03/22/2007 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| HB72 | |
| HB181 | |
| HB198 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 72 | TELECONFERENCED | |
| *+ | HB 198 | TELECONFERENCED | |
| *+ | HB 181 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE
March 22, 2007
3:06 p.m.
MEMBERS PRESENT
Representative Peggy Wilson, Chair
Representative Anna Fairclough
Representative Paul Seaton
Representative Sharon Cissna
Representative Berta Gardner
MEMBERS ABSENT
Representative Bob Roses, Vice Chair
Representative Mark Neuman
OTHER LEGISLATORS PRESENT
Representative Bryce Edgmon
Representative Bill Thomas
COMMITTEE CALENDAR
HOUSE BILL NO. 72
"An Act relating to the district cost factors for state funding
of public education; providing for an effective date by
repealing the delayed effective date of sec. 6, ch. 41, SLA
2006; and providing for an effective date."
- MOVED HB 72 OUT OF COMMITTEE
HOUSE BILL NO. 181
"An Act relating to traffic offenses and traffic offenses
committed in a school zone; and providing for an effective
date."
- HEARD AND HELD
HOUSE BILL NO. 198
"An Act establishing the Alaska senior assistance payment
program; repealing the senior care and longevity bonus payment
programs; and providing for an effective date."
- MOVED CSHB 198(HES) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 72
SHORT TITLE: SCHOOL DISTRICT COST FACTORS
SPONSOR(s): REPRESENTATIVE(s) CHENAULT, SEATON, OLSON, LEDOUX
01/16/07 (H) PREFILE RELEASED 1/5/07
01/16/07 (H) READ THE FIRST TIME - REFERRALS
01/16/07 (H) HES, FIN
03/22/07 (H) HES AT 3:00 PM CAPITOL 106
BILL: HB 181
SHORT TITLE: TRAFFIC OFFENSES: FINES/SCHOOL ZONES
SPONSOR(s): REPRESENTATIVE(s) WILSON
03/07/07 (H) READ THE FIRST TIME - REFERRALS
03/07/07 (H) HES, JUD
03/22/07 (H) HES AT 3:00 PM CAPITOL 106
BILL: HB 198
SHORT TITLE: SENIOR ASSISTANCE PAYMENT PROGRAM
SPONSOR(s): REPRESENTATIVE(s) HAWKER
03/14/07 (H) READ THE FIRST TIME - REFERRALS
03/14/07 (H) HES, FIN
03/22/07 (H) HES AT 3:00 PM CAPITOL 106
WITNESS REGISTER
REPRESENTATIVE MIKE CHENAULT
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 72, as the prime sponsor.
BLAINE GILMAN, Attorney at Law
Lobbyist for the Kenai Peninsula Borough
Kenai, Alaska
POSITION STATEMENT: Speaking as a registered lobbyist for the
Kenai Peninsula Borough, and as a parent, testified in support
of HB 72.
MARGARET GILMAN
Kenai, Alaska
POSITION STATEMENT: Speaking as an individual, testified in
support of HB 72.
PETER KLAUDER, President
Klauder & Company Architects
Kenai, Alaska
POSITION STATEMENT: Testified in support of HB 72.
CAROLANN BARUM
Kenai, Alaska
POSITION STATEMENT: Speaking as an individual, testified in
support of HB 72.
EDDY JEANS, Director
School Finance and Facilities Section
Department of Education and Early Development (EED)
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 72.
FRANCIE ROBERTS, Teacher
Homer High School
Homer, Alaska
POSITION STATEMENT: Testified in support of HB 72.
RON LONG
Seward, Alaska
POSITION STATEMENT: Speaking as an individual, testified in
support of HB 72.
DAVE JONES, Director of Finance
Kodiak Island Borough School District
Kodiak, Alaska
POSITION STATEMENT: Testified in support of HB 72.
PATTY RICH
Sterling, Alaska
POSITION STATEMENT: Testified in support of HB 72.
JOHN WILLIAMS, Mayor
Kenai Peninsula Borough
Soldotna, AK
POSITION STATEMENT: Testified in support of HB 72.
JENNIE HAMMOND
Nikiski, Alaska
POSITION STATEMENT: Speaking as an individual, testified in
support of HB 72.
DEBORAH GERMANO, Member
Kenai Peninsula Borough Assembly
Homer, Alaska
POSITION STATEMENT: Testified in support of HB 72.
