Legislature(1997 - 1998)
04/23/1998 08:50 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES SENATE FINANCE COMMITTEE 23 April 1998 8:50 a.m. TAPES SFC-98, #137, Side A CALL TO ORDER Senator Drue Pearce, Co-chair, convened the meeting at approximately 8:50 a.m. PRESENT In addition to Co-chair Pearce, Senators Sharp, Phillips, Torgerson and Parnell were present when the meeting was convened. Senators Adams and Donley arrived shortly thereafter. ALSO ATTENDING: NANCY SLAGLE, Director, Division of Administrative Services, Department of Transportation and Public Facilities; KURT PARKAN, Deputy Commissioner, Department of Transportation and Public Facilities; DENNIS POSHARD, Legislative Liaison, Office of the Commissioner, Department of Transportation and Public Facilities; WENDY REDMOND, University of Alaska; ELLEN NORTHRUP, Executive Director, Glory Hole, Juneau, Alaska; JANET CLARKE, Director, Division of Administrative Services, Department of Health and Social Services; WALTER MAJOROS; Director, Alaska Mental Health Board, Department of Health and Social Services; NICO BUS, Administrative Services Manager, Division of Support Services, Department of Natural Resources; CHRIS CHRISTENSEN, Staff Counsel, Alaska Court System; LAURIE HUGENIN, Director, Alaska Network on Domestic Violence and Sexual Assault; MIKE GREANY, Director, Division of Legislative Finance; JIM HAUCK, fiscal analyst, Division of Legislative Finance; DAVE TONKOVICH, fiscal analyst, Division of Legislative Finance; and aides to committee members and other members of the Legislature. VIA TELECONFERENCE: ROSE HEYANO, TERRY HOEFFERLY, KAY BRANCH, PETE ANDREW from Dillingham; and BOB JUETTNER from Anchorage. SUMMARY INFORMATION SENATE BILL NO. 229 "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17c, Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." SENATE BILL NO. 230 "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." Senator Pearce convened the meeting and advised that the committee would continue the Department of Transportation and Public Facilities budget closeout. Senator Torgerson said the subcommittee for Department of Transportation and Public Facilities was comprised of himself as chair, Senators Taylor and Hoffman. He explained included in the budget close-out was the elimination of the Assistant Commissioner in the Southeast Region Engineering component, the elimination of the Project Coordinator in Seattle, the elimination of Naval Architect, reduction in advertising and reservations, marketing funds increase of $67,000, reduce personal services in the marine vessel component show operations by $31,000, reduce the longshoring component back to FY 98 levels, food supply to FY '98 levels, and take off the lay up costs in Bellingham, which was taken out last year. The department was advised to lay up in Alaska. This would bring the total closeout of the department somewhere around $900,000 under the target. He noted they did not get to the reduction for the one-time items taken out of the Northern and Central Regions and so there was an approximate $128,000 amendment to reduce this. There was also an amendment needed for the front section. Senator Torgerson MOVED the balance of the Department of Transportation and Public Facilities closeout budget report be incorporated into the working document of SB 229 and SB 230. Senator Adams OBJECTED. He said he would like a response by the department regarding the presentation made by Senator Torgerson. NANCY SLAGLE, Director, Division of Administrative Services, Department of Transportation and Public Facilities was invited to join the committee. She said a response to the reductions by the subcommittee had been provided in a memo dated 17 April 1998. The reduction would eliminate an Assistant Commissioner position, which was in the process of being re-classified to a Director. This was an oversight position for construction, maintenance and operations in the Southeast Region. It was similar in ranking as to what is in the other two regions and would definitely have an impact in the department's ability to provide oversight. The other reductions were in the Marine Highway System, most of which were results of the department moving monies within the system to accommodate some increased needs or to reflect what the budgetary needs actually were. KURT PARKAN, Deputy Commissioner, Department of Transportation and Public Facilities was invited to join the committee. He said the department was preparing an impact statement on the remaining reductions and it would be available in a short while for the committee. Senator Adams advised Co-chair Pearce that he maintained his objection as he had not had ample time to review the financial statement and impact statement. Co-chair Pearce asked for a roll call vote, noting the objection of Senator Adams. By a roll call vote of 6 yeas (Pearce, Sharp, Donley, Torgerson, Parnell, Phillips) and 1 nay (Adams) the remainder of the Department of Transportation and Public Facilities subcommittee budget was adopted into the budget document. (Senator Pearce introduced guest page, Charnella Jones, 5th grade, from Auke Bay Elementary School. Charnella was invited as a guest page to the Senate Floor session following the Senate Finance Committee meeting.) (A brief at ease followed from approximately 8:57 a.m. until 9:05 a.m.) Co-chair Pearce reconvened the Senate Finance Committee and noted all members were present. She explained the schedule for public testimony on the budget. ELLEN NORTHRUP, Executive Director, Glory Hole, Juneau, Alaska was invited to join the committee. She explained that she represented the poor of Juneau in dealing with thousands of individuals way below the poverty line on a daily basis. She has eight years experience in her present position and previously twenty years experience dealing with poor and dysfunctional prisoners. She agreed that some of the budget cuts have been good, but others not so good. Ms. Northrup explained that at least one-third of her clientele are mentally ill or so dysfunctional they cannot participate in any "normal" life. Specifically she noted during the past year she had four guests at the Glory Hole with severe medical emergencies, which were not abortion-related. She also spoke on behalf of Dan Austin, Director, St. Vincent de Paul. Presently in the family shelter at St. Vincent's they are caring for a severely diabetic client. If they could not be cared for at St. Vincent's she did not know what would happen to this woman. She asked the committee to consider carefully before making any medical program related cuts. Senator Phillips asked what program specifically did Ms. Northrup testify to. Co-chair Pearce clarified that it was general medical relief program. Ms. Northrup said this was the only program to help out the poor. Natives could go to SEARHC but others were just out of luck. All lives are worth saving. WALTER MAJOROS, Executive Director, Alaska Mental Health Board, Department of Health and Social