Legislature(2023 - 2024)ADAMS 519

03/12/2024 05:00 PM House FINANCE

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Audio Topic
05:06:18 PM Start
05:07:14 PM HB268 || HB270
05:08:51 PM Public Testimony: Juneau
06:03:54 PM Public Testimony: Sitka, Petersburg, Delta Junction, Dillingham, Glennallen, Tok, and Offnets
06:49:29 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= HB 268 APPROP: OPERATING BUDGET; CAP; SUPP; AM TELECONFERENCED
Heard & Held
+= HB 270 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
-- Public Testimony <2 Minute Time Limit> --
5:00 – 6:00 PM: Juneau
6:00 – 7:00 PM: Sitka, Petersburg,
Delta Junction, Dillingham, Glennallen, Tok,
Off Nets
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allotted time or testimony will close early
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Send written testimony to house.finance@akleg.gov
Please submit written public testimony by 7:00 PM
on Thursday, March 14, 2024
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 12, 2024                                                                                            
                         5:06 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
5:06:18 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Johnson called the  House Finance Committee meeting                                                                    
to order at 5:06 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bryce Edgmon, Co-Chair                                                                                           
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                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Joan   O'Keefe,    Executive   Living,    Southeast   Alaska                                                                    
Independent Living, Juneau;  Lauree Morton, Deputy Director,                                                                    
Alaska  Network on  Domestic  Violence  and Sexual  Assault,                                                                    
Juneau;  Emily  Ferry,  Self,  Juneau;  Representative  Andi                                                                    
Story.                                                                                                                          
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Marianne   Mills,  President,   Alaska  Geriatric   Exchange                                                                    
Network,  Juneau;  Erin Walker-Tolles,  Executive  Director,                                                                    
Catholic  Community   Services,  Juneau;   Jennifer  Carson,                                                                    
Executive  Director,  Behavioral Health  Services,  Bartlett                                                                    
Regional  Hospital,  Juneau;  Tom  Boutin,    Self,  Juneau;                                                                    
Pamela Baker-Albert, Caregiver,  North Way; Georgia Jackson,                                                                    
Self, Caregiver, Copper Center; Edna Beebe, Self, Eek;                                                                          
Pascale Hawkins, Caregiver, Juneau.                                                                                             
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 268    APPROP: OPERATING BUDGET; CAP; SUPP; AM                                                                               
                                                                                                                                
          HB 268 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 270    APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 270 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
PUBLIC TESTIMONY:                                                                                                               
                                                                                                                                
     JUNEAU                                                                                                                     
     SITKA, PETERSBURG,  DELTA     JUNCTION,     DILLINGHAM,                                                                    
     GLENNALLEN, TOK, AND OFFNETS                                                                                               
                                                                                                                                
Co-Chair Johnson reviewed the meeting agenda.                                                                                   
                                                                                                                                
HOUSE BILL NO. 268                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making capital  appropriations; making                                                                    
     supplemental  appropriations; making  reappropriations;                                                                    
     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. 270                                                                                                            
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
5:07:14 PM                                                                                                                    
                                                                                                                                
^PUBLIC TESTIMONY: JUNEAU                                                                                                     
                                                                                                                                
5:08:51 PM                                                                                                                    
[Although  not   expressly  stated,  public   testimony  was                                                                    
opened.]                                                                                                                        
                                                                                                                                
JOAN   O'KEEFE,   EXECUTIVE   DIRECTOR,   SOUTHEAST   ALASKA                                                                    
INDEPENDENT  LIVING, JUNEAU  explained that  the mission  of                                                                    
Southeast Alaska  Independent Living  (SAIL) was  to inspire                                                                    
independence.   The   organization    served   seniors   and                                                                    
individuals  of  all  ages  experiencing  disabilities.  She                                                                    
encouraged  the  committee  to  take  a  hard  look  at  the                                                                    
recommendations  put forth  by  Alaska  Mental Health  Trust                                                                    
Authority (AMHTA).  There were many items  related to mental                                                                    
health  that were  not funded  in  the budget  or were  only                                                                    
partially  funded. She  relayed  that two  of the  important                                                                    
items  that  needed  funding  were  home  modifications  and                                                                    
upgrades, which would receive $575,000  less than the amount                                                                    
recommended  by  the trust.  If  the  funds were  cut,  many                                                                    
individuals with  disabilities would  not be able  to remain                                                                    
in their homes. The trust  also recommended $183,500 for the                                                                    
long-term  care  ombudsman,  which  was  excluded  from  the                                                                    
governor's  budget. The  funds would  support an  additional                                                                    
assistant  ombudsman.  She  also   urged  the  committee  to                                                                    
support  the  addition  of  $1  million  for  transit  match                                                                    
funding.                                                                                                                        
                                                                                                                                