BILL HATCH, Member
Kenai Peninsula Borough School Board
Kenai, Alaska
POSITION STATEMENT: Testified in support of HB 72.
MILLI MARTIN, Member
Kenai Peninsula Borough Assembly
Homer, Alaska
POSITION STATEMENT: Speaking as an individual, testified in
support of HB 72.
LIZ DOWNING, Member
Kenai Peninsula Borough School Board
Homer, Alaska
POSITION STATEMENT: Testified in support of HB 72.
PHILIPPA SONNICHSEN
Kenai, Alaska
POSITION STATEMENT: Speaking as an individual, testified in
support of HB 72.
PETER LARSON
Homer, Alaska
POSITION STATEMENT: Testified in support of HB 72.
MELODY DOUGLAS, Chief Financial Officer
Kenai Peninsula Borough School District
Soldotna, Alaska
POSITION STATEMENT: Testified in support of HB 72.
GINNY ESPENSHADE
Homer, Alaska
POSITION STATEMENT: Testified during the hearing on HB 72.
MEGAN O'NEILL
Kenai, Alaska
POSITION STATEMENT: Testified in support of HB 72.
CARL ROSE, Executive Director
Association of Alaska School Boards.
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 72.
MARY FRANCIS, Executive Director
Alaska Council of School Administrators
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 72.
JOHN ALCANTRA, Government Relations Officer
National Education Association-Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 72.
ROBERT MYERS, JR., Intern
to Representative Peggy Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 181 on behalf of
Representative Peggy Wilson, sponsor.
REPRESENTATIVE MIKE HAWKER, Member
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As the prime sponsor, introduced HB 198.
FRANK APPEL, Chair
Alaska Commission on Aging
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 198.
RALPH C. HUNT, Member
Pioneers of Alaska
Juneau, Alaska
POSITION STATEMENT: Speaking as an individual, testified in
support of HB 198.
PAT LEVY, Advocacy Director
American Association of Retired Persons
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 198.
MARIE DARLIN, Coordinator
Capital City Task Force
American Association of Retired Persons (AARP), Alaska
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 198.
JAMES CARROLL, Member
Juneau Retired Teachers Association
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 198.
KARLEEN JACKSON, Commissioner
Department of Health & Social Services
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 198.
ACTION NARRATIVE
CHAIR PEGGY WILSON called the House Health, Education and Social
Services Standing Committee meeting to order at 3:06:36 PM.
Representatives Wilson, Gardner, Seaton, and Fairclough were
present at the call to order. Representative Cissna arrived as
the meeting was in progress.
HB 72-SCHOOL DISTRICT COST FACTORS
3:07:06 PM
CHAIR WILSON announced that the first order of business would be
HOUSE BILL NO. 72, "An Act relating to the district cost factors
for state funding of public education; providing for an
effective date by repealing the delayed effective date of sec.
6, ch. 41, SLA 2006; and providing for an effective date."
3:07:34 PM
REPRESENTATIVE MIKE CHENAULT, Alaska State Legislature,
presented HB 72, as the prime sponsor. He pointed out that cost
differential factors for educational funding have been an issue
for some time. Representative Chenault said that HB 72 will
enact the results of the Institute of Social and Economic
Research (ISER), University of Alaska, Anchorage, study that was
done to evaluate the differential cost factors for different
parts of the state. He informed the committee that the current
foundation formula bill was passed in 1998, and allows for
adjustments to be made to the formula. School districts around
the state have proven that there is a problem with the formula.
He noted that funding to 100 percent of the ISER study
recommendations will mean an additional $10 million dollars for
the school district in Kenai. The previous funding formula has
been especially difficult for the smaller school districts. In
fact, today the larger school districts are beginning to feel
the changes in their budgets, due to the cost factors, which the
smaller school districts have been experiencing for seven years.
He said that the results of inadequate school funding include
the loss of bus transportation, class consolidation, and even
school closures, although the school districts are doing
everything that they can to utilize the funds that the state
provides. Representative Chenault observed that some cities and
boroughs provide as much additional funding as is allowed in an
attempt to ease the crisis in their schools.
3:15:32 PM
REPRESENTATIVE GARDNER recalled that last year 25 percent of the
ISER recommendations were implemented. She asked whether a
similar additional percentage was planned for subsequent years.
