Legislature(2019 - 2020)ADAMS ROOM 519
03/25/2019 05:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB39 || HB40 | |
| Public Testimony: Kodiak, Seward, Utqiaqvik, Dillingham, Peterburg, Cordova, Kotzebue, Nome, Wrangell, off Net | |
| Public Testimony: Mat-su, Kenai, Juneau, Bethel, off Net | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 39 | TELECONFERENCED | |
| += | HB 40 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 25, 2019
5:34 p.m.
5:34:42 PM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 5:34 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Tammie Wilson, Co-Chair
Representative Jennifer Johnston, Vice-Chair
Representative Dan Ortiz, Vice-Chair
Representative Ben Carpenter
Representative Andy Josephson
Representative Gary Knopp
Representative Bart LeBon
Representative Kelly Merrick
Representative Colleen Sullivan-Leonard
Representative Cathy Tilton
MEMBERS ABSENT
None
ALSO PRESENT
Elizabeth Saagulik Hensley, Self; Bill Leighty, Self,
Juneau; Sylvia Kidd, Self, Juneau; Bob Piorkowski, Self,
Juneau; Alex Wertheimer, Self, Juneau; Darren Snyder, Self,
Juneau; Beth Weldon, Mayor, Juneau; Breanna Walker, Self,
Juneau; Cindy Boesser, Self, Juneau; Sam Trivette, Self,
Juneau; Gayle Trivette, Self, Juneau; Margaret Vrolyk,
Self, Eagle River; Rich Simpson, Self, Juneau; Denise
Daniello, Executive Director, Alaska Commission on Aging,
Juneau; Tom Thorton, Self, Juneau; Jayne Andreen, Self,
Juneau; Cecilia Miller, Self, Juneau, Representative Louise
Stutes; Representative Andi Story.
PRESENT VIA TELECONFERENCE
Susan Georgette, Self, Kotzebue; Janet Balice, Nome Public
Schools, Nome; Michael Lackabey, Self, Wrangell; Alan
Lanning, City Manager, City of Cordova, Cordova; Bill
Warren, Self, Nikiski; Julie Hersey, Self, Petersburg; Mike
Litzow, Self, Kodiak; Terri Walker, Northwest Arctic
Borough School District, Kotzebue; Deb Trowbridge,
Community Member/Head Start Director, Nome; Aleisha Mollen,
School Board President, Wrangell Public School District,
Wrangell; MaryAnn Bishop, Self, Cordova; Ken Coleman, Self,
Kenai; Tom Abbott, Self, Petersburg; Shawn Dochtermann,
Self, Kodiak; Melanie Bahnke, CEO, Kawerak, Inc., Nome; Dr.
Annemarie O'Brien, Superintendent, Northwest Arctic Borough
School District, Kotzebue; Loretta Rice, Self, Wrangell;
Abby Armstrong, Self, Wrangell; Dan Reum, Self, Cordova;
Freddie Pollard, Self, Kenai; Heather Foxworthy, Self,
Kodiak; Mara Lutomski, Self, Petersburg; Barb Jewell,
Chair, Cordova School Board, Cordova; Jim Hunt, City
Manager, Whittier; Kelly O'Connor Demko, Self, Petersburg;
Penelope Oswalt, Self, Cordova; Litzi Botello, Self, Prince
of Wales; Bridget Wittstock, Self, Petersburg; Dave Otness,
Self, Cordova; Dan Sullivan, Self, Petersburg; Wanda Wahl,
Self, Dillingham; Susan Harding, Prince William Sound
Community College, Cordova; Jeff Guard, Self, Cordova;
Craig Evens, Self, Petersburg; Virginia Evens, Self,
Petersburg; Barb Marifern, Self, Petersburg; Allison Rice,
Self, Petersburg; Sarah Holmgrain, Self, Petersburg;
Marlena Marvin, Self, Petersburg; Marlene Cushing, Self,
Petersburg; Michelle Hahn, Self, Cordova; Melina Meyer,
Self, Cordova; Pete Hoephfner, Self, Cordova; Kate Laird,
Self, Cordova; Kristin Carpenter, Self, Cordova; Alan
Backford, Self, Dillingham; Herman Morgan, Self, Aniak;
Muriel Brower, Self, Barrow; Debbie Melton, Self, Palmer;
Michele Stevens, Self, Petersville; George Pierce, Self,
Kasilof; Lani Widell, Self, Fairbanks; Paul Loentz, Self,
Haines; Sue Steinacher, Self, Nome; Solomon Himelbloom,
High School Student, Kodiak; Linda Himelbloom, Self,
Kodiak; Scott Downing, Self, Sterling; Sharon Brower, Self,
Nikiski; Elizabeth Ripley, CEO, Mat-Su Health Foundation,
Mat-Su; Jane Erickson, President, Alaska Nurses
Association, Mat-Su; John Sonin, Self, Douglas; Vikki Jo
Kennedy, Self, Juneau; Zack Russell, Self, Denali; Thomas
Williams, Self, Peters Creek.
SUMMARY
HB 39 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 39 was HEARD and HELD in committee for further
consideration.
HB 40 APPROP: MENTAL HEALTH BUDGET
HB 40 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster discussed the agenda and the timing for
public testimony.
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 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. 40
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program, including
supplemental appropriations; and providing for an
effective date."
5:37:37 PM
^PUBLIC TESTIMONY: KODIAK, SEWARD, UTQIAQVIK, DILLINGHAM,
PETERBURG, CORDOVA, KOTZEBUE, NOME, WRANGELL, OFF NET
Co-Chair Foster OPENED public testimony.
5:37:53 PM
SUSAN GEORGETTE, SELF, KOTZEBUE (via teleconference), was
strongly opposed to deep cuts as proposed by the governor.
She had lived in Kotzebue for over 30 years. She preferred
a reduced Permanent Fund Dividend (PFD) or an income tax
rather than cuts that de-stabilized the economy and
communities. She spoke of the governor's visit to Noorvik
and recalled he had said he would not forget the people.
She did not understand how cutting education, public radio,
the Village Public Safety Officer (VPSO) program; the Power
Cost Equalization (PCE) program, and the University could
be viewed as anything but forgetting the people. She
pointed out that many rural students went to the University
of Alaska (UA), which was also a leader in Northern science
and climate change research. She had worked in the natural
resources field and had worked often with UA scientists.
She thought UA was an asset to the state. She viewed that
handing out larger PFDs while cutting services would not
lead to a better quality of life in rural Alaska. She
thought drastic cuts were a short-sighted approach to
developing the economy.
5:40:14 PM
JANET BALICE, NOME PUBLIC SCHOOLS, NOME (via
teleconference), testified in support of funding for early
childhood education. She had lived in Nome since 2006 and
was a Nome public teacher and early childhood teacher. She
opposed cuts to the Head Start Program. She discussed the
state's high incidence Adverse Childhood Experiences
(ACES). She noted that Northwest Alaska had a very high
child abuse rate. She noted that the Head Start Program
prioritized the neediest students. She discussed the
difference between before and after the area had funding
for Head Start, and she thought the difference was drastic.
She discussed school readiness and the importance of early
childhood programs. She was in favor of a limited Permanent
Fund Dividend (PFD). She supported an income tax.
