Legislature(2023 - 2024)ADAMS 519

04/01/2024 01:30 PM House FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

Audio Topic
04:31:20 PM Adjourn
02:35:45 PM Start
02:35:57 PM Amendments
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:30 PM --
+= HB 268 APPROP: OPERATING BUDGET; CAP; SUPP; AM TELECONFERENCED
Heard & Held
+= HB 270 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Amendments TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 1, 2024                                                                                            
                         2:35 p.m.                                                                                              
                                                                                                                                
2:35:45 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Johnson called the House Finance Committee meeting                                                                     
to order at 2:35 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bryce Edgmon, Co-Chair                                                                                           
Representative Neal Foster, Co-Chair                                                                                            
Representative DeLena Johnson, Co-Chair                                                                                         
Representative Julie Coulombe                                                                                                   
Representative Mike Cronk                                                                                                       
Representative Alyse Galvin                                                                                                     
Representative Sara Hannan                                                                                                      
Representative Andy Josephson                                                                                                   
Representative Dan Ortiz (via teleconference)                                                                                   
Representative Will Stapp                                                                                                       
Representative Frank Tomaszewski                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Alexei Painter, Director, Legislative Finance Division.                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 268    APPROP: OPERATING BUDGET; CAP; SUPP; AM                                                                               
                                                                                                                                
          HB 268 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 270    APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 270 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
Co-Chair Johnson reviewed the meeting agenda. The committee                                                                     
would consider amendments to the operating and mental                                                                           
health budgets.                                                                                                                 
                                                                                                                                
HOUSE BILL NO. 268                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making capital  appropriations; making                                                                    
     supplemental  appropriations; making  reappropriations;                                                                    
     making  appropriations  under   art.  IX,  sec.  17(c),                                                                    
     Constitution  of   the  State   of  Alaska,   from  the                                                                    
     constitutional budget  reserve fund; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
HOUSE BILL NO. 270                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
^AMENDMENTS                                                                                                                   
                                                                                                                                
2:35:57 PM                                                                                                                    
                                                                                                                                
Co-Chair Johnson relayed that the committee had left off in                                                                     
the prior meeting on Amendment N 37.                                                                                            
                                                                                                                                
2:36:42 PM                                                                                                                    
                                                                                                                                
Representative Josephson MOVED to ADOPT Amendment N 37                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Environmental Conservation                                                                                         
     Appropriation: Administration                                                                                              
     Allocation: Administrative Services                                                                                        
                                                                                                                                
     Transaction Details                                                                                                        
     Title:  Add   an  Analyst/Programmer  4   Position  for                                                                    
     Permitting Issues                                                                                                          
     Section: Section 1                                                                                                         
     Type: Inc                                                                                                                  
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       139.1                                                                                             
     Travel:                    0.0                                                                                             
     Services:                  0.0                                                                                             
     Commodities:               0.0                                                                                             
     Capital Outlay:            0.0                                                                                             
     Grants:                    0.0                                                                                             
     Miscellaneous:             0.0                                                                                             
                              139.1                                                                                             
     Positions                                                                                                                  
     Permanent Full-Time:         1                                                                                             
     Permanent Part-Time:         0                                                                                             
     Temporary:                   0                                                                                             
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1004 Gen Fund            139.1                                                                                             
                                                                                                                                
     Explanation                                                                                                                
     DEC permit  processing is time intensive  and difficult                                                                    
     to   navigate.  This   amendment   would   add  a   new                                                                    
     Analyst/Programmer 4  position solely  to take  on this                                                                    
     task.                                                                                                                      
                                                                                                                                
Representative Stapp OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative  Josephson explained  that the  amendment was                                                                    
inspired by a conversation with  a legislator who sat on the                                                                    
Department  of  Environmental   Conservation  (DEC)  finance                                                                    
subcommittee.  The legislator  had  told him  that many  DEC                                                                    
permits were not processed  quickly. His colleague described                                                                    
a  surprising  system  in which  applicants  used  their  My                                                                    
Alaska  account, but  the DEC  permit renewal  processes did                                                                    
not carry over information from existing approved permits.                                                                      
                                                                                                                                
Representative Josephson continued  that the amendment would                                                                    
add  a new  analyst position  to help  improve the  process.                                                                    
Some renewals required applicants  to simply restate much of                                                                    
the original  application on a  fillable PDF. When  a permit                                                                    
was approved  by DEC, the  department usually  published the                                                                    
permit  itself but  often not  the application  that led  to                                                                    
that  permit,  even  though  the  applications  were  public                                                                    
records  accessible  by  request. Requiring  public  records                                                                    
requests for the documents made  it difficult for applicants                                                                    
to model applications  after successful examples, increasing                                                                    
workloads  for  applicants  and   lowering  the  quality  of                                                                    
incoming permit applications. The  amendment would also seek                                                                    
to address a problem  encountered in a member's professional                                                                    
work.  There   was  a  complaint   heard  by  many   in  the                                                                    
construction industry that DEC  permit applications and rule                                                                    
processes   were  extremely   difficult   to  navigate.   He                                                                    
explained  that  his  colleague   on  the  DEC  subcommittee                                                                    
concluded that the amendment would help fix the problem.                                                                        
                                                                                                                                
2:39:01 PM                                                                                                                    
                                                                                                                                
Representative Tomaszewski  remarked that  he was  not aware                                                                    
of  any conversation  on the  topic during  the subcommittee                                                                    
process. He  was curious why  the problem was  being brought                                                                    
up during  the budget process  and whether the  new employee                                                                    
would be stationed in a particular location.                                                                                    
                                                                                                                                
Representative  Ortiz commented  that he  was in  support of                                                                    
the  amendment.  He thought  the  amendment  would help  the                                                                    
state  be "even  more  open for  business."  He thought  the                                                                    
legislature would  want to  be in  support of  projects that                                                                    
helped build the economy and a faster permitting process.                                                                       
                                                                                                                                
Representative Cronk  asked if the  issue was brought  up in                                                                    
the DEC subcommittee.                                                                                                           
                                                                                                                                
Representative  Tomaszewski added  that  he  did not  recall                                                                    
seeing  the amendment  during the  subcommittee process  and                                                                    
was confused by it.                                                                                                             
                                                                                                                                
Representative Cronk MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
Representative  Josephson   added  that  the   new  employee                                                                    
requested by the amendment would be located in Anchorage.                                                                       
                                                                                                                                
2:41:32 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Josephson, Ortiz                                                                                              
OPPOSED:  Coulombe,   Cronk,  Stapp,   Tomaszewski,  Hannan,                                                                    
Edgmon, Foster, Johnson                                                                                                         
The MOTION to adopt Amendment N 37 FAILED (3/8).                                                                                
                                                                                                                                
2:42:27 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  MOVED  to ADOPT  Amendment  N  38                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Family and Community Services                                                                                      
     Appropriation: Children's Services                                                                                         
     Allocation: Children's Services Management                                                                                 
                                                                                                                                
     Transaction Details                                                                                                        
     Title: Reduce One-Time Increment  for Legal Services to                                                                    
     Address Class Action Lawsuit                                                                                               
     Section: Section 1                                                                                                         
     Type: Dec                                                                                                                  
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       0.0                                                                                               
     Travel:                  0.0                                                                                               
     Services:             -500.0                                                                                               
     Commodities:             0.0                                                                                               
     Capital Outlay:          0.0                                                                                               
     Grants:                  0.0                                                                                               
     Miscellaneous:           0.0                                                                                               
                           -500.0                                                                                               
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-Time:       0                                                                                               
     Permanent Part-Time:       0                                                                                               
     Temporary:                 0                                                                                               
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1004 Gen Fund         -500.0                                                                                               
                                                                                                                                
     Explanation                                                                                                                
     The  Department of  Family and  Community Services  and                                                                    
     Office of  Children's Services has  been served  with a                                                                    
     large  class action  lawsuit, A  Better Childhood.  The                                                                    
     lawsuit  seeks compensation  in the  form of  a consent                                                                    
     decree;  consent decrees  are extremely  expensive with                                                                    
     average estimates over $15 million  and continue over a                                                                    
     decade  if  the  lawsuit prevails.  This  funding  will                                                                    
     allow the department to retain  legal counsel through a                                                                    
     reimbursable services agreement  with the Department of                                                                    
     Law, procure  expert witness testimony, and  initiate a                                                                    
     public relations campaign.                                                                                                 
                                                                                                                                
    This would decrement half the IncOTI appropriation.                                                                         
                                                                                                                                
Representative Stapp OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative   Josephson  explained   the  amendment.   He                                                                    
relayed that  his colleague  Representative Zack  Fields had                                                                    
discussed  the  lawsuit  against the  Office  of  Children's                                                                    
Services  (OCS) in  the Department  of Family  and Community                                                                    
Services  (DFCS) subcommittee.  There was  a temporary  one-                                                                    
time  increment of  $1  million required  to  pay for  legal                                                                    
services to  address the class action  lawsuit. He explained                                                                    
that  the increment  would allow  the  department to  retain                                                                    
additional  legal   counsel  via  a   reimbursable  services                                                                    
agreement with the Department of  Law (DOL) to pay for legal                                                                    
services, procure  expert witness testimony, and  initiate a                                                                    
public  relations campaign.  He found  the public  relations                                                                    
campaign component interesting.                                                                                                 
                                                                                                                                
Representative Josephson  shared that he asked  his staff to                                                                    
research the lawsuit. He noted  that the Legislative Finance                                                                    
Division   (LFD)   indicated   that   the   lawsuit   sought                                                                    
compensation  in the  form  of a  consent  decree. He  could                                                                    
infer  that  the  litigants,  an   entity  called  A  Better                                                                    
Childhood (ABC)  wanted the  state to  concede that  OCS was                                                                    
not performing well. The lawsuit  alleged that OCS failed to                                                                    
provide  adequate case  management  and permanency  planning                                                                    
services  and  did not  provide  the  required monetary  and                                                                    
licensure  support  to  foster  families  and  children.  He                                                                    
thought  the allegations  were  partially  true because  the                                                                    
state was  offering OCS more  money. He relayed  that Mother                                                                    
Jones  magazine  wrote about  the  topic  and discussed  the                                                                    
symbiotic  relationship  between   child  welfare  agencies.                                                                    
There  were too  many  children in  custody  and not  enough                                                                    
places to  put them.  There were large  for-profit companies                                                                    
with beds to fill.                                                                                                              
                                                                                                                                
Representative Josephson  conceded that  Mother Jones  was a                                                                    
progressive magazine,  but nonetheless, the  magazine talked                                                                    
about  North   Star  Behavioral  Health's   parent  company,                                                                    
Universal Health Services, which  settled in another similar                                                                    
case with  the U.S. Department  of Justice for  $122 million                                                                    
in 2020.  He wondered  why the state  did not  settle. There                                                                    
were  records  of  OCS  billing  for  medically  unnecessary                                                                    
inpatient  behavioral health  services,  failing to  provide                                                                    
adequate  and  appropriate   services,  and  paying  illegal                                                                    
inducements  to  federal   health  care  beneficiaries.  The                                                                    
investigation  stated that  Alaska  had one  of the  highest                                                                    
placements   of  foster   kids   in  residential   treatment                                                                    
facilities.  Children  were  being  treated  as  psychiatric                                                                    
problems. Suicidal  ideation was  used overwhelmingly  as an                                                                    
excuse   but   often   it   was    a   response   to   being                                                                    
institutionalized. Administering drugs  to ensure compliance                                                                    
was  a common  practice. One  OCS foster  kid in  the Mother                                                                    
Jones profile was in North Star's care for five years.                                                                          
                                                                                                                                
2:47:31 PM                                                                                                                    
                                                                                                                                
Representative  Stapp made  a point  of order.  He requested                                                                    
that  Representative Josephson  speak to  the amendment  and                                                                    
not about  a lawsuit  that was not  relevant to  the funding                                                                    
request.                                                                                                                        
                                                                                                                                
Representative Josephson  remarked that he was  not speaking                                                                    
about a  lawsuit but about  an article that did  not concern                                                                    
the lawsuit.  He noted  that in  New Jersey  litigation, ABC                                                                    
had  forced change  with  diligent court-ordered  monitoring                                                                    
and now  only 5 percent of  foster kids were in  group homes                                                                    
or residential  treatment centers.  The point that  was made                                                                    
in  subcommittee   was  that   the  lawsuit   should  settle                                                                    
prudently.  He understood  that  LFD  likely read  something                                                                    
that  suggested  the  state  wanted  to  initiate  a  public                                                                    
relations  campaign.  He  did  not   want  to  do  a  public                                                                    
relations campaign  and he was  asking for funding  for DFCS                                                                    
and to save the state half  a million dollars in the current                                                                    
year.                                                                                                                           
                                                                                                                                
Representative Stapp  expressed that he did  not support the                                                                    
amendment. The department was requesting  $1 million for its                                                                    
own  legal defense  on an  ongoing  lawsuit and  he did  not                                                                    
think it was wise for the  legislature to take a position on                                                                    
the  lawsuit. He  noted that  there were  active litigations                                                                    
and depositions  that were  occurring presently.  He thought                                                                    
that decrementing  the funding  would harm  the department's                                                                    
ability to defend itself against a lawsuit.                                                                                     
                                                                                                                                
Representative Cronk MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
2:50:25 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Hannan, Josephson, Ortiz                                                                                              
OPPOSED:  Coulombe,   Cronk,  Stapp,   Tomaszewski,  Galvin,                                                                    
Edgmon, Foster, Johnson                                                                                                         
The MOTION to adopt Amendment N 38 FAILED (3/8).                                                                                
                                                                                                                                
2:51:14 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:52:23 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Johnson   announced  that   Amendment  N   39  and                                                                    
Amendment N 40 would be rolled  to the bottom of the list in                                                                    
order  to  allow  Representative  Ortiz  to  offer  them  in                                                                    
person.                                                                                                                         
                                                                                                                                
Representative Josephson requested that Amendment N 41 be                                                                       
rolled to the bottom as well.                                                                                                   
                                                                                                                                
2:53:27 PM                                                                                                                    
                                                                                                                                
Representative Josephson MOVED to ADOPT Amendment N 42                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Health                                                                                                             
     Appropriation: Medicaid Services                                                                                           
     Allocation: Medicaid Services                                                                                              
                                                                                                                                
     Transaction Details                                                                                                        
     Title: Funding for Federally Qualified Health Centers'                                                                     
     Medicaid Payments                                                                                                          
     Section: Section 1                                                                                                         
     Type: Inc                                                                                                                  
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       0.0                                                                                               
     Travel:                  0.0                                                                                               
     Services:                0.0                                                                                               
     Commodities:             0.0                                                                                               
     Capital Outlay:          0.0                                                                                               
     Grants:              1,500.0                                                                                               
     Miscellaneous:           0.0                                                                                               
                          1,500.0                                                                                               
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-Time:       0                                                                                               
     Permanent Part-Time:       0                                                                                               
     Temporary:                 0                                                                                               
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1004 Gen Fund        1,500.0                                                                                               
                                                                                                                                
     Explanation                                                                                                                
     The  Alaska Primary  Care Association  has requested  a                                                                    
     $1.5   million  appropriation   for   support  to   the                                                                    
     Department  to   accomplish  the   Federally  Qualified                                                                    
     Health Center's Medicaid payment requests in order to:                                                                     
                                                                                                                                
     1)   Adjust   PPS   rates  for   inflation   adjustment                                                                    
     unlawfully withheld (MEI).                                                                                                 
                                                                                                                                
     2)  Provide Alaska  FQHCs accurate  and legal  Medicaid                                                                    
     payment  for services  delivered to  patients who  have                                                                    
     coverage  from both  Medicare  and  Medicaid (known  as                                                                    
     dual eligibles).                                                                                                           
                                                                                                                                
     3) Amend  regulations and  procedures to  provide FQHCs                                                                    
     meaningful opportunities to apply for scope changes.                                                                       
                                                                                                                                
     4)  Revise and  clarify new  start policies  for Alaska                                                                    
     FQHCs.                                                                                                                     
                                                                                                                                
     5)  Revise and  clarify  FQHC  Medicaid cost  reporting                                                                    
     deadlines, processes, and requirements for APM rebase.                                                                     
                                                                                                                                
Representative Stapp OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative   Josephson  explained   the  amendment.   He                                                                    
relayed that the Alaska Primary  Care Association (APCA) had                                                                    
requested  $1.5 million  for support  to  the Department  of                                                                    
Health  (DOH) to  accomplish the  Medicaid payment  requests                                                                    
from Federally Qualified Health  Centers (FQHC). The funding                                                                    
would  help adjust  Prospective Payment  System (PPS)  rates                                                                    
with  inflation. The  amendment  would  help provide  Alaska                                                                    
FQHCs  with   accurate  and  legal  Medicaid   payments  for                                                                    
services  delivered  to  patients with  coverage  from  both                                                                    
Medicare   and   Medicaid,    known   as   dual   eligibles.                                                                    
Additionally, it  would amend regulations and  procedures to                                                                    
provide  FQHCs with  meaningful opportunities  to apply  for                                                                    
scope  changes  as well  as  revise  and clarify  new  start                                                                    
policies  and   FQHC  Medicaid  cost   reporting  deadlines,                                                                    
processes,   and  requirements   for  Advanced   Alternative                                                                    
Payment Models  (APMs) rebates. He reiterated  that APCA was                                                                    
seeking an appropriation of $1.5  million for support to the                                                                    
department to accomplish the  Medicaid payment requests that                                                                    
he outlined. He thought that APCA  had a strong case and the                                                                    
repayment was necessary.                                                                                                        
                                                                                                                                
2:55:33 PM                                                                                                                    
                                                                                                                                
Representative  Stapp understood  that the  request was  for                                                                    
$1.5 million  to the department's rate  rebasement study. He                                                                    
had asked the  department if it needed the money  and he was                                                                    
told that it  did not because it was  already rebasing rates                                                                    
for   FQHCs.  The   state  unlawfully   withheld  the   rate                                                                    
rebasement  increase  and  there  was  certainly  a  dispute                                                                    
between FQHCs. If  FQHCs were entitled to  the Medicare rate                                                                    
or  the   Medicaid  rate  for  reimbursements   through  the                                                                    
publicly  funded program,  the  FQHCs would  argue that  the                                                                    
centers were entitled to the  full Medicaid rate. He thought                                                                    
that the  $1.5 million request  for the debasement  study of                                                                    
the rates was  necessary because it was  already being done.                                                                    
The department did not need an additional $1.5 million.                                                                         
                                                                                                                                
