Legislature(2021 - 2022)ADAMS 519
03/05/2022 11:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB281 || HB282 | |
| Public Testimony: Offnets | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 281 | TELECONFERENCED | |
| += | HB 282 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 5, 2022
11:02 a.m.
11:02:50 AM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 11:02 a.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Kelly Merrick, Co-Chair
Representative Dan Ortiz, Vice-Chair
Representative Ben Carpenter (via teleconference)
Representative Bryce Edgmon
Representative DeLena Johnson
Representative Andy Josephson
Representative Bart LeBon
Representative Adam Wool
MEMBERS ABSENT
Representative Sara Rasmussen
Representative Steve Thompson
ALSO PRESENT
Kevin Higgins, Self, Juneau
PRESENT VIA TELECONFERENCE
Andrew Moffitt, True North Recovery, Wasilla; Tommy
Sheridan, Self, Cordova; Abbe Hensley, Best Beginnings,
Anchorage; Kara Nelson, True North Recovery, Wasilla; Anne
Bailey, Aleutians East Borough, Anchorage; Mike Welch,
Mayor, City of North Pole, North Pole; Valerie Therrien,
City Council, City of Fairbanks, Fairbanks; Mark Detter,
City Manager, Valdez; Nancy Bale, Alaska School Nurses
Association, Anchorage; Don Gray, Self, Fairbanks; Corey
Aist, President, Anchorage Education Association,
Anchorage; Penny Vadla, Self, School Board Member, Kenai
Peninsula; Tiffany Mills, Executive Director, Helping
Ourselves Prevent Emergencies (HOPE), Craig; Liz Heywood,
Haines Long Term Recovery Group, Haines; James Kearns,
Self, Gustavus; Brian Holst, Self, Juneau; Janine Allen,
Self, Southeast Alaska Independent Living, Haines; Terri
Walker, Superintendent, Northwest Arctic Borough School
District, Kotzebue; Stephanie Berglund, CEO, THREAD,
Anchorage.
SUMMARY
HB 281 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 281 was HEARD and HELD in committee for
further consideration.
HB 282 APPROP: MENTAL HEALTH BUDGET
HB 282 was HEARD and HELD in committee for
further consideration.
Co-Chair Foster reviewed the meeting agenda.
HOUSE BILL NO. 281
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making reappropriations; making
supplemental appropriations; making appropriations
under art. IX, sec. 17(c), Constitution of the State
of Alaska, from the constitutional budget reserve
fund; and providing for an effective date."
HOUSE BILL NO. 282
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making capital
appropriations and supplemental appropriations; and
providing for an effective date."
11:04:03 AM
Co-Chair Foster provided the public testimony details and
protocol. He asked testifiers to keep testimony to two
minutes.
^PUBLIC TESTIMONY: OFFNETS
11:07:31 AM
ANDREW MOFFITT, TRUE NORTH RECOVERY, WASILLA (via
teleconference), shared that he is in long-term recovery.
He detailed that he is dual certified in behavioral health
and chemical dependency counseling. He spoke in support of
behavioral health treatment and recovery grants and crisis
stabilization grants. He worked as a substance use disorder
program manager at True North Recovery. He relayed that
without the services he would not be where he was
currently. He had seen an increase in the need for
substance use services since the over the pandemic. Many of
his clients were without housing after treatment. He
relayed that the grant funding allowed service providers to
serve the most vulnerable Alaskans. He had seen a growing
need for crisis stabilization. He had witnessed people
succumbing to their disease. He shared that he had lost a
child to the disease due to a lack of treatment services.
He stressed that crisis stabilization was critical for
serving Alaskans in crisis. He provided details about the
services. He thanked the committee.
11:10:17 AM
TOMMY SHERIDAN, SELF, CORDOVA (via teleconference), shared
that he had been employed in various capacities in the
seafood industry in Alaska for the past 20 years. He
currently served on the governor's bycatch review
taskforce. He supported Representative LeBon's increment in
the budget to add $7 million in general funds to support
the University of Alaska's mariculture, North Pacific
fisheries, and Arctic Ocean sciences. He stated that Alaska
was currently at the forefront of at least two major
industrial transitions including those impacting the energy
and seafood sectors. He relayed analyses of similar
transitions resulted in recommendations to leverage the
role that research universities played. He believed the
increment acknowledged the unique opportunities and
challenges facing the state's seafood industry due to
climate change. He believed investment in mariculture
provided the best bang for a buck. He spoke to additional
benefits of the investment. He thanked the committee.