5:43:13 PM
MICHAEL LACKABEY, SELF, WRANGELL (via teleconference),
supported cuts to state programs. He was a lifelong
Alaskan. He discussed past deficit spending and expending
Permanent Fund earnings. He discussed past state spending.
He lamented the lack of spending decreases in the past. He
discussed the PFD and was concerned about the principal of
the Permanent Fund. His children were both business owners.
He thought that new taxes would adversely affect business
owners in the state, and had concerns about regulation. He
had lost trust in the legislative body. He supported the
services of the Alaska Marine Highway System (AMHS), and
thought it provided economic opportunities. He supported
the governor's proposed cuts.
5:46:00 PM
ALAN LANNING, CITY MANAGER, CITY OF CORDOVA, CORDOVA (via
teleconference), testified that the proposed cuts would be
devastating to the City of Cordova. He referenced a
presentation by the Alaska Municipal League that described
Cordova as in the top 20 hardest hit communities in Alaska
(in the budget). He thought the proposed cuts to education,
fisheries and the AMHS would total about $3.3 million. He
mentioned the Medicaid impact on local healthcare. He
noted that the city supported education and medical
services with $3.8 million in funding and supported all
local partners with $4.3 million in funding from an $11
million budget. He thought Cordova would be forced to
choose between funding core services. He discussed
Cordova's application for a Tier 1 harbor grant. He thought
deep budget cuts would result in many unforeseen negative
impacts.
5:48:07 PM
BILL WARREN, SELF, NIKISKI (via teleconference), was a 67-
year resident of the state. He thought that the state was
in a crisis and it was important to work together. He spoke
in support of an income tax. He supported a $500 head tax
on the PFD. He thought there should be a reserve tax on the
natural gas in Prudhoe Bay. He thought there was a need for
cuts and efficiencies. He supported additional revenue
measures and thought the state's fiscal problem could not
be solved solely with cuts.
5:50:50 PM
JULIE HERSEY, SELF, PETERSBURG (via teleconference),
testified against the proposed budget cuts, which she
thought would have devastating effects on rural communities
like Petersburg. She supported funding for public radio,
which she considered to be an essential emergency
communication tool. She supported funding the AMHS. She
discussed the importance of the AMHS. She supported
education funding and wanted to keep families in Alaska.
She discussed the impacts of funding cuts. She supported an
income tax. She was concerned about the effect of the
proposed budget cuts on rural communities' infrastructure.
She was concerned about cuts to healthcare. She was willing
to pay an income tax. She thought the legislature should
reevaluate the amount of tax that industry paid to do
business in Alaska. She thought taxes could ease the
burden.
5:52:55 PM
MIKE LITZOW, SELF, KODIAK (via teleconference), urged the
legislature to adequately fund education. He considered the
proposed cuts to education to be draconian, and to be a
failure of the current generation's obligation to educate
the next generation. He thought cuts to education would
create a disincentive for people to move to Kodiak. He
opposed cuts to the UA system. He discussed his attendance
at UA. He was concerned about the magnitude of the proposed
cuts to UA. He emphasized that it was important to offer
the next generation the opportunity to get a college
education in the state. He supported new taxes to support
state government.
5:55:16 PM
TERRI WALKER, NORTHWEST ARCTIC BOROUGH SCHOOL DISTRICT,
KOTZEBUE (via teleconference), supported adequate funding
for public education. She worked as the assistant
superintendent in the Northwest Arctic Borough, and had
worked for 30 years in education in the region. She did not
think education funding should have to compete with the
PFD. She appreciated past support for education. She
thought the governor's proposed cuts would have a
detrimental effect on students in the state. She discussed
the potential impact of the proposed cuts. She discussed
budget uncertainty and its effect on the ability to hire
rural teachers. She asked for adequate education funding.
5:59:03 PM
DEB TROWBRIDGE, COMMUNITY MEMBER/HEAD START DIRECTOR, NOME
(via teleconference), spoke in support of funding for early
childhood education and UA. She discussed the importance of
early childhood education programs. Her region provided
services to 240 children from age birth to five years of
age. She emphasized that Head Start was meeting the needs
of the neediest children. She discussed the importance of
the services provided to children, which provided stability
for families. She discussed her experience as a foster
parent. The program provided employment for 80 staff in her
region. She discussed the impact of budget cuts on
employees. She discussed jobs created by UA. She noted
that her staff used UA to gain necessary education for
employment. She lamented the possibility that Alaskan
children would be forced out of state for higher education.
6:01:36 PM
ALEISHA MOLLEN, SCHOOL BOARD PRESIDENT, WRANGELL PUBLIC
SCHOOL DISTRICT, WRANGELL (via teleconference), testified
in opposition to proposed cuts for education. She asserted
that her school district had stretched its funding and been
as creative as possible. She thought there was much
emphasis on protecting the future of Alaska. She thought
the PFD should not be a trade-off for public education
funding. She discussed the potential effect of cuts to
education and the effects on community. She asked for full
funding for education.
6:03:33 PM
MARYANN BISHOP, SELF, CORDOVA (via teleconference), spoke
in opposition to cuts to education, PCE, AMHS, school debt
reimbursement, and the rockfish tax. She was a 29-year
resident of Cordova. She discussed potential effects of the
proposed cuts. She thought the rapidly imposed cuts would
throw the state into a recession. She thought public
services were more important than a larger PFD. She
supported an income tax. She thought wise long-term
strategic planning that involved lower PFDs and an income
tax were the better course to pursue.
6:05:10 PM
KEN COLEMAN, SELF, KENAI (via teleconference), testified in
support of funding for communities. He spoke in opposition
to cuts to the snow track program, which was self-funded.
He stressed the importance of the program that included
grooming trails. He discussed the Caribou Hills Cabin
Hoppers group, which was a widely used self-funded program.
The work of the group benefitted the entire community. He
was concerned about the governor's proposed cuts to
education. He discussed his family's experience with
education. He supported funding for AMHS. He supported a
limit on the PFD.
6:08:13 PM
TOM ABBOTT, SELF, PETERSBURG (via teleconference), spoke in
support of funding for UA, AMHS, K-12 education, healthcare
services, and public broadcasting. He discussed the
importance of public broadcasting. He thought the proposed
cuts to public broadcasting was short-sighted. He supported
reduced PFDs in the short-term and supported an income tax
as well as reevaluation of oil and gas tax credits. He
supported full funding for early childhood education, K-12
education, and UA.
6:10:21 PM
SHAWN DOCHTERMANN, SELF, KODIAK (via teleconference),
testified in opposition to the governor's proposed budget
cuts. He was a 40-year resident fisherman. He was
disappointed in the governor's budget proposal. He
supported full funding for K-12 education, UA, public
radio, healthcare, and AMHS. He discussed $22 million in
federal matching funds for replacing the M/V Tustumena and
discussed the costs of maintenance of an old vessel. He
supported the rockfish tax going to communities. He thought
the state was not getting enough value for its oil. He
supported an income tax, and said the state could have his
PFD.
Co-Chair Foster recognized that Representative Louise
Stutes was in attendance.
6:13:06 PM
ELIZABETH SAAGULIK HENSLEY, SELF, testified in in
opposition to cuts to Medicaid. She was general counsel for
the Maniilaq Association, which was a tribal association of
12 tribes which provided health, social services to the
residents of Northwest Alaska. She asserted that as a
tribal health provider, Maniilaq saved the state money by
providing health services, as well as providing the only
behavioral health services in the region. She discussed
proposed cuts to behavioral health. She reminded that the
responsibility of the legislature was to protect the people
of Alaska. She thanked the committee for its service.