Co-Chair  Johnson noted  that the  committee  had adopted  a                                                                    
committee substitute for HB 270  earlier in the day and most                                                                    
of the items mentioned by Ms. O'Keefe were included.                                                                            
                                                                                                                                
5:12:25 PM                                                                                                                    
                                                                                                                                
LAUREE MORTON,  DEPUTY DIRECTOR, ALASKA NETWORK  ON DOMESTIC                                                                    
VIOLENCE  AND   SEXUAL  ASSAULT,   JUNEAU  thought   it  was                                                                    
difficult to  highlight the decrements to  proposed services                                                                    
because  she  wanted  to  believe  that  the  administration                                                                    
understood  the importance  of public  safety. The  services                                                                    
were  critical  and  it  would be  detrimental  to  cut  the                                                                    
services. Shelters  and rape  crisis centers  were emergency                                                                    
centers  and  were open  24  hours  a  day, every  day.  The                                                                    
centers  could not  continue to  do more  with less  and the                                                                    
collective will  of the legislature  was paramount  in order                                                                    
to keep  the doors open.  She also urged that  the committee                                                                    
support  increasing  the  amount of  funding  available  for                                                                    
victims of violent crime.   If state dollars were reduced in                                                                    
the present year,  then federal dollars would  be reduced in                                                                    
the  following year.  She recognized  that current  date was                                                                    
Ashley Johnson Barr day, which  was a day of remembrance for                                                                    
a  ten-year-old girl  who  was a  victim  of kidnapping  and                                                                    
sexual  assault.  The  day  illustrated  the  importance  of                                                                    
funding  domestic violence.  She urged  that legislature  to                                                                    
act  in   order  to   not  need   another  special   day  of                                                                    
remembrance.                                                                                                                    
                                                                                                                                
Co-Chair Johnson  noted that  Representative Andi  Story was                                                                    
present in the audience.                                                                                                        
                                                                                                                                
5:15:34 PM                                                                                                                    
                                                                                                                                
EMILY FERRY, SELF, JUNEAU, appreciated  the $680 increase to                                                                    
the Base  Student Allocation (BSA).  She emphasized  that it                                                                    
was critical to  invest in the education system  in order to                                                                    
retain  families  in Alaska.  The  school  budgets had  been                                                                    
being cut  for about a decade,  and she referred to  a graph                                                                    
showing  the  direct  correlation  between  the  decline  in                                                                    
funding and  the decline in  educational outcomes.  In 2012,                                                                    
about 22 percent of high  school graduates were enrolling in                                                                    
two-year or  four-year degree programs  but only  34 percent                                                                    
of graduates  were enrolling  in 2022.  An increase  of $680                                                                    
was a great  start but it would not fix  everything. She did                                                                    
not think  it would be  a surprise  if parents were  to come                                                                    
back year-after-year to ask for  an increased BSA. She noted                                                                    
that  there were  not going  to be  many people  from Juneau                                                                    
testifying   tonight   because   a  school   board   meeting                                                                    
discussing the closure of schools  was happening at the same                                                                    
time as the committee meeting.                                                                                                  
                                                                                                                                
