  state income tax                                                                    
or  slicing  off a  portion  of  the  PFD. He  endorsed  the                                                                    
judicious use of  the earnings reserve and the  power of the                                                                    
Majority under  the caucus rule.  He suggested  lowering the                                                                    
overall  budget to  $4.5  billion in  the  current year.  He                                                                    
furthered  that  after  achieving   a  $4.5  billion  budget                                                                    
legislators should look  at funding sources such  as the PCE                                                                    
fund and the Higher Education  Fund. Had these measures been                                                                    
taken in the prior year  a valuable precedence in the crisis                                                                    
as  many  had  advised.   He  relayed  having  attended  the                                                                    
governor's 3 day  tax workshop held in  the previous summer.                                                                    
He  disagreed   with  the  governor's  suggested   plan.  He                                                                    
provided several examples of how  the fiscal crisis could be                                                                    
resolved. He concluded his  testimony urging the legislature                                                                    
to roll back the size of government.                                                                                            
                                                                                                                                
4:26:21 PM                                                                                                                    
                                                                                                                                
PAM  GOODE,   SELF,  RURAL  DELTANA   (via  teleconference),                                                                    
expressed her  concern hearing testimonies from  others from                                                                    
around the  state encouraging additional  taxes and  the use                                                                    
of PFD's. She had never met  one person who said they wanted                                                                    
to be taxed, nor had her  husband who was an accountant. She                                                                    
spoke against  the governor's fiscal  plan and  implored the                                                                    
legislature to make additional cuts.                                                                                            
                                                                                                                                
4:28:26 PM                                                                                                                    
                                                                                                                                
ALBERT  NINGEUOLK,  SELF, SHISHMAREF  (via  teleconference),                                                                    
testified that  he supported what  the Alaska  Commission on                                                                    
Aging  was  advocating  for  to  help  Alaska's  elders.  He                                                                    
relayed  that  living in  rural  Alaska  was very  expensive                                                                    
particularly for elders living on  a fixed income. He argued                                                                    
on  behalf  of  the   continuation  of  funding  for  senior                                                                    
services such  as the senior  benefits program and  the home                                                                    
heating  program. He  cited  examples of  the  high cost  of                                                                    
living  in Shishmaref.  He voiced  his support  for programs                                                                    
that  help  the  elders.  He invited  the  governor  to  his                                                                    
village  to  stay for  a  week  to provide  perspective.  He                                                                    
thanked  the committee  for the  opportunity to  provide his                                                                    
testimony.                                                                                                                      
                                                                                                                                
4:30:18 PM                                                                                                                    
                                                                                                                                
ROSALIND ATTATAYUK, XYZ    SENIOR     GROUP,    NOME    (via                                                                    
teleconference), testified against  cuts to senior services,                                                                    
services for  the disabled, and mental  health services. She                                                                    
relayed  her concerns  about  the high  costs  of living  in                                                                    
rural Alaska.  She emphasized  the importance  of facilities                                                                    
like XYZ  Senior Group.  She invited one  of the  members to                                                                    
live  in  a rural  village  for  a  year  to have  a  better                                                                    
perspective of  village life. She  mentioned having  to skip                                                                    
meals because  of the  high cost  of food,  sleeping without                                                                    
heat, and using honey buckets.                                                                                                  
                                                                                                                                
4:33:53 PM                                                                                                                    
                                                                                                                                
EMILY   GRAY,   CITY    COUNCIL   MEMBER,   ALLAKAKET   (via                                                                    
teleconference),  spoke   in  support  of   maintaining  the                                                                    
revenue  sharing  program.  She   opined  that  without  the                                                                    
program her  community would lose  many services.  For every                                                                    
second class  city the monies  were used for  basic services                                                                    
such  as  administration  costs,  road  maintenance,  street                                                                    
lights,  garbage disposal,  and maintaining  proper cleaning                                                                    
and  sanitizing  of  the health  clinic.  The  city  greatly                                                                    
appreciated the  revenue sharing funding. She  believed that                                                                    
without the funding  all of the basic services  would not be                                                                    
met.   She  relayed   the   negative   impacts  that   would                                                                    
potentially  result with  the loss  of  services. She  urged                                                                    
committee  members  to  restore   this  vital  funding.  She                                                                    
thanked the committee for listening to her testimony.                                                                           
                                                                                                                                