11:12:36 AM
ABBE HENSLEY, BEST BEGINNINGS, ANCHORAGE (via
teleconference), asked the legislature to continue support
for Best Beginnings and the Imagination Library. The
organization had been good partners with the Department of
Education and Early Development since the beginning. She
spoke to the goal for all children to be reading by the
third grade. Reading strengthened the bond between parents
and children. She discussed the importance and benefits of
reading. She highlighted that the organization was
responsible for coming up with the cost of $30 per year per
child to run the program. She discussed that the number of
children receiving books through the program had decreased.
She spoke to the need for additional funding to enable the
program to increase the number of children receiving books.
She reported on the success of the Imagination Library
program. She referenced a large scale evaluation of the
program. The program increased Kindergarten readiness. She
thanked the legislature for an additional $2.5 million for
pre-elementary grants for FY 23. She thanked the committee
for its support for young children.
11:16:20 AM
KARA NELSON, DIRECTOR OF DEVELOPMENT and PROGRAM RELATIONS,
TRUE NORTH RECOVERY, WASILLA (via teleconference), shared
that she is a reentry coach, volunteer prison chaplain, and
board member on the Advisory Board on Alcoholism and Drug
Abuse. She spoke in support of behavioral health treatment
and recovery grants, and technology and telehealth system
and policy improvements. She strongly supported elevating
the Alaska Peer Support Certification program and the
Crisis Stabilization Grant Fund. She shared information
about True North Recovery. She shared that treatment and
recovery grants had been used to serve hundreds of Alaskans
with treatment services. She spoke to the program goal of
long-term recovery. She highlighted the importance of
crisis stabilization work. The program was hoping to expand
in the Mat-Su Valley. She shared information about her
family struggle with untreated trauma and mental health
issues. She relayed that she was a woman in recovery. She
urged the committee to support the efforts for a better
Alaska.
11:19:30 AM
ANNE BAILEY, ALEUTIANS EAST BOROUGH, ANCHORAGE (via
teleconference), provided detail about the communities
located within the borough. The borough's only local tax
base was raw fish tax. The remaining revenue came from
state and federal sources. The borough supported the need
for a balanced approach between the Permanent Fund Dividend
(PFD) and state services. She asked for support for fully
funded school bond debt reimbursement, community
assistance, the harbor bond debt reimbursement, and school
maintenance. She provided detail about the borough's
existing debt for the harbor and projects. She shared that
a decision to take on the debt had been made in good faith
and understanding that the state would reimburse the
borough in full. She elaborated that the FY 19 budget did
not include an appropriation allowing the Department of
Transportation and Public Facilities to make a payment to
the borough for the debt. The borough had not received
approximately $1.5 million for the debt between FY 19 and
FY 21 from the state. The situation resulted in a
substantial financial hardship for the borough. She asked
the committee to look at options to reinstate the
reimbursement.
11:21:59 AM
KEVIN HIGGINS, SELF, JUNEAU, shared that he was present on
his own behalf. He detailed that he had worked in private
practice in the past and currently worked as an assistant
attorney general for the Department of Law. He supported
Amendments 1 through 4 offered in the Department of Law
finance subcommittee. He believed the amendments were a
good first step toward addressing retention issues in the
immediate future. He relayed that the department had seen
unprecedented transition. He grouped the attorneys working
for the department into three categories including new
attorneys coming out of law school, attorneys at the end of
their careers, and attorneys in the prime of their career
who could easily leave to make a lot more money someplace
else. The attorneys were working for the department because
they wanted what in the past had been better quality of
life considerations. He explained that the pay was no
longer sufficient, raises had not kept up with inflation,
and the workforce was demoralized and burned out. Not
knowing whether a budget would be passed at the end of each
fiscal year made it challenging. The attorneys had not
stepped up to the plate or taken matters into their own
hands. He stated the Public Employment Relations Act was a
beautiful thing and the attorneys would start working on
the issue.
11:25:14 AM
MIKE WELCH, MAYOR, CITY OF NORTH POLE, NORTH POLE (via
teleconference), spoke about the unfunded liability for
Public Employees' Retirement System (PERS). He believed the
system needed a serious overhaul. He stated the current 22
percent of salaries the city paid was costing the city
$800,000 per year. He did not believe there was much in the
retirement plan for Tier IV employees. He thought a hybrid
system was needed. He suggested looking at other systems
used around the country. He estimated the liability at
approximately $55,000 per capita. He supported getting the
liability paid off and finding a system that worked. He
asked for full capitalization of the community assistance
plan. He reported the city used the money judiciously and
was in an upward growth mode due to Eielson Air Force Base
and Fort Wainwright.
Representative LeBon referenced Mr. Welch's mention of
Eielson Airforce Base. He thanked the community for making
those in service welcome.
11:27:52 AM
VALERIE THERRIEN, CITY COUNCIL, CITY OF FAIRBANKS,
FAIRBANKS (via teleconference), thanked the legislature for
supporting 100 percent school bond debt reimbursement. She
supported full funding for community assistance. She
highlighted the city's tight budget. She stated the funds
would help fund a new contract with the police department
for salary increases. She thanked the legislature for
adding funding for community jails and public radio.
Representative LeBon thanked Ms. Therrien for her work and
service on the city council.
11:29:28 AM
MARK DETTER, CITY MANAGER, VALDEZ (via teleconference),
urged support for full funding of $20 million for the
harbor matching grant program. He noted that Valdez was
ranked in the top tier for FY 23 harbor grant funding. The
city supported the $8 million increase for community jails.
He highlighted that Valdez had one of the lowest funded
community jails in the state. He spoke in support for the
recapitalization of the community assistance fund and
school bond debt reimbursement. He supported funding for
the Alaska Marine Highway System (AMHS) for a full schedule
in the current year.
11:30:56 AM
NANCY BALE, ALASKA SCHOOL NURSES ASSOCIATION, ANCHORAGE
(via teleconference), spoke on behalf of the organization
representing school nurses statewide. She stated that
school nurses had been extremely busy working through the
pandemic in addition to their regular duties. She
highlighted that the value of having a nurse in school had
been shown during the pandemic. She shared that many of the
positions were financed through the Base Student Allocation
(BSA). She supported robust funding and inflation proofing
for the BSA. She supported funding for recruitment and
retention for rural areas without school nurses. She asked
the committee to pass the $50 million increase in BSA
funding recommended by the subcommittee. She requested
funding for recruitment and retention of public health
nurses recommended by the Health and Social Services
subcommittee. She asked the committee to help ensure every
student had access to a public nurse.
Representative Josephson thanked Ms. Bale for her
testimony.
11:33:12 AM
DON GRAY, SELF, FAIRBANKS (via teleconference), shared that
he is a grandparent of students in the Alaska school
system. He spoke in favor of the Base Student Allocation
(BSA) and for children in urban and rural K-12 schools
throughout the state. He stressed that children across the
state needed an increase in the BSA. He referenced bills
that would address the issue with $50 million. The BSA had
not been increased in seven years. He thanked the committee
for its time and work. He asked for support of the $50
million increment.
Representative Wool thanked Mr. Gray for his testimony. He
believed the BSA increase bills would be heard in the near
future. He thanked Mr. Gray for his service to the
education community.
11:36:15 AM
COREY AIST, PRESIDENT, ANCHORAGE EDUCATION ASSOCIATION,
ANCHORAGE (via teleconference), thanked the committee for
additional funds directed to the Base Student Allocation
(BSA) and debt reimbursement. He advocated for the return
to a forward funding model for education. He reported the
education world was in crisis with a staffing problem.
There had been over 100 open vacancies in the current year
that caused significant harm to students. Teachers across
the school district had worked hard to keep schools open
during the pandemic and needed all of the support they
could get. Students needed support in mental health, which
had taken a dive. He implored the committee to retain
educators and increase the BSA. There was a challenge ahead
in the hire of new educators. He thanked the committee for
its support and time.