Co-Chair Foster noted that the testifier had worked for
former Representative Reggie Joule for two sessions.
6:16:01 PM
MELANIE BAHNKE, CEO, KAWERAK, INC., NOME (via
teleconference), testified in opposition to the governor's
proposed cuts to Head Start. She noted that Kawerak
operated state programs that benefitted many individuals.
Her organization provided services to over 200 children in
the region. She discussed potential loss of matching
federal funds. She was in opposition to the movement of PCE
funds. She considered that PCE funds needed protection. She
discussed the purpose of the PCE Fund. She had received her
bachelor's and master's degrees from UA. She supported
adequate funding for UA. She opposed proposed cuts to the
Village Public Safety Officer (VPSO) program. She discussed
the high rates of crime against women and children in
Western Alaska. She noted that the state had assumed the
authority for public safety and was a PL-280 state. As
such, communities in rural Alaska did not qualify for
federal Bureau of Indian Affairs public safety funding. She
hoped to have a chance to dialogue with the governor when
he visited Nome in the upcoming week.
6:19:12 PM
DR. ANNEMARIE O'BRIEN, SUPERINTENDENT, NORTHWEST ARCTIC
BOROUGH SCHOOL DISTRICT, KOTZEBUE (via teleconference),
strongly opposed cuts to education. She discussed her
background working in education. She discussed the
importance of education and the future of the state. She
recounted that the previous year the legislature had made
early education funding a priority. There had been a one-
time increase for FY 19 in the amount of $20 million. She
noted that the additional funds for FY 19 were already
accounted for. She thought the proposed cuts should not be
at the expense of education. She supported increased
revenues. She contended that cuts to education were more
significant in rural Alaska.
Co-Chair Foster handed the gavel to Co-Chair Wilson.
6:23:51 PM
LORETTA RICE, SELF, WRANGELL (via teleconference), spoke
against cuts to education. She thought the proposed cuts
would hurt the poor and the elderly. She mentioned previous
cuts to education and noted that in her district teachers
purchased classroom supplies and food for students. She
thought more cuts at the state level created more burden
for municipalities. She discussed the detrimental effect of
cutting vocational education and extracurricular
activities, and contended that there was a need more
skilled labor in our country. She thought art and music
kept student healthy. She discussed the importance of
education. She supported cutting oil tax credits.
6:25:29 PM
ABBY ARMSTRONG, SELF, WRANGELL (via teleconference), spoke
in opposition to proposed cuts to the AMHS. She was a
lifelong resident of Wrangell and a high school student.
She supported full funding for AMHS. She thought the ferry
was important for school sports.
6:26:19 PM
DAN REUM, SELF, CORDOVA (via teleconference), spoke against
proposed cuts to K-12 education. He had taught and worked
in schools for over 40 years. He thought the proposed cuts
would be devastating for all schools He suggested careful
consideration of any cuts to education, AMHS, and social
services. He discussed student suicide and advocated for
mental health funding. He discussed the importance of the
AMHS, which he considered a road for the area. He was
uncertain about an income tax. He thought there were many
smart people in Cordova and suggested that communities put
forward budget plans.
6:29:46 PM
FREDDIE POLLARD, SELF, KENAI (via teleconference), was a
snow machine lodge owner in Kenai. He thought the lodge
helped the community. He discussed the use of snow machine
registration fees. He spoke in opposition to cuts to the
snow track program, which was self-funded. He did not think
the funds should be in the general budget. He discussed the
creation of the program. He discussed the many users of the
groomed trails all over the state.
6:33:41 PM
HEATHER FOXWORTHY, SELF, KODIAK (via teleconference),
testified in support of funding for the Parents as Teachers
Program. She thanked the members of the House Subcommittee
on Department of Education and Early Development. She
thought larger investments in the short term could provide
a return later. She recounted a story to illustrate why
home visits were needed in the state, which highlighted the
value of parent educators.
6:36:18 PM
MARA LUTOMSKI, SELF, PETERSBURG (via teleconference),
testified in support of funding for education, AMHS, public
radio, and healthcare. She asserted that her school
district had a strict budget for years. She discussed the
value of education, and the opportunities it afforded. She
considered that the proposed cuts were degrading. She
rejected the governor's proposed budget. She stated that
every cut to education in a small district would affect
kids.
6:38:29 PM
BARB JEWELL, CHAIR, CORDOVA SCHOOL BOARD, CORDOVA (via
teleconference), testified in opposition to the proposed
budget cuts. She thought a budget was a moral document and
thought the governor's proposed budget would not grow the
state. She discussed the proposed cuts to education. She
discussed increased costs for shipping and transport of
goods. She contended that rural Alaska was
disproportionately affected by the proposed cuts. She
listed cuts to school debt bond reimbursement,
infrastructure, fish taxes, PCE, and Medicaid. She thought
the state needed a budget that invested in Alaskans and not
corporations. She thought AMHS was the backbone of the
Alaskan economy. She thought the state needed a diversified
revenue stream.
6:40:44 PM
JIM HUNT, CITY MANAGER, WHITTIER (via teleconference), was
looking for a voice of reason in relation to the Port of
Anchorage. He thought it was important for city managers to
make contingency plans. He was concerned about known and
unknown threats. He was concerned that the Port of
Anchorage had no backup plan. In the event of a catastrophe
in Anchorage, he thought people would suffer intensely. He
supported an independent feasibility study.
6:43:01 PM
KELLY O'CONNOR DEMKO, SELF, PETERSBURG (via
teleconference), testified in opposition to HB 39. She was
a teacher that had lived in Petersburg for almost 30 years.
She discussed past budget cuts. She thought the proposed
cuts would cripple the community and cause people to leave
the state. She supported a smaller PFD and an income tax.
She supported greater taxes on oil companies. She supported
funding public schools, public radio, mental health
services, and AMHS. She did not think an enlarged PFD would
make up for the services people would lose through cuts.
She found it personally degrading that the governor had not
scheduled a meeting in Southeast Alaska.
6:45:17 PM
PENELOPE OSWALT, SELF, CORDOVA (via teleconference), spoke
against the proposed budget reductions. She was a 42-year
resident of Cordova. She thought the governor's proposed
budget showed no fiscal problem-solving. She thought the
proposal effectively gutted services to provide a higher
PFD. She supported pre-schools and UA. She did not support
taking rockfish taxes, oil property taxes and PCE funds
from communities. She discussed the importance of funding
for federal matching funds. She supported the AMHS. She
supported funding for the Sheldon Jackson Museum. She
thought the proposed cuts would cause a mass exodus. She
urged the committee to roll back oil and gas tax credits as
passed by SB 21 and charge the same as other states. She
supported a reinstitution of an education tax and an income
tax. She supported a reduction to the PFD. She urged
legislators to work in a bi-partisan manner.
6:47:38 PM
LITZI BOTELLO, SELF, PRINCE OF WALES (via teleconference),
supported funding for public radio, the AMHS, and
education. She had lived in Port Protection for 38 years.