REPRESENTATIVE CHENAULT explained that 25 percent was
appropriated last year, with a provision to revisit the formula
each year. He suggested that [the increased percentage] should
be in the formula.
REPRESENTATIVE GARDNER observed that there are vast inequities
in school funding across the state. She asked what effect the
passage of HB 72 would have on Anchorage.
REPRESENTATIVE CHENAULT answered that if $72 million are added
to the formula, it would not have a negative impact on
Anchorage. However, this amount added to the formula would not
gain Anchorage any funds.
3:18:26 PM
REPRESENTATIVE GARDNER stated that there is a dispute about some
of the underpinnings and conclusions of the ISER study and she
asked to have someone come forward to discuss those issues.
3:19:04 PM
REPRESENTATIVE FAIRCLOUGH asked how school districts qualify for
power cost equalization. In addition, Anchorage, as a regional
hub, requires more special needs funding due to the high density
of special needs children there. She asked for information on
how the ISER study reflects this additional need. Referring to
the fiscal note, Representative Fairclough then asked for an
explanation of the following: "Money in the Public Education
Fund (PEF) flows to K-12 support with out further appropriation
for distribution to school districts."
3:20:47 PM
CHAIR WILSON indicated that public testimony would be taken
before the analysis by the Department of Education & Early
Development (EED).
3:21:08 PM
BLAINE GILMAN, Attorney at Law, Lobbyist for the Kenai Peninsula
Borough, stated the borough's support for HB 72. He explained
that, according to the ISER report, the Kenai Peninsula Borough
School District ("KPBSD") will be underfunded by over $11
million in FY 08. The cause of the under funding is that the
current cost differential treats the KPBSD as an urban school
district; however, it serves rural and urban schools, including
four village schools. Mr. Gilman said current funding allows
KPBSD only four-tenths of one percent over the Anchorage school
district allowance. This district has always been supported by
local government at the maximum allowable level and maintains
the lowest administrative costs of any school district in the
state. Under the current funding, 72 teachers will need to be
laid off and will result in student teacher ratios to be raised
to 1:24 for kindergarten classes. In the smaller schools, the
teachers will be teaching multiple grade level classes. With
all of these measures the district will still be operating with
a deficit of $2 million. He opined that his public education in
Kenai was more complete than what his children are receiving
now, that school funding is inadequate, and that education is
taking a step backward. Mr. Gilman concluded by saying that the
cost differential is the most critical problem facing the KPBSD
today and urged members to pass HB 72 from committee.
3:25:12 PM
MARGARET GILMAN informed the committee that she was speaking for
her four school-aged children and stated her support for HB 72.
Ms. Gilman pointed out the opportunities she received while
attending public school in Kenai and said that the quality of
school has become minimized. At this time there are no
supplemental classes outside of what is required for passing the
high school graduation exams. As a society, we want to do more
for our children, not less. Ms. Gilman urged the committee to
pass HB 72, in order to prevent this generation of Alaskans from
being offered fewer opportunities for education.
3:27:10 PM
Peter Klauder, President of Klauder & Company Architects, stated
his support for HB 72 and described how he originally looked
forward to having his children attend public school in Kenai.
Mr. Klauder said that he and his wife, a school nurse, have been
active in the schools as volunteers and as school employees.
Since his children have started school, funding has been cut and
the supplemental teachers and programs have been eliminated;
beginning with the librarian and music and art programs. He
informed the committee that advanced placement high school
classes for seniors may not be available soon. Mr. Klauder
strongly urged the committee's support for HB 72, which will
provide some equity in the distribution of school funding.
3:29:46 PM
CAROLANN BARUM stated her support for HB 72 and said that she
has watched the educational opportunities at the schools in
Kenai decrease. As a professional health care provider with two
children, she researched the schools several years ago and
relocated to Kenai because of the school system; however, the
schools have lost librarians, music and advanced placement
classes. Ms. Barum urged the committee's support of HB 72.
3:32:00 PM
EDDY JEANS, Director, School Finance and Facilities Section,
Department of Education and Early Development (EED), said that
HB 72 will implement the full recommendations of the 2005 ISER
report. Mr. Jeans explained that the fiscal note cost of
$72,608 million represents the remainder outstanding after the
previous appropriation of $24 million. In response to the
question from Representative Fairclough, he explained that
monies that are appropriated to the PEF are held in that fund
until disbursed by EED, according to statutory entitlement.