Representative Cronk MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
Representative  Galvin commented  that  she  had also  heard                                                                    
from APCA and she did not  understand that it was asking for                                                                    
funding for  the rate  rebasement study, but  to be  paid an                                                                    
amount  that better  fit the  services that  the association                                                                    
was  providing.   She  relayed   that  APCA   was  currently                                                                    
struggling to make  ends meet because of  the differences in                                                                    
reimbursement  rates. She  understood  that the  association                                                                    
presently needed payment.                                                                                                       
                                                                                                                                
Representative   Josephson   remarked  that   Representative                                                                    
Galvin  was   correct  and   the  amendment   reflected  her                                                                    
comments. The adjusted PPS rates  would adjust for inflation                                                                    
and  the funding  would provide  for much  more than  simply                                                                    
another study.                                                                                                                  
                                                                                                                                
2:59:12 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz                                                                                      
OPPOSED:  Coulombe,   Cronk,  Stapp,   Tomaszewski,  Edgmon,                                                                    
Foster, Johnson                                                                                                                 
The MOTION to adopt Amendment N 42 FAILED (4/7).                                                                                
                                                                                                                                
2:59:57 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  MOVED  to ADOPT  Amendment  N  43                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Health                                                                                                             
     Appropriation: Public Health                                                                                               
     Allocation: Epidemiology                                                                                                   
                                                                                                                                
     Transaction Details                                                                                                        
     Title:  Adopt Remaining  Recommendations in  the Alaska                                                                    
     Tuberculosis Elimination Plan (FY25-FY30)                                                                                  
     Section: Section 1                                                                                                         
     Type: IncT                                                                                                                 
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       0.0                                                                                               
     Travel:                  0.0                                                                                               
     Services:                0.0                                                                                               
     Commodities:         1,600.0                                                                                               
     Capital Outlay:          0.0                                                                                               
     Grants:                  0.0                                                                                               
     Miscellaneous:           0.0                                                                                               
                          1,600.0                                                                                               
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-Time:       0                                                                                               
     Permanent Part-Time:       0                                                                                               
     Temporary:                 0                                                                                               
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1003 GF/Match        1,600.0                                                                                               
                                                                                                                                
     Explanation                                                                                                                
     The Division  of Public Health proposed  increments for                                                                    
     the  purpose  to   enacting  recommendations  from  the                                                                    
     Alaska   Tuberculosis    Elimination   Plan.   Alaska's                                                                    
     indigenous populations  are disproportionately affected                                                                    
     by  this disease,  and the  Alaska TB  Elimination Plan                                                                    
     outlines  strategies  to  reduce  the  infection  among                                                                    
     those populations by 25% of people by 2031.                                                                                
                                                                                                                                
     In  order to  effectively screen,  detect and  treat TB                                                                    
     before  it becomes  infectious,  the Division  requires                                                                    
     this  appropriation. The  Governor  decremented the  TB                                                                    
     appropriation in his proposed  budget, and $350,000 was                                                                    
     restored  in the  House  Finance  Department of  Health                                                                    
     subcommittee, but  this is inadequate  to appropriately                                                                    
     implement this plan.                                                                                                       
                                                                                                                                
Representative Cronk OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative Josephson  explained the amendment.  He could                                                                    
not understand why  the governor was alarmed by  the rate of                                                                    
tuberculosis  in  the previous  year  and  seemed no  longer                                                                    
concerned. He recalled that the  governor was not alarmed by                                                                    
syphilis rates  in Alaska either,  but thought  that funding                                                                    
was  restored  in a  previous  budget.  The governor  put  a                                                                    
smaller sum than had been appropriated  in FY 24 into the FY                                                                    
25  "bucket" with  an emphasis  on curbing  syphilis in  the                                                                    
state. He  relayed that  tuberculosis was  an issue  when he                                                                    
lived in  Western Alaska.  He was warned  to stay  away from                                                                    
particular students due to their cough.                                                                                         
                                                                                                                                
Representative   Josephson  explained   that  there   was  a                                                                    
national  article from  February  of 2024  that stated  that                                                                    
tuberculosis rates  remained high  in Alaska,  Nevada, South                                                                    
Carolina, and  Washington state even  after the  pandemic. A                                                                    
course  of treatment  for one  tuberculosis case  could cost                                                                    
around $20,000 in  the U.S.; however, a  drug resistant case                                                                    
could cost  at least  $182,000. The article  went on  to say                                                                    
that Alaska  had the highest tuberculosis  rates. The number                                                                    
of cases  per 100,000 residents  surged from 7.9 in  2021 to                                                                    
13  in 2022.  Advocates and  medical professionals  had been                                                                    
pushing for more state funding for tuberculosis in Alaska.                                                                      
                                                                                                                                
Representative  Josephson  noted  that Brian  Lefferts,  the                                                                    
environmental health and engineering director of the Yukon-                                                                     
Kuskokwim  Health Corporation  (YKHC), which  represented 58                                                                    
tribes, said the state contributed  about $960,000 through a                                                                    
tuberculosis and  congenital syphilis prevention  grant. Mr.                                                                    
Lefferts  stated  that  Alaska  continued  to  have  a  huge                                                                    
tuberculosis  problem.  Alaska's community  testing  efforts                                                                    
focused on  areas with the  highest rates,  including Alaska                                                                    
Native communities in the  southwestern and northern regions                                                                    
of the state.  In 2022, the state saw 95  cases, which was a                                                                    
64  percent increase  from the  previous  year. The  article                                                                    
quoted Ms.  Kelleher, an Koyukon Athabaskan  individual from                                                                    
Nome,  who  spoke  about  the  different  manifestations  of                                                                    
tuberculosis. Ms. Kelleher said  that there were other types                                                                    
of tuberculosis that  could affect the bones  or kidneys. He                                                                    
had  not  received  a   satisfactory  explanation  from  the                                                                    
administration  on why  there was  such a  reduced focus  on                                                                    
tuberculosis over the course of a year.                                                                                         
                                                                                                                                
3:04:21 PM                                                                                                                    
                                                                                                                                
Representative   Stapp   thought    that   the   money   for                                                                    
tuberculosis  was in  a particular  "track"  in last  year's                                                                    
budget  and  it  was  not included  in  the  current  year's                                                                    
budget.  He indicated  that money  was added  back into  the                                                                    
budget specifically  for tuberculosis. He did  not think the                                                                    
funding should be  increased at the current  time. There was                                                                    
already  a multi-year  funding mechanism  that  was used  to                                                                    
gauge how  effective the state's resources  could be against                                                                    
tuberculosis  and syphilis.  If  the efforts  went well,  he                                                                    
would  be  happy  to  revisit  the  subject  next  year.  He                                                                    
believed  in results-based  budgeting and  thought that  the                                                                    
appropriation  was   sufficient  for  the  time   being.  He                                                                    
appreciated Representative  Josephson bringing up  the issue                                                                    
and noted  that it  was a challenge,  especially in  some of                                                                    
the more rural communities of the state.                                                                                        
                                                                                                                                
Representative Galvin understood  that the funding increased                                                                    
from $0  to $350,000,  but it  was much  less than  the $1.6                                                                    
million request. Considering  how quickly tuberculosis could                                                                    
spread, she was concerned that  the legislature might not be                                                                    
able to  compile a supplemental  quickly enough  to properly                                                                    
address an  outbreak. She was  not sure that  $350,000 would                                                                    
be enough. She was in support of the amendment.                                                                                 
                                                                                                                                
3:06:56 PM                                                                                                                    
                                                                                                                                
Representative   Ortiz  asked   Representative  Stapp   what                                                                    
tuberculosis  rates "going  well"  would  mean. He  recalled                                                                    
that Representative Stapp would  be supportive of revisiting                                                                    
the subject if efforts were  going well. He wondered why the                                                                    
subject  would  need  to  be revisited  if  the  rates  were                                                                    
decreasing.  The   budget  was  about  making   choices  and                                                                    
determining priorities. If  tuberculosis rates were starting                                                                    
to  increase, particularly  amongst indigenous  populations,                                                                    
it  would  seem  that  addressing  the  spread  would  be  a                                                                    
priority for  the legislature. He  agreed that  the increase                                                                    
from $350,000 to $1.6 million  was substantial. He wanted to                                                                    
offer a conceptual  amendment to the amendment  to bring the                                                                    
total from $1.6 million to $1 million.                                                                                          
                                                                                                                                
Representative Ortiz  MOVED to ADOPT conceptual  Amendment 1                                                                    
to Amendment N 43.                                                                                                              
                                                                                                                                
Representative  Stapp OBJECTED.  He  noted  that the  budget                                                                    
included  $500,000 in  funding  split between  epidemiology,                                                                    
public health labs, and nursing.  The underlying Amendment N                                                                    
43  was  only  referencing  epidemiology.  He  thought  that                                                                    
tuberculosis was  a relatively  new recipient  of resourcing                                                                    
and  it  would be  beneficial  to  be  able to  measure  the                                                                    
results of  the funding. He  did not support  the conceptual                                                                    
amendment because he wanted to  be certain of the results of                                                                    
the  funding  before   allocating  additional  funding.  The                                                                    
funding was  a temporary  increment and was  revisited every                                                                    
year. He  thought revisiting it was  a useful accountability                                                                    
metric.                                                                                                                         
                                                                                                                                
Representative Stapp MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
3:10:18 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz                                                                                      
OPPOSED:  Coulombe,   Cronk,  Stapp,   Tomaszewski,  Edgmon,                                                                    
Foster, Johnson                                                                                                                 
The MOTION  to adopt conceptual  Amendment 1 to  Amendment N                                                                    
43 FAILED (4/7).                                                                                                                
                                                                                                                                
3:11:17 PM                                                                                                                    
                                                                                                                                
Co-Chair Johnson  noted that the  underlying Amendment  N 43                                                                    
was back before the committee.                                                                                                  
                                                                                                                                
Representative  Josephson  noted  that Mr.  Lefferts  stated                                                                    
that  Alaska contributed  about $960,000  towards prevention                                                                    
through  a tuberculosis  and congenital  syphilis prevention                                                                    
grant. He  assumed that  the funding  was only  allocated to                                                                    
YKHC. He relayed that Mr.  Lefferts expressed that the state                                                                    
continued to  have an enormous  tuberculosis problem  and it                                                                    
could be doing more to combat it.                                                                                               
                                                                                                                                
Representative Cronk MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
3:11:58 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz                                                                                      
OPPOSED:  Coulombe,   Cronk,  Stapp,   Tomaszewski,  Edgmon,                                                                    
Foster, Johnson                                                                                                                 
The MOTION to adopt Amendment N 43 FAILED (4/7).                                                                                
                                                                                                                                
3:12:47 PM                                                                                                                    
                                                                                                                                
Representative Josephson relayed that he would not be                                                                           
offering Amendment N 44 or Amendment N 45.                                                                                      
                                                                                                                                
3:13:23 PM                                                                                                                    
                                                                                                                                
Representative Josephson MOVED to ADOPT Amendment N 46                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Health                                                                                                             
     Appropriation: Medicaid Services                                                                                           
     Allocation: Medicaid Services                                                                                              
                                                                                                                                
     Transaction Details                                                                                                        
     Title:   Medicaid  Rate   Rebasing  for   Developmental                                                                    
     Disability and Personal Care Services                                                                                      
     Section: Section 1                                                                                                         
     Type: Inc                                                                                                                  
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       0.0                                                                                               
     Travel:                  0.0                                                                                               
     Services:                0.0                                                                                               
     Commodities:             0.0                                                                                               
     Capital Outlay:          0.0                                                                                               
     Grants:             15,000.0                                                                                               
     Miscellaneous:           0.0                                                                                               
                         15,000.0                                                                                               
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-Time:       0                                                                                               
     Permanent Part-Time:       0                                                                                               
     Temporary:                 0                                                                                               
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1002 Fed Rcpts       7,500.0                                                                                               
     1003 GF/Match        7,500.0                                                                                               
                                                                                                                                
     Explanation                                                                                                                
     Last  year,  the  legislature approved  a  $15  million                                                                    
     increment  for  Direct  Service Provider  and  Personal                                                                    
     Care  Assistant rate  increases. However,  more funding                                                                    
     is  needed  to  maintain  healthy  rate  increase  that                                                                    
     provide   adequate  funding   in  light   of  increased                                                                    
     inflation.  This   amendment  would   appropriate  $7.5                                                                    
     million  to  match  $7.5 million  in  federal  dollars,                                                                    
     giving DPS and PCA rates a $15 million increase.                                                                           
                                                                                                                                
Representative Cronk OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative   Josephson  explained   the  amendment.   He                                                                    
reminded members that  the committee had heard  from over 20                                                                    
different  Alaskans who  worked as  caregivers who  all pled                                                                    
for assistance from the legislature.  In the prior year, the                                                                    
legislature  approved a  $15  million  increment for  Direct                                                                    
Service  Provider (DSP)  and Personal  Care Assistant  (PCA)                                                                    
rate increases.  He argued that  more funding was  needed in                                                                    
order  to properly  improve the  rates. The  amendment would                                                                    
appropriate $7.5 million to match  a $7.5 million investment                                                                    
from the  federal government. Overall,  DSPs and  PCAs would                                                                    
receive  $15 million.  He  shared that  one  of the  largest                                                                    
contingents of Alaskans who called  in to ask for assistance                                                                    
were  seeking the  content of  Amendment  46. He  reiterated                                                                    
that   Alaskans  working   in   the   field  had   expressed                                                                    
overwhelming support for the  amendment. The amendment would                                                                    
also  allow individuals  receiving care  to remain  in their                                                                    
homes rather than moving to  a group home or facility, which                                                                    
would provide a net savings to  the state. He added that the                                                                    
governor approved the concept in the prior year.                                                                                
                                                                                                                                
Representative  Stapp remarked  that  he did  not think  the                                                                    
amendment  would accomplish  the  same thing  that had  been                                                                    
discussed in  the prior year.  He did not remember  the item                                                                    
being removed  in the FY  25 budget. He understood  that the                                                                    
home health care items remained in the budget.                                                                                  
                                                                                                                                
3:16:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:25:57 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Johnson   noted  that  the  committee   was  still                                                                    
discussing Amendment N 46.                                                                                                      
                                                                                                                                
Representative Ortiz stated  that he was in  full support of                                                                    
the amendment.  The strategy employed  by the  amendment was                                                                    
called  upstream spending  and would  ultimately save  money                                                                    
for the state. He thought  that adopting the amendment would                                                                    
show that  the committee  was responsive to  public comment.                                                                    
The  committee had  heard more  public  testimony about  the                                                                    
need for  better pay for  personal care assistants  than any                                                                    
other   topic.  He   relayed  that   the  committee   had  a                                                                    
responsibility to  respond to public  comments and  the need                                                                    
was apparent.  Studies showed that when  individuals needing                                                                    
care  remained in  their homes  as long  as possible,  there                                                                    
were better results and the state saved money.                                                                                  
                                                                                                                                
Representative  Cronk commented  that  the  majority of  the                                                                    
public  testimony callers  were  in support  of senior  care                                                                    
services. While  he supported  the idea  of the  funding, he                                                                    
could not  support the  funding until he  knew where  it was                                                                    
going.  He agreed  that the  providers  should be  receiving                                                                    
more funding  and that individuals needing  care should stay                                                                    
in  their homes  as  long  as possible.  He  thought it  was                                                                    
important to  ensure that  the money would  be going  to the                                                                    
caretakers directly. He was in opposition to the amendment.                                                                     
                                                                                                                                
Representative  Josephson agreed  that  it  was a  difficult                                                                    
task to  determine how  to best  provide compelling  pay. He                                                                    
relayed  that  many  people  who   called  in  and  provided                                                                    
testimony said that they were unable  to make ends meet on a                                                                    
caretaker's salary. The testifiers  were not only caretakers                                                                    
for seniors, but for other  individuals who needed a similar                                                                    
level of  care. For  example, he  recalled that  Ms. Vanessa                                                                    
Cunningham spoke about her son  being housebound after being                                                                    
in a  tragic car  crash many  years ago  and her  son needed                                                                    
constant care. The  Alaska State Senate at one  point in the                                                                    
budget in 2023  afforded DSPs and PCAs $30  million, but the                                                                    
funding was  reduced to  $15 million.  He stressed  that the                                                                    
issue was seen as prudent in the prior year.                                                                                    
                                                                                                                                
Representative Cronk MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
3:30:58 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz                                                                                      
OPPOSED:  Coulombe,   Cronk,  Stapp,   Tomaszewski,  Edgmon,                                                                    
Foster, Johnson                                                                                                                 
The MOTION to adopt Amendment N 46 FAILED (4/7).                                                                                
                                                                                                                                
3:31:45 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  MOVED  to ADOPT  Amendment  N  47                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Health                                                                                                             
     Appropriation: Behavioral Health                                                                                           
     Allocation: BH Treatment and Recovery Grants                                                                               
                                                                                                                                
     Transaction Details                                                                                                        
    Title: Behavioral Health Care Rate Review Increases                                                                         
     Section: Section 1                                                                                                         
     Type: IncOTI                                                                                                               
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       0.0                                                                                               
     Travel:                  0.0                                                                                               
     Services:                0.0                                                                                               
     Commodities:             0.0                                                                                               
     Capital Outlay:          0.0                                                                                               
     Grants:             12,900.0                                                                                               
     Miscellaneous:           0.0                                                                                               
                         12,900.0                                                                                               
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-Time:       0                                                                                               
     Permanent Part-Time:       0                                                                                               
     Temporary:                 0                                                                                               
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1037 GF/MH          12,900.0                                                                                               
                                                                                                                                
     Explanation                                                                                                                
     Behavioral healthcare is a vital  and equal part of the                                                                    
     healthcare system, and  behavioral health treatment and                                                                    
     recovery   grants   are   crucial   to   thousands   of                                                                    
     underserved Alaskans to  access essential treatment and                                                                    
    services like medication and in-home care services.                                                                         
     Alaskans with  disabilities, family members,  and other                                                                    
     caregivers  need  access  to timely  behavioral  health                                                                    
     services.                                                                                                                  
                                                                                                                                
     The  Department  of  Health  initiated  a  rate  review                                                                    
     intended  to take  effect in  FY23  (July 2022).  These                                                                    
     rates  have yet  to  be  enacted. Community  behavioral                                                                    
     health providers  are facing financial hardship  due to                                                                    
     a delay  in rate  adjustment. According  to preliminary                                                                    
     data from the  Office of Rate Review  for new potential                                                                    
     rates,  the  delayed  implementation  has  resulted  in                                                                    
     $12.9 million  in missed revenue for  behavioral health                                                                    
     providers over that time.                                                                                                  
                                                                                                                                
     Consequently,  providers have  been operating  with the                                                                    
     same rates since 2018, which  predates the pandemic and                                                                    
     associated rise  in service needs. This  highlights the                                                                    
     critical need for swift action  in enacting the updated                                                                    
     rates to  ensure fair compensation for  these essential                                                                    
     services.  The $12.9  million  to  augment rates  would                                                                    
     rectify  the missing  payments and  allow providers  to                                                                    
     maintain their capacity while waiting  for the new rate                                                                    
     methodologies.                                                                                                             
                                                                                                                                
Representative Stapp OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative  Josephson explained  the  amendment. He  had                                                                    
tried  to  champion behavioral  health  care,  which he  was                                                                    
aware  was partially  covered by  the 1115  waiver; however,                                                                    
the 1115 waiver was inoperative  due to startup costs. There                                                                    
were  residential alcohol  treatment  centers  that did  not                                                                    
meet the  four parameters  required by  the 1115  waiver. He                                                                    
explained that the  Key Coalition of Alaska  was a coalition                                                                    
of parents, family members,  self-advocates, and friends. He                                                                    
clarified that  it was a  members-only organization  and one                                                                    
of   the  organization's   priorities  was   to  invest   in                                                                    
behavioral  health   services.  The  coalition   sought  $13                                                                    
million  in funding  to close  the gap  from a  delayed rate                                                                    
increase.                                                                                                                       
                                                                                                                                
Representative Josephson argued  that behavioral health care                                                                    
was a  vital and equal  part of  the health care  system and                                                                    
behavioral  health   treatment  and  recovery   grants  were                                                                    
crucial. Thousands  of underserved Alaskans used  the grants                                                                    
to access  essential treatment and services  like medication                                                                    
and  in-home  care  services.  Alaskans  with  disabilities,                                                                    
family  members,  and  other  caregivers  needed  access  to                                                                    
timely  behavioral  health  services.   He  noted  that  DOH                                                                    
initiated a rate review that  was intended to take effect in                                                                    
FY  23. Community  behavioral health  providers were  facing                                                                    
financial  hardship  due  to   delays  in  rate  adjustment.                                                                    
According  to  preliminary  data  from the  Office  of  Rate                                                                    
Review for  new potential rates, the  delayed implementation                                                                    
had  resulted  in  $12.9  million   in  missed  revenue  for                                                                    
behavioral  health  providers. Consequently,  providers  had                                                                    
been  operating  with  the  same  rates  since  2018,  which                                                                    
predated  the  COVID-19  pandemic  and  associated  rise  in                                                                    
service needs.  There was a  critical need for  swift action                                                                    
in enacting  the updated rates to  ensure fair compensation.                                                                    
The $12.9 million was designed  to augment rates and rectify                                                                    
the  missing   payments,  allowing  providers   to  maintain                                                                    
capacity while waiting for the new rate methodologies.                                                                          
                                                                                                                                
3:35:08 PM                                                                                                                    
                                                                                                                                
Representative  Stapp stated  that he  was in  opposition to                                                                    
the amendment. The reason the  1115 behavioral health waiver                                                                    
process began was to reduce  the general funds in the grants                                                                    
line to providers  and offset it with  federal funds through                                                                    
a program called 1115 demonstration  waiver. The renewal was                                                                    
currently taking place and later  on in the year, additional                                                                    
services that  were not  currently covered  under behavioral                                                                    
health through  Medicaid could be requested  during the 1115                                                                    
amend  process.  He was  uncertain  about  there being  five                                                                    
years of lost  rates. The 1115 waiver went  through a review                                                                    
process every five years. The  legislature chose to give the                                                                    
department  the  administrative  authority to  change  rates                                                                    
through  Medicaid  reimbursements. He  would  be  open to  a                                                                    
broader   conversation  about   revoking  the   department's                                                                    
authority if it was so desired.                                                                                                 
                                                                                                                                
Representative Galvin  remarked that  she was not  an expert                                                                    
on the  1115 waiver, but  people often came into  her office                                                                    
to share  that they were  only making  $16 per hour  to take                                                                    
care  of Alaskans  with deep  behavioral health  issues. She                                                                    
asked    if   Representative    Josephson   could    provide                                                                    
clarification  on  whether  the  dollars  requested  in  the                                                                    
amendment would go towards wages.                                                                                               
                                                                                                                                
Representative Josephson  relayed that he liked  DOH, but he                                                                    
had heard  from too many  credible sources that there  was a                                                                    
lack  of compliance  with the  regulatory timeline  for rate                                                                    
review.  He  believed  the comments  from  his  sources.  He                                                                    
recalled   that   Representative   Stapp   asked   why   the                                                                    
legislature  gave the  department  the  authority to  review                                                                    
rates, to  which he would  say that the  legislature thought                                                                    
that the department would complete  the rate review on time.                                                                    
While the  amendment could translate into  pay increases, he                                                                    
thought it was  less about the providers and  more about the                                                                    
services.  The amendment  was focused  more  on starting  up                                                                    
behavioral health  programs and providing  behavioral health                                                                    
services.                                                                                                                       
                                                                                                                                
Representative Stapp MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
3:39:08 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz                                                                                      
OPPOSED: Coulombe, Cronk, Stapp, Tomaszewski, Edgmon,                                                                           
Foster, Johnson                                                                                                                 
The MOTION to adopt Amendment N 47 FAILED (4/7).                                                                                
                                                                                                                                
3:39:55 PM                                                                                                                    
                                                                                                                                
Representative Josephson relayed that he would not be                                                                           
offering Amendment N 48.                                                                                                        
                                                                                                                                
Representative Josephson MOVED to ADOPT Amendment N 49                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Health                                                                                                             
     Appropriation: Medicaid Services                                                                                           
     Allocation: Medicaid Services                                                                                              
                                                                                                                                
     Transaction Details                                                                                                        
     Title: Restore Funding Associated with Abortions                                                                           
     Section: Section 1                                                                                                         
     Type: Inc                                                                                                                  
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       0.0                                                                                               
     Travel:                  0.0                                                                                               
     Services:                0.0                                                                                               
     Commodities:             0.0                                                                                               
     Capital Outlay:          0.0                                                                                               
     Grants:                 90.7                                                                                               
     Miscellaneous:           0.0                                                                                               
                             90.7                                                                                               
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-Time:       0                                                                                               
     Permanent Part-Time:       0                                                                                               
     Temporary:                 0                                                                                               
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1004 Gen Fund           90.7                                                                                               
                                                                                                                                
     Explanation                                                                                                                
                                                                                                                                
     Following the subcommittee  process, this amount toward                                                                    
     Medicaid was  deducted from  the allocation  because it                                                                    
     is  the amount  representing expenditures  on abortion-                                                                    
     related  services during  FY23. While  the language  is                                                                    
     technically constitutional,  the decrement is  not. The                                                                    
     Supreme Court has made it  very clear that reproductive                                                                    
     services include  abortion services in Alaska,  so this                                                                    
     decrement  will   result  in   a  cut  to   the  entire                                                                    
     appropriation and  not to  any abortion  services. This                                                                    
     is unfair  to other  Medicaid recipients  receiving any                                                                    
     other service.                                                                                                             
                                                                                                                                
Representative Cronk OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative  Josephson explained  the  amendment. He  was                                                                    
aware that  the state's budgets routinely  included language                                                                    
indicating  the state  would  not  participate in  Medicaid-                                                                    
funded  abortions. He  was acutely  aware that  the governor                                                                    
vetoed  about $320,000  from the  court system  in 2019.  He                                                                    
wrote  a  lengthy op-ed  about  the  veto  and said  it  was                                                                    
unconstitutional, which  it was,  and the court  agreed. The                                                                    
governor indicated that  he did not like  the court system's                                                                    
rulings, which  he found  to be honest  but improper  of the                                                                    
governor  to say.  The  amendment would  be  "one step  less                                                                    
unconstitutional"   in   that   the  legislature   was   the                                                                    
appropriator.  Court   cases  from  around  the   year  2000                                                                    
reported that  if the state  provided OB/GYN care  to women,                                                                    
such  as   delivering  healthy   babies,  pap   smears,  and                                                                    
gynecological care,  the state  was required to  provide the                                                                    
whole  panoply  of care,  which  would  include the  $90,700                                                                    
request in the amendment.                                                                                                       
                                                                                                                                
3:42:36 PM                                                                                                                    
                                                                                                                                
Representative  Galvin  asked  for  clarification  that  the                                                                    
funds  that were  being restored  were the  same funds  that                                                                    
were  originally removed  from  the budget  by the  governor                                                                    
because the  governor felt that certain  services should not                                                                    
be covered. If  her understanding was correct,  she would be                                                                    
supporting  the amendment.  She  thought  that any  decision                                                                    
about which  Medicaid services a woman  could receive should                                                                    
be between a woman and the caregiver only.                                                                                      
                                                                                                                                
Representative Josephson responded  to Representative Galvin                                                                    
that  the  $90,700  cut  was  in  the  committee  substitute                                                                    
proposed by  the House Finance  Committee and he  was asking                                                                    
for the funds to be restored.                                                                                                   
                                                                                                                                
Representative Cronk MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
3:44:41 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz, Foster                                                                              
OPPOSED: Coulombe, Cronk, Stapp, Tomaszewski, Edgmon,                                                                           
Johnson                                                                                                                         
The MOTION to adopt Amendment N 49 FAILED (5/6).                                                                                
                                                                                                                                
3:45:30 PM                                                                                                                    
                                                                                                                                
Representative Josephson MOVED to ADOPT Amendment N 50                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Health                                                                                                             
     Appropriation: Senior and Disabilities Svcs                                                                                
     Allocation: Senior Community Based Grants                                                                                  
                                                                                                                                
     Transaction Details                                                                                                        
     Title: Senior and Disabilities Grants Increase to                                                                          
     Match Population Increase                                                                                                  
     Section: Section 1                                                                                                         
     Type: Inc                                                                                                                  
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       0.0                                                                                               
     Travel:                  0.0                                                                                               
     Services:                0.0                                                                                               
     Commodities:             0.0                                                                                               
     Capital Outlay:          0.0                                                                                               
     Grants:                998.3                                                                                               
     Miscellaneous:           0.0                                                                                               
                            998.3                                                                                               
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-Time:       0                                                                                               
     Permanent Part-Time:       0                                                                                               
     Temporary:                 0                                                                                               
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1004 Gen Fund          998.3                                                                                               
                                                                                                                                
     Explanation                                                                                                                
     Last year,  the population of  seniors over the  age of                                                                    
     75 in  Alaska increased by  5% last year  alone. AGEnet                                                                    
     has requested  an increase equivalent  to this  fact (a                                                                    
     5%  increase  in  community-based grants  reflected  in                                                                    
     this  amendment).  These  services  help  seniors  with                                                                    
     providing nutritious meals, daily safety checks,                                                                           
     transportation,    exercise    classes,   and    light-                                                                    
     housekeeping.                                                                                                              
                                                                                                                                
Representative Cronk OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative  Josephson   explained  that   the  amendment                                                                    
concerned senior and disabilities  grants and a request from                                                                    
the Alaska Geriatric Exchange Network  (AGEnet). He met with                                                                    
AGEnet and learned about its  priorities. He understood that                                                                    
many members of  the committee were concerned  that a COVID-                                                                    
19 grant in the amount of  $2.7 million in general funds for                                                                    
senior community-based  grants had lapsed. He  was trying to                                                                    
estimate  how  much money  was  available  and unspent,  and                                                                    
whether the  money could be  supplemented to  return funding                                                                    
for  seniors back  to the  $2.7  million total.  He was  not                                                                    
certain where the committee left  off on the issue and noted                                                                    
that it was a separate topic, but the need was similar.                                                                         
                                                                                                                                
Representative Josephson  stated that  one in  five Alaskans                                                                    
were  over 65.  There  was a  "hollowing out"  of  30 to  40                                                                    
years, which was  due to increased out  migration. There was                                                                    
a request  in addition to the  $2.7 million for a  5 percent                                                                    
increase  in senior  community-based grants  over the  FY 24                                                                    
funding  level.  From  2022   to  2023,  the  population  of                                                                    
Alaskans  aged 75  and  older increased  by  over 5  percent                                                                    
according  to Alaska  Commission  on  Aging Statistics.  The                                                                    
older  population  was  most  at   risk  of  going  into  an                                                                    
institution  without the  support of  senior community-based                                                                    
grants. Community grants served  older Alaskans all over the                                                                    
state, including  Anchorage, Bethel, Fairbanks,  Kenai, Mat-                                                                    
Su, and Nome,  allowing seniors to live in  the community of                                                                    
their choice.  The number of  meals provided under  the meal                                                                    
grants to older Alaskans  with disabilities around the state                                                                    
increased  13 percent  from 611,000  meals to  690,000 meals                                                                    
from  2013 to  2023.  The  cost of  food  also increased  27                                                                    
percent in the same time  period. The amendment also came at                                                                    
the  request of  AARP of  Alaska and  Senior Safety  Net and                                                                    
Health  Security.   He  thought  it  was   a  righteous  and                                                                    
legitimate amendment.                                                                                                           
                                                                                                                                
3:49:58 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:00:29 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Johnson  stated  that   the  committee  was  still                                                                    
discussing  Amendment N  50. There  had been  some confusion                                                                    
about what the amendment would  be adding, and she requested                                                                    
that   the  Legislative   Finance  Division   (LFD)  provide                                                                    
additional context.                                                                                                             
                                                                                                                                
ALEXEI  PAINTER,  DIRECTOR,  LEGISLATIVE  FINANCE  DIVISION,                                                                    
explained  that there  was $21.7  million of  funding within                                                                    
the  senior   community-based  grants  within  the   CS,  in                                                                    
addition to $5.8 million of  federal COVID-19 relief funding                                                                    
that was carrying forward from  prior years. The COVID money                                                                    
needed to be spent and there  was an appropriation in the CS                                                                    
that  extended the  appropriations through  FY 25;  however,                                                                    
all of the  COVID money was required to be  spent by January                                                                    
28, 2025. He  relayed that some portion of  the $5.8 million                                                                    
would be carried  forward into the first half of  FY 25. The                                                                    
amendment would add to the existing $21.7 million funding.                                                                      
                                                                                                                                
Representative Galvin  asked Mr. Painter whether  there were                                                                    
any additional funds to keep up with inflationary costs.                                                                        
                                                                                                                                
Mr. Painter  responded that his  understanding was  that the                                                                    
rates were expected  to be comparable from 2024  to 2025 and                                                                    
the COVID funding would be  used to augment the rates. While                                                                    
that COVID funding remained, the  rates should be relatively                                                                    
steady until  FY 26,  when there might  be a  shortfall when                                                                    
the  COVID funding  ends.  He  did not  think  there was  an                                                                    
increase built into FY 25.                                                                                                      
                                                                                                                                
Representative Galvin understood that  there was no increase                                                                    
in one-time  COVID funding. She  asked if  her understanding                                                                    
was  correct that  there was  a  5 percent  increase in  the                                                                    
number of people being served.                                                                                                  
                                                                                                                                
Mr.  Painter  responded in  the  affirmative.  There was  an                                                                    
increase in the  number of seniors in the state,  but he was                                                                    
not  certain that  there was  an increase  in the  number of                                                                    
seniors receiving care. There was  no change in the level of                                                                    
funding.                                                                                                                        
                                                                                                                                
Representative  Coulombe  asked  if  the  amendment  was  an                                                                    
increment in the base budget.                                                                                                   
                                                                                                                                
Mr. Painter responded in the affirmative.                                                                                       
                                                                                                                                
Representative Galvin  commented that she would  support the                                                                    
amendment and that it made sense  to her. She thought it was                                                                    
likely that  there would be  an increased number  of seniors                                                                    
seeking  care with  the increase  in the  senior population.                                                                    
The cost of  malnutrition for one day in the  hospital for a                                                                    
senior was  more than $40,000,  and one day in  the hospital                                                                    
for malnutrition was many times  more than an entire year of                                                                    
Meals  on Wheels.  The committee  had  heard testimony  from                                                                    
individuals  who were  delivering services  to seniors  that                                                                    
working hours were decreasing due to a lack of resources.                                                                       
                                                                                                                                
Representative Cronk MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
4:05:58 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz                                                                                      
OPPOSED:  Coulombe,   Cronk,  Stapp,   Tomaszewski,  Edgmon,                                                                    
Foster, Johnson                                                                                                                 
The MOTION to adopt Amendment N 50 FAILED (4/7).                                                                                
                                                                                                                                
4:06:43 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  MOVED  to ADOPT  Amendment  N  51                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Health                                                                                                             
     Appropriation: Medicaid Services                                                                                           
     Allocation: Medicaid Services                                                                                              
                                                                                                                                
     Transaction Details                                                                                                        
     Title: Restore General Fund Match for Medicaid Rate                                                                        
     Increases                                                                                                                  
     Section: Section 1                                                                                                         
     Type: Inc                                                                                                                  
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       0.0                                                                                               
     Travel:                  0.0                                                                                               
     Services:                0.0                                                                                               
     Commodities:             0.0                                                                                               
     Capital Outlay:          0.0                                                                                               
     Grants:             10,000.0                                                                                               
     Miscellaneous:           0.0                                                                                               
                         10,000.0                                                                                               
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-Time:       0                                                                                               
     Permanent Part-Time:       0                                                                                               
     Temporary:                 0                                                                                               
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1003 GF/Match       10,000.0                                                                                               
                                                                                                                                
     Explanation                                                                                                                
     The House  Finance Health Subcommittee  decremented the                                                                    
     Governor's  request  for  $21,000,000. A  decrement  of                                                                    
     $10,000,000  in GF  reduces the  state's ability  to be                                                                    
     reimbursed $10,000,000  in Fed, effectively  creating a                                                                    
     $20,000,000 cut  to services. This original  amount was                                                                    
     predicated   on   the    department's   estimates   for                                                                    
     supporting  the Medicaid  program  with rate  increases                                                                    
     and inflation  calculated. Services  to be  affected by                                                                    
     inadequate funding includes:                                                                                               
                                                                                                                                
     Resource-based   Relative   Value   Scale   (Physicians                                                                    
     Services Rates)                                                                                                            
                                                                                                                                
     Senior  and  Disability  Services  3.7%  Provider  Rate                                                                    
     Increase                                                                                                                   
                                                                                                                                
     Estimated Office of Rate  Review Rates Increases (State                                                                    
     and  Federal  Required  Provider-Specific  Annual  Rate                                                                    
     Increases)                                                                                                                 
                                                                                                                                
     Community Behavioral Health Rate Increase Final                                                                            
                                                                                                                                
     1115 Rate Increase 2025 (Inflationary)                                                                                     
                                                                                                                                
Representative Cronk OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative   Josephson  explained   the  amendment.   He                                                                    
relayed that  he would be  reading his notes from  a meeting                                                                    
he  had  with  the  Department  of  Corrections  (DOC).  The                                                                    
department   noted  that   enrollment  and   utilization  of                                                                    
Medicaid were  hard to predict. There  was attrition because                                                                    
after the  national emergency brought about  by COVID ended,                                                                    
there needed  to be a period  of re-enrollment. Essentially,                                                                    
all applicants  were screened to ensure  that the applicants                                                                    
were qualified;  however, many others had  re-enrolled since                                                                    
the  initial  re-screening  period.  He  questioned  whether                                                                    
individuals  who were  disenrolled were  generating services                                                                    
in other  ways and whether some  individuals were generating                                                                    
services  that were  not directly  related  to the  Medicaid                                                                    
services.  The governor  and the  administration sought  $21                                                                    
million for rate increases based on rebasing and inflation.                                                                     
                                                                                                                                
Representative Josephson  explained that  DOH used  what was                                                                    
called   the  Resource-Based   Relative   Value  Scale   for                                                                    
physician  payment  purposes.  The Medicaid  rate  had  some                                                                    
catching  up to  do with  the Medicare  rate, and  the rates                                                                    
that  had been  most recently  rebased went  into effect  on                                                                    
July 1, 2023. He thought  it was inevitable that there would                                                                    
be further rebasing of various  rates in the summer of 2024.                                                                    
The department  and the  governor thought  it was  unwise to                                                                    
cut the  $10 million in combination  with re-enrollment. For                                                                    
example,  other  rate  reviews were  pending  and  would  be                                                                    
completed  later in  2024, which  would drive  costs further                                                                    
and  were   reflected  in   the  amendment.   The  federally                                                                    
qualified  health  centers, for  example,  would  need a  $7                                                                    
million increment after  the rate review. He  noted that the                                                                    
committee  had already  voted in  opposition to  a different                                                                    
federally  qualified health  center  amendment [Amendment  N                                                                    
42], which  he respected.  He added  that there  was another                                                                    
more costly issue  related to the health  centers that would                                                                    
soon become  relevant. The $10 million  increment was needed                                                                    
and  he hoped  the  committee would  vote  to reinstate  the                                                                    
funds.                                                                                                                          
                                                                                                                                
4:10:11 PM                                                                                                                    
                                                                                                                                
Representative  Stapp  stated that  he  was  opposed to  the                                                                    
amendment. The  governor's budget  requested $21  million in                                                                    
Medicaid  increases  with  $11   million  of  the  increases                                                                    
allocated  to  rate  rebasements.  He opted  to  reduce  the                                                                    
Medicaid  services budget  by $10  million  to reject  about                                                                    
half of the request for  the purpose of Medicaid utilization                                                                    
and  redetermination.  During  the   pandemic,  no  one  was                                                                    
allowed to be disenrolled  from the Medicaid program. During                                                                    
the time,  the federal government gave  all states "Enhanced                                                                    
FMAP" to  compensate for the states'  inability to disenroll                                                                    
individuals from Medicaid who  were not eligible. He thought                                                                    
that  Medicaid  redeterminations  were behind  schedule  and                                                                    
noted  that DOH  had initiated  171,703 redeterminations  to                                                                    
date  with 69,000  redeterminations remaining.  The deadline                                                                    
for  the remainder  of the  redeterminations was  January of                                                                    
2025.  Additionally,  40  percent of  redeterminations  were                                                                    
"appended  for  additional  information."  He  thought  that                                                                    
removing  100,000 people  from  the  Medicaid program  would                                                                    
reduce the  overall spend.  He understood  that DOH  did not                                                                    
plan to  complete Medicaid  redeterminations in  2024, which                                                                    
he did not  think was acceptable. He noted that  the cost of                                                                    
redeterminations  was the  same as  the cost  of about  four                                                                    
days  of  the  total  state annual  spend  on  Medicaid.  He                                                                    
thought  that  completing   the  redeterminations  and  then                                                                    
needing more  money from the  state was reasonable,  but not                                                                    
completing the  redeterminations and  asking for  more money                                                                    
was not acceptable.                                                                                                             
                                                                                                                                
Representative  Josephson relayed  that  he understood  that                                                                    
there were redeterminations,  but the redeterminations would                                                                    
not result in  the removal of 100,000  people from Medicaid.                                                                    
Most  people would  likely still  be qualified.  There would                                                                    
still be  hundreds of thousands  of people in  public health                                                                    
care. He did not think a  decrement would be a good idea and                                                                    
it  would likely  be  a supplemental  if  the amendment  was                                                                    
rejected.  He   thought  it   would  become   newsworthy  if                                                                    
providers were not paid.                                                                                                        
                                                                                                                                
Representative Cronk MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
4:14:19 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz, Edgmon                                                                              
OPPOSED:  Coulombe,   Cronk,  Stapp,   Tomaszewski,  Foster,                                                                    
Johnson                                                                                                                         
The MOTION to adopt Amendment N 51 FAILED (5/6).                                                                                
                                                                                                                                
4:15:15 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  relayed  that  he  would  not  be                                                                    
offering Amendment N 52.                                                                                                        
                                                                                                                                
Representative  Josephson  MOVED  to ADOPT  Amendment  N  53                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Health                                                                                                             
     Appropriation: Senior and Disabilities Svcs                                                                                
     Allocation: Senior/Disabilities Svcs Admin                                                                                 
                                                                                                                                
     Transaction Details                                                                                                        
     Title: Add Three Positions for Adult Protective                                                                            
     Services (FY25-FY29)                                                                                                       
     Section: Section 1                                                                                                         
     Type: IncT                                                                                                                 
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       407.6                                                                                             
     Travel:                    0.0                                                                                             
     Services:                  0.0                                                                                             
     Commodities:               0.0                                                                                             
     Capital Outlay:            0.0                                                                                             
     Grants:                    0.0                                                                                             
     Miscellaneous:             0.0                                                                                             
                              407.6                                                                                             
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-Time:         0                                                                                             
     Permanent Part-Time:         0                                                                                             
     Temporary:                   3                                                                                             
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1002 Fed Rcpts           203.8                                                                                             
     1003 GF/Match            203.8                                                                                             
                                                                                                                                
     Explanation                                                                                                                
     In January  2024, the  Alaska State  Ombudsman released                                                                    
     an investigative  report that revealed  deficiencies in                                                                    
     the Department  of Health's Adult  Protective Services,                                                                    
     which resulted  in the  death of  an elder  under their                                                                    
     care.  The   Ombudsman's  analysis   substantiated  the                                                                    
     allegations  and  included recommendations  to  support                                                                    
     APS  to   perform  its  duties  sufficiently.   Of  the                                                                    
     recommendations,   the   Ombudsman  recommends   adding                                                                    
     funding  for  3  permanent full-time  positions  to  be                                                                    
     funded  for 5  years. This  amendment adds  funding for                                                                    
     full-time    temporary   positions    to   match    the                                                                    
     recommendation   of   temporary   funding.   A   future                                                                    
     legislature may choose to reevaluate in FY30.                                                                              
                                                                                                                                
     Each  figure   represents  the  cost  of   the  salary,                                                                    
     benefits, services, and commodities combined:                                                                              
                                                                                                                                
     Protective  Services Manager  2 -  $154,000/year, Range                                                                    
     22  The  Ombudsman   believes  that  the  investigation                                                                    
     warranted  more  oversight  from  APS  supervisors  and                                                                    
     managers.   This   position    could   focus   on   APS                                                                    
     initiatives, like  program evaluation,  staff training,                                                                    
     and interpretation of policy and goals.                                                                                    
                                                                                                                                
