Legislature(2023 - 2024)ADAMS 519

03/21/2023 05:00 PM House FINANCE

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05:02:42 PM Start
05:04:53 PM HB39 || HB41
05:05:31 PM Public Testimony: Juneau and Offnets
07:39:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= HB 39 APPROP: OPERATING BUDGET/LOANS/FUND; SUPP TELECONFERENCED
Heard & Held
-- Public Testimony <2 Minute Limit> --
+= HB 41 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
-- Public Testimony <2 Minute Limit> --
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+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 21, 2023                                                                                            
                         5:02 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
5:02:42 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Johnson called the  House Finance Committee meeting                                                                    
to order at 5:02 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative DeLena Johnson, Co-Chair                                                                                         
Representative Julie Coulombe                                                                                                   
Representative Mike Cronk                                                                                                       
Representative Alyse Galvin                                                                                                     
Representative Sara Hannan                                                                                                      
Representative Andy Josephson                                                                                                   
Representative Dan Ortiz                                                                                                        
Representative Will Stapp                                                                                                       
Representative Frank Tomaszewski                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bryce Edgmon, Co-Chair                                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Michael  Bucy,  Self,  Juneau; Luann  McVey,  Self,  Juneau;                                                                    
Brenda  Stanfill,  Executive  Director,  Alaska  Network  on                                                                    
Domestic  Violence  and  Sexual  Assault  (ANDVSA),  Juneau;                                                                    
Christina  Apathy,  Self,  Juneau;  Tracy  Goldsmith,  Self,                                                                    
Juneau; Lisa Eagan Lagerquist,  Self, Juneau; Katie Pittman,                                                                    
Self,  Juneau;  Darren  Snyder, Self,  Juneau;  Dr.  Bridget                                                                    
Weiss,  Superintendent,  Juneau   School  District,  Juneau;                                                                    
Brian   Holst,    Executive   Director,    Juneau   Economic                                                                    
Development  Council, Juneau;  Will  Muldoon, Juneau  School                                                                    
District, Juneau; Maressa Jensen,  Self, Juneau; Lori Crupi,                                                                    
Self, Juneau;  Morgan Michels,  Self, Juneau;  Natalie Troy,                                                                    
Self, Juneau;  Janette Gagnon,  Self, Juneau;  Lorrie Heagy,                                                                    
Self, Juneau; Emily Ferry, Self, Juneau.                                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Jerilyn Devens,  Self, Valdez;  Fubao Harele,  Self, Juneau;                                                                    
Catherine  Melville, Juneau  Public Library,  Juneau; Joanna                                                                    
Forst,  Self, Juneau;  Kristin  Jones,  Self, Juneau;  Kathy                                                                    
Leary, City Administrator, City  of Gustavus, Gustavus; Nola                                                                    
Lamken,  Self,  Juneau;  Nancy Eiler,  Self,  Juneau;  Chris                                                                    
Meade, Self, Juneau.                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 39     APPROP: OPERATING BUDGET/LOANS/FUND; SUPP                                                                             
                                                                                                                                
          HB 39 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 41     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 41 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
Co-Chair Johnson reviewed the  meeting agenda. The committee                                                                    
would  hear public  testimony on  the  operating and  mental                                                                    
health budgets.  She reviewed public testimony  protocol and                                                                    
call-in information.                                                                                                            
                                                                                                                                
HOUSE BILL NO. 39                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;    making   reappropriations;    making                                                                    
     supplemental   appropriations;  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. 41                                                                                                             
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
5:04:53 PM                                                                                                                    
                                                                                                                                
^PUBLIC TESTIMONY: JUNEAU and OFFNETS                                                                                         
                                                                                                                                
5:05:31 PM                                                                                                                    
                                                                                                                                
MICHAEL BUCY, SELF, JUNEAU, testified  in support of raising                                                                    
the Base  Student Allocation (BSA) funding  for education by                                                                    
20 percent. He understood  that education was expensive, but                                                                    
it depended  on the kind  of education that was  desired. He                                                                    
shared  that his  family had  left Alaska  for one  of their                                                                    
children to attend a private  school through scholarship for                                                                    
one  year. He  listed  a teacher  ratio of  10  to 1,  arts,                                                                    
theater, sports, social  activities, music, languages, field                                                                    
trips, and  other were  all part  of providing  an excellent                                                                    
education.  He provided  additional  details  on the  school                                                                    
experience  out of  state.  He  shared that  he  is a  music                                                                    
teacher and  had classes  of up to  43 middle  schoolers. He                                                                    
was  a good  teacher,  but  no one  could  pay attention  to                                                                    
everyone's needs with  a class that size.  He provided other                                                                    
examples  of  challenges  experienced in  the  local  school                                                                    
system. He  stressed that the  governor and  legislature had                                                                    
not funded  schools adequately. He  shared that  people were                                                                    
moving  out of  the state.  He stressed  that education  was                                                                    
expensive. He  shared there  used to be  a higher  number of                                                                    
teachers,   but  they   have   been  dramatically   reduced.                                                                    
Education was  expensive, but  not as  expensive as  the PFD                                                                    
from  the past  year and  the current  year. He  highlighted                                                                    
that  the  legislature  had   a  constitutional  mandate  to                                                                    
provide  and maintain  the schools.  He emphasized  that the                                                                    
schools   were   falling   apart.   He   congratulated   the                                                                    
legislature on an overdue pay  raise of 67 percent and asked                                                                    
the legislature to raise the BSA 20 percent.                                                                                    
                                                                                                                                