She discussed the fish tax. She thought the governor's
proposed cuts were unfathomable. She discussed the
importance of public radio for those in rural areas. She
considered that public radio was a lifeline. She discussed
the importance of the AMHS. She thanked the committee for
the opportunity to testify.
6:50:56 PM
BRIDGET WITTSTOCK, SELF, PETERSBURG (via teleconference),
testified in opposition to the proposed budget cuts. She
was a third-generation Alaskan. She had worked as a
teacher and taught special education. She thought the state
had children at the heart of decisions until the governor
unveiled his proposed budget. She thought the proposed cuts
were draconian and would have deleterious effects on
communities' economies, the school system, UA, AMHS,
services for early intervention, and our children's
futures. She did not think the proposed budget was
reasonable, equitable, or well-thought out. She mentioned
the state's constitutional obligation to provide education.
She encouraged full funding of public education. She would
gladly give up her PFD to fund essential services. She
supported funding for education, public radio, the medical
system, mental health, and AMHS.
Co-Chair Wilson asked members to pay attention to the
testimony.
6:53:26 PM
DAVE OTNESS, SELF, CORDOVA (via teleconference), thought
the state needed to consider the macro view of its issues.
He referenced SB 21 [oil and gas tax legislation passed in
2013], and the enhanced oil and gas production that was
promised. He thought that the state was used as pawns in an
international intrigue for the sanctions on Russia and
Venezuela imposed by the State Department in 2014. He
thought oil companies knew about the matter in advance,
while the state did not. He thought the United States and
Saudi Arabia had conspired to increase oil production in
order to drive down the price. He mentioned Wall Street
banks, which he thought were in control of oil companies.
He mentioned former Governor Sean Parnell and SB 110,
proposed in 2013 as the genesis to SB 21. He thought that
the oil companies were getting revenge for Alaska's Clear
and Equitable Share (ACES). He did not want high dividends
at the expense of the state. He suggested deferred PFD
payments. He thought the governor was using large dividends
as a carrot on a stick. He thought SB 21 should be
overturned.
6:57:36 PM
DAN SULLIVAN, SELF, PETERSBURG (via teleconference), spoke
in opposition to the governor's budget. He had lived in
Petersburg for 39 years. He referenced earlier testimony in
opposition to budget cuts. He thought the proposed budget
would inflict damage on his community and on the state. He
did not think further cuts were possible. He was willing to
take a reduced PFD. He was willing to pay a tax to ensure a
continuation of funding important services for education,
AMHS, public radio, critical social services, and
regulatory agencies.
6:58:51 PM
WANDA WAHL, SELF, DILLINGHAM (via teleconference),
testified in opposition to large dividends to pay back past
dividends. She asserted that she was very willing to pay an
income tax. She believed that those coming to the state to
work should also bear the responsibility to help pay for
infrastructure. She had reservations about a statewide
sales tax, which she thought would disproportionately
impact rural areas.
7:00:26 PM
SUSAN HARDING, PRINCE WILLIAM SOUND COMMUNITY COLLEGE,
CORDOVA (via teleconference), testified in support of the
Prince William Sound Community College. She discussed the
benefits of dual enrollment in high school and college. She
referenced research that showed out-of-state collage
attendance deterred Alaskans from returning home. She
stressed that the program was vital to her community and to
the state.
Co-Chair Wilson handed the gavel back to Co-Chair Foster.
7:01:52 PM
JEFF GUARD, SELF, CORDOVA (via teleconference), opposed the
governor's proposed budget. He offered an anecdote from
Kansas, when that state had found itself in a similar
fiscal situation. The state had dropped many state
employees, cancelled road projects, issued $2 billion in
bonds to pay for new debt, and had been downgraded in their
credit score. He cited an article by Senator Sykes of
Kansas, from 2017. He urged the legislature to protect the
people of Alaska from the governor's budget.
7:04:33 PM
CRAIG EVENS, SELF, PETERSBURG (via teleconference),
testified in opposition to the budget cuts in the
governor's proposed budget. He encouraged reinstatement of
funding for AMHS. He spoke against cuts to public
education. He said that his family stayed in the state for
its good schools. He believed that defunding public
education would result in people leaving Alaska, resulting
in an economic drain to the state. He supported an income
tax and opposed repayment of prior dividends. He thought
the state was having a management crisis rather than a
fiscal crisis. He hoped that the state's resources could be
managed for prosperity, rather than austerity.
7:06:19 PM
VIRGINIA EVENS, SELF, PETERSBURG (via teleconference),
spoke against budget cuts as proposed in the governor's
budget. She asserted that education funding should not be
in competition with the permanent fund dividend. She said
that the funding cuts to education would result in the loss
of programs, increased class sizes, elimination of
activities, the reduction of staff, and the loss of career
technical education programs. She thought the district
would be adversely impacted by cuts to AMHS as it was their
made mode of transportation out of town. She supported
fully funding education and public broadcasting. She
supported an income tax.
7:07:48 PM
BARB MARIFERN, SELF, PETERSBURG (via teleconference),
testified in support of funding for education, AMHS,
healthcare services, mental health services, and public
radio. She urged the committee to fund education. She was
in support of reducing the PFD. She supported an income
tax. She opposed the repayment of past dividends.
7:10:16 PM
ALLISON RICE, SELF, PETERSBURG (via teleconference), spoke
in support of the Alaska Sea Grant Marine Advisory Program,
which was a program in the College of Fisheries and Ocean
Science through the University of Alaska. She shared that
the program often had one person offices in Nome,
Dillingham, Unalaska, Kodiak, Anchorage, Cordova, Juneau,
and Ketchikan. She explained that the program was a unique
partnership between the federal Sea Grant Program and the
university. She remined the committee that the budget
decisions they made would impact the program, which
supported commercial and recreational fisheries, as well as
the maricultural industry, and marine education for costal
communities. She stressed the importance of public radio in
the state. She urged the committee to reinstate funding for
public radio. She believed that an income tax should be
considered before cuts to the university and public radio.
7:12:10 PM
SARAH HOLMGRAIN, SELF, PETERSBURG (via teleconference),
testified in opposition to the governor's proposed budget.
She urged the committee to work together to come to an
agreement to fund education and other essential services.
She admitted that she had enjoyed the permanent fund but
would be willing to give it up in exchange for an
adequately funded education budget. She disagreed with
comments by the Office of Management and Budget Director
that the state was not getting a good return for money
invested in education. She asserted that her town had
worked to improve student success. She reiterated her hope
that lawmakers would work together, across party lines, to
secure the future of Alaska.
7:14:31 PM
MARLENA MARVIN, SELF, PETERSBURG (via teleconference),
spoke in opposition to budget cuts as proposed in the
governor's budget. She associated herself with the remarks
of previous testifiers. She stated that she was a small
business owner and a cancer survivor. She highlighted the
value of a strong and robust healthcare system in rural
areas of the state, offering a story of her experience with
weekly chemotherapy infusions she received in her small
town. She applauded her like-minded fellow Alaskans who had
called in to defend their way and quality of life. She
thought the governor was stuck in ideology and not
functioning in reality. She expressed concern that out-of-
state billionaires were driving the budget process in the
state and warned that the legislature should listen to the
people of Alaska, and not to out-of-state interests.