Vice-Chair Ortiz referenced Mr. Aist's testimony about 100
vacant positions and another 100 paraprofessional
positions. He asked how many were currently unfilled.
Mr. Aist replied that the numbers were from February and
hand not changed much. He reported the schools were seeing
early submittals of retirees and resignations.
Vice-Chair Ortiz asked for clarification that Mr. Aist was
talking about projected openings for the upcoming school
year.
Mr. Aist clarified that the positions were currently vacant
in the Anchorage School District. He was concerned about
staffing for the coming year.
Vice-Chair Ortiz thanked Mr. Aist for his testimony.
11:40:37 AM
PENNY VADLA, SELF, SCHOOL BOARD MEMBER, KENAI PENINSULA
(via teleconference), testified in support of increased
education funding. She highlighted the importance of
increased education funding and pointed out that full
funding was flat funding. She stated that within two years
there would be an enormous deficit because the federal
funding would go away and there would not be an opportunity
to build funds. The Base Student Allocation (BSA) had been
the same for too many years, which meant some general funds
were needed. She stated each fiscal year would get worse
without an increase to the BSA. She referenced current
bills in the legislature that would increase the BSA. She
believed students, staff, and families were suffering. She
highlighted a problem with teacher retention and student
health and wellness. She thought there would be issues in
the future. She was in favor of HB 350 for school bond debt
reimbursement. She wanted it to be increased to 60 percent
for repairs and 70 percent for rebuilds. She shared
information about her work in education. She continued to
speak to the importance of education and stability in the
budget for a long-term fiscal plan and forward funding for
education. She wanted the state to put students and
education first.
11:46:01 AM
TIFFANY MILLS, EXECUTIVE DIRECTOR, HELPING OURSELVES
PREVENT EMERGENCIES (HOPE), CRAIG (via teleconference),
spoke about the housing shortage on Prince of Wales and in
other areas. She requested funds to replace temporary
federal funds supporting domestic violence and sexual
assault statewide. She spoke to the importance of increased
access to services such as housing for victims of domestic
violence. She pointed out that victims who left their
abusers had nowhere to go without having to leave their
community. A victim felt betrayed and unsupported when
there was no housing to be found. She stated more funding
was needed to support transitional housing for victims. She
thanked the committee for continued support in domestic
violence and sexual assault agencies.
Co-Chair Foster noted there were currently no additional
testifiers online. The committee would return at 12:15 p.m.
He provided the call in numbers.
11:50:36 AM
AT EASE
12:17:39 PM
RECONVENED
LIZ HEYWOOD, HAINES LONG TERM RECOVERY GROUP, HAINES (via
teleconference), supported $586,000 in the current budget
for centers for independent living. She shared that
Southeast Alaska Independent Living (SAIL) provided
critical services for seniors and individuals with
disabilities. She detailed that SAIL had received numerous
community foundation grants over the years and she had seen
its careful stewardship of the funds. She highlighted that
no other organization provided the same services. She
shared that SAIL had been quick to step in as part of the
recovery team after the devastating 2020 storm in Haines.
The organization had been quick to identify and help meet
survivor needs after the storm that had killed two people
and displaced many others. She shared that SAIL was one of
two organizations trusted with emergency response funds to
aid in survivor assistance. She asked the committee to
retain the $586,000 increment in the budget for the
services.
Co-Chair Foster asked individuals to call in no later than
1:30 p.m. He provided call in numbers.
12:21:13 PM
JAMES KEARNS, SELF, GUSTAVUS (via teleconference),
supported full funding in the budget for the Alaska Marine
Highway System (AMHS). He stressed the importance of the
AMHS to Southeast Alaska. The system connected the
community to the rest of Alaska. He pointed out that most
of the AMHS employees were Alaskans. The ferry worked with
Alaskans for Alaskans. He shared an experience of traveling
on the ferry.
Vice-Chair Ortiz thanked Mr. Kearns for his testimony.