5:08:06 PM                                                                                                                    
                                                                                                                                
Representative  Galvin thanked  Mr. Bucy  for his  testimony                                                                    
and for  being a teacher.  She asked about the  resources in                                                                    
education and how much they went toward administration.                                                                         
                                                                                                                                
Mr. Bucy  responded that  he had  spoken with  his principal                                                                    
about how  things had changed in  the 14 years she  had been                                                                    
there.  The   school  had  lost   two  custodial   staff,  a                                                                    
counselor, and the nurse position  had become part-time. The                                                                    
principal spent  a lot  of time doing  lunch duty  and there                                                                    
had previously  been a truancy  officer, but now  the office                                                                    
had to take care of the  work. All of the things kept adding                                                                    
up and it showed in the classrooms and performance.                                                                             
                                                                                                                                
Co-Chair Foster  thanked Mr.  Bucy for  offering the  PFD as                                                                    
one solution. He  shared that the revenue  forecast had been                                                                    
released earlier  in the evening showing  an additional $679                                                                    
million in reduced revenue due  to decreased oil prices. The                                                                    
legislature  was  faced  with determining  where  the  funds                                                                    
would come  from to  fill the  deficit and  options included                                                                    
the  PFD,  taxes,  cuts,  oil   tax  credit  reductions,  or                                                                    
savings.  He  appreciated  the  suggestion  of  one  way  to                                                                    
balance the budget.                                                                                                             
                                                                                                                                
5:11:17 PM                                                                                                                    
                                                                                                                                
LUANN MCVEY,  SELF, JUNEAU,  relayed that  she is  a retired                                                                    
Alaskan teacher. She spoke in  support of matching funds for                                                                    
the federal Alaska Marine Highway  System (AMHS), grants for                                                                    
seniors  and people  with disabilities,  health professional                                                                    
recruitment and  retention, extension of  Medicaid coverage,                                                                    
and  the  Public  Defender Agency.  She  strongly  supported                                                                    
increasing  the  BSA and  bringing  back  a defined  benefit                                                                    
retirement plan  in order to retain  employees and teachers.                                                                    
She was  concerned about proposed cuts  to public libraries.                                                                    
She supported  funding for  public broadcasting.  She stated                                                                    
that  cuts were  not the  only solution  to a  slimmer state                                                                    
wallet.  She  suggested  that   income  could  be  generated                                                                    
through increased  oil taxes, a  more moderate  PFD payment,                                                                    
and  the  implementation  of  an   income  tax.  She  shared                                                                    
information about  her family.  She stated that  keeping her                                                                    
family in the  state would be an adequate  budget that could                                                                    
provide services to Alaskans.                                                                                                   
                                                                                                                                
5:14:11 PM                                                                                                                    
                                                                                                                                
BRENDA  STANFILL,  EXECUTIVE  DIRECTOR,  ALASKA  NETWORK  ON                                                                    
DOMESTIC  VIOLENCE  AND  SEXUAL  ASSAULT  (ANDVSA),  JUNEAU,                                                                    
provided  information  about  ANDVSA and  the  services  the                                                                    
organization provided  for victims. She spoke  in support of                                                                    
victims'  services funds  within  the  Department of  Public                                                                    
Safety (DPS)  budget. She relayed  that the  direct services                                                                    
provided  by  programs  to  victims of  crime  were  a  core                                                                    
component  of the  criminal  justice  system. Victims  often                                                                    
found themselves without a safe place  to stay and a lack of                                                                    
funds.  She provided  additional details  about the  support                                                                    
the  services  offered  to  victims.  She  highlighted  that                                                                    
programs  had the  same  amount of  funding  for five  years                                                                    
while their  expenses continued to increase.  The funding in                                                                    
the Council on Domestic  Violence and Sexual Assault (CDVSA)                                                                    
grants had  been made up  of a patchwork of  funds including                                                                    
federal   appropriations  (i.e.,   one-time  increments   of                                                                    
general funds,  COVID relief dollars, and  federal and state                                                                    
funds). She  was hopeful the  legislature could find  a more                                                                    
consistent  way  to fund  services  for  crime victims.  She                                                                    
requested  moving the  $3  million  one-time increment  from                                                                    
general funds in  the DPS CDVSA grant line to  $3 million in                                                                    
the base funding of CDVSA.  She requested funding for a one-                                                                    
time  increment  to  assist   with  the  increased  cost  of                                                                    
operating  buildings  needed  to operate  emergency  shelter                                                                    
services.                                                                                                                       
                                                                                                                                