5:18:32 PM                                                                                                                    
                                                                                                                                
MARIANNE   MILLS,  PRESIDENT,   ALASKA  GERIATRIC   EXCHANGE                                                                    
NETWORK,  JUNEAU (via  teleconference),  explained that  the                                                                    
Alaska  Geriatric Exchange  Network  (AGENET) was  primarily                                                                    
made up  of private,  non-profit organizations.  The network                                                                    
supported aging  Alaskans and helped seniors  safely live in                                                                    
their   own   home   and  communities   and   avoid   costly                                                                    
institutional care. She urged  the committee to maintain the                                                                    
current FY 24 funding for  senior community grants in the FY                                                                    
25  budget. Community  based  services  offered through  the                                                                    
grants  included  nutritious  meals,  daily  safety  checks,                                                                    
adult  day   services,  and   assistance  with   bathing  or                                                                    
dressing.  Maintaining the  current level  of funding  would                                                                    
mean an  addition of $2.7  million in general  funds. Alaska                                                                    
had the fastest growing senior  population in the nation and                                                                    
it  made economic  sense to  help seniors  age in  their own                                                                    
homes. In 2023, nearly  20,000 older Alaskans benefited from                                                                    
community grants at a cost of  $691 per year per client. She                                                                    
urged support for funding for the grants.                                                                                       
                                                                                                                                
Representative Josephson asked Ms.  Mills to repeat her last                                                                    
sentence stating the cost per client.                                                                                           
                                                                                                                                
Ms.  Mills responded  that  it would  cost  $691 per  senior                                                                    
client  per year  to receive  community grant  services. For                                                                    
seniors in nursing  homes, the cost was  $148,000 per client                                                                    
per year.                                                                                                                       
                                                                                                                                
5:22:41 PM                                                                                                                    
                                                                                                                                
ERIN WALKER-TOLLES,  EXECUTIVE DIRECTOR,  CATHOLIC COMMUNITY                                                                    
SERVICES,  JUNEAU   (via  teleconference),   explained  that                                                                    
Catholic Community Service (CCS)  was a regional faith-based                                                                    
non-profit that  provided home community based  services for                                                                    
seniors and  caregivers. Senior services were  being reduced                                                                    
while community  needs continued to increase.  She expressed                                                                    
her  concern for  seniors and  caregivers  statewide if  the                                                                    
funding  continued to  decrease.  She relayed  that CCS  had                                                                    
never  experienced such  a  dramatic  increase in  community                                                                    
needs.  The   number  of  seniors  receiving   services  had                                                                    
increased by 54 percent in  the past five years, from 80,000                                                                    
seniors  to 171,000  seniors  in FY  23.  The percentage  of                                                                    
seniors who were homebound had  increased from 50 percent to                                                                    
85 percent  in FY  23. There  was a  20 percent  increase in                                                                    
seniors  accessing home  care in  the prior  year. Due  to a                                                                    
lack of funding,  the center had reduced the  number of days                                                                    
the senior centers were open and  laid off staff in order to                                                                    
pay for  food for the  seniors. Unless the current  level of                                                                    
funding  was  maintained, CCS  would  not  be able  to  meet                                                                    
community  needs and  it was  likely that  it would  need to                                                                    
reduce  the number  of days  that it  provided hot  meals to                                                                    
seniors to  three days per  week and  it could be  forced to                                                                    
close  one or  more of  the  senior centers.  She urged  the                                                                    
committee  to  maintain the  current  level  of funding  for                                                                    
senior  grants  in order  to  avoid  a potential  crisis  in                                                                    
senior health outcomes.                                                                                                         
                                                                                                                                
5:25:29 PM                                                                                                                    
                                                                                                                                
JENNIFER  CARSON,  EXECUTIVE   DIRECTOR,  BEHAVIORAL  HEALTH                                                                    
SERVICES,   BARTLETT   REGIONAL    HOSPITAL,   JUNEAU   (via                                                                    
teleconference),  testified in  support  of  the Crisis  Now                                                                    
grants  and crisis  stabilization.  She  explained that  the                                                                    
Crisis  Now  system  was  a   best  practice  framework  for                                                                    
developing   and  implementing   services  for   individuals                                                                    
experiencing  a  crisis.  The   services  were  critical  in                                                                    
avoiding the  unnecessary use of law  enforcement to respond                                                                    
to a  person in a  behavioral health crisis. There  was only                                                                    
one  crisis  center  providing services  to  youths  in  the                                                                    
state. She argued  that it was imperative  that crisis grant                                                                    
funding  be  added  back  into the  budget  as  the  current                                                                    
funding was  not adequate to fund  ongoing operations. Other                                                                    
more costly  services would become more  heavily relied upon                                                                    
in lieu  of adequate  funding, such as  in-patient services.                                                                    
There  had been  positive outcomes  for individuals  who had                                                                    
been admitted into crisis  stabilization services. She asked                                                                    
the committee to consider adding  the $1 million back to the                                                                    
budget  in   order  solidify  the  continuation   of  crisis                                                                    
services.                                                                                                                       
                                                                                                                                