Services was invited to join the committee. He said his testimony was also to the general relief medical program and urged the committee to reinstate the necessary funding. He explained the impact on mental health beneficiaries. He said this funding was targeted specifically for the most medically needy individuals, the poorest and sickest Alaskans, who have no other health care options besides uncompensated care. There are stringent criteria for eligibility, including having no more than $300/month income and less than $500 in personal resources, nor can the individual be Medicaid eligible. Services provided under this program are primarily emergency medical services, medication and medical supplies for chronic or terminal conditions. One important area for mental health beneficiaries he identified was that the program had interim coverage for those disabled that were applying for SSI disability. This eligibility and appeal process could go on for perhaps two years. There was no other alternative for these individuals during the interim period. However, when the individual was covered under the federal program it was retroactive and there was a recoupment of the funds. It was also important for mental health patients to have their medications covered and any other medical emergencies that may arise. He did not feel that individuals should have to make a choice to use their $280/month to decide whether to purchase medications or food and urged the committee to fund the general medical relief. Otherwise more mentally ill individuals and mental health beneficiaries will end up either at Alaska Psychiatric Institute or in prison as a direct result of not having basic coverage. Some chronic conditions may become acute, therefore requiring more emergency care at hospitals. The final drastic result of not having basic coverage for acute and chronic illness available is that some individuals may die. Senator Parnell asked if there was other funding available for mental health patients not qualifying for Medicaid? Mr. Majoros said Mental Health could possibly meet their counselling needs but most programs could not meet the medical needs. He further noted that many mental health patients had serious fragile medical conditions. There being no further testimony to be taken locally, Co- chair Pearce introduced teleconference testimony. ROSE HEYANO testified via teleconference from DILLINGHAM. She supported the Dillingham Senior Housing Project listed within SB 231. Ms. Heyano indicated that her family felt that had there been closer residential facilities her mother could have lasted longer at home rather than being sent to the Mary Conrad Center. The family had cared for their mother at home as long as possible and the decision to transfer her to an Anchorage home had been a very difficult decision for them to make. At the same time her mother was transferred to the Anchorage facility so were four other individuals from her community. She felt it was more important to keep elders close to home with families. This would make their golden years more valuable to them. She felt more facilities should be available in the rural areas. TERRY HOEFFERLY, Chief of Operations for Bristol Bay Native Association testified via teleconference from DILLINGHAM. He spoke on behalf of the Dillingham Senior Services Project. He felt the cost to the State was greater when individuals were transferred to nursing homes in Anchorage as opposed to assisted living and services provided in rural communities. He said that $900,000 for an assisted living project in Dillingham could be recouped in four years via increase in Medicaid costs to the State. Co-chair Pearce announced that there would be time for Juneau residents to testify at the evening meeting beginning at 6:00 p.m. KAY BRANCH testified via teleconference from DILLINGHAM. She said she also supported the Dillingham Senior Housing Project. She said the project was a local initiative to undertake operating the facility with coordination of the hospital, the native association, the tribal council and the senior center. She further noted that other funding was also being sought, including payment by Medicaid choice waivers. Elders in Anchorage facilities have stated to her that they wished to be at home near the river where they were born. PETE ANDREW testified via teleconference from DILLINGHAM. He urged the committee to support the Dillingham Senior Housing Project. He explained for the committee that elders being transferred away from rural communities into an Anchorage facility had a life expectancy of only two months, as was the case with his father. He equated this with a death sentence. Co-chair Pearce indicated that all written testimony received would be made part of the permanent record. Senator Parnell noted many letters and press coverage regarding general medical relief. However, there had not been much notice about what the committee had done for disabilities. He pointed out for those who sent in cards from the Key Campaign that the committee was funding an additional $1.3 million for those on the wait list. This was far beyond the request of the Governor and would assist more people with developmental disabilities. Senator Phillips said he appreciated that Senator Parnell had made this issue a priority. Senator Parnell further felt that this appropriated budget went a long way in assisting the significant list of children awaiting help who have developmental disabilities. Senator Adams said the minority also appreciated the funding. However, general medical relief funding should also be included in the particular package. Senator Sharp noted that everyone realized there were some benefits that had been extended in the general relief medical program. However, he was concerned that the department was not running the program according to mandates and State statutes. Further, they gave no assurances they would consider priorities set up by statute to govern the funds. He said situations were being funded that were not on the priority listing and this was the biggest problem with this program. He would rather the money go to a program with measured results so one could see what was happening. Presently, the program is in complete chaos with no control whatsoever. BOB JUETTNER testified via teleconference from ANCHORAGE. He supported the King Cove Harbor project, which was in conjunction with the Corps of Engineer matching grant program. He explained the project would consist of building a new breakwater, dredging a base and providing moorage for fifty vessels, eighty feet in length and longer in King Cove. They have asked for a $900,000 partial matching grant. He noted they may have to come back to the Legislature at a later time for more funding, depending on how bids come out and how the cost sharing with the Corps of Engineer's will be affected. He explained that when the project was completed it would be locally owned and operated. At that time they do not expect to come back to the Legