Legislature(2019 - 2020)ADAMS ROOM 519
02/19/2020 05:00 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB205 || HB206 | |
| Public Testimony: Juneau | |
| Public Testimony: Sitka, Petersburg, Delta Junction, Unalaska, Dillingham, Glennallen, Tok | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 205 | TELECONFERENCED | |
| += | HB 206 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 19, 2020
5:07 p.m.
5:07:29 PM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 5:07 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Jennifer Johnston, Co-Chair
Representative Dan Ortiz, Vice-Chair
Representative Andy Josephson
Representative Gary Knopp
Representative Bart LeBon
Representative Kelly Merrick
Representative Colleen Sullivan-Leonard
Representative Adam Wool
MEMBERS ABSENT
Representative Cathy Tilton
Representative Ben Carpenter
ALSO PRESENT
Brian Wilson, Executive Director, Alaska Coalition on
Housing and Homeless, Juneau; Alex Wertheimer, Self,
Juneau; Rodney Dial, Mayor, Ketchikan Gateway Borough,
Juneau; Patrick Anderson, Chief Executive Officer, Rural
Alaska Community Action Program, Juneau; Jessica Parks,
Rural Alaska Community Action Program, Juneau; Robert Marx,
Rural Alaska Community Action Program, Juneau; John Wynne,
Self, Juneau; Katie Botz, Self, Juneau; Paul Kelly, Self,
Juneau; Sol Neely, Self, Juneau; Mila Neely, Self, Juneau;
Deedie Sorensen, Self, Juneau; Jon Erickson, City and
Borough of Yakutat, Juneau; Jeff Short, Self, Juneau; Brian
Holst, Self, Juneau; Michael Starr, Self, Juneau; Lori
Thomson, Self, Juneau; Erin Walker-Tolles, Executive
Director, Catholic Community Services, Juneau; Anne Baily,
Administrator, Aleutians East Borough; Angela Simpson,
Administrator, City of Cold Bay, Juneau; John Rozzi, Board
Chair, Mat-Su Coalition on Housing and Homelessness; Dave
Rose, Coordinator, Mat-Su Coalition on Housing and
Homelesness; Emily Ferry, Self, Juneau; Kristin Garot,
Self, Juneau; Jamiann Hasselquist, Self, Juneau; Pamela
Watts, KTOO Community Advisory Board, Juneau;
Representative Andi Story; Representative Sara Hannan.
PRESENT VIA TELECONFERENCE
Dan Dunaway, self, Dillingham; Tom Abbott, Self,
Petersburg; Clare Jaeger, Tolsona Community
Corporation, Copper Valley Development Association
Glennallen; Rebecca Himschoot, Self, Sitka; Collauna
Marley, self, Sitka; Teisha Simmons, Self, Fairbanks; Vikki
Jo Kennedy, Self, Juneau; Rod Catron, Self, Metlakatla;
Janell Manchester, Self, Fairbanks; Herman Morgan, Self,
Aniak; Nelson Cellarius, Self, Chitina; Ashley Woods, Self,
Fairbanks; Patricia Dick, Self, Sitka.
SUMMARY
HB 205 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 205 was HEARD and HELD in committee for
further consideration.
HB 206 APPROP: MENTAL HEALTH BUDGET
HB 206 was HEARD and HELD in committee for
further consideration.
Co-Chair Foster reviewed the meeting agenda. He explained
the public testimony process and provided the call-in
number and House Finance Committee email address.
HOUSE BILL NO. 205
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; 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. 206
"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."
5:07:52 PM
^PUBLIC TESTIMONY: JUNEAU
5:10:58 PM
Co-Chair Foster OPENED public testimony.
5:12:25 PM
BRIAN WILSON, EXECUTIVE DIRECTOR, ALASKA COALITION ON
HOUSING AND HOMELESS, JUNEAU, testified in support of
funding for the Alaska Homeless Assistance Program Fund,
which had been cut by 45 percent in the previous budget
cycle after the governor's vetoes. The program was
traditionally funded at the $7.8 million level, and the
coalition asked for funding to be restored to the original
amount. He informed that the program paid for crucial
emergency shelter beds, and highly successful homeless
prevention programs. He cited statistics that 95 percent of
individuals that accessed homeless prevention funds the
previous year did not return to homelessness. He informed
that there had been an immediate increase in people
experiencing unsheltered homelessness when funding was cut.
He discussed the impact of homelessness. He noted that
federal dollars were compromised. He referenced three
legislative priorities of the coalition that he would
provide to the committee (copy on file).
5:14:37 PM
Representative Sullivan-Leonard asked Mr. Wilson to
elaborate on the fiscal impact on the Juneau homeless
organization.
Mr. Wilson stated that the program was cut by 45 percent
the previous year, and the funds were administered by the
Alaska Housing Finance Corporation (AHFC). The corporation
had been able to shift $2 million from another program
grant to lessen the impact, but all of the direct-service
Housing Assistance Program providers received a 20 percent
cut in funding.
Representative Sullivan-Leonard asked for a dollar amount.
Mr. Wilson stated that funding had gone from $7.8 million
down to $6.55 million.
Representative Knopp discussed the previous year's cuts to
the program. He asked about the proposed budget for the
coalition.
Mr. Wilson stated that there was a proposed to $7.3
million, but the amount was still $500,000 below
traditional funding levels.
Representative Knopp estimated that funding for the program
had increased from the previous year.
Mr. Wilson stated that the $2 million that had been shifted
from the Special Needs Housing Grant were moved back into
the Homeless Assistance Program. In the governor's proposed
budget, funding was at $7.3 million.
Co-Chair Foster recalled that the Alaska Mental Health
Trust Authority (AMHTA) Board had requested $8.15 million
for the program. He believed the program had a proposed
$8.15 million in the mental health budget committee
substitute that was presented earlier in the day.
5:17:18 PM
ALEX WERTHEIMER, SELF, JUNEAU, supported restored funding
for the Alaska Marine Highway System (AMHS), the University
of Alaska (UA). He also supported no more cuts to the
Department of Fish and Game management and research. He
supported full funding for Pre-K education, K-12 education,
and public broadcasting. He had lived in Alaska for 50
years. He discussed recent budget cuts and considered that
He thought the state need a sustainable budget, including
dedicating Permanent Fund earnings to support state
government. He supported a progressive income tax, which he
thought was not a radical idea. He noted that many other
states as well as the federal government imposed an income
tax.
5:19:37 PM
RODNEY DIAL, MAYOR, KETCHIKAN GATEWAY BOROUGH, JUNEAU, He
mentioned cuts, cost-shifting to local governments, use of
Permanent Fund earnings, and talk of new taxes. He had seen
little to no discussion on the structural changes needed to
make the budget sustainable. He thought that citizens in
one half of the state paid millions in taxes while the
other half paid almost nothing and received free services
and lifetime welfare. He thought the disparate treatment
was grossly unfair. He asked the legislature to encourage
borough formation, end discriminatory taxation based on
residence, and end lifetime welfare which he thought
existed in over 150 Alaskan communities. He thought with
more people contributing, the state would have more money
for services and protect the PFD.
5:21:49 PM
Representative Knopp asked if Mr. Dial supported a
Permanent Fund Dividend (PFD).
Mr. Dial personally supported use of his PFD if the budget
were sustainable. He referenced the Southeast Conference
that he had recently attended. He had heard various amounts
referenced as a "sustainable PFD." He was concerned that if
the PFD had gone from $3074 to $500, then the budget was
not sustainable, and the PFD would continue to shrink. He
advocated for all regions of the state that could afford to
contribute (like the organized boroughs did) would
contribute.
Representative Knopp asked about Mr. Dial's remark about
"discriminatory taxes."
Mr. Dial discussed required local contribution, which was
imposed upon organized boroughs but not unorganized
boroughs. He thought required local contribution was a
mandatory state tax that was imposed upon organized
boroughs but not unorganized boroughs. He pointed out that
additionally, organized boroughs were required to fully
fund school construction and maintenance; while unorganized
had schools maintained and constructed for free.
5:24:18 PM
PATRICK ANDERSON, CHIEF EXECUTIVE OFFICER, RURAL ALASKA
COMMUNITY ACTION PROGRAM, JUNEAU, spoke in support // He
explained that the Rural Alaska Community Action Program
(Rural CAP) was the community action agency charged with
addressing the root causes of poverty. He encouraged
flexibility in the way budgets were done for program
designed to address the excess of Adverse Childhood
Experiences (ACES). He stated that Rural CAP had found that
in rural Alaska many of the policies of the state were not
matched on the healing side with the punitive side. He
noted that Rural CAP was opening a domestic violence
shelter Hooper Bay, Scammon Bay, and Chevak. He referenced
United States Attorney General William Barr's visit to
rural Alaska, and the attorney general's concern with high
crime rates and lack of Village Public Safety Officers
(VPSO) in rural Alaska. He noted that 80 percent to 90
percent of crimes adjudicated in Hooper Bay were in
domestic violence.
Mr. Anderson discussed ACES as the result of domestic
violence and incarceration. He considered the inter-
generational trauma in the Alaska Native population. He
cited statistics that indicated individuals with up to six
ACES had an average of a 20-year shorter life span. He
thought policies focused on incarceration and punishment
should include funding for innovative and creative ways to
address childhood trauma. He furthered that Rural CAP was
asking the state's concretional delegation for funding. He
wanted consideration of using discretionary funding to
match programming in the interest of children. He
reiterated his call for innovative and creative thinking.
Co-Chair Foster asked about the domestic violence shelter
mentioned by Mr. Anderson.
Mr. Anderson noted that Chevak, Scammon Bay, and Hooper Bay
were all served by the same domestic violence shelter.
5:28:35 PM
JESSICA PARKS, RURAL ALASKA COMMUNITY ACTION PROGRAM,
JUNEAU, testified in support of funding for mental health
services. She noted that Rural CAP adopted a breakthrough
initiative using a community-driven model that identified
root causes to decrease health disparities and break the
cycle of poverty. She asserted that funding for the Suicide
Awareness Prevention Program, re-entry services through the
Department of Corrections, and increased Medicaid funding
for mental health services was necessary to address the
issue. She cited that Alaska children were 56 times more
likely to be abused than the national average, and the
suicide rate for Alaska Natives was four times that of the
national suicide rate. She relayed that rural Alaskans
experienced a poverty of access to locally available
healthcare, inadequate support for behavioral health
services and stress management. She noted that there were
no licensed professional counselors in remote areas, and a
lack of addiction recovery services. She thought investing
funds in innovating programs that produced results was
investing long-term solutions instead of treating symptoms.
5:30:08 PM
ROBERT MARX, RURAL ALASKA COMMUNITY ACTION PROGRAM, JUNEAU,
supported maintained funding for the Homeless Assistance
Program and fully funding the Special Needs Housing Grant.
He had worked at Rural CAP for almost nine years. He
recalled that Karluk Manor opened in 2001. He stated that
Karluk Manor had 10 tenants that still resided after moving
in when the facility opened. He summarized that the
"housing first" model was effective as a means of
addressing homelessness. He stressed that more housing
opportunities were needed throughout the state. He asserted
that funding the Homeless Assistance Program and the
Special Needs Housing Grant would help continue projects
already assisting vulnerable Alaskans to obtain and keep
housing. He asked the committee to consider that there was
a lesser-known crisis in the state: housing in rural
Alaska. He discussed severe overcrowding in rural areas,
which did not meet many definitions of homelessness. He
emphasized that the state would see many benefits from
investing in safe and adequate housing for Alaskans.
Co-Chair Foster asked about the Special Needs Housing
Grant, and whether it was part of the Homeless Assistance
Program.
Mr. Marx stated that the grant was a separate line in the
budget.
Co-Chair Foster asked how much was in the proposed budget
for the grant and how the governor's budget compared to the
previous year.
Mr. Marx recalled that the latest funding amount for the
grant was $1.7 million. He pointed out that in 2009, the
number was $1.75 million. He cited that by the Department
of Labor and Workforce Development inflation calculator,
there had been a 27 percent decrease.
5:33:52 PM
JOHN WYNNE, SELF, JUNEAU, spoke in favor of restoring
funding to the Alaska Marine Highway System (AMHS). He was
a former legislator of Washington State. He had relatives
and friends in Southeast Alaska. He discussed a personal
anecdote relating to missed family obligations due to the
lack of ferry service as a result of budget cuts. He
discussed community needs for ferry services. He referenced
a recent report on the AMHS, which he thought had not
considered the trade and exchange between Alaska and the
Yukon Territory. He discussed a historical map of Klukwan
and the southeast portion of the Yukon Territory, and the
history of trade in the region.
5:36:22 PM
KATIE BOTZ, SELF, JUNEAU, testified in support of funding
for mental health services. She discussed her personal
experience and challenges with mental illness. She had
written emails to members. She stressed the important role
of legislators in helping to end the stigma of mental
illness by supporting funding for mental health. She
experienced profound deafness. She did not think the state
had a revenue problem, but rather a priority problem. She
asked how members wanted to see Alaska's future.
5:41:06 PM
PAUL KELLY, SELF, JUNEAU, testified in support of funding
for education and the AMHS. He was a state employee. He was
a third-generation Alaskan. He was a graduate student at
the University of Alaska. He was a member of the Juneau
Board of Education. He thought teachers, staff, and
administration were increasingly burdened. He supported
passage of HB 236 to increase the Base Student Allocation
(BSA) for the next two years. He was worried that cuts to
UA were unsustainable and threatened the University's
future. He supported funding for ferries. He supported
allowing the moratorium on school bond debt reimbursement
to expire. He was chair of the school board's facilities
committee and could attest that many schools were under-
maintained. He supported a sustainable source of revenue
for the state.
5:44:02 PM
SOL NEELY, SELF, JUNEAU, testified in opposition to austere
budget cuts. He was an associate professor of English at
the University of Alaska Southeast. He asserted that the
previous year's budget was devastating to the community. He
discussed the impacts of the previous year's budget
submitted by the governor. He mentioned care for the
elderly, deferred maintenance, neglected infrastructure,
less treatment options for substance abuse and mental
health issues, crime, homelessness, the AMHS,
municipalities and villages struggling for stability, and
declining support for education. He had started a prison
education program that became a re-entry effort. He chaired
the site council at Gastineau School and worked with
advocacy groups across the state. He had seen many negative
impacts of the previous year's budget cuts. He referenced
the words of American theologian Jim Wallace, that asserted
that a budget was a moral document that expressed moral
priorities. He thought the state had no shortage of wealth
or resources, but that the state was mismanaging its wealth
in the interest of outside special interest such as oil and
gas tax credits. He thought the state had a problem with
priorities.
5:46:47 PM
MILA NEELY, SELF, JUNEAU, testified in support of funding
for education and the AMHS. She was born in Juneau. She
asked the committee to support public education and the
AMHS. She asserted that the budget would change and affect
her future. She questioned why funds were spent on oil and
gas tax credits while ferry service and education funding
were reduced. She was a citizen of the Cherokee Nation and
wanted a budget that protected Native communities. She
asked the members to have courage.
5:48:42 PM
DEEDIE SORENSEN, SELF, JUNEAU, spoke in favor of increased
funding for education. She had lived in Juneau since 1981,
when she came from Montana to be a special education
teacher. She described teacher pay differences between the
two states. She asserted that the state had a shortage of
special education teachers. She discussed salary and
benefit advantages in Montana. She suggested that the state
needed to invest in education, or there would be no one to
teach. She was a member of the Juneau School Board. She was
deeply concerned about the state's ability to attract and
retain highly qualified teachers.
5:50:44 PM
JON ERICKSON, MANAGER, CITY AND BOROUGH OF YAKUTAT, JUNEAU,
spoke in favor of increased funding for the Community
Assistance Program and the AMHS. He relayed that revenue
sharing was about 10 percent of the Yakutat budget. He
discussed the reduction in ferry trips to Yakutat and the
hardship imposed.
Representative Sullivan-Leonard asked for a ballpark figure
of how much revenue sharing was part of the Yakutat budget.
Mr. Erickson stated that the total budget for the previous
year was $2 million, and the revenue sharing portion had
been $260,000.
5:53:13 PM
JEFF SHORT, SELF, JUNEAU, spoke in support of increasing
the BSA as outlined in HB 236. He was a member of the
Juneau School Board. He had lived in Alaska for 50 years.
He supported maintaining the previous year's education
funding as well as inflation-proofing. He discussed the
decline in oil prices since 2014 and thought the revenue
decrease placed stress on workforce, particularly families
with children. He cited a 38 percent increase in use of
free and reduced lunches due to increased poverty in the
school system. He discussed evidence of increased
demographic diversity in Juneau's schools, which he thought
required more resources to address a greater range of
needs. He discussed inflation. He cited that the Anchorage
CPI had increased from 2007 to the present time by 25
percent; yet the BSA had only increased by 10 percent over
the same period of time. He asserted that the difference
required an increase in the BSA by $760 to get back to the
purchasing power of 2007. He thought the $30 million in
additional funding from the previous year would cover about
one-third of the shortfall. He summarized that education
had greater needs and fewer resources.
5:56:23 PM
BRIAN HOLST, SELF, JUNEAU, spoke in favor of increased
funding for public education. He was director of the Juneau
Economic Development Council and the president of the
Juneau School Board. He asserted that the statutory BSA was
not adequate. He reported that the Juneau School District
(JSD) had 92 fewer staff than in 2011. He discussed the
dramatic increase in healthcare costs. He supported funding
for Pre-K education, and support for reading. He asked for
no unfunded mandates. He discussed the School Bond Debt
Reimbursement Program and asked to restart and fund the
program. He supported additional funding for the AMHS.
Representative Merrick noted that there was a decrease in
the number of students in the Anchorage area. She asked
about the population trend in JSD.
Mr. Holst cited that there was a slight decrease of about 6
percent in the student population in Juneau since 2011.
5:59:06 PM
MICHAEL STARR, SELF, JUNEAU, testified in support of
funding for AMHS. He discussed the importance of the ferry
system in connecting communities. He mentioned food
shortages in Angoon. He thought the lack of ferry service
was unacceptable. He thought it was only a matter of time
before the lack of ferry service resulted in loss of life.
He urged the committee to restore funding for the AMHS.
6:00:52 PM
LORI THOMSON, SELF, JUNEAU, spoke in support of increased
funding for education. She was a co-facilitator of the
Harborview Elementary School Site Council. She spoke to the
$30 million that did not get included in the governor's
budget and strongly encouraged the committee to restore the
funds. She emphasized that schools had been dealing with
cuts for several years and schools were thinly staffed. She
had attended a district-wide budget meeting, at which time
elementary budgets had been discussed. She discussed the
workload of a principal that served multiple schools in the
district. She referenced a problem with substitute teachers
because of low pay.
Representative LeBon had served on the Fairbanks School
Board and Fairbanks had also experienced a challenge with
substitute teachers. He asked about substitute pay.
Ms. Thomson did not have the information.
6:04:49 PM
ERIN WALKER-TOLLES, EXECUTIVE DIRECTOR, CATHOLIC COMMUNITY
SERVICES, JUNEAU, supported funding for seniors and abused
children. She was a 26-year resident of Alaska. She
encouraged investment in lower-cost early interventions for
vulnerable Alaskans. She detailed that Catholic Community
Services (CCS) operated 11 senior centers and appreciated
state, local, and tribal support for meals and rides
programs as well as support services and case management.
She discussed services as a means of keeping seniors in-
home rather than in an institution. She cited that Alaska
had the fastest-growing senior population of any state, but
CCS had not seen an increase in funding in some time. She
discussed underfunding for non-medical services that were
important for keeping seniors independent. She discussed
the Safe Child Advocacy Center, which conducted forensic
interviews at the behest of the Office of Children's
Services. She urged the committee to consider the needs of
child victims of sex trafficking, sexual abuse, and trauma.
She emphasized that early interventions for children that
experienced abuse and neglect would result in long-term
cost savings for the state.
6:07:59 PM
ANNE BAILY, ADMINISTRATOR, ALEUTIANS EAST BOROUGH,
testified in support of reinstating funding for school bond
debt reimbursement. She stated that the borough paid more
than its obligation as well as more than its portion of
school bond yet. The borough had a small tax base to draw
from yet had always done its part. When the district had
voted on the bond, it was recognized that the state would
pick up 60 to 70 percent of school bond debt. In FY 20, the
borough had expected to receive over $650,000 in school
bond debt reimbursement from the state, which was
approximately 13 percent of the borough's operating budget.
The borough had lost 50 percent of state bond debt as well
as 100 percent of the harbor bond debt which had resulted
in a loss of approximately $600,000 in anticipated borough
revenue. She asserted that the cost shift and other revenue
changes in the region had impacted the borough's ability to
meet mandated requirements to fund education, to fund
transportation links, to maintain facilities, and to
connect capital projects. The borough was actively trying
to address the budget shortfalls.
Co-Chair Foster asked if the $600,000 was a combination of
school bond debt and harbor bond debt. He asked about
property taxes.
Ms. Baily answered in the affirmative. stated that the
borough did not have a property tax, and was solely based
on fish tax, which was volatile. The borough was looking at
other avenues for revenue.
6:10:42 PM
ANGELA SIMPSON, ADMINISTRATOR, CITY OF COLD BAY, JUNEAU,
testified in support of funding for an Alaska State Trooper
(AST) post in Cold Bay. There was no trooper presence in
the region, and Cold Bay was a hub community for the
Aleutians. She urged the committee to restore adequate
funding for the local government specialist in Cold Bay.
Representative Sullivan-Leonard referenced the local
government specialist, which came from Department of
Commerce, Community and Economic Development. She asked
about the activities of the specialist, and for commentary
on what it was like without the position in place.
Ms. Simpson stated that the local government specialist
provided assistance and oversight if the city amended or
drafted ordinances, or with questions on local budgets. She
had asked for help with an ordinance a year previously and
had still not received help. She had been through five
government specialists. She had been told that government
specialists were unable to complete the local government
specialist activities due to other duties.
Co-Chair Foster asked how many local government specialists
were in place as compared to several years previously.
Ms. Simpson did not have information on the number of local
government specialists. She commented on the high turnover
rate of the position. She mentioned one specialist that was
responsible for 135 communities.
6:14:28 PM
Representative Josephson asked about the area covered by
the AST position.
Ms. Simpson understood that the previous trooper covered
the entire Aleutians including Nelson Lagoon, False Pass,
King Cove, Sand Point, and on down the chain. She noted
that the community called Dillingham and was routed through
Anchorage when there was a problem.
Representative Josephson discussed trooper dispatch and
gleaned that it was a difficult situation.
Ms. Simpson detailed that the city was to call the
Dillingham AST post, but the trooper was placed in
Anchorage.
6:16:07 PM
JOHN ROZZI, BOARD CHAIR, MAT-SU COALITION ON HOUSING AND
HOMELESSNESS, supported increased funding for the Housing
Assistance Program Grant. He referenced a 95 percent
success rate in keeping people in homes and avoiding
homelessness. He emphasized that the grant was helping
people that were making 30 percent or less than the average
median income, such as a family of four that was making
$32,000 per year. He emphasized that there was a great need
in the state for the program. He thought the program had
saved the state money. If the program did not provide
prevention services, then costs would dramatically
increase. He stated that past funds had been wisely used
and urged continued funding of the program.
6:18:31 PM
Co-Chair Johnston asked about the choice between offering
grants versus a higher dividend. She asserted that the
legislature thought most about the vulnerable population
referenced by Mr. Rozzi.
Mr. Rozzi appreciated Co-Chair Johnston's question. He
stated that the people that needed the dividend were the
same people that needed the program. He encouraged members
to continue gathering data on the topic. He was happy to do
research and provide data.
Co-Chair Johnston thought additional data would be helpful.
She asked if there had there been success getting the
program population into the job market after getting
housing.
Mr. Rozzi stated that individuals that had housing were
more inclined to get and keep a job. Further, families were
healthier. He mentioned the drawback of transportation
challenges in the Mat-Su Valley and its effect on
affordable housing.
Co-Chair Johnston asked if Mr. Rozzi had statistics
relating to the job market in the Mat-Su valley. She
pondered the priority of housing, jobs, or a one-time
dividend.
Mr. Rozzi did not have the information.
6:21:51 PM
Representative Ortiz asked about Mr. Rozzi's understanding
of what was in the current budget as compared to the two
previous years.
Mr. Rozzi recalled that the program was being flat-funded
at a level that was about $500,000 less than it was two
years previously.
Co-Chair Foster recalled that the program was funded at
$7.8 million the previous year, and the governor's budget
had $7.3 million, and the AMHTA Board had recommended
funding $8.15 million. The committee substitute with a
preliminary version of the budget had the funding amount at
$8.15 million. He thought there could be an amendment to
increase or decrease the amount. He thought Mr. Rozzi's
testimony was important for helping people understand the
importance of the program.
6:23:24 PM
DAVE ROSE, COORDINATOR, MAT-SU COALITION ON HOUSING AND
HOMELESNESS, testified in support of funding the Housing
Assistance Program Grant. He referenced materials that
included statistics on housing and homelessness (copy on
file). He referenced anecdotal information and thought
backing up stories with numbers was important. Through
using the Alaska Homeless Management Information System,
the coalition had observed trends. He addressed Co-Chair
Johnston's question about the PFD versus housing grants and
thought that the population in question needed both. He
discussed the path to homelessness and hoped the state
could spare the small amount needed to help. He was
personally a conservative and thought the state should have
a balanced budget. He pondered the concept of a ten percent
transitional reduction on all departments. He appreciated
the difficult job faced by the legislature. He discussed
his good fortune as a juxtaposition with the families he
worked with.
6:27:05 PM
Representative Sullivan-Leonard explained that Mat-Su had
incredible needs and the PFD was "the great equalizer." She
thought Mr. Rose had been correct in saying housing as well
as the PFD were needed. She thanked Mr. Rose for his
testimony.
Mr. Rose was grateful for the opportunity to testify.
Co-Chair Johnston asked about Mr. Rose's idea of a ten
percent cut to all departments. She noted that the governor
had not been able to make such a cut the first year of his
administration. She thought state government needed to be
transformed. She asked if Mr. Rose lived in the Palmer or
Wasilla area and paid for police protection.
Mr. Rose noted he was in the Mat-Su borough but lived
outside the city limits of Wasilla and Palmer.
Co-Chair Johnston noted that one area of budget increase
was public safety. She noted that the community of Girdwood
had lost its state troopers and had ended up paying for its
own police. She thought one idea had been to have the two
service areas split the cost of a trooper. She wondered if
Mat-Su would be interested in creating a police protection
service area and carrying half the cost.
6:30:17 PM
Representative Ortiz referenced Mr. Rose's idea of a ten
percent cut to all agencies for three years. He asked if it
was the testifiers perception that there had not been a
reduction across the board already.
Mr. Rose answered in the negative. He had been looking for
a way to reduce the budget in a progressive way that would
touch everyone. He wanted to be taxed. He thought there
needed to be a tax that responded and related to services
so that people could pay for what they received. He
referenced the tax structure in Hawaii.
6:32:26 PM
Co-Chair Foster added that in FY 13 the budget was $7.8
billion in in FY 19 the budget was $4.3 billion for state
government without the PFD. The size of state government
had been reduced by 45 percent or $3.5 billion. He thought
cuts were harder to make over time, and initially it was
easier.
Representative Wool did not want to forget the past five
years. He discussed the cuts over recent years. Many people
did not have children in schools who wondered why they
should pay taxes for schools they did not use. He thought
schools and educated people benefitted everyone.
Representative LeBon referenced the phrase Mr. Rose had
used - a tax for a central service he was willing to pay
for. He asked if Mr. Rose would be willing to pay for
trooper service in Mat-Su.
Mr. Rose replied that as a private citizen he would. He
acknowledged that Mat-Su and many parts of the state had a
huge problem with crime and opioids. They wanted to address
the issue, and it would take resources.
Co-Chair Foster thanked Mr. Rose for the discussion.
6:35:35 PM
EMILY FERRY, SELF, JUNEAU, spoke in support of education
and school funding. She provided a puppet and spoke of a
school project involving art, research, and timelines. The
project was a collaborative effort by fourth, fifth, and
sixth graders. The project sparked discussion about what it
meant to be a leader, how the Holocaust came to be, and how
a society could flip completely. She mentioned the effects
of a bad decision or a policy change. She noted the ferry
service had worsened over time resulting in an accumulative
effect. She suggested stopping to evaluate what kind of
community the state was creating. She believed it started
with the state budget and legislators. She encouraged
members to do some reflecting.
6:39:02 PM
KRISTIN GAROT, SELF, JUNEAU, spoke in support of education,
ferries, homelessness, and services for the most
vulnerable. She had been a teacher in Alaska since 1997.
She was currently a principle in the Juneau School
District. She was the principle of three schools that were
referenced earlier. She took her job very seriously. She
spoke of seeing a reduction in the district's ability to
serve students. She argued that schools have had to do more
and more to meet higher needs for students with less and
less. The school district had cut the fat from schools.
However, there was no more to cut without cutting large
essentials. She had testified the previous day to encourage
full funding for suicide prevention grants and programs.
She talked about a reduction of service to the students.
She spoke about grant funds that helped schools do their
work on a daily basis. She asked members to support forward
funding of education and an increase to the Base Student
Allocation (BSA).
Representative LeBon asked if there were tiered payments
for substitute teachers in Juneau's schools. Ms. Garot
thought it was a two-tiered payment schedule: One for non-
certified substitutes and one for certified substitutes.
Representative LeBon asked for the amounts. Ms. Garot did
not know.
Vice-Chair Ortiz asked how long she had been an
administrator. He additionally queried how long she had
been responsible for 3 schools. Ms. Garot had been a
principle for the Juneau School District for 7 years and
had been responsible for all 3 schools during that period.
Vice-Chair Ortiz clarified that she had not had experience
being a principle for only 1 school. Ms. Garot responded,
"I do not."
Vice-Chair Ortiz was trying to figure out the opportunity
costs of Ms. Garot trying to cover 3 schools versus 1. Ms.
Garot could only speculate.
Co-Chair Johnston asked if the schools were in one building
or at multiple locations. Ms. Garot responded that all 3
schools were located in 1 building.
Co-Chair Foster recalled Ms. Garot talking about forward
funding education. He suggested the possibility of the
legislature passing an education package in February or
March rather than forward funding for FY 22. He wondered
when the school districts needed to know what the state
funding would be in order to avoid sending out pink slips.
He asked her to comment. Ms. Garot could not remember the
exact date required to notify employees regarding
employment for the following school year. She knew it was
before the end of the school year in May. The school
district sent its budget for the following year to the city
by the end of March. She commented that it would be helpful
to know by March.
6:45:56 PM
JAMIANN HASSELQUIST, SELF, JUNEAU, provided some personal
information regarding her heritage. She thanked the
committee for their efforts to resolve the state's budget
crisis. She spoke in favor of properly supporting the
Alaska Marine Highway System. She mentioned her mother was
a product of a boarding school. She provided additional
information about her heritage. She claimed the problem
with the ferry system was pushing her family back into the
woods. She spoke of the need to have the ferry system
working and relayed many ways it affected her family. She
talked about experiencing many of her adverse childhood
experiences. She thought many things could be done to help
with people's adverse childhood experiences. She mentioned
a $3 million grant that would help provide training. She
thanked members for considering several matters.
6:53:33 PM
PAMELA WATTS, KTOO COMMUNITY ADVISORY BOARD, JUNEAU, noted
that Public Broadcasting was crucial to staying informed
about several things. It was especially important to rural
areas. She commented that she had worked for KTOO for
several years. She appreciated the reporting by KTOO. She
noted some of the benefits of Public Broadcasting. She
thought it would be important to provide proper funding.
Representative Josephson thought Public Broadcasting could
be broken down into several categories. He wondered which
categories were most important.
Ms. Watts responded that safety was the most important
aspect.
Vice-Chair Ortiz relayed that prior to the previous year's
budget the state supported Public Broadcasting with an
appropriation of about $2.7 million. In the last budget
cycle, there was not support. He asked her to speak to the
opportunity costs derived from cuts in previous years.
Ms. Watts did not have the information but could provide it
later.
^PUBLIC TESTIMONY: SITKA, PETERSBURG, DELTA JUNCTION,
UNALASKA, DILLINGHAM, GLENNALLEN, TOK
6:58:04 PM
DAN DUNAWAY, SELF, DILLINGHAM (via teleconference), spoke
in favor of Public Radio. He indicated he had provided
written testimony. He wanted to touch on the funding for
the Department of Fish and Game for management and research
of salmon in Bristol Bay. The fishery paid for itself, yet
it was still threatened with reductions. Over the last few
years it generated over $3 million for projects. He wanted
to see enough money to support the Togiak tower that
provided significant opportunity to a more remote area of
Bristol Bay and a less wealthy section of the fishery. He
also wanted to mention that the radio station in
Dillingham, KDLG, too an $80,000 cut in the prior year
which had hammered the station. The station increased its
local contribution, but it was barley meeting the minimum
requirements to be a legal station. Reporters were unable
to get out as frequently, and the state was limited in its
equipment. He believed the radio station was a matter of
life and safety. He frequently checked the weather when out
hunting and fishing. He hoped the legislature would restore
funding for radio broadcasting, particularly KDLG.
7:01:14 PM
TOM ABBOTT, SELF, PETERSBURG (via teleconference), spoke in
favor of Public Broadcasting. He had been in Public
Broadcasting for over 30 years. He noted the importance of
maintaining service. He mentioned an amber alert that had
occurred earlier in the week. He urged members to fully
support radio. He hoped the legislature would ensure the
appropriation for public broadcasting was veto-proof. He
also spoke in favor of the AMHS. He noted the expense of
traveling by air versus the ferry. It was a highway for his
region. He hoped additional funding could be provided for
the system.
7:04:42 PM
CLARE JAEGER, TOLSONA COMMUNITY CORPORATION, COPPER VALLEY
DEVELOPMENT ASSOCIATION, GLENNALLEN (via teleconference),
reported that the Tolsona Community Corporation was in an
unorganized borough and relied on assistance from the
legislature. The corporation had some local road projects
and a project to restore drainage and cap off roads to make
them functional again. The main problem she wanted to
discuss with the committee was the requirement of fire
preparedness and the establishment of fire breaks. She was
very interested in programs through the Forestry Department
to fund firebreaks throughout her region. She spoke of the
development of programs to use biomass in boilers in some
facilities. She noted some of the public buildings
currently using biomass. Currently, her region needed
biomass. She hoped that through a process with the Forestry
Department and the funding of fire breaks the region could
develop an industry for biomass and wood chips to provide
heating and fuel for several facilities. She spoke of the
local forester retiring and leaving an empty position that
had not been filled due to budget constraints. It was her
understanding that her region would receive additional help
through the Mat-Su Borough. She believed the major risk in
her area were wildfires.