Co-Chair Johnson  asked how long  Ms. Stanfill had  held her                                                                    
current position.                                                                                                               
                                                                                                                                
Ms.  Stanfill  replied that  she  had  been in  her  current                                                                    
position for 18 months.                                                                                                         
                                                                                                                                
Co-Chair Johnson  asked for  verification that  Ms. Stanfill                                                                    
had been with the state for a number of years.                                                                                  
                                                                                                                                
Ms. Stanfill replied that she  had lived in Fairbanks for 25                                                                    
years  as  the executive  director  of  the Interior  Alaska                                                                    
Center for Nonviolent Living. She  had not previously worked                                                                    
for the state until her current position.                                                                                       
                                                                                                                                
Representative   Stapp   thanked   Ms.  Stanfill   for   her                                                                    
testimony.                                                                                                                      
                                                                                                                                
5:17:31 PM                                                                                                                    
                                                                                                                                
JERILYN   DEVENS,   SELF,   VALDEZ   (via   teleconference),                                                                    
supported  the state  funding for  public media.  She stated                                                                    
that  public  media was  often  the  only timely  source  of                                                                    
critical  information available  in emergency  situations in                                                                    
remote  areas in  terms of  public safety.  She shared  that                                                                    
during  the 1964  earthquake there  had  not been  immediate                                                                    
warning compared  to more recent  times when there  had been                                                                    
immediate  warnings on  public  media  of potential  tsunami                                                                    
dangers.                                                                                                                        
                                                                                                                                
5:19:29 PM                                                                                                                    
                                                                                                                                
FUBAO HARELE,  SELF, JUNEAU (via  teleconference), testified                                                                    
in support of  Medicaid. He needed services  and everyone in                                                                    
the state  needed the  services as much  as they  needed the                                                                    
PFD. He  stated that part  of the reason people  were moving                                                                    
out of state was due to  a lack of Medicaid waiver services.                                                                    
He was  advocating for people  with disabilities.  He stated                                                                    
the  waitlist   needed  to  be   reduced.  He   thanked  the                                                                    
committee.                                                                                                                      
                                                                                                                                
5:21:52 PM                                                                                                                    
                                                                                                                                
CATHERINE  MELVILLE,  JUNEAU  PUBLIC  LIBRARY,  JUNEAU  (via                                                                    
teleconference), shared  that she had worked  for the public                                                                    
library for  14 years.  She asked  for support  for restored                                                                    
funding for state libraries. She  shared the funds were used                                                                    
to  give  additional  funding  to  staffing  for  children's                                                                    
services  and  to  stretch  dollars to  buy  items  for  the                                                                    
collection including  e-resources. She stated that  a cut to                                                                    
the funds would  be passed on directly to  the Juneau Public                                                                    
Library and  its services. She  stressed that  the reduction                                                                    
would  be  even  more  painful for  libraries  with  smaller                                                                    
budgets.                                                                                                                        
                                                                                                                                
Co-Chair Johnson acknowledged  Representative Andrew Gray in                                                                    
the audience.                                                                                                                   
                                                                                                                                
5:23:59 PM                                                                                                                    
                                                                                                                                
JOANNA FORST,  SELF, JUNEAU  (via teleconference),  spoke in                                                                    
support of the Parents as  Teachers program. She shared that                                                                    
her family had  been part of the program since  the birth of                                                                    
her son  2.5 years earlier.  She shared that having  a child                                                                    
during COVID-19 was incredibly difficult  and her family had                                                                    
received  a  lot  of  support  during  that  time  including                                                                    
resources, education, prevention,  and referrals. Her family                                                                    
had been able  to connect further with  groups and education                                                                    
since that  time. She stated  the Parents as  Teachers staff                                                                    
had   been  a   positive  influence   on  her   family.  She                                                                    
highlighted  the importance  of a  free educational  webinar                                                                    
provided  by  the  program. The  family  had  even  received                                                                    
employment   opportunities   through    the   program.   She                                                                    
referenced  the  high  waitlist  and  spoke  in  support  of                                                                    
increased funding to allow more families to be served.                                                                          
                                                                                                                                
5:26:20 PM                                                                                                                    
                                                                                                                                
KRISTIN  JONES, SELF,  JUNEAU  (via teleconference),  shared                                                                    
that she was calling from  the Bartlett Hospital campus. She                                                                    
called on behalf of her  brother who had been using Medicaid                                                                    
his  entire  life.  She  advocated  for  increased  spending                                                                    
flexibility  for  Medicaid  waivers.  She  shared  that  her                                                                    
brother had expressed  he wanted to start  using some mental                                                                    
health  services,  but  they  had been  unable  to  get  the                                                                    
funding  anywhere. She  was currently  paying out  of pocket                                                                    
for  the  services.  She  stressed  the  service  should  be                                                                    
available to more people and  those in need. She underscored                                                                    
it would make a huge  difference to many people. She thanked                                                                    
the committee.                                                                                                                  
                                                                                                                                
Representative Stapp  thanked Ms.  Jones for  her testimony.                                                                    
He shared  that the 1115  waiver process was up  for renewal                                                                    
in the current year. There  would be a public comment period                                                                    
and he encouraged Ms. Jones to testify.                                                                                         
                                                                                                                                
5:28:59 PM                                                                                                                    
                                                                                                                                
KATHY LEARY, CITY ADMINISTRATOR,  CITY OF GUSTAVUS, GUSTAVUS                                                                    
(via teleconference), spoke in  support of public radio. She                                                                    
stated  it  was  a  public safety  issue,  especially  in  a                                                                    
community  that had  abysmal cell  coverage. She  noted that                                                                    
the  community had  had  land  lines cut  in  the past.  She                                                                    
emphasized  the importance  of  public  radio for  emergency                                                                    
services. She spoke  in support of state  matching funds for                                                                    
AMHS.  The   funds  were  critical  for   obtaining  federal                                                                    
infrastructure  funding.  The  AMHS was  also  critical  for                                                                    
school and sports travel, access  to supplies and groceries,                                                                    
and  medical  appointments.  She  testified  in  support  of                                                                    
funding for the  public library. She shared  that the public                                                                    
library in  Gustavus supplemented  the school  with literacy                                                                    
and  other reading  programs. She  asked for  matching funds                                                                    
for  PFAS  mitigation  due  to  the  large  problem  in  the                                                                    
community.                                                                                                                      
                                                                                                                                
5:31:58 PM                                                                                                                    
                                                                                                                                
CHRISTINA APATHY, SELF,  JUNEAU, shared that she  is a first                                                                    
year  teacher at  Thunder Mountain  High School.  She shared                                                                    
that she supported  the increase in the BSA.  She stated her                                                                    
classrooms  had  a  lack  of  hope.  She  relayed  that  her                                                                    
students cared and  were upset at adults and  a society that                                                                    
could  not  get  its  act  together.  She  spoke  about  the                                                                    
importance of an atmosphere of safety for students.                                                                             
                                                                                                                                
5:35:31 PM                                                                                                                    
                                                                                                                                
TRACY GOLDSMITH, SELF, JUNEAU, had  been a teacher in Juneau                                                                    
for 11 years. She asked  the committee to increase education                                                                    
funding in the  current year. She stated that  with the lack                                                                    
of funding and  flat funding for the past  seven years meant                                                                    
employees  had  been  lost and  hiring  was  difficult.  She                                                                    
thanked  the  committee  for  working   hard  on  behalf  of                                                                    
Alaskans.                                                                                                                       
                                                                                                                                
5:36:35 PM                                                                                                                    
                                                                                                                                
LISA EAGAN LAGERQUIST, SELF, JUNEAU,  is a mother and former                                                                    
high  school  teacher  in Juneau.  She  shared  three  brief                                                                    
stories  about her  children and  their teachers.  The first                                                                    
story was  about a fourth  grade teacher letting  the family                                                                    
know  their   son  needed  glasses.  The   impact  had  been                                                                    
miraculous for her son. She  shared separate information her                                                                    
son  had  learned  about  another  country  in  a  Model  UN                                                                    
activity led  by the librarian.  She stressed that  no other                                                                    
teacher had time to lead  the activity and the librarian had                                                                    
taken  it up.  It  had made  a difference  to  her son.  She                                                                    
implored the committee to increase the BSA.                                                                                     
                                                                                                                                
5:39:31 PM                                                                                                                    
                                                                                                                                
KATIE PITTMAN,  SELF, JUNEAU,  shared information  about her                                                                    
personal  background  from  rural  Alaska and  her  work  in                                                                    
various rural  areas of the  state. She spoke in  support of                                                                    
increased funding for education.  She stated that without an                                                                    
increase   in   the   BSA  for   numerous   years,   private                                                                    
organizations,  grants, and  federal  funding  was having  a                                                                    
more  powerful  voice  than the  state  in  Alaska's  public                                                                    
schools. She  stressed that the legislature's  power came in                                                                    
the form of money many  times. She currently managed federal                                                                    
title  money for  the Juneau  School  District. She  relayed                                                                    
that half of  her budget came from state  general funds. The                                                                    
funds  fund  certified  teachers, cultural  specialists  and                                                                    
people who  provided services  that prevented  students from                                                                    
needing  social services  work. She  asked the  committee to                                                                    
consider  investing   early  in   Alaskans  and   in  public                                                                    
education.                                                                                                                      
                                                                                                                                