4:35:41 PM                                                                                                                    
                                                                                                                                
MARY  BRYAN, SELF,  SEWARD  (via  teleconference), spoke  of                                                                    
being an  elderly person of  80 years  old who had  lived in                                                                    
Alaska since 1944. She advocated  on behalf of people living                                                                    
in the  rural areas as  well as  for seniors. In  Seward the                                                                    
Independent Living  Center, slated for a  5 percent decrease                                                                    
in funding,  was accessible to  seniors. She also  urged the                                                                    
committee to  restore funding  for public  broadcasting. She                                                                    
felt that  the state  had to do  something for  the elderly.                                                                    
She thanked the committee.                                                                                                      
                                                                                                                                
4:38:22 PM                                                                                                                    
                                                                                                                                
MARY MCMAHON,  PRESIDENT   OF    ALASKA   SECONDARY   SCHOOL                                                                    
PRINCIPLES, PALMER  (via teleconference), spoke in  favor of                                                                    
funding education. She  also stated that she  was willing to                                                                    
do her  part. She  encouraged members  to think  of Alaska's                                                                    
students  as  the  future  of  Alaska.  She  also  supported                                                                    
enhanced  revenue measures.  She encouraged  the restoration                                                                    
of the  broadband assistance grant  for rural Alaska,  as it                                                                    
was  a  critical  component  for districts  to  be  able  to                                                                    
provide  innovative  ways   of  advancing  student  learning                                                                    
through technology. Shae asked  that the statewide mentoring                                                                    
program be  restored in  order to  retain teachers  in rural                                                                    
areas. She  was concerned  with cuts  made to  Department of                                                                    
Education  and Early  Development because  of the  potential                                                                    
impact  on support  to districts  throughout the  state. She                                                                    
asked legislators to hold the  Base Student Allocation (BSA)                                                                    
steady. She  thanked the committee  for the work it  did and                                                                    
for its time.                                                                                                                   
                                                                                                                                
4:40:49 PM                                                                                                                    
                                                                                                                                
DONALD   HARTMANN,   SELF,  HAINES   (via   teleconference),                                                                    
testified  against cuts  to senior  services. He  understood                                                                    
the necessity  of cutting  the budget. He  did not  think it                                                                    
made sense  to cut  programs that  actually saved  the state                                                                    
money. He relayed a personal  story about being handicapped.                                                                    
He was depended on an  electric wheel chair for mobility and                                                                    
had spent most of his life  in and out of nursing homes. The                                                                    
last time he  had lived in a nursing home  was about 8 years                                                                    
prior. He  was able  to live independently  though Southeast                                                                    
Alaska Independent Living (SAIL)  which changed his life. He                                                                    
had  home support  allowing him  to  live independently  and                                                                    
SAIL helped in  in applying for home  modification grants to                                                                    
get  a  chair  lift  installed  and  to  make  his  bathroom                                                                    
wheelchair accessible.  If he had  not had the help  of SAIL                                                                    
he  would still  be living  in a  nursing home  paid for  by                                                                    
Medicaid  costing  the  state significant  money.  He  urged                                                                    
legislators  to reconsider  their decision.  He thanked  the                                                                    
committee.                                                                                                                      
                                                                                                                                
4:43:07 PM                                                                                                                    
                                                                                                                                
MELISSA ARONSON, SELF,  HAINES LIBRARY (via teleconference),                                                                    
indicated she  was willing to  do her part  including paying                                                                    
taxes.  She  urged  the committee  to  restore  funding  for                                                                    
public  broadcasting. The  state funds  that went  to public                                                                    
radio were used  to match federal funds and  funds for other                                                                    
grants.  She felt  that  the service  was  necessary in  the                                                                    
rural areas especially  for emergency notification purposes.                                                                    
She also  testified in  favor of  the Online  with Libraries                                                                    
program. She thanked the committee.                                                                                             
                                                                                                                                