7:16:35 PM
MARLENE CUSHING, SELF, PETERSBURG (via teleconference),
recalled moving to Alaska via the AMHS in 1976 to begin her
career as a public health nurse. She emphasized that the
governor's proposed budget would put her community in a
death spiral. She stressed that healthcare could not
survive a 38 percent cut to Medicaid. She underscored that
schools would be devastated by the proposed cuts. She
stressed the borough's need for fish tax revenue to
maintain harbors and other vital services. She implored the
committee to keep the PFDs at the previous year's level.
She asked for the implementation of an income tax and
requested an end to the giveaway to oil companies. She
stressed the importance of public radio, airports, the
University, AMHS, and other.
7:17:57 PM
MICHELLE HAHN, SELF, CORDOVA (via teleconference), viewed
the governor's proposed budget as an assault on the well-
being of Alaska. She stressed that the budget was harmful
to seniors, sick individuals, education, the University,
and the overall health and safety of all Alaskans. She
believed it would plunge the state into a recession. She
stated the ramifications would be devastating on
communities and businesses, especially those serviced by
AMHS and that received revenue sharing from fisheries
taxes. The budget would also harm communities receiving PCE
funds and those that rely on Village Public Safety Officers
and the public radio for emergency notices. She asked the
committee to restore funding levels to FY 19. Any
additional cuts would be short-sighted and unnecessary. She
believed the budget shortfall had been politically created
and promised free money with no consequences. She asked the
committee to reinstate a state income tax and continue with
a short-term reduction of the PFD. She supported looking at
reducing oil tax credits. She was strongly opposed to the
budget.
7:20:36 PM
MELINA MEYER, SELF, CORDOVA (via teleconference), was a
lifelong Cordova resident and served on the city council.
She did not support the proposed budget. She stated the
budget asked residents to take a hit, while at the same
time it gave tax credits to the oil companies. She
supported reinstating a state income tax. She stressed the
state had a revenue problem, not a budget problem. She
stressed the budget had too many cuts to list; it was
short-sighted and not in Alaska's best interest. She asked
the committee to invest in its communities.
7:21:41 PM
PETE HOEPHFNER, SELF, CORDOVA (via teleconference), shared
that he was a local school board member. He detailed that
the legislature needed to develop a responsible budget as
the governor's budget was irresponsible. He believed
eliminating the school bond debt reimbursement program,
taking cities' raw fish tax, and eliminating PCE would be
breaking a promise and would destroy cities. He asked for a
rejection of the governor's budget and an increase in
revenues by eliminating oil company subsidies. He supported
the University, AMHS, Medicaid, public education, a flat
income tax, and a limited PFD.
7:23:12 PM
KATE LAIRD, SELF, CORDOVA (via teleconference), spoke in
opposition to the governor's proposed budget. She spoke to
the importance of fully funding Medicaid and health
services. She reported that 20 percent of Alaskans and
nearly half the state's children used Medicaid. She was not
on Medicaid but pointed out that those not on Medicaid also
benefitted from the program. She detailed that the proposed
cuts would increase hospitals' unreimbursed care, which
would be passed on in cost to individuals with insurance.
She noted that Alaska Legislative Research Services
estimated the cuts would lead to a 3 to 17 percent increase
in health insurance premiums. She discussed high health
insurance premiums. High health costs were a key driver in
school system costs. She stressed that too much
unreimbursed care would result in the closure of hospitals.
The hospital in Cordova would be at risk. She stated that
the changes meant that youths and seniors would have to
move from Alaska. She underscored that no hospital in
Cordova would mean no Coast Guard, which was vital to the
town's economy and safety. She spoke to the opioid crisis
and the importance of healthcare. She spoke in support of a
modest income tax and reduction to the PFD.
7:26:00 PM
KRISTIN CARPENTER, SELF, CORDOVA (via teleconference),
urged the committee to consider new income sources. She
stressed it was not possible to cut the state's way out of
the budget problems. She discussed that the governor's
proposed cuts would lead to job loss, especially in
healthcare, which was the fastest growing sector of the
Alaska economy. She believed that without people earning a
livelihood in Cordova, money would not go into the
community's economy. She spoke about her work with the
Copper River watershed project. She discussed that cuts to
income taxes under former President Ronald Regan had failed
to stimulate the economy enough to account for the loss of
income. She urged the committee not to accept the proposed
cuts. She echoed comments by all of the previous
testifiers.
7:27:46 PM
ALAN BACKFORD, SELF, DILLINGHAM (via teleconference),
supported the governor's proposed budget. He believed it
was necessary to cut government spending to the bone. He
did not support an income tax. He wanted a full dividend
and the payment of money that had been taken from the
dividend in the past. He did not trust some people in
Juneau. He thought money was spent on unnecessary programs.
He had worked and been responsible all of his life. He did
not support handouts.
7:31:19 PM
HERMAN MORGAN, SELF, ANIAK (via teleconference), spoke to
the high balance in the Permanent Fund but the state still
had budget problems. He supported a full PFD. Many people
in rural Alaska depended on the PFD. He spoke about high
costs for school in Alaska, but the schools had low
performance. He spoke in support of cuts to government. He
thought universal healthcare was irresponsible. He
supported lower healthcare costs.
7:35:06 PM
MURIEL BROWER, SELF, BARROW (via teleconference), spoke in
support of the University. She provided detail about her
personal life. She was in strong support of the UAS
master's in public administration program that she was in
the middle of. She discussed the merits of the distance
delivery program. She stressed cuts were far reaching and
created barriers for low income students. She believed
investing in education built a strong economic force in the
state. She believed the state needed to strengthen its
Tribal Health Relations Department. She spoke to negative
health outcomes in the state. She implored the legislature
to work with the tribal system.
7:37:37 PM
DEBBIE MELTON, SELF, PALMER (via teleconference), testified
in opposition to the cuts proposed by the governor to
education and other state services. She shared that she was
a retired teacher from Mat-Su. She believed schools would
be very negatively impacted by the proposed cuts. She was
opposed to cuts to services for individuals receiving
housing assistance and Medicaid. She was willing to have a
cut to the PFD and to pay income tax. She supported new
revenue sources. She did not want a recession and job loss.
Co-Chair Foster provided the number of individuals online
and present to testify.
7:39:37 PM
MICHELE STEVENS, SELF, PETERSVILLE (via teleconference),
asked for the reinstatement of the snow track program into
the operating budget. She emphasized that the program was
not asking for money - it was self-sustaining and funded by
a snow mobile registration fee collected by the Division of
Motor Vehicles (DMV). She detailed that 12 percent of the
funds covered the cost of a state employee administering
the program and administrative cost. She stressed that a
groomed trail system was critical for first responders to
reach victims in the backcountry. The program could benefit
all user groups in Alaska. She cited a study showing the
economic benefit of the program. She stressed that if the
program was not reinstated it would devastate all
businesses, clubs, and outdoor activities in Alaska. She
referenced a resolution passed by clubs, lodges,
businesses, snow machine dealers, dog mushers, and other in
Mat-Su. She was not in support of receiving backpay PFDs.
Co-Chair Foster recognized Representative Andi Story in the
audience.