7:07:12 PM
REBECCA HIMSCHOOT, SELF, SITKA (via teleconference), was a
practicing teacher and a previous Board of Education
member. She appreciated the education funding support from
the prior year. However, there had been a tragedy of a
trickle-down effect from the uncertainty of funding. Sitka
ended up having to hire a few teachers on the very first
day of school. She urged support for forward funding of
education.
7:09:51 PM
COLLAUNA MARLEY, SELF, SITKA (via teleconference), spoke of
the importance of forward funding for K-12 public
education. She mentioned the benefits of forward funding.
She brought up the fact that there was a national teacher
shortage and reported a 20 percent teacher turn over in
Alaska. In some rural communities the percentage jumped to
36 percent. Forward funding offered needed certainty and
continuity to Alaska's K-12 public education system. She
thanked members for listening and for their service.
7:10:44 PM
TEISHA SIMMONS, SELF, FAIRBANKS (via teleconference),
sought support for community-based funding. She had been in
a wheelchair for over 20 years. She was a high school and
college graduate. She wanted to demonstrate the potential
of people with disabilities. She emphasized the reliability
of people with disabilities. She asked members not to cut
personal care givers. Personal care givers helped people
continue living at home rather than going into nursing
homes. She argued that by making cuts to community-based
funding it placed funding into the hands of nursing homes.
7:14:50 PM
VIKKI JO KENNEDY, SELF, JUNEAU (via teleconference), spoke
of the money spent on the Kodiak Launch facility. She
argued that the funds used to pay for the launch could be
better used for other things. She urged members to unload
the launch facility.
7:16:56 PM
ROD CATRON, SELF, METLAKATLA (via teleconference), worked
for AMHS. He was aware of the budget problems. He mentioned
the great need to maintain the ferry system. He indicated
the stores in the smaller communities were empty. He talked
about the dependence on the ferry system. He talked about
the impact of the loss of service. He also spoke in support
of funding education and taking care of the state's elders.
He suggested taxing marijuana more heavily. He indicated he
would support a partial cut to the PFD. He hoped the
legislature would find a way to resolve the state's issues.
He reemphasized the importance of AMHS.
7:20:38 PM
JANELL MANCHESTER, SELF, FAIRBANKS (via teleconference),
urged funding for community-based services. She reported 1
in 10 people had a disability. She suggested it was easier
to put a person into assisted living. However, community-
based services were much cheaper. She continued to discuss
the benefits of community-based services.
7:23:25 PM
HERMAN MORGAN, SELF, ANIAK (via teleconference), disagreed
with an either/or approach to the PFD. He indicated that by
taking the PFD away from the people of Aniak the community
would be affected to the tune of $1.8 million. He spoke of
the high prices of fuel in the community. He also noted
prices for several items. He suggested cutting the budget
by 10 percent. He opposed all of the funding going to
education, as Alaskan students had some of the lowest
testing scores in the nation. He thought results should be
required within the education system. He opined that taking
away people's dividends was not right. He noted tuition
hikes at the University of Alaska. He talked about the
difficulty of living in the rural areas of Alaska. He did
not want to see Alaska become a socialized state. He
continued to speak of the benefits of the PFD. He spoke of
able-bodied adults receiving Medicaid benefits. He
encouraged members to make additional cuts to the budgets.
He did not think the legislature's approach should not be
an either/or approach.
7:28:34 PM
NELSON CELLARIUS, SELF, CHITINA (via teleconference), spoke
in favor of AMHS. He argued that AMHS was run
inefficiently. He thought the wrong people were involved
with making poor decisions. He thought the ferry system
should be run by a different entity. He questioned why the
state was hiring other people when there were employees
that were not working full-time. He spoke of inefficient
spending by the state.
7:33:12 PM
ASHLEY WOODS, SELF, FAIRBANKS (via teleconference),
supported community-based services. She spoke of the
negative effects of not having the funding. She asked
members to consider supporting community-based services.
7:34:48 PM
PATRICIA DICK, SELF, SITKA (via teleconference), spoke in
support of education. She spoke about how the education in
Sitka was great. She wanted to avoid seeing pink slips
handed out to teachers. She spoke in support of forward
funding education. She continued to speak on the issue of
cuts to education. She also spoke in support of AMHS. She
noted that many of the smaller towns dependent on the ferry
system were running out of food. She thought the situation
was at a critical point. She thanked members for their
efforts. She talked about the community coming together.
She wanted to see basic needs provided for Alaskans.
Co-Chair Johnston reminded the public of where to send
written public testimony. She reviewed the agenda for the
following day.
HB 205 was HEARD and HELD in committee for further
consideration.
HB 206 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
7:41:37 PM
The meeting was adjourned at 7:41 p.m.
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