3:34:09 PM
CHAIR WILSON asked whether the PEF is a different fund.
MR. JEANS answered that the PEF is the same fund passed out of
this committee to the House Finance Committee, and it also funds
the foundation and pupil transportation fund. Also included in
that appropriations bill was additional funding to the
Department of Administration for the Public Employee's and
Teacher's Retirement System (PERS/TRS).
3:34:43 PM
REPRESENTATIVE FAIRCLOUGH asked whether Chair Wilson was
referring to the Education Endowment fund.
3:34:57 PM
CHAIR WILSON recalled that last year funds for education were
set aside.
MR. JEANS explained that monies are held in the PEF fund, and
the fund can be over funded, like a holding account, and funds
are disbursed by additional appropriations.
CHAIR WILSON asked whether schools receive money from the EED on
a monthly basis.
MR. JEANS said yes. Monthly payments are a statutory
requirement.
3:35:38 PM
REPRESENTATIVE FAIRCLOUGH asked whether education has only one
fund.
MR. JEANS answered yes. He then said that there is one fund for
the pupil transportation and foundation programs.
REPRESENTATIVE FAIRCLOUGH expressed her understanding that the
state legislature has a holding account, that has money in it,
for forward funding of education. She asked whether there was
an account that does not "move forward."
MR. JEANS responded that [PEF] is the account and it does not
require further appropriation from the legislature, once the
appropriation is made to the fund.
3:36:37 PM
REPRESENTATIVE GARDNER asked about the basic disputes regarding
the ISER study.
MR. JEANS replied that the one area under the ISER study that is
under dispute is the issue dealing with teacher compensation.
He explained that the American Institute for Research (AIR)
reported that average teacher salaries were the same across the
state. However, the ISER peer review indicated that certain
aspects were not taken into consideration, such as teacher
experience, turnover, and longevity. Mr. Jeans opined that the
cost differentials reported by the ISER study were substantially
higher after these factors were included.
3:38:36 PM
FRANCIE ROBERTS informed the committee that she is a high school
teacher at Homer High School and stated her support for HB 72.
Ms. Roberts explained that in the past 13 years the 500 student
high school has lost home economics, photography, two foreign
languages, drama, and the gifted and talented program. There is
one vocational education teacher, one counselor, and the
athletic director and librarian are half-time. She opined that
it has been sad to see the school programs dwindle over the last
fifteen years. A small school in the area has been closed. Ms.
Roberts urged the committee to support 100 percent funding of
the ISER study.
3:41:14 PM
RON LONG informed the committee that he is a resident of Seward
and is testifying on his own behalf. He stated his support for
HB 72 and described the lack of funding for the Kenai Peninsula
Borough School District. Mr. Long said that there is an
inequitable distribution of educational funding throughout the
state. The borough has been funding education to the maximum
allowed, but programs are still being lost. It is not a
function of enrollment or high administration costs, he opined,
it is a problem of the cost differential. Mr. Long urged the
committee to seriously consider HB 72.
REPRESENTATIVE GARDNER asked what percent of the budget is
allocated to administration costs.
MR. LONG estimated 3 percent.
3:43:47 PM
DAVE JONES, Director of Finance, Kodiak Island Borough School
District, explained that the current funding formula
appropriated by SB 36 was based on the McDowell study. He
recalled that the McDowell study included a disclaimer that the
study was not sufficient on which to base a funding formula;
however, that is what happened. SB36 called for EED to redo the
cost factors, and the department ordered the AIR study, which
was never implemented. Now, there is the ISER peer review and
recommendations which take teacher turnover under consideration
and are better tools to utilize than SB36. Mr. Jones drew an
analogy of PERS/TRS and payments made outside of the formula.
The full study needs to be implemented, he stressed.
3:46:54 PM
PATTY RICH stated her support for HB 72. She informed the
committee that Kenai Peninsula Borough school funding has been
declining for several years and needs to be restored. In the 20
years she has had children in the school system she has
witnessed program reductions. She urged the committee to fund
schools adequately and fairly.
3:47:51 PM
John Williams, Mayor, Kenai Peninsula Borough, stated his
support for HB 72, and said that without adequate funding it is
not possible to maintain good teacher and administrative levels.