4:44:35 PM                                                                                                                    
                                                                                                                                
JEANNE  GERHARDT-CYRUS,  SELF, KIANA  (via  teleconference),                                                                    
was  concerned with  funding cuts  for lower-level  services                                                                    
available  in rural  communities.  In particular,  community                                                                    
developmental  disability  grants  which allow  people  with                                                                    
disabilities to  remain in their own  community around their                                                                    
family  and culture.  She  support  behavioral health  grant                                                                    
funding  as  well.  She   felt  that  without  on-the-ground                                                                    
supports programs could not meet  the level of needs leading                                                                    
to a rise  in the level of crisis  and ultimately additional                                                                    
costs to the state. She  added that cutting certain services                                                                    
would  sabotage prison  reform  and  increase recidivism  of                                                                    
people with disabilities. She also  opposed closing the Nome                                                                    
Youth Facility. Removing  youth out of region to  a city did                                                                    
not  bode well  for them  taking them  away from  family and                                                                    
culture.   She  urged   members  to   restore  funding   for                                                                    
community-based services. She thanked  the committee for its                                                                    
time.                                                                                                                           
                                                                                                                                
4:46:52 PM                                                                                                                    
                                                                                                                                
MERILEE WEYIOUANNA,  SELF, NOME (via  teleconference), urged                                                                    
support  for  the  XYZ  senior  group.  The  program  helped                                                                    
provide  meals  for  people  such   as  herself.  She  would                                                                    
otherwise  to struggle  to cook  for herself  to be  able to                                                                    
eat. She thanked the committee for listening.                                                                                   
                                                                                                                                
4:47:55 PM                                                                                                                    
                                                                                                                                
GEOFF  WIDDOWS, SELF,  YAKUTAT  (via teleconference),  urged                                                                    
the committee  to restore  funding for  public broadcasting.                                                                    
He  stressed the  importance of  public radio  in his  small                                                                    
community.  Although  the  community had  cell  service  and                                                                    
internet, they were  both Raven Radio had  been a tremendous                                                                    
asset to the community of  Yakutat and other communities. He                                                                    
asked  the  legislature to  fund  public  radio as  much  as                                                                    
possible. He appreciated the opportunity to testify.                                                                            
                                                                                                                                
4:49:15 PM                                                                                                                    
                                                                                                                                
MELISSA  LESTER, SELF,  GALENA (via  teleconference), called                                                                    
in  reference  to  the  possible  closure  of  the  Northway                                                                    
Department of  Transportation Facility. She and  her husband                                                                    
had lived in  Northway for 3.5 years while  he was stationed                                                                    
there as  an Alaskan State  Trooper. She contended  that the                                                                    
Northway  DOT provided  construction, road  maintenance, and                                                                    
trooper  vehicle  maintenance.   She  defined  his  previous                                                                    
territory,  which  consisted  of  thousands  of  miles,  and                                                                    
commented   on   the   importance  of   road   and   vehicle                                                                    
maintenance.  The  DOT  facility  provided  safety  for  the                                                                    
trooper  who, in  turn, provided  safety  for citizens.  She                                                                    
wanted  to   support  the  funding  for   the  Northway  DOT                                                                    
facility. She thanked the committee members for their time.                                                                     
                                                                                                                                
4:52:08 PM                                                                                                                    
                                                                                                                                
STEVE ST CLAIR, SELF,  WASILLA (via teleconference), thanked                                                                    
certain  legislators for  recognizing that  Alaska was  in a                                                                    
fiscal  crisis.   He  specifically   thanked  Representative                                                                    
Gattis  for her  hard work.  He did  not agree  with funding                                                                    
non-profit  organizations  if  the state  offered  the  same                                                                    
services.  He thought  a matrix  should  be established  for                                                                    
non-profits to  measure success and failure.  He favored the                                                                    
United  for  Liberty  Plan,  a road  map  to  a  sustainable                                                                    
budget. He  recommended that legislators  used it as  a tool                                                                    
to attain a  sustainable budget. He also  suggested that the                                                                    
state   should    not   fund    anything   that    was   not                                                                    
constitutionally mandated. He  suggested that one university                                                                    
rather  than  three was  mandated  in  the constitution.  He                                                                    
encouraged anyone that supported  paying additional taxes or                                                                    
donating  a portion  of  their  PFD could  send  a check  to                                                                    
Department of Revenue. He wished the committee well.                                                                            
                                                                                                                                
4:54:11 PM                                                                                                                    
                                                                                                                                
ARLENE SOXIE,  XYZ SENIOR GROUP, NOME  (via teleconference),                                                                    
was willing  to pay  a small  tax for  education, as  it was                                                                    
vital  for  the  future  of  the  children  of  Alaska.  She                                                                    
referred to a previous state  tax. She spoke against cuts to                                                                    
senior  services.   She  also   supported  the   funding  of                                                                    
behavioral health  programs and believed  heating assistance                                                                    
was  necessary  for  those  living   in  rural  Alaska.  She                                                                    
encouraged  legislators and  sympathized with  the job  they                                                                    
had ahead of them. She thanked the committee.                                                                                   
                                                                                                                                
4:56:08 PM                                                                                                                    
                                                                                                                                
TIMOTHY  SCHUERCH,   MANIILIQ  ASSOCIATION,   KOTZEBUE  (via                                                                    
teleconference).  The Maniiliq  Association  was the  tribal                                                                    
health   organization  that   provided  health   and  social                                                                    
services to  about 8 thousand  people in the  Northwest part                                                                    
of  the  state.  The association  understood  the  challenge                                                                    
legislators faced  and was supportive  of their  efforts. He                                                                    
spoke  of having  met with  President Obama  about expanding                                                                    
payment of the  federal share of Medicaid in  an amount that                                                                    
totaled about $100 million in  savings to the state Medicaid                                                                    
budget each year. There were some  cuts he did not favor, He                                                                    
encourage restoring  funding to the following  programs: The                                                                    
senior   and   community   based   grants,   the   community                                                                    
development  and  disability   grants,  the  adult  Medicaid                                                                    
dental  program,  and  the behavioral  health  and  recovery                                                                    
grants.  The  4  grant  programs enabled  the  provision  of                                                                    
critical  services  to  some  of  Alaska's  most  vulnerable                                                                    
individuals  (Low  income  elders   and  children,  and  the                                                                    
disabled). He  did not believe  it was right to  balance the                                                                    
budget  on  the backs  of  the  poorest and  most  venerable                                                                    
Alaskans. The grant program funding  levels did not meet the                                                                    
needs. The state had to  subsidize these programs with other                                                                    
federal   funds  despite   major   cuts  to   administrative                                                                    
overhead.  In his  region and  in much  of Alaska  there was                                                                    
some  of  the  highest   suicide,  alcoholism,  drug  abuse,                                                                    
domestic violence,  and sexual assault rates  in the nation.                                                                    
Although the state needed to  meet its budget goals, cutting                                                                    
these program was not the way to do so.                                                                                         
                                                                                                                                
4:58:38 PM                                                                                                                    
                                                                                                                                
MAYOR    CLAY   WALKER,    DENALI   BOROUGH,    HEALY   (via                                                                    
teleconference),  testified  in  support of  the  governor's                                                                    
budgetary  contribution  of  $35 million  to  the  Community                                                                    
Revenue  Sharing   Program.  The  importance   of  community                                                                    
revenue sharing  to the state's municipalities  could not be                                                                    
overstated.   He  reported   that   a   number  of   smaller                                                                    
communities  relied  on  the program  to  provide  essential                                                                    
services.  The  Denali Borough  used  the  funds to  support                                                                    
services such  as fire and  emergency medical  service which                                                                    
help support  the health and  safety of those that  live and                                                                    
visit the  borough. He  believed it  was imperative  for the                                                                    
state  to  work  in   partnership  with  the  municipalities                                                                    
through  the  revenue  sharing program.  The  municipalities                                                                    
were born  of Title 29  [Statute reference]. He  opined that                                                                    
the    state's    responsibilities   would    increase    of                                                                    
municipalities were to shut down.  He strongly urged support                                                                    
of the Community Revenue Sharing Program.                                                                                       
                                                                                                                                