5:42:28 PM                                                                                                                    
                                                                                                                                
NOLA  LAMKEN, SELF,  JUNEAU  (via teleconference),  stressed                                                                    
the  importance of  state funding  for Medicaid  funding and                                                                    
paying attention  to specific needs  people listed  in prior                                                                    
testimony. She noted that the  funding would go much further                                                                    
than  individuals  having  it all.  She  supported  matching                                                                    
funds for  AMHS and stated  it was tragic what  had happened                                                                    
to the ferry system in the  past 20 years. She would like to                                                                    
see  the  ferry system  strongly  improved  and the  federal                                                                    
funds used. She  spoke in support of  funding for education.                                                                    
She  asked  for the  support  of  teachers and  morale.  She                                                                    
strongly supported  funding for libraries and  public media.                                                                    
She thanked the committee.                                                                                                      
                                                                                                                                
5:44:43 PM                                                                                                                    
                                                                                                                                
DARREN SNYDER, SELF,  JUNEAU, shared that he is  a father of                                                                    
three  and grandfather  of two  Alaskans.  He supported  the                                                                    
sustainability,  prosperity,  resilience,   and  success  of                                                                    
Alaskan communities.  He shared that  he worked for  the UAF                                                                    
Cooperative  Extension   and  worked  daily  on   the  daily                                                                    
improvement  of Alaskans'  lives in  food security  and many                                                                    
other areas. He  asked how the state could  achieve the goal                                                                    
for  every  Alaskan  to   be  self-reliant,  resilient,  and                                                                    
successful  if  the  education  system  was  not  adequately                                                                    
funded. He  questioned how communities  and kids  were being                                                                    
prepared  for  the plethora  of  challenges  that exist.  He                                                                    
spoke in support  of increasing the BSA. He was  paid by the                                                                    
state and  federal government to  do important work  that he                                                                    
felt was undercut  by the state's lack of  commitment to its                                                                    
schools, educators,  and volunteers that made  the education                                                                    
system  work.  He  encouraged adequate  funding  to  support                                                                    
things  like HB  65  [proposed legislation  to increase  BSA                                                                    
funding].                                                                                                                       
                                                                                                                                
Co-Chair  Johnson noted  there  were  no additional  callers                                                                    
online. She recessed the meeting until 6:15 p.m.                                                                                
                                                                                                                                
5:47:55 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
6:15:55 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
NANCY EILER, SELF, JUNEAU  (via teleconference), shared that                                                                    
she is the mother and  caregiver of her 36-year-old disabled                                                                    
son. She asked the committee  to support the governor's $1.5                                                                    
million  increment   for  senior  and   disability  services                                                                    
community based  grants. She highlighted that  the increment                                                                    
included  funding for  independent living  centers. Her  son                                                                    
and her  family had  benefitted from SAIL  [Southeast Alaska                                                                    
Independent Living]  services in Juneau for  many years. The                                                                    
support and  kindness of SAIL  staff had been  important for                                                                    
her  over the  years. Her  son  shared that  he enjoyed  the                                                                    
people at  SAIL and the  services provided. She  stated that                                                                    
any services  she and  her husband could  get to  help their                                                                    
son  become  as  independent   as  possible  was  incredibly                                                                    
valuable.  She  thanked  the committee  for  supporting  the                                                                    
increment.                                                                                                                      
                                                                                                                                
6:18:15 PM                                                                                                                    
                                                                                                                                
DR. BRIDGET  WEISS, SUPERINTENDENT, JUNEAU  SCHOOL DISTRICT,                                                                    
JUNEAU, shared she  had been born and raised  in Juneau. She                                                                    
urged the  committee to support  education in  the operating                                                                    
budget. She shared it had  been quite an experience being an                                                                    
educator for  39 years. For the  past 23 years she  had been                                                                    
an  administrator   consistently  looking   through  assets,                                                                    
resources, the many  needs of students, and  how to allocate                                                                    
the   limited  resources.   She  highlighted   that  another                                                                    
committee room  was currently packed with  public testifiers                                                                    
in support of  an increase to the BSA. She  noted there were                                                                    
also some  individuals testifying that public  education was                                                                    
not the place  to invest. She underscored that  if the state                                                                    
did  not increase  its  investment  in education,  educators                                                                    
could not  do what  was needed for  students and  staff. She                                                                    
shared that  she started teaching  in 1984 when she  was 22.                                                                    
She shared  that she  had earned  $14,600 in  another state.                                                                    
She would  have doubled her salary  if she had come  home to                                                                    
teach  at  that time.  Whereas,  currently  the teachers  in                                                                    
other  states  made more.  She  emphasized  that the  school                                                                    
system  had lost  all of  its purchasing  power to  have the                                                                    
best and  brightest teachers. She thanked  the committee for                                                                    
its support.                                                                                                                    
                                                                                                                                