He noted that the schools in his borough are remote and must
provide teacher housing and transportation. He gave examples of
teacher shortages at the borough schools and the lack of
vocational educational programs. Mayor Williams concluded by
saying that the Kenai Peninsula Borough is very supportive of
bring funding to the ISER report level.
3:50:21 PM
JENNIE HAMMOND told the committee that her kindergartener at
Nikiski North Star Elementary School has 23 children in her
class and her second grader has 25 students in his class. The
school projects next year's enrollment to be 368 students with
14 teachers. She expressed her hope that more funding will be
available next year.
3:51:45 PM
DEBORAH GERMANO, Member, Kenai Peninsula Borough Assembly, asked
the committee to look at the inequities of funding. She noted
that Anchorage citizens can provide support for education by
additional municipal funding; however, the Kenai Peninsula
Borough is funding its schools to the maximum amount. In
addition, she pointed out that her borough is using general
funds for pupil transportation. Ms. Germano urged the committee
to support HB 72.
3:53:53 PM
REPRESENTATIVE GARDNER clarified that she had asked whether the
bill would hurt Anchorage, not what the bill would do for
Anchorage.
3:54:22 PM
BILL HATCH, Member, Kenai Peninsula School Board, recalled that
at one time the schools in Kenai were well equipped. Presently,
funding cuts have taken their resources beyond the bare bones
and students are suffering. Large and small schools have lost
programs and important courses are no longer available.
3:56:10 PM
REPRESENTATIVE GARDNER asked what percent of the school district
budget is administration.
MR. HATCH said about four percent.
3:56:21 PM
MILLI MARTIN, Member, Kenai Peninsula Borough Assembly, stated
that she was testifying on her own behalf. She said that the
Kenai Peninsula Borough covers an area of 25,000 square miles,
and supports 44 schools. Five of the schools are not accessible
on the road system; and yet, Kenai schools are funded at a level
close to that of Anchorage and the Mat-Su school districts. Ms.
Martin opined that, if Anchorage were funded at Kenai's level,
the projected loss of teachers to Anchorage would be 350, rather
than the projected 100. She pointed out that property taxes in
the Kenai Peninsula Borough are paying a disproportionate share
of education costs. Ms. Martin strongly urged the committee to
enact HB 72.
3:58:51 PM
LIZ DOWNING, Member, Kenai Peninsula Borough School Board,
informed the committee that as a school board member, the most
frequent comment she hears is that Alaska, one of the wealthiest
states, does not have the will to fund its educational system.
She noted that families are leaving the state because of the
minimal school opportunities for their children. Ms. Downing
stated that her school district is limited to teaching core
classes and the best new teachers are being laid off. This
situation, she said, is the result of not implementing ISER for
the last 15 years. She concluded by saying that this is not
what the students deserve, or what is wanted for our children,
and asked that the full amount of the ISER study be funded.
4:01:21 PM
PHILIPPA SONNICHSEN informed that committee that she and her
husband have two children in the Kenai school system. Ms.
Sonnichsen pointed out that her school district supports a
school in Seldovia, and it is very expensive to maintain schools
that are off the road system. She said that she is supporting
HB 72 because it is the right thing to do. Current cost
differentials are unfair to the Kenai Peninsula Borough School
District.
4:02:43 PM
PETER LARSON described his extensive experience as a teacher and
administrator working for 32 years in the Kenai Peninsula
Borough School District and elsewhere. He expressed his concern
over the decline in educational funding that began in 1986.
Teachers and administrators are being held to an impossible
standard as programs, staff, and resources are cut. He
suggested that cookie sales can not attract the highest standard
of teachers to the district. His international experience has
shown that Alaska students are losing the competitive edge
needed to succeed. At one time, the international programs were
behind the quality standards of Kenai schools; however, the
situation has reversed. He urged the committee to correct the
funding formula, increase funding to all schools, and forward
fund education.
4:05:17 PM
MELODY DOUGLAS, Chief Financial Officer, Kenai Peninsula Borough
School District, expressed her belief that any study of
differential cost will be faulted; however, the state needs to
move ahead to begin to recover from the past losses. Her
district has a $1 million shortfall in transportation which must
be made up by the general fund. Ms. Douglas relayed the effects
of the increased costs of liability and property insurance,
workman's compensation costs, health care, and utilities. She
urged the committee to choose to support Alaska's most important
resource, its children.
REPRESENTATIVE SEATON asked for the percentage of the budget
that goes into administration, and how it compares to the other
school districts.
MS. DOUGLAS answered that administration costs are about four
percent and every district is in a reduction mode in that
regard.
4:07:56 PM
GINNY ESPENSHADE stated that she has had a child in the public
school system for 14 years. She opined that the legislature has
had years to understand the ISER study and the complexities of
this issue.
4:09:03 PM
MEGAN O'NEILL informed the committee that Alaska is a state that
develops its natural resources, but for 15 years its children
have not been developed. She opined that the state will pay,
with jails and other negative outcomes, if the schools are not
funded. Ms. O'Neill strongly urged the committee to support HB
72.
4:10:39 PM
CARL ROSE, Executive Director, Association of Alaska School
Boards (AASB), reminded the committee that under the former
foundation formula there was an oversight regarding small,
single site schools and the legislature mitigated that problem
for ten of the next eleven years. When SB36 was passed, it was
controversial, but it was understood that the funding was not
adequate and that the formula would be revisited. Therefore,
the AIR and ISER studies were completed. The AASB supports 100
percent implementation of the ISER study and supports HB 72.
Mr. Rose added that the policy issues regarding this bill have
been covered.
4:12:06 PM
MARY FRANCIS, Executive Director, Alaska Council of School
Administrators (ACSA), recalled that the education cost
differential has not been adjusted, but once since 1998, and the
failure to do so threatens the integrity of the foundation
formula program. She said that the ACSA is in support of full
funding of the ISER study and reiterated that HB 72 should be
accompanied by an increase in the base student allocation to all
school districts. Dr. Francis noted that her association
discussed the flaws in the ISER study and concluded that the
current formula is flawed.
4:13:16 PM
JOHN ALCANTRA, Government Relations Director, National Education
Association-Alaska (NEA-Alaska), informed the committee that his
association represents 13,000 public school employees and
strongly supports HB 72. He said that he has visited many of
the small schools in the rural areas and his experience shows
that the rural schools do not have the opportunities for their
students that the urban schools have. These schools will be
positively impacted by HB 72 and urged its passage.
4:14:52 PM
CHAIR WILSON closed public testimony.
4:15:02 PM
REPRESENTATIVE GARDNER explained that sometimes questions are
asked so that the answer can be on the record, not to reflect
support or opposition to a bill. She then moved to report HB 72
out of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, HB 72 was
reported out of the House Health, Education and Social Services
Standing Committee.
HB 181-TRAFFIC OFFENSES: FINES/SCHOOL ZONES
4:15:55 PM
CHAIR WILSON announced that the next order of business would be
HOUSE BILL NO. 181, "An Act relating to traffic offenses and
traffic offenses committed in a school zone; and providing for
an effective date."
REPRESENTATIVE SEATON moved to adopt CSHB 181, 25-LS0613\L as
the working document. There being no objection, Version L was
before the committee.
4:16:26 PM
ROBERT MYERS, JR., Intern to Representative Peggy Wilson, Alaska
State Legislature, introduced HB 181 on behalf of Representative
Wilson, sponsor. Mr. Myers relayed that HB 181 will increase
the safety of children in school zones. For example, a child on
foot has a 55 percent survival rate when hit by a car traveling
at 30 miles per hour; however, when the speed of the car is
reduced to 20 miles per hour, the survival rate is 90 percent.
CHAIR WILSON announced that HB 181 was only to be introduced at
this time and will be brought back to the committee at a later
date.
[Although not formally announced, HB 181 was held over with
public testimony open.]
HB 198-SENIOR ASSISTANCE PAYMENT PROGRAM
4:18:21 PM
CHAIR WILSON announced that the final order of business would be
HOUSE BILL NO. 198, "An Act establishing the Alaska senior
assistance payment program; repealing the senior care and
longevity bonus payment programs; and providing for an effective
date."
REPRESENTATIVE MIKE HAWKER, Alaska State Legislature, introduced
HB 198, as the prime sponsor. He noted his membership on the
House Finance Committee and chairmanship of the budget
subcommittee for HESS and said that, in those capacities, he has
been made aware of the importance of unrestricted cash state
assistance to seniors. Representative Hawker recalled that, in
2003, the legislature did not fund the longevity bonus, the act
that originally provided assistance to seniors who qualified
only by the length of their residency in the state. He
explained the history of the Senior Care program, a needs-based
program, that provided a cash assistance payment to low income
seniors. However, the Senior Care program did not accomplish
its objective to provide assistance with the cost of
prescription drugs. Representative Hawker pointed out that the
real needs of low income seniors in Alaska are addressed by HB
198. The bill offers a restoration of a cash benefit program
for qualified seniors, and will be effective as the previous
program sunsets on June 30, 2007. He continued to explain that
HB 198 creates a tiered payment system and that monthly payments
are: $250 per month to individuals with income less than 75
percent of federal poverty level guidelines for Alaska (FPL-A);
$175 per month to individuals with income from 75 percent to
less than 100 percent of FPL-A; $125 per month to individuals
with income from 100 percent to less than 135 percent of FPL-A.
He stressed that the program is needs-based; however, the it
will not be supported by Medicaid matching funds because the
program provides a cash assistance benefit.
4:25:34 PM
REPRESENTATIVE HAWKER concluded by saying that HB 198 creates a
single program for the benefit of low income seniors and
delivers help to all seniors who meet the eligibility
requirements. In addition, this bill does not include a
regulatory asset test limit and, therefore, is a fair and
balanced approach to providing benefits to seniors. He noted
that HB 198 includes a sunset clause for June 30, 2011, and the
Senior Assistance Payment Program can be revisited at that time.
4:26:47 PM
REPRESENTATIVE GARDNER acknowledged that the cancellation of the
longevity bonus program was unfair. She asked whether the
assistance payment is included when calculating the senior's
poverty level.
REPRESENTATIVE HAWKER replied that the income from the program
is not included in the eligibility testing for the program. He
added that HB 198 is a needs-based program, and does not require
a hold harmless provision in the statute.
4:28:53 PM
REPRESENTATIVE GARDNER observed that the assistance program
should elevate the elderly and low income seniors above the
poverty level.
REPRESENTATIVE HAWKER opined that the state can not guarantee
every resident a certain lifestyle.
4:29:47 PM
REPRESENTATIVE SEATON expressed his appreciation of the fact
that a previously qualified senior will not need to re-apply for
this program. He then asked for the definition of state
residency.
REPRESENTATIVE HAWKER acknowledged that state residency is not
stipulated in this bill, but that residency has an ubiquitous
definition within the entire public assistance arena.
REPRESENTATIVE SEATON clarified that the intention of HB 198 is
to not require residency, although residency is required to
receive an Alaska Permanent Fund dividend.
REPRESENTATIVE HAWKER confirmed that there is no intent to
include restrictive residency requirements in this bill.
4:31:57 PM
REPRESENTATIVE SEATON recalled that when the senior care program
was first passed, the sunset date was intended to coordinate
with a federal senior program.
REPRESENTATIVE HAWKER agreed that, in the original concept of
the senior care program, there was an intent to coordinate with
a senior federal prescription drug benefit program, but neither
prescription drug program has been successful.
CHAIR WILSON added that only 140 people applied.
4:33:50 PM
FRANK APPEL, Chair, Alaska Commission on Aging, stated his
commission's support for HB 198. He said that low income
seniors struggle to pay for food and heating fuel. Cash
assistance, based on income, will enable seniors to continue to
live independently. The Alaska Commission on Aging reviewed the
bill and suggested that the legislature consider increasing the
eligibility to 135 percent of the poverty level. Nevertheless,
he said that the commission requests the committee's support of
HB 198.
4:35:42 PM
RALPH C. HUNT, Member, Pioneers of Alaska, stated his support
for HB 198, and said that, although he would not be in need
without this bill, many people would benefit from its passage.
4:36:43 PM
PAT LEVY, Advocacy Director, American Association of Retired
Persons (AARP), Alaska, informed the committee that the AARP's
policy, set by the board of directors, supports government
assistance to those most in need. He suggested that HB 198 is
better public policy than the restoration of the longevity
bonus. The bill also addresses the needs of older Alaskans
between the ages of 65 and 75, who do not quality for the
longevity bonus. Mr. Levy expressed AARP's concern that cash
payments may not be enough to keep seniors out of nursing homes.
Therefore, support for services such as, Meals on Wheels, adult
day care, and the Keep the Elders at Home Initiative must
continue. He suggested increasing the eligibility to 150
percent or 175 percent of the poverty level, if possible. In
response to Representative Gardner's question, he opined that HB
198 will bring the seniors with the lowest income above the
poverty level. Mr. Levy concluded by saying that HB 198 is a
very good public policy program.