5:00:32 PM                                                                                                                    
                                                                                                                                
T  FRANK  BOX,  ACCESS  ALASKA HEAD  INJURY  SUPPORT  GROUP,                                                                    
ANCHORAGE   (via    teleconference),   reported    being   a                                                                    
facilitator of the  support group. They had  a discussion at                                                                    
the  beginning of  March 2016  about the  budget shortfalls.                                                                    
Everyone agreed that they depended  on their PFD for co-pays                                                                    
and  school supplies  for their  children. They  thought the                                                                    
state should  only touch  PFD's as  a last  resort. Everyone                                                                    
supported a broad-based income tax.  The net effect would be                                                                    
that PFD monies  would be used to pay the  taxes. He relayed                                                                    
some  of his  personal  experience. He  recalled the  budget                                                                    
shortfalls felt in the 80s.  He could appreciate the task at                                                                    
hand  for legislators.  However, some  of the  proposed cuts                                                                    
would penny-wise  and pound foolish. He  mentioned a durable                                                                    
medical  equipment  program  at Access  Alaska  that  helped                                                                    
support  Medicaid. He  thought it  would be  a good  idea to                                                                    
drop  the  lawsuit against  Governor  Walker,  and stop  the                                                                    
litigation   against  Medicaid   expansion.  He   thank  the                                                                    
committee.                                                                                                                      
                                                                                                                                
5:03:19 PM                                                                                                                    
                                                                                                                                
DORDIE   CARTER,   HOLLIS   PUBLIC  LIBRARY,   HOLLIS   (via                                                                    
teleconference),  testified  in  favor of  the  Online  with                                                                    
Libraries Program, the eRate  program, and internet service.                                                                    
The library had been using  the OWL eRate supported internet                                                                    
since the  beginning of the  program. Internet  access under                                                                    
the program  revolutionized the library and  brought what it                                                                    
could offer  to its  patrons in line  with their  needs. She                                                                    
provided  other examples  of the  benefits of  the programs.                                                                    
She  urged  the committee  to  restore  funding of  the  OWL                                                                    
program.                                                                                                                        
                                                                                                                                
5:05:50 PM                                                                                                                    
                                                                                                                                
DEBRA  SCHNABEL, HAINES  CHAMBER  OF  COMMERCE, HAINES  (via                                                                    
teleconference),  spoke against  a statewide  income [Sales}                                                                    
tax. She relayed  that a state sales would add  a burden for                                                                    
lower  income  residents  for   essential  goods.  She  also                                                                    
mentioned  that  local  retailers  were already  at  a  huge                                                                    
disadvantage when  competing with internet  based suppliers.                                                                    
She  opined  that  a  state   sales  tax  would  drive  more                                                                    
purchases  to the  internet and  discourage local  commerce.                                                                    
She also urged  the committee to restore  funding for public                                                                    
broadcasting. She thought it was  an important industry. She                                                                    
ended by saying thank you.                                                                                                      
                                                                                                                                
5:07:36 PM                                                                                                                    
                                                                                                                                
JAN  HILL, MAYOR  OF  HAINES,  HAINES (via  teleconference),                                                                    
spoke in favor  of the revenue sharing  program. Cutting the                                                                    
program could  lead to the  imposition of sales  or property                                                                    
taxes. She  asked legislators to reconsider  maintaining the                                                                    
funding for revenue sharing. She  also testified in favor of                                                                    
the Online  with Libraries program. She  mentioned the other                                                                    
services that OWL provided. She  further urged the committee                                                                    
to  restore  funding  for  public  broadcasting,  a  service                                                                    
heavily relied on.  She also supported funding  for the ASMI                                                                    
program.                                                                                                                        
                                                                                                                                
5:10:16 PM                                                                                                                    
                                                                                                                                
CARL   KANCIR,   SELF,   ANCHORAGE   (via   teleconference),                                                                    
testified  against  cuts  to senior  services.  He  did  not                                                                    
support an  income tax or  a sales tax. He  also recommended                                                                    
moving the capital.                                                                                                             
                                                                                                                                
Co-Chair  Thompson  noted  that  there  were  no  additional                                                                    
testifiers online currently.                                                                                                    
                                                                                                                                