5:27:44 PM                                                                                                                    
                                                                                                                                
TOM  BOUTIN, SELF,  JUNEAU (via  teleconference), urged  the                                                                    
committee to refrain from using  savings to fund the budget.                                                                    
He  thought that  Alaska had  full employment  and high  oil                                                                    
prices  and the  annual  oil production  was  not likely  to                                                                    
increase. He  argued that spending one-time  savings now was                                                                    
not  logical. Oil  prices had  dropped while  the population                                                                    
had doubled  and there was  no compensation for the  loss in                                                                    
profit.  The   media  was  complaining  in   2023  that  the                                                                    
administration  could  not  keep up  with  new  Supplemental                                                                    
Nutrition Assistance  Program (SNAP) enrollment  while there                                                                    
were also reports that there  were two vacant jobs available                                                                    
for every  unemployed Alaskan. He thought  that Alaskans who                                                                    
wanted to  work in the  private sector were moving  away for                                                                    
higher  wages.  The  economy  had  unprecedented  structural                                                                    
problems  and  he  did  not think  deficit  spending  was  a                                                                    
remedy.  He  opined  that economic  problems  would  not  be                                                                    
addressed by  increased education  spending or  better child                                                                    
care.   He  thought   that  the   budget  process   was  not                                                                    
transparent  enough.  He was  fearful  that  there would  be                                                                    
overspending.     The     state    sector     had     become                                                                    
disproportionately large and  it dissuaded the manufacturing                                                                    
sector.                                                                                                                         
                                                                                                                                
Co-Chair Johnson  shared that there were  no more testifiers                                                                    
online and  she would  take an at  ease to  give individuals                                                                    
the opportunity to call in.                                                                                                     
                                                                                                                                
5:31:06 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:31:52 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Johnson  stated that the committee  would return at                                                                    
6:00 p.m.                                                                                                                       
                                                                                                                                
Representative  Hannan shared  that a  school board  meeting                                                                    
discussing   potential  school   closures   in  Juneau   was                                                                    
happening at  the same  time as  the committee  meeting. She                                                                    
thought  that 90  percent of  engaged families  were at  the                                                                    
school  board  meeting, which  was  why  there was  a  small                                                                    
number of testifiers.                                                                                                           
                                                                                                                                
Co-Chair   Johnson   reviewed   the  contact   numbers   for                                                                    
testifiers to call in.                                                                                                          
                                                                                                                                
5:34:14 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:02:38 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^PUBLIC  TESTIMONY:   SITKA,  PETERSBURG,   DELTA  JUNCTION,                                                                  
DILLINGHAM, GLENNALLEN, TOK, AND OFFNETS                                                                                      
                                                                                                                                
Co-Chair  Johnson  noted  that   there  were  no  additional                                                                    
testifiers. She repeated the phone numbers for testifiers.                                                                      
                                                                                                                                
Co-Chair Johnson  relayed that  one testifier had  called in                                                                    
while she was offering the phone numbers.                                                                                       
                                                                                                                                
6:03:54 PM                                                                                                                    
                                                                                                                                
PAMELA    BAKER-ALBERT,    CAREGIVER,   NORTH    WAY    (via                                                                    
teleconference), relayed  that she had been  a caregiver for                                                                    
17 years  and her  client was  in a wheeled  chair due  to a                                                                    
traumatic  brain  injury.  She  went above  and  beyond  her                                                                    
required hours  as a caregiver  in order to ensure  that the                                                                    
needs of  her client were met,  such as driving 69  miles to                                                                    
go grocery  shopping. She requested that  caregivers receive                                                                    
dental  benefits, prescription  drug coverage,  and eyeglass                                                                    
benefits.  The caregiving  agencies were  not covering  such                                                                    
benefits and caregivers were  required to pay out-of-pocket.                                                                    
She would  like the funding received  by the state to  go to                                                                    
the  caregivers and  not  to the  agencies.  She asked  what                                                                    
caregivers  could   do  to   promote  the   availability  of                                                                    
benefits. She  noted that her  community was so  remote that                                                                    
it  did not  have running  water, which  meant that  she was                                                                    
packing  water  for  her  client when  it  was  negative  20                                                                    
degrees outside. She would appreciate  it if the legislature                                                                    
would consider the needs of caregivers.                                                                                         
                                                                                                                                