4:39:53 PM
MARIE DARLIN, Coordinator, Capital City Task Force, American
Association of Retired Persons (AARP), Alaska, spoke of the
older residents who will benefit from the passage of HB 198.
She said that lower income older people in Alaska fall into
three categories: people who worked for low wages, often at two
jobs, but never accumulated much and they come to age 65 with
minimum social security; people in remote Alaska, especially
those with subsistence lifestyles, who never saw much cash when
they were young and do not have much cash as elders; older
people, especially older women, who saved their whole life but,
usually because of health care costs, often for a terminally ill
spouse, used their savings to pay for health care, and find
themselves at a lower income after retirement. Ms. Darlin
opined that HB 198 is designed to help those who need it the
most and is good public policy that will help many older
Alaskans deal with circumstances beyond their control.
4:42:08 PM
JAMES CARROLL, Member, Juneau Retired Teachers Association,
expressed his organization's support for HB 198. However, he
requested that the longevity bonus program be kept on the books
and not forgotten.
4:42:57 PM
Karleen Jackson, Commissioner, Department of Health & Social
Services, advised the committee that HB 198 is an enhancement to
HB 148 in that it is a needs-based program. Commissioner
Jackson said that her department supports HB 198 with the caveat
that the longevity bonus should also be considered, relaying
Governor Palin's message that "a promise made should be a
promise kept."
4:43:57 PM
CHAIR WILSON closed public testimony.
4:44:05 PM
REPRESENTATIVE FAIRCLOUGH expressed her understanding that the
fastest growing population in the state is residents over the
age of 65. She asked whether the financial analysis of the
future cost of the bill takes into consideration the growth in
the number of seniors who will qualify for the program, or if
research shows that aging residents are in a better state of
financial security than their predecessors.
REPRESENTATIVE HAWKER affirmed that demographics, stratified by
age, indicate a growing senior population. One recent study of
economic trends projected a marked increase, beginning in 2015
and continuing to 2025, of residents who will qualify for
Medicaid. By the year 2025, Medicaid enrollment may increase to
25,000 seniors. The potential growth of this program is of
serious concern and it is incumbent upon the legislature to
reassess the needs of communities and the allocation of
resources in four years. Representative Hawker expressed his
belief that the state must make an increasing commitment to
seniors to address this demographic change.
REPRESENTATIVE FAIRCLOUGH referred to the 135 percent poverty
level cap and inquired as to the financial impact of raising the
eligibility level to, for example, 150 percent. She asked
whether Representative Hawker would support an amendment that
raises the eligibility level.
REPRESENTATIVE HAWKER noted that 135 percent of poverty level is
the eligibility cap for the current Senior Care Program. He
reiterated that HB 198 increases the eligibility of many seniors
by the removal of the assets test. However, moving the
eligibility cap up, in addition, makes predicting the financial
costs of the bill speculative. For example, moving to the [150
percent] level increases the cost of the program to $18 million,
and a cap of 175 percent would increase the cost to $20 million.
He agreed that it would be good to explore the tolerance of the
legislature for increasing the fiscal note, but he cautioned
against increasing the cap by a committee amendment at this time
without further research.
4:51:06 PM
REPRESENTATIVE FAIRCLOUGH stated her support for the bill and
acknowledged the probability of further examination of the
eligibility level by the finance committee.
4:51:29 PM
CHAIR WILSON pointed out that the needs of seniors are great and
she also encouraged the sponsor to look at raising the
eligibility cap.
4:51:59 PM
REPRESENTATIVE SEATON expressed his support of the fact that HB
189 does not tie eligibility to a fixed number and, therefore,
eligibility will increase as the poverty guideline increases.
4:52:30 PM
REPRESENTATIVE HAWKER affirmed that the previous program did not
allow annual adjustments of the poverty level. HB 189 will
specifically allow the guidelines to move with the annual
adjustments issued by the federal government.
CHAIR WILSON provided an example of why that is important.
4:53:31 PM
REPRESENTATIVE SEATON moved to report HB 198 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objections, HB 198 was reported from the
House Health, Education and Social Services Standing Committee.
ADJOURNMENT
There being no further business before the committee, the House
Health, Education and Social Services Standing Committee meeting
was adjourned at 4:54:20 PM.
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