6:20:56 PM                                                                                                                    
                                                                                                                                
Representative  Hannan   asked  about  the  growth   in  P&I                                                                    
insurance in the last several years.                                                                                            
                                                                                                                                
Dr.  Weiss replied  that  the  property liability  insurance                                                                    
cost the district $200,000 in  FY 21. The same insurance had                                                                    
increased to  $400,000 in FY 22  and $1.2 million in  FY 23.                                                                    
The  price  was increasing  another  $59,000  in the  coming                                                                    
year.                                                                                                                           
                                                                                                                                
Representative  Stapp  shared   that  the  Fairbanks  School                                                                    
District pooled health insurance  with the borough. He asked                                                                    
if  the City  and Borough  of  Juneau (CBJ)  and the  Juneau                                                                    
School District had a commercial risk pooling arrangement.                                                                      
                                                                                                                                
Dr.  Weiss  answered   affirmatively.  The  district  pooled                                                                    
liability insurance and some health insurance with CBJ.                                                                         
                                                                                                                                
6:22:22 PM                                                                                                                    
                                                                                                                                
BRIAN   HOLST,    EXECUTIVE   DIRECTOR,    JUNEAU   ECONOMIC                                                                    
DEVELOPMENT COUNCIL,  JUNEAU, advocated for a  much stronger                                                                    
investment in  public education funding. He  had served nine                                                                    
years on the  Juneau School Board and had  seen the district                                                                    
make improvements  despite inadequate funding.  The district                                                                    
maintained  a   high  graduation  rate  and   had  seen  the                                                                    
graduation  rate   amongst  minorities  increase   as  well.                                                                    
Nonetheless, the  outcomes were not adequate,  and resources                                                                    
were  not  keeping up.  He  highlighted  that in  the  1990s                                                                    
Alaska's educational  assessments were on par  with the rest                                                                    
of  the United  States,  whereas the  state  now lagged  the                                                                    
national average  in math and  reading. The  state's economy                                                                    
required   that  65   percent  of   its  workers   had  some                                                                    
postsecondary  education;   however,  only  55   percent  of                                                                    
Alaskans  had  the  credentials. He  stressed  that  teacher                                                                    
turnover  exceeded 20  percent, which  cost Alaska  over $20                                                                    
million annually.  He underscored  that Alaska was  the only                                                                    
state  where teachers  and administrators  hired after  2006                                                                    
could not  earn a  pension. He  highlighted that  New Jersey                                                                    
was  ranked number  one  in the  country  for education  and                                                                    
spent  over $20,000  per student,  while  Alaska spent  less                                                                    
than $18,000.  The state was  ranked 49th in the  quality of                                                                    
its schools.  He  provided additional statistics. He pointed                                                                    
out that Alaska  was ranked number one  in fiscal stability;                                                                    
however,  it was  necessary to  make choices  about how  the                                                                    
resources  were  used.  The   size  of  the  Permanent  Fund                                                                    
Dividend was the only inflation  proofed item in the state's                                                                    
budget.                                                                                                                         
                                                                                                                                
6:25:01 PM                                                                                                                    
                                                                                                                                
WILL MULDOON,  JUNEAU SCHOOL DISTRICT, JUNEAU,  testified in                                                                    
support of  education funding. He  shared that he  served on                                                                    
the Juneau School Board, which  had just approved its budget                                                                    
of  $92.3  million with  roughly  $70  million in  operating                                                                    
funds.  He  remarked  that  the district  had  seen  a  12.9                                                                    
percent enrollment  decline with  the COVID-19  pandemic and                                                                    
the  district did  not recapture  all of  the students.  The                                                                    
district had just  budgeted the last of  the [federal] COVID                                                                    
relief funds. He stressed that  the current budget cycle had                                                                    
been very difficult.  The budget had been passed  based on a                                                                    
$400  increase  to  the  BSA. He  shared  that  without  the                                                                    
increase  the district  would  be faced  with  a deficit  of                                                                    
about  a $3  million for  the  coming year.  He stated  that                                                                    
education needed  a little  help in  the budget.  He thanked                                                                    
the committee.                                                                                                                  
                                                                                                                                