Co-Chair Johnson appreciated the testifier's comments.                                                                          
                                                                                                                                
Representative   Cronk  thanked   the   testifier  for   her                                                                    
comments.                                                                                                                       
                                                                                                                                
Co-Chair Johnson  stated that there were  no more testifiers                                                                    
online and the committee would return at 6:30 p.m.                                                                              
                                                                                                                                
6:09:21 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:32:39 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Johnson  relayed  that testifiers  had  called  in                                                                    
during the at ease.                                                                                                             
                                                                                                                                
6:33:21 PM                                                                                                                    
                                                                                                                                
GEORGIA  JACKSON,   SELF,  CAREGIVER,  COPPER   CENTER  (via                                                                    
teleconference),  indicated that  she  was  a caregiver  and                                                                    
wanted  to request  more funding  for at-home  services. She                                                                    
lived  in  a  rural  area   and  the  current  pay  was  not                                                                    
encouraging people  to work. There  were no  social security                                                                    
benefits  and  employees'  only option  was  Medicaid.  Some                                                                    
clients  were  40  miles  away  and  there  was  no  mileage                                                                    
coverage.  Her client  did not  have running  water and  the                                                                    
logistics  were  difficult.  There   were  many  elders  and                                                                    
disabled people  not receiving services because  the pay and                                                                    
benefits were  not sufficient to  encourage people  to work.                                                                    
She  argued   that  increased  funding  could   improve  the                                                                    
problem.                                                                                                                        
                                                                                                                                
6:37:48 PM                                                                                                                    
                                                                                                                                
EDNA  BEEBE, SELF,  EEK (via  teleconference), relayed  that                                                                    
her community  of Eek was not  part of the road  system. She                                                                    
was  currently  a caretaker  for  her  mom  and was  also  a                                                                    
caretaker  for  her  dad  before he  passed  away.  She  was                                                                    
responsible for  her mom's meals  and made sure her  mom had                                                                    
fresh clothing  and bedding.  She had  only been  allowed to                                                                    
work for about 13 hours  per week since she began caregiving                                                                    
about six years  ago and her mom's needs  had only increased                                                                    
over  the  years.  She  relayed that  her  mom  had  medical                                                                    
appointments  in  Anchorage,  but  due to  the  weather  the                                                                    
appointments were often rescheduled.  She argued that higher                                                                    
pay  would   attract  more  applicants  to   the  caregiving                                                                    
profession. She noted  that living expenses in  Eek had been                                                                    
steadily increasing. She  urged that more funding  go to the                                                                    
caregivers.                                                                                                                     
                                                                                                                                
6:44:05 PM                                                                                                                    
                                                                                                                                
PASCALE  HAWKINS,  CAREGIVER,  ARIS SOLUTIONS,  JUNEAU  (via                                                                    
teleconference), requested  that more money be  added to the                                                                    
budget for caregivers.  She was a former nurse  and was only                                                                    
getting paid $20 per hour  for caregiving. She noted that it                                                                    
was costing  her more money to  drive to work and  back home                                                                    
than  she  was  receiving  in  wages.  Her  son  was  now  a                                                                    
caregiver  and would  be  experiencing  even more  financial                                                                    
difficulties  if  he did  not  live  with Ms.  Hawkins.  She                                                                    
relayed that  her son had  been working for the  same agency                                                                    
for over  a year  and had  not gotten a  raise or  any other                                                                    
increased compensation. She loved  being a caregiver but the                                                                    
pay and benefits were prohibitive.                                                                                              
                                                                                                                                
[Although  not   expressly  stated,  public   testimony  was                                                                    
closed.]                                                                                                                        
                                                                                                                                
Co-Chair  Johnson  reviewed  the agenda  for  the  following                                                                    
day's meeting.                                                                                                                  
                                                                                                                                
HB  268  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  270  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
6:49:29 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 6:49 p.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB 268 & HB 270 Public Testimony Rec'd by 031224.pdf HFIN 3/12/2024 5:00:00 PM
HB 268
HB 270