12:23:19 PM
BRIAN HOLST, SELF, JUNEAU (via teleconference), stated that
the top priority for the board was early, adequate,
equitable, and predictable funding. He highlighted the
substantial increase in inflation in recent years. He
pointed out that the Base Student Allocation (BSA) had
increased by a much smaller percentage over the same time
period. He highlighted reductions in positions and cuts of
over $10 million since 2011 in Juneau schools. Class sizes
were increasing, and classrooms were degrading. He
referenced the struggle to recruit and retain teachers in
Alaska. He stated that despite cuts there had been
improvements in graduation rates in Juneau in the past 10
years primarily due to supporting minority and low income
students. He stressed the importance of Pre-K funding to
prepare students for school. He asked for a stronger
investment in education. He asked for funding for Pre-K and
a BSA increase.
Co-Chair Foster provided the call in numbers.
12:26:57 PM
JANINE ALLEN, SELF, SOUTHEAST ALASKA INDEPENDENT
LIVING(SAIL), HAINES (via teleconference), shared that she
is a person with a disability and worked as a disability
advocate at SAIL. She shared information about her
disability related to hearing loss. She spoke in support of
funding for SAIL. She shared that the organization provided
services to enable Alaskans with disabilities to remain in
their homes. She reported that funds had not been increased
in many years. She shared benefits of the program. The
program created jobs and saved money, while benefiting
individuals. The pandemic had disproportionately impacted
seniors and people with disabilities. She asked the
committee to support funding for centers for independent
living like SAIL.
Co-Chair Foster noted the committee would return at 1:00
p.m.
12:29:17 PM
AT EASE
1:03:12 PM
RECONVENED
Co-Chair Foster provided the call in numbers for
testifiers.
1:04:30 PM
TERRI WALKER, SUPERINTENDENT, NORTHWEST ARCTIC BOROUGH
SCHOOL DISTRICT, KOTZEBUE (via teleconference), thanked the
committee for its work and subcommittee process. She spoke
in support of increased Base Student Allocation (BSA)
funding. She underscored that reliable funding was crucial
for districts to plan and prepare for the upcoming school
years. She spoke to the importance of attracting and
retaining teachers. She spoke to a high teacher turnover
rate in rural areas of the state. She shared that teacher
shortages were occurring nationwide. She highlighted that
inflation was damaging public education and student
opportunities in Alaska. She reminded the committee that
the governor had stated inflation was at a 40-year high and
it was damaging public education. The current budget
process did not account for inflation. The funding received
had to cover fixed costs. She gave examples of fixed cost
increases. There had been a substantial increase in heating
fuel expenses in the past year. The price continued to
increase daily, and it had been a cold winter. She stated
that the need to fly in fuel increased the cost. Food costs
had increased, and salary increases had been certified. The
district had to make cuts to programs, counselors, and
student activities. She thanked the committee.
Co-Chair Foster provided the committee email address and
call in numbers.
1:11:12 PM
STEPHANIE BERGLUND, CEO, THREAD, ANCHORAGE (via
teleconference), shared that the organization was a
nonprofit working to increase access to affordable and
quality early education. She thanked the committee for
supporting the operating budget and for supporting the
subcommittee's recommendation for an increase for Pre-K.
She highlighted that early childcare programs had struggled
during the pandemic. She spoke to the need to support early
childhood education. She relayed there were increased
operating costs and a workforce shortage. The organization
was grateful for the federal relief funding, but it did not
believe the funds would be sufficient to stabilize the
sector. She encouraged the allocation of additional COVID
relief funds to childcare. She stated that childcare was
critical infrastructure in Alaska, allowing families to get
to work, school, and training. She thanked the committee.
1:13:25 PM
AT EASE
1:36:45 PM
RECONVENED
Co-Chair Foster relayed there were no additional
testifiers. He provided the committee email address and
call in numbers.
HB 281 was HEARD and HELD in committee for further
consideration.
HB 282 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster reviewed the schedule for the following
meeting.
ADJOURNMENT
1:38:41 PM
The meeting was adjourned at 1:38 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 281 HF Public Testimony 03.05.22 redacted.pdf |
HFIN 3/5/2022 11:00:00 AM |
HB 281 |
| HB 281 & HB 282 Public Testimony Rec'd by 031422.pdf |
HFIN 3/5/2022 11:00:00 AM |
HB 281 HB 282 |