7:42:18 PM
GEORGE PIERCE, SELF, KASILOF (via teleconference), spoke
against subsidies to corporations. He supported increased
taxes for oil, mining, and state resources. He stated that
three-quarters of the PFD money had been put into an
account and the legislature was not offering the money. He
supported new revenue and was against taking funds from
municipalities. He thought the state needed a millionaire's
tax. He wanted a reduction in spending and thought the
state should stop funding nonprofits. He thought the cuts
were too much at one time. He wanted his PFD. He stressed
that the legislature's job was to weed out the bad budget.
He did not think throwing all of the money at education was
working.
7:44:31 PM
LANI WIDELL, SELF, FAIRBANKS (via teleconference),
suggested privatizing some state services, paying a sales
tax, taxing oil companies appropriately, and implementing a
state lottery. She supported the governor and his proposed
legislation including SB 24, SB 23, and SB 92. She wanted
Alaskans to have a choice to keep or donate their PFDs. She
supported receiving a full PFD.
7:45:38 PM
PAUL LOENTZ, SELF, HAINES (via teleconference), represented
the inland boatman's union. He supported the AMHS and
relayed that stopping service to any community would cause
irrevocable damage. He stated there were communities that
could only be accessed by ferry during poor weather
conditions. He noted that schools used the ferries for
school trips. He referenced over 200 people traveling to
the recent Gold Medal basketball tournament in Juneau. He
urged the committee to keep the ferry system and University
funded.
7:47:33 PM
SUE STEINACHER, SELF, NOME (via teleconference), believed
it was time for Alaskans to pay for the services received.
She supported a progressive income tax and a reduction to
the PFD. The proposal was modeled on how congressional
fairness across the country. She did not support a sales
tax, which she believed would drive families into poverty
and would be hardest on low income families. She hoped the
committee would consider the proposal, which she believed
was fair.
7:49:32 PM
SOLOMON HIMELBLOOM, HIGH SCHOOL STUDENT, KODIAK (via
teleconference), testified in support of the University of
Alaska. He spoke about the importance of satellite campuses
in Kodiak, which played an integral part of teaching the
next generation of Alaskans. He supported K-12 education
and the AMHS. He thanked the committee for the opportunity
to testify.
7:50:23 PM
LINDA HIMELBLOOM, SELF, KODIAK (via teleconference), spoke
in support of maintaining the University system, which was
vital for education in smaller communities along with
critical services like AMHS and public radio. She stressed
that outlying communities were tied to the University -
local campuses provided a link to larger locations. She
supported AMHS and public radio.
7:51:16 PM
SCOTT DOWNING, SELF, STERLING (via teleconference), asked
the committee to reject the governor's budget. He supported
the University of Alaska request and the budget
subcommittee's recommendation to add $10 million. He stated
it was the wrong time to be cutting education. He stressed
the importance of the University. He stressed that Alaska
was the only state in the country not paying its way. He
referenced income and sales tax in other states. He stated
that the PFD continued to increase. He stressed that the
state did not lack money but lacked imagination. He thought
investment in oil tax credits was shortsighted. He spoke
about Alaska being on the forefront of climate change and
the importance of investing in the future in renewable
energy sources.
7:53:59 PM
SHARON BROWER, SELF, NIKISKI (via teleconference), would
like to see greater imagination with the state's finances.
She supported a state income tax. She thought it would give
more input from local communities in terms of elections.
She objected to 15 to 35 percent voter turnout. She
supported education and mental health care. She thought
without those things the state would only build more
prisons.
7:55:33 PM
ELIZABETH RIPLEY, CEO, MAT-SU HEALTH FOUNDATION, MAT-SU
(via teleconference), provided details about the
organization. The organization supported the preservation
for Medicaid, early childhood education, and housing and
homeless programs. She stressed that Medicaid was vital to
keeping Alaskans healthy and working. She provided detail
on the vast majority of Medicaid recipients who were
children, older adults, and people with disabilities. She
emphasized that Medicaid reform was working, and spending
had remained almost flat since 2012. She stressed the
increases had been covered almost entirely by federal
funds; Alaska was currently covering 79,000 more enrollees
using 11 percent fewer state dollars than it had four years
earlier. Cutting $249 million meant the loss of $465
million in federal funding. She supported preserving funds
for early childhood education. She addressed reductions in
jobs and loss in services if the cuts went through. She
stressed the importance of housing and homeless programs.
She stressed the cuts would hurt some of Alaska's most
vulnerable people.
7:58:45 PM
JANE ERICKSON, PRESIDENT, ALASKA NURSES ASSOCIATION, MAT-SU
(via teleconference), was very concerned about the proposed
cuts to Medicaid. She stressed the cuts would be damaging
to hospitals, patients, and services throughout the state.
She opposed a cut to the public health nursing program. She
opposed cuts to the University that would result in the
closure of programs and loss in jobs. She was opposed to
cuts to education. She was opposed to the $18 million cut
to the Pioneer Home and the massive cuts to AMHS. She was
not against some type of tax. She mentioned the $65 billion
Permanent Fund reserve. She underscored that massive cuts
would only hurt all Alaskans.
^PUBLIC TESTIMONY: MAT-SU, KENAI, JUNEAU, BETHEL, OFF NET
8:01:31 PM
BILL LEIGHTY, SELF, JUNEAU, thanked the committee for
holding the hearings. He referenced the Civil War and an
address to Congress by then President Lincoln. He shared a
quote from President Lincoln. He believed the budget was a
figment of those enthralled by dogmas of the past. He
suggested ignoring the governor's proposed budget and
starting anew. He suggested increasing oil and gas taxes,
conserving cash including a small PFD, implementing a
progressive income tax. He recalled hearing the late
Senator Ted Stevens say that Alaska had become an
entitlement state and he was partly to blame. He spoke in
strong support of education from pre-K through 12th grade.
He asked the legislature to prevent damage from natural
resource extraction (e.g. Pebble Mine). He asked the
legislature to govern the state as a commonwealth.
8:04:47 PM
SYLVIA KIDD, SELF, JUNEAU, was strongly opposed to the
governor's budget. She was deeply concerned about the
effect the governor's proposed budget would have on the
economic and social well-being of the state. She testified
in support of education. She stated that students forced to
leave the state for college would only increase their debt.
She highlighted her support for public radio. She spoke
against cuts to Medicaid and AMHS. She pointed out that
state ownership in natural resources in which the state
shared the profit with citizens was a component of
socialism know as a guaranteed basic income. She supported
the PFD but did not believe the state could afford a raise
in the program. She did not believe it was sustainable. She
stressed it was not possible to guarantee the money would
remain in Alaska. She supported income tax.
8:07:03 PM
BOB PIORKOWSKI, SELF, JUNEAU, addressed historical views of
the economy in Alaska. He shared that Alaska was special
because of a connection to and protection of the land. He
believed the state was better off at present because of
government not in spite of it. He was opposed to the
governor's proposed cuts. He was a fiscal conservative. He
suggested cutting the governor's budget by 50 percent. He
opposed cuts to the ferry system until all major roadways
in Alaska were toll roads. He was supportive of a PFD if
the fiscal house was in good shape. He stressed there was
no free lunch, which he believed was what was being pushed.
8:09:17 PM
ALEX WERTHEIMER, SELF, JUNEAU, spoke against the governor's
proposed cuts. He believed the proposed budget was a
disaster in the making and represented an attack on public
education, the university system, AMHS, and healthcare
infrastructure. He stressed the budget would send Alaska
into economic decline. The budget would transfer the burden
of supporting essential services to local governments,
while devastating the economic base of local governments.