5:13:29 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:26:02 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
JOHN STRASENBURG, SELF,  TALKEETNA   (via   teleconference),                                                                    
urged   the  committee   to  restore   funding  for   public                                                                    
broadcasting.  He  spoke  of  its  importance  in  providing                                                                    
community events,  educational announcements,  news, meeting                                                                    
dates for local  organizations, and emergency announcements.                                                                    
He  pointed  to  various examples  of  emergency  situations                                                                    
where  public   radio  had  been  very   important.  He  was                                                                    
concerned  with  the  youth facility  closing  in  Nome.  He                                                                    
stressed  that  Department   of  Transportation  and  Public                                                                    
Facilities  was   refusing  to   fund  maintenance   for  an                                                                    
underpass associated  with Susitna  Valley High  School that                                                                    
would enable  students to safely  cross the  Park's Highway.                                                                    
He testified  in support of  funding for the  University and                                                                    
testified  against cuts  to senior  services. He  encouraged                                                                    
implementing an income taxes. He thanked the committee.                                                                         
                                                                                                                                
5:28:48 PM                                                                                                                    
                                                                                                                                
RUTH  WOOD, SELF,  TALKEETNA  (via teleconference),  opposed                                                                    
only making  cuts. She believed  everyone needed to  help in                                                                    
different ways. She  believed some people would  have to pay                                                                    
a  bit  more in  taxes.  She  also  urged the  committee  to                                                                    
restore funding  for public  broadcasting. She  stressed the                                                                    
importance  of being  able to  hear  about emergencies.  She                                                                    
testified  in  support of  funding  for  the University  and                                                                    
mentioned  the importance  of research  especially the  cold                                                                    
weather  research program.  She favored  capping the  PFD as                                                                    
well.  She  ended  with thinking  beyond  just  cutting  the                                                                    
budget.                                                                                                                         
                                                                                                                                
5:30:51 PM                                                                                                                    
                                                                                                                                
JOAN  MCBEEN, SELF,  TENAKEE  SPRINGS (via  teleconference),                                                                    
urged   the  committee   to  restore   funding  for   public                                                                    
broadcasting.  She  had  been in  Tenakee  since  1977;  the                                                                    
community did  not have  public radio at  that time  and had                                                                    
realized  how  important  the   service  was  for  emergency                                                                    
information, communications, safety,  information, and news.                                                                    
She  encouraged  the reinstitution  of  an  income tax.  She                                                                    
supported fuel,  alcohol, and tobacco  taxes. She  wanted to                                                                    
stop subsidizing  the oil  companies. She  believed Alaskans                                                                    
could work  together to solve  the problem. She  was willing                                                                    
to do some sacrificing, but  did not want to completely give                                                                    
up some  of the important  services that were  necessary for                                                                    
remote community living.                                                                                                        
                                                                                                                                
5:32:52 PM                                                                                                                    
                                                                                                                                
GALENA ERICKSON,  SELF, SEWARD (via  teleconference), [note:                                                                    
testimony indecipherable].                                                                                                      
                                                                                                                                
5:33:40 PM                                                                                                                    
                                                                                                                                
DEBORAH  POTTER, SELF,  SKAGWAY (via  teleconference), urged                                                                    
the committee  to restore  funding for  public broadcasting.                                                                    
She  communicated  that  in many  rural  communities  public                                                                    
radio  was as  the only  link to  the outside  world and  to                                                                    
vital  local news  events. Public  radio was  Skagway's only                                                                    
source for  critical information  like weather  alerts, road                                                                    
closures,  and changes  to ferry  service. She  implored the                                                                    
committee to restore funding to the vital service.                                                                              
                                                                                                                                
5:35:00 PM                                                                                                                    
                                                                                                                                
JENNIFER  THUSS, SELF,  SKAGWAY (via  teleconference), urged                                                                    
the committee  to restore  funding for  public broadcasting.                                                                    
She stressed that  public radio built a  sense of community.                                                                    
The  most important  thing about  public radio  was that  it                                                                    
provided fastest  way to share information  on the national,                                                                    
state, and  local level. She  thanked the committee  for the                                                                    
opportunity to testify.                                                                                                         
                                                                                                                                