     Quality  Assurance Manager  -  $147,000/year, Range  19                                                                    
     This position  would assume staff management  roles and                                                                    
     create more  opportunities for the APS  Manager to work                                                                    
     with community stakeholders,  and service recipients to                                                                    
    ensure values align with community's expectations.                                                                          
                                                                                                                                
     Administrative  Assistant 2  - $106,000/year,  Range 14                                                                    
     The   Ombudsman  recommends   that   APS  develop   and                                                                    
     implement  Multidisciplinary  Teams  (MDT),  groups  of                                                                    
     professional  experts who  are committed  to supporting                                                                    
     the mission of the agency.  This position would work to                                                                    
     develop  regional   MDTs  and  forming   community  and                                                                    
     stakeholder partnerships.                                                                                                  
                                                                                                                                
Representative Cronk OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative   Josephson  explained   the  amendment.   In                                                                    
January  of 2024,  the Alaska  State  Ombudsman released  an                                                                    
investigative  report that  revealed  deficiencies at  DOH's                                                                    
Adult   Protective  Services   (APS),  which   it  concluded                                                                    
resulted in  the death of  an elder  under the care  of APS.                                                                    
The Ombudsman's  analysis substantiated the  allegations and                                                                    
included recommendations for  APS. The Ombudsman recommended                                                                    
adding funding  for three  permanent full-time  positions to                                                                    
be funded  for five years.  The amendment added  funding for                                                                    
the   full-time    temporary   positions   to    match   the                                                                    
recommendation of temporary  funding. The future legislature                                                                    
could choose  to re-evaluate in  FY 30. He thought  that the                                                                    
Ombudsman was  one of  the best  sources of  information for                                                                    
the legislature.                                                                                                                
                                                                                                                                
Representative Cronk MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
4:17:48 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz, Cronk                                                                               
OPPOSED:  Coulombe,  Stapp,  Tomaszewski,  Foster,  Johnson,                                                                    
Edgmon                                                                                                                          
The MOTION to adopt Amendment N 53 FAILED (5/6).                                                                                
                                                                                                                                
4:19:03 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:19:28 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
                                                                                                                                
Representative  Josephson  asked  that  Amendment  N  55  be                                                                    
rolled  behind   Amendment  N  54   because  the   two  were                                                                    
comparable.   He  noted   that   Representative  Ortiz   was                                                                    
momentarily away  from the  committee room  and he  asked to                                                                    
wait to present the amendments until he returned.                                                                               
                                                                                                                                
4:20:34 PM                                                                                                                    
                                                                                                                                
Representative Josephson MOVED to ADOPT Amendment N 56                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
     Agency: Health                                                                                                             
     Appropriation: Senior and Disabilities Svcs                                                                                
     Allocation: Early Intervention Learning Prgm                                                                               
                                                                                                                                
     Transaction Details                                                                                                        
     Title:  Funding  to  Expand  Outreach  for  the  Alaska                                                                    
     Infant Learning Program                                                                                                    
     Section: Section 1                                                                                                         
     Type: Inc                                                                                                                  
                                                                                                                                
     Line Items (Amounts are in thousands)                                                                                      
     Personal Services:       0.0                                                                                               
     Travel:                  0.0                                                                                               
     Services:              750.0                                                                                               
     Commodities:             0.0                                                                                               
     Capital Outlay:          0.0                                                                                               
     Grants:                  0.0                                                                                               
     Miscellaneous:           0.0                                                                                               
                            750.0                                                                                               
     Positions                                                                                                                  
     Permanent Full-Time:       0                                                                                               
     Permanent Part-Time:       0                                                                                               
     Temporary:                 0                                                                                               
                                                                                                                                
     Funding (Amounts are in thousands)                                                                                         
     1037 GF/MH             750.0                                                                                               
                                                                                                                                
     Explanation                                                                                                                
     This  amendment proposal  expands  agency capacity  for                                                                    
     outreach and  expansion for the Alaska  Infant Learning                                                                    
     Program. With  this increment, DOH may  expand outreach                                                                    
     to  families with  children at  risk or  who experience                                                                    
     developmental delays.  Over the  past 10 years  ILP has                                                                    
     received flat  funding, which has not  been adequate to                                                                    
     keep  up  with inflation  and  the  increased costs  of                                                                    
     running ILP programs and services.                                                                                         
                                                                                                                                
     Early  intervention has  proven  life-long benefits  to                                                                    
     program  recipients;   however,  program  participation                                                                    
     rates remain  low. Children from  birth to 3  years are                                                                    
     in  the most  important  developmental  phase of  their                                                                    
     lives. Support  for early intervention efforts  help to                                                                    
     bring Alaska  up to the  national average  for outcomes                                                                    
    for young children with developmental disabilities.                                                                         
                                                                                                                                
Representative Cronk OBJECTED for discussion.                                                                                   
                                                                                                                                
Representative  Josephson explained  that the  amendment was                                                                    
an  increment for  the Alaska  Infant Learning  Program. The                                                                    
amendment  proposal expanded  agency  capacity for  outreach                                                                    
and expansion. He explained that  the responsible agency was                                                                    
Senior and Disability  Services' Early Intervention Learning                                                                    
Program  (ILP).   With  the  increment,  DOH   could  expand                                                                    
outreach  to   families  with  children   at  risk   or  who                                                                    
experience  developmental delays.  Over the  past 10  years,                                                                    
ILP had received  flat funding, which had  not been adequate                                                                    
to keep  up with  inflation and  increased costs  of running                                                                    
ILP  programs and  services. Early  intervention had  proven                                                                    
lifelong  benefits to  program  recipients, however  program                                                                    
participation  rates remained  low. Children  from birth  to                                                                    
age three were in the  most important developmental phase of                                                                    
their lives.  Support for early intervention  efforts helped                                                                    
to bring Alaska up to  the national average for outcomes for                                                                    
young children with developmental disabilities.                                                                                 
                                                                                                                                
Representative  Galvin commented  that she  was grateful  to                                                                    
hear  from  the  Governor's   Council  on  Disabilities  and                                                                    
Special  Education  because  she  was  not  aware  that  the                                                                    
program had been  flat funded for 10  years. She appreciated                                                                    
that  the work  of the  ILP programs  was important  and the                                                                    
programs  must  be  kept strong,  particularly  because  the                                                                    
programs  were   able  to   identify  small   children  with                                                                    
developmental delays early on  and help prepare families and                                                                    
the children for a better future.                                                                                               
                                                                                                                                
4:22:33 PM                                                                                                                    
                                                                                                                                
Representative Stapp  remarked that at the  beginning of the                                                                    
budget process, there  was a list of items that  were not in                                                                    
the  budget  due  to  the  lack  of  a  budget  surplus.  He                                                                    
emphasized  that the  committee was  now on  its fifty-sixth                                                                    
amendment.  The vast  majority of  the amendments  would add                                                                    
money  to the  operating budget.  He would  not support  the                                                                    
amendment, but  it was  not because he  did not  think there                                                                    
should be  a discussion  about expanding outreach  for ILPs.                                                                    
He  found it  slightly irritating  that there  were so  many                                                                    
amendments   that  added   money  to   the  budget   without                                                                    
subtracting money elsewhere.                                                                                                    
                                                                                                                                
Representative Hannan relayed  that she was in  favor of the                                                                    
amendment  and  asked the  committee  to  remember that  the                                                                    
longest  return on  investment was  early investments.  If a                                                                    
child with  developmental delays  could be  identified early                                                                    
on,    higher   costs    associated   with    a   later-term                                                                    
identification could be prevented. The  cost to the state of                                                                    
children  with developmental  delays  compounded over  time,                                                                    
and the earlier the state  intervened, the better the return                                                                    
on investment and the better the services.                                                                                      
                                                                                                                                
Representative Josephson  noted that  the budget had  a $152                                                                    
million surplus  while the amendments  to date  cost roughly                                                                    
$63 million. He  thought the question for  the committee was                                                                    
whether it thought that the  Senate would agree to claw back                                                                    
about $140  billion in  Constitutional Budget  Reserve (CBR)                                                                    
monies.  There were  many different  ways  the budget  could                                                                    
work.                                                                                                                           
                                                                                                                                
Representative Cronk MAINTAINED the OBJECTION.                                                                                  
                                                                                                                                
4:26:05 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz                                                                                      
OPPOSED:  Coulombe,   Cronk,  Stapp,   Tomaszewski,  Edgmon,                                                                    
Foster, Johnson                                                                                                                 
The MOTION to adopt Amendment N 56 FAILED (4/7).                                                                                
                                                                                                                                
4:27:08 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:28:57 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
4:29:08 PM                                                                                                                    
                                                                                                                                
Representative Josephson WITHDREW Amendment N 57.                                                                               
                                                                                                                                
4:29:51 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:30:00 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Josephson asked that the committee discuss                                                                       
Amendment N 59 before discussing Amendment N 58.                                                                                
                                                                                                                                
4:30:59 PM                                                                                                                    
                                                                                                                                
HB 268 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
HB 270 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Johnson reviewed the agenda for the following day.                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
4:31:20 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 4:31 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 268 Amendments with ACTIONS 040124.pdf HFIN 4/1/2024 1:30:00 PM
HB 268