He implored the committee to work with its colleagues to
develop a sustainable budget that would pay for essential
services. He noted that the Permanent Fund had not
originally been established to provide dividends to
individuals, but to be a rainy day source of funds for
essential services when oil revenue declined. He supported
the use of a portion of the earnings for a sustainable
budget. He supported discontinuing subsidies to oil
companies and was in favor of a simple progressive income
tax.
8:10:57 PM
DARREN SNYDER, SELF, JUNEAU, spoke in support of the
University. He provided detail about his life in Juneau. He
did not support the governor's proposed budget. He thought
the proposed cuts would leave no option but to increase
student/teacher ratios from already untenable levels,
further dropping vital support staff positions including
nurses, therapists, librarians, and special education
aides. He stressed the importance of increasing education
funding. He was a UAS graduate and had taught in Southeast
for over 20 years. He was a UAF cooperative extension agent
and taught people to become more self-reliant and food
secure for communities to prepare for disasters. He trained
master gardeners to teach and serve others. He taught kids
STEM topics including growing their own healthy food. His
was able to provide the teaching service to communities due
to state and federal USDA funding. He supported public
radio and AMHS. All of the services were vital. He thought
the shortfalls needed to be addressed by an income tax and
reduced subsidies to oil companies.
8:13:49 PM
BETH WELDON, MAYOR, JUNEAU, thanked the committee members
for their work. She recognized there were difficult
decisions and impacts ahead and observed that using savings
to solve the state's deficit was no longer the wisest
solution. She implored the committee not to push too many
solutions onto the shoulders of local governments. She
believed House subcommittees had done a good job of
balancing the items. She asked the committee to protect
school funding and to honor its commitment to school bond
debt reimbursement. She requested continued operation of
AMHS and more time to keep reforming the system. She asked
the committee to consider what drastic cuts to Medicaid
would do to the local hospital. Crime had increased and
there was need for an additional state prosecutor in Juneau
to process misdemeanors. She asked the committee to
preserve the additional position added in subcommittee. The
University was an important part of civic culture and was a
necessary institution to provide education opportunities
for Alaskans without forcing them to go out of state. She
stated that CBJ was a partner to UA in an effort to reach
the University's goal of reducing the need to constantly
hire teachers from out-of-state. She spoke to the need the
community had for fish taxes. She noted that Juneau did not
have petroleum property taxes, but its two largest property
taxpayers were mines and she was concerned about the
precedent of removing property taxes from local
governments. She personally supported a reduction to the
PFD to help fund the deficit.
8:16:23 PM
BREANNA WALKER, SELF, JUNEAU, thanked the committee for its
time. She echoed many concerns others had shared related to
budget cuts, especially related to AMHS, education, and
Medicaid. She shared that she was an avid user of AMHS, and
cuts would make it difficult to travel in Southeast. She
was currently a University student and was the former UAS
student body president. She shared information about her
education experience. She had transferred from outside
Alaska and had realized the high quality of life Alaska
offered. She stressed the importance of public education.
She encouraged the committee to consider fully funding the
University. She supported other revenue including a
progressive income tax. She asked the committee to consider
reductions to oil tax credits.
8:19:12 PM
CINDY BOESSER, SELF, JUNEAU, affiliated herself with fellow
Alaskans who could not be present. She read a passage from
the book Diapering the Devil by former Governor Jay
Hammond:
If dividends are a "cancer," that cancerby contrast
to tax repeal is but a penny-sized skin
lesion...Though PFDs may have caused that skin lesion,
tax repeal proved far more carcinogenic by
conditioning us to believe we are entitled to those
huge, free, inequitably distributed service
"dividends." Had we, instead, suspended the income tax
pending its need, spending would have been greatly
curtailed and there would likely be no fiscal gap.
After all, the best therapy for containing malignant
government growth is a diet forcing politicians to
spend no more than that for which they are willing to
tax. In that regard, I once suggested that, depending
on location of brain, every politician have branded on
either their brow or their buttocks the pledge: "I
will not spend more than that for which I am willing
to tax."
Ms. Boesser shared that she had spent substantial time with
Governor Hammond on a peace trip to the former Soviet
Union. She shared that they had spoken about taxes and the
PFD. She reported that he had been upset at himself for
allowing [income] tax to be discontinued. She advocated for
the reinstatement of a progressive income tax, modest PFDs,
and the repeal of SB 21.
8:21:35 PM
JOHN SONIN, SELF, DOUGLAS (via teleconference), did not
support the governor's proposed budget. He believed the
governor's budget pitted people against each other. He
supported healthcare and education. He asked the committee
to think about the future generations and maintain the
foundation of the state's economy. He supported an income
tax or another revenue source.
8:25:38 PM
VIKKI JO KENNEDY, SELF, JUNEAU (via teleconference),
thought it was necessary to clean up the past out of
control spending. She thought the cuts should start with
legislative per diem. She encouraged the legislature to
listen to the people. She believed there was abuse of
Medicaid by S corporations.
8:28:09 PM
ZACK RUSSELL, SELF, DENALI (via teleconference), spoke in
opposition to cuts to the snow track program, which was
self-funded. He stressed the importance of the program that
included grooming trails, trail maintenance in the summer
months, and expanding trail systems. He supported HB 23 and
the increase in the snow machine registration fee from $5
to $10 per year. He shared that the fees went into the snow
track account - funds were distributed by an advisory
board.
8:29:51 PM
THOMAS WILLIAMS, SELF, PETERS CREEK (via teleconference),
asked whether the government or private sector was the
foundation of an economy. He stated the people made the
economy, not the government. He supported a repeal of SB 91
[criminal justice system reform legislation passed in
2016]. He stressed the increase in crime. He was in support
of the governor's budget, which he did not believe went far
enough. He spoke in support of privatization and against
bloated infrastructure. He did not believe education was
the bedrock of the economy. He believed taking the PFD from
people was the wrong move and should be decided by a vote
of the people. He thought government was out of control. He
recommended looking at the way New Zealand had privatized
most of its services and had thrived.
8:32:49 PM
SAM TRIVETTE, SELF, JUNEAU, provided information about his
life and time in Alaska. He was vehemently opposed to most
of the governor's proposed cuts. He stated that economists
and staff at Institute of Social and Economic Research
(ISER) predicted that the cuts would cause a major
recession in Alaska. He recalled a recession in the 1980s
that had been devastating to many in Alaska. He thought
cuts to pre-K would lead to less effective education. He
was opposed to cuts to the University system. He was
against cuts to Medicaid and senior programs. Seniors in
Alaska spent over $2 billion annually in the state's
economy and were raising grandchildren and contributed
hundreds of thousands of hours of volunteer work. He
opposed cuts to AMHS. He thought the state had a spending
problem, not a revenue problem. He supported an income tax,
lower PFD, and more from the state's natural resources.
8:36:13 PM
GAYLE TRIVETTE, SELF, JUNEAU, spoke in opposition to the
proposed budget. She supported a budget that maintained
education and the state transportation system. She
supported AMHS and education. She was dismayed when she
heard the infrastructure and services residents all shared
demonized as big government. She recalled her parents and
grandparents speaking about the importance of voting for
statehood to gain control of the state's natural resources.