6:27:26 PM                                                                                                                    
                                                                                                                                
MARESSA JENSEN,  SELF, JUNEAU, shared  that she is  a parent                                                                    
and was  an employee  at in the  Juneau School  District for                                                                    
four years  until the past  July. She understood  there were                                                                    
difficult choices  to make on  the budget, but for  too many                                                                    
years  the  hard  choices  had  been made  at  the  cost  of                                                                    
children  and  their future.  She  spoke  in support  of  an                                                                    
increase  in   BSA  funding.  She  stressed   that  everyone                                                                    
depended on  today's children for  their wellbeing  and care                                                                    
in  the   future.  She  underscored   the  need   to  invest                                                                    
accordingly.  She  recognized  that   some  of  the  current                                                                    
outcomes from  schools were not  great; however,  she argued                                                                    
it was  a result of underfunding  and should not be  used to                                                                    
justify   continued  underfunding.   She  asked   if  people                                                                    
expected  their  vehicles  to  get  more  miles  per  gallon                                                                    
because they paid more when  the cost of fuel increased. She                                                                    
answered,  "Of course  we don't."  She  emphasized that  the                                                                    
cost  of fuel  for the  education system  had been  steadily                                                                    
increasing for  the past several  decades. She  stressed the                                                                    
need to  keep up  with the costs.  She underscored  the need                                                                    
for children to thrive in order for the state to thrive.                                                                        
                                                                                                                                
Co-Chair Foster  thanked Ms. Jensen  for her car  analogy to                                                                    
help emphasize the point.                                                                                                       
                                                                                                                                
6:29:41 PM                                                                                                                    
                                                                                                                                
LORI  CRUPI, SELF,  JUNEAU, thanked  the  committee for  its                                                                    
hard work.  She testified in  favor of public  education and                                                                    
an increase  in the  BSA. She  shared that  she had  been an                                                                    
educator  her whole  professional life  and her  parents had                                                                    
been educators.  She shared  information about  her children                                                                    
in the  Juneau School  District. She highlighted  the number                                                                    
of cuts  made to staff  and teachers  in the past  12 years.                                                                    
She underscored that  schools could not afford  to lose more                                                                    
teachers.  She  is  a  school   psychologist  and  had  seen                                                                    
marginalized students and the  issue had been exacerbated by                                                                    
COVID.  She  stated  that distance  education  was  hard  on                                                                    
everyone,  and  the  kids  were   slowly  getting  back  and                                                                    
connected.  She  emphasized  that  students  needed  people,                                                                    
connections, and  to feel they  were a part of  the schools.                                                                    
She stated  it took people  to run schools. She  thanked the                                                                    
committee.                                                                                                                      
                                                                                                                                
Representative Galvin thanked Ms.  Crupi for calling out the                                                                    
importance   of  having   relationships  with   students  in                                                                    
schools.  She thought  it  was critical  to  have people  in                                                                    
schools  who  notice when  students  did  not show  up.  She                                                                    
thanked Ms. Crupi for her work in education.                                                                                    
                                                                                                                                
6:32:54 PM                                                                                                                    
                                                                                                                                
MORGAN MICHELS,  SELF, JUNEAU,  shared that  she is  a first                                                                    
year teacher  in Juneau.  She grew  up in  Alaska and  was a                                                                    
product of  the Alaska public school  system. She encouraged                                                                    
the committee  to fund the  public education system  as much                                                                    
as possible. She  shared that she had been  an active member                                                                    
in the  communities she  had lived  in. She  felt she  was a                                                                    
perfect  example  of what  the  schools  in the  state  were                                                                    
looking for.  She had gone  back to school and  obtained her                                                                    
master's  degree  to  teach  in  Alaska.  She  encouraged  a                                                                    
significant investment in education  funding to ensure there                                                                    
were others to make the same choice to teach in Alaska.                                                                         
                                                                                                                                
Co-Chair Foster thanked Ms. Michels for testifying.                                                                             
                                                                                                                                
6:35:10 PM                                                                                                                    
                                                                                                                                
NATALIE TROY, SELF, JUNEAU, currently  worked for the Alaska                                                                    
Council of  School Administrators.  She spoke in  support of                                                                    
an increase  to the BSA. She  was looking at options  to get                                                                    
certified  to teach  and was  from North  Carolina. She  was                                                                    
currently  trying to  figure  out where  she  would like  to                                                                    
teach.  She  was hoping  to  get  certified in  Alaska,  but                                                                    
without a  stable investment in  education she did  not know                                                                    
whether she  would stay to  teach in Alaska.  She encouraged                                                                    
the  committee   to  provide  stable,   predictable  funding                                                                    
through the formula.                                                                                                            
                                                                                                                                
6:37:13 PM                                                                                                                    
                                                                                                                                
JANETTE  GAGNON,  SELF,  JUNEAU,  was  a  special  education                                                                    
teacher  in  Juneau.  She  spoke  in  support  of  education                                                                    
funding. She shared that she  had been told by students that                                                                    
when they  were younger, they  hid under their  porches from                                                                    
their drunk  parents. The  same children  had told  her they                                                                    
learned how to  steal their parents' welfare  checks so they                                                                    
could buy  food before their  parents bought drugs  with the                                                                    
money.  She  shared  additional stories.  She  stressed  the                                                                    
importance of funding education  so students with the lowest                                                                    
possible denominators had equal opportunities.                                                                                  
                                                                                                                                