5:36:12 PM                                                                                                                    
                                                                                                                                
DAVID STONE,  SELF, YAKUTAT (via teleconference),  urged the                                                                    
committee  to restore  funding for  public broadcasting.  He                                                                    
shared that  the community only  had one radio  station that                                                                    
provided   state,   national,    and   international   news.                                                                    
Additionally,   the  station   provided  emergency   service                                                                    
warnings  about weather  events and  other. He  relayed that                                                                    
many residents  could not  afford commercial  television via                                                                    
satellite.   He  suggested   that  many   people  would   be                                                                    
disenfranchised  if  they  did  not have  access  to  public                                                                    
radio.  He strongly  opposed  a 100  percent  cut to  public                                                                    
radio.                                                                                                                          
                                                                                                                                
Co-Chair  Thompson  noted  that   there  were  currently  no                                                                    
additional testifiers online.                                                                                                   
                                                                                                                                
5:38:27 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:47:17 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
5:47:25 PM                                                                                                                    
                                                                                                                                
HEATHER  POWELL,  RAVEN  RADIO   BOARD  MEMBER,  SITKA  (via                                                                    
teleconference), urged the committee  to restore funding for                                                                    
public  broadcasting.  She  was  an educator  and  spoke  in                                                                    
support  of public  radio stations.  She  referred to  KCAW,                                                                    
Sitka's  radio  station.  She addressed  the  importance  of                                                                    
receiving health and safety  information provided via public                                                                    
radio.  She   detailed  that  the  station   provided  local                                                                    
broadcasts,   covered  cultural   events,  and   other.  She                                                                    
stressed the  essential nature of receiving  the information                                                                    
and relayed  that it  could not be  replaced by  a non-local                                                                    
service.  She remarked  that the  radio station  was at  the                                                                    
heart of the  local community. She looked  forward to seeing                                                                    
the legislature fund public radio.                                                                                              
                                                                                                                                
5:49:48 PM                                                                                                                    
                                                                                                                                
MARK   HALBER,   SELF,   FAIRBANKS   (via   teleconference),                                                                    
discussed a  personal experience with an  Office of Children                                                                    
Services  case that  had been  ongoing for  three years.  He                                                                    
remarked  that   the  agency  had  spent   over  $10,000  to                                                                    
administer random drug  tests. He stated that  the money the                                                                    
agency spent on  foster care and other  services amounted to                                                                    
over $250,000 on the unresolved  case. He addressed costs of                                                                    
taking children out of their homes.                                                                                             
                                                                                                                                
Co-Chair Thompson reviewed the agenda for the following                                                                         
meeting scheduled on Monday, March 7th.                                                                                         
                                                                                                                                
HB 256 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
HB 257 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Thompson discussed the schedule for the following                                                                      
week.                                                                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
5:51:47 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 5:52 p.m.                                                                                          

Document Name Date/Time Subjects
HB 256 HB 257 Op Budget Public Testimony Pkt. 14.pdf HFIN 3/3/2016 1:00:00 PM
HB 256
HB 257
HB 256 HB 257 Op Budget Public Testimony Pkt. 15.pdf HFIN 3/3/2016 1:00:00 PM
HB 256
HB 257
HB 256 HB 257 Op Budget Public Testimony Pkt. 16.pdf HFIN 3/3/2016 1:00:00 PM
HB 256
HB 257
HB 256 HB 257 Op Budget Public Testimony Pkt. 17.pdf HFIN 3/3/2016 1:00:00 PM
HB 256
HB 257
HB 256 HB 257 Op Budget Public Testimony Pkt. 18.pdf HFIN 3/3/2016 1:00:00 PM
HB 256
HB 257
HB 256 HB 257 Op Budget Public Testimony Pkt. 19.pdf HFIN 3/3/2016 1:00:00 PM
HB 256
HB 257
HB 256 HB 257 Op Budget Public Testimony Pkt. 21.pdf HFIN 3/3/2016 1:00:00 PM
HB 256
HB 257
HB 256 HB 257 Op Budget Public Testimony Pkt. 20.pdf HFIN 3/3/2016 1:00:00 PM
HB 256
HB 257