She thought there had been a better sense of community
prior to striking it rich. Residents had expected to pay
taxes and did not expect to be paid to live in Alaska. She
thought the state had a leadership and attitude crisis, not
a fiscal crisis.
8:37:49 PM
MARGARET VROLYK, SELF, EAGLE RIVER, was in support of
financing a healthy state education system, not the
governor's crippled version. She expected the Legislative
Affairs Agency could be downsized without reducing
significant services. She shared a story about her past in
Juneau when the government had discussed creating a state
savings account generated from oil revenues that would
otherwise be squandered. She remembered that part of the
discussion had been that the savings account would
safeguard the financing of education. She recalled the man
who had done the most talking had been Jay Hammond. She did
not believe Jay Hammond would have been in support of cuts
to education to pay for the distribution of PFDs. She
reported that she had worked for the Legislative Affairs
Agency in the past. She discussed her experience working
there and believed there were too many employees in the
agency. She expected that reorganizing the agency could
save money without decreasing significant services.
8:41:09 PM
RICH SIMPSON, SELF, JUNEAU, shared that he worked as a UAS
professor with a focus on the environment. He discussed
that the state prided itself on its relationship to the
land and resources. He supported the AMHS. He spoke in
complete opposition to the governor's proposed budget. He
discussed his reasoning for wanting to work in Alaska - the
state prided itself on working in unity with the land. //
the identity had been forged by the state itself. He
mentioned the state's land grant program, leading research
in the Arctic, and reviving Alaska Native languages. He
discussed that the Alaskan state had uniquely created the
PFD, which was an incredibly democratic policy when
initiated (there had been a state income tax at the time).
He referenced the governor's proposal and explained there
was a challenge to the Alaskan identity - the PFD was
imagined not as an additional way to support the Alaskan
state, but rather as the means to sacrifice basic public
services that made Alaska's identity. The proposal used the
PFD against the idea of the Alaskan state. He supported an
income tax with a state focused on a strong education
system, AMHS, elderly needing healthcare, Medicaid,
homeless who need shelter, education infrastructure, and
municipal services.
8:44:52 PM
DENISE DANIELLO, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
AGING, JUNEAU, she disclosed that her views represented the
commission and not necessarily the views of the Department
of Health and Social Services. She supported the governor's
proposed funding for the grant funded services for seniors
administered by Senior and Disability Services including
adult day programs, meals, transportation, family caregiver
support and other. The commission also supported the
recommendation of the budget subcommittee regarding an
appropriation of $25 million to the Payment Assistance
Program for the Division of Pioneer Homes. The commission
was concerned by proposed reductions to Medicaid, the
Medicaid Adult Dental Program, and senior benefits. She
provided detail about the senior benefits program that had
just been reauthorized by the legislature the past year.
The program provided a critical safety net for Alaskans age
65 and older with limited incomes. She listed the benefits
of the program. The commission was concerned the loss of
funding would put some seniors on edge. She reported the
commission would provide written recommendations the
following day.
Co-Chair Foster pointed out that the senior benefits
program was a needs-based income eligible program.
Ms. Daniello agreed.
8:48:08 PM
TOM THORTON, SELF, JUNEAU, shared information about his
career. He was in strong opposition to the governor's
proposed budget, which he believed would be a disaster for
Alaska. He supported a progressive income tax, a reduced
PFD, and a reduction in corporate welfare. He asked the
committee to consider sustainable development. He expounded
that sustainable development was one of the most important
global goals about which there was consensus. There was not
consensus about how to get there, but there were 17 goals
of sustainable development that had been adopted by all
United Nations countries. He referenced a 2018 sustainable
development report for the U.S. in which Alaska ranked 43
out of 50 states. He stressed that if it was not for the
state's federal lands, it would rank down at the bottom
with Louisiana for the same reasons. He expounded that
Louisiana was also an oil state that was full of crony
capitalism and it disinvested in critical services needed
to reach sustainable development. He detailed that
sustainable development goals were about good health, clean
energy, reductions in inequality and poverty, environmental
sustainability, and other. He stressed that a shock therapy
budget would hinder sustainable development. He stressed in
the importance of investing in the state's government.
8:51:28 PM
Vice-Chair Ortiz asked where the committee could get access
to the report.
Mr. Thorton replied that he would provide a copy. He
believed it was available online from Columbia University.
8:51:50 PM
JAYNE ANDREEN, SELF, JUNEAU, opposed the governor's budget,
but was hopeful it would result in a productive
conversation about how to balance reductions with a
sensible revenue package. She stressed that there had been
continuous cuts in recent years - it was only possible to
cut so far. She provided an example of cuts that had
directly impacted the health and well-being of Alaskans at
present. She detailed that over the past four years public
health nursing had experienced $5.8 million in cuts. She
stressed that public health nursing was the backbone of the
state's public health system combined with tribal health.
The cuts had resulted in the closure of 27 percent of the
community-based public health centers around the state. She
furthered that 21 percent of the staff had been eliminated.
Additionally, the cuts resulted in the elimination of all
well-child exams for children over the age of 6 and all
services for anyone over the age of 29. She stressed that
in many communities the public health nurse was the person
that residents went to for help, which was no longer
possible for many people. She spoke to negative health
outcomes resulting from the cuts. She spoke to a rise in
unintended pregnancies in women age 30 and older. She
detailed that a low income woman on Medicaid who has a
pregnancy would cost the state $40,000 from prenatal to the
child's age of 5. She provided further examples about
negative outcomes including decreased immunizations,
increases in influenza, gonorrhea and syphilis cases. She
supported a modified PFD, a progressive income tax, and a
repeal of SB 21.
Representative Josephson asked about the statistics related
to the reduced immunization. Ms. Andreen complied.
8:55:33 PM
CECILIA MILLER, SELF, JUNEAU, shared a story about her
mother moving to Alaska to teach in Anchorage. Her mother
had raised a family of three educators. She stressed deep
concern about proposed rate increases to the Pioneer Home.
She underscored that the state had made a promise to its
pioneers by creating the Pioneer Home. She was happy
individuals would not get kicked out of the homes and go to
using Medicaid, but people would get there much faster at
the proposed rates. She was concerned that changes to the
rates would mean the Pioneer Homes would only be available
to residents who could afford it.
HB 39 was HEARD and HELD in committee for further
consideration.
HB 40 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster addressed the schedule for the following
day. The committee would continue to hear public testimony
the following evening. He thanked participants and
committee members.
ADJOURNMENT
8:59:55 PM
The meeting was adjourned at 8:59 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 39 JuneauCommMtg 3.22.19 Public Testimony .pdf |
HFIN 3/25/2019 5:30:00 PM |
HB 39 |
| HB 39 Public Testimony Pkt 1 OP Budget Feb-March 22 Emails.pdf |
HFIN 3/25/2019 5:30:00 PM |
HB 39 |
| HB 39 Bethel CommMtg 3.23.19 Public Testimony HB39.pdf |
HFIN 3/25/2019 5:30:00 PM |
HB 39 |
| Kenai CommMtg 3.23.19 Public Testimony HB39.pdf |
HFIN 3/25/2019 5:30:00 PM |
HB 39 |
| HB39 Public Testimony Written 3.25.19.pdf |
HFIN 3/25/2019 5:30:00 PM |
HB 39 |