6:40:04 PM                                                                                                                    
                                                                                                                                
CHRIS MEADE, SELF, JUNEAU  (via teleconference), shared that                                                                    
he took care of his  disabled daughter who required Medicaid                                                                    
services. He  shared information about his  daughter and the                                                                    
services she  required. The most important  program had been                                                                    
the Medicaid  home and community  based waiver  program. The                                                                    
program had  made a  huge difference  for his  daughter. His                                                                    
daughter  required  24-hour  care.  He  supported  increased                                                                    
funding for  the waiver  program and  the care  agencies and                                                                    
indirect  service  providers   and  care  coordinators.  His                                                                    
daughter  lived  a much  better  life  as  a result  of  the                                                                    
services.                                                                                                                       
                                                                                                                                
6:42:33 PM                                                                                                                    
                                                                                                                                
LORRIE HEAGY, SELF, JUNEAU, shared  that she is a teacher in                                                                    
Juneau and  was the  2010 teacher of  the year.  She thanked                                                                    
committee  members for  their work  in helping  Alaska be  a                                                                    
place  people wanted  to live  and stay.  She encouraged  an                                                                    
increase in education funding. She  shared that she had seen                                                                    
teachers  rotating out  of key  positions in  the past  five                                                                    
years because  teachers were leaving. She  stated that class                                                                    
sizes continued to  grow and fourth and  fifth grade classes                                                                    
now  had  about  35  students.  She  was  heartened  by  the                                                                    
governor's   statement   in   support  of   education.   She                                                                    
highlighted  that the  state  had  a right  to  be on  equal                                                                    
footing with the other states.  She believed the only way it                                                                    
was possible  was to have  sufficient funding  for education                                                                    
in  order for  kids  and teachers  to have  a  chance to  be                                                                    
successful.  She encouraged  increased education  funding in                                                                    
order  to  have  manageable  class sizes.  She  thanked  the                                                                    
committee.                                                                                                                      
                                                                                                                                
Representative Galvin  shared that Ms. Heagy  taught her son                                                                    
20  years  back  at  a  time when  the  class  size  was  25                                                                    
students. She noted that her  son was perhaps a challenge in                                                                    
class. She  shared that  her son is  a biophysicist  and had                                                                    
benefitted from Ms. Heagy's teaching.                                                                                           
                                                                                                                                
6:45:54 PM                                                                                                                    
                                                                                                                                
EMILY FERRY, SELF,  JUNEAU, shared that she is  a parent and                                                                    
in her  work life  she had heard  from employers  across the                                                                    
state  who were  having  difficulty finding  people to  fill                                                                    
positions.  She encouraged  the committee  to invest  in the                                                                    
state's education  system. She  stressed that  investment in                                                                    
education  resulted in  better outcomes.  The outcomes  were                                                                    
much  worse when  the budget  was cut.  She highlighted  the                                                                    
need to invest  in elementary school and  middle school. She                                                                    
shared bridge  models her children  had made in  school. Two                                                                    
of her  three kids now wanted  to be engineers based  on the                                                                    
projects.  She shared  that her  child's  friend had  shared                                                                    
that he  had days  where there  were over  100 kids  and one                                                                    
teacher. She  was confident none  of the students  felt they                                                                    
learned  anything in  a hands-on  meaningful way  when class                                                                    
sizes were  that large.  She felt lucky  to have  choices of                                                                    
different  education  programs (i.e.,  Montessori,  charter,                                                                    
and  home school  options). She  reiterated her  support for                                                                    
increased  funding for  schools.  She stated  that a  school                                                                    
could close in Juneau without an increase in funding.                                                                           
                                                                                                                                
6:49:25 PM                                                                                                                    
                                                                                                                                
Co-Chair Johnson  noted there were no  additional testifiers                                                                    
online or in  the room. She recessed the  meeting until 7:30                                                                    
p.m.                                                                                                                            
                                                                                                                                
6:49:54 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
7:33:55 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair   Johnson   relayed   there  were   no   additional                                                                    
testifiers signed  up. She shared that  the call-in deadline                                                                    
was 7:30  p.m. She expressed  appreciation to those  who had                                                                    
testified. She reviewed the schedule  for the following day.                                                                    
She reviewed the LIO call-in numbers.                                                                                           
                                                                                                                                
Representative Hannan understood there  was an invitation to                                                                    
a joint session from the Senate.                                                                                                
                                                                                                                                
Co-Chair Johnson  replied that  in her  opinion it  was more                                                                    
important  to  be present  in  committee  to listen  to  the                                                                    
public.                                                                                                                         
                                                                                                                                
HB  39  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB 41 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
7:39:50 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 7:39 p.m.                                                                                          
                                                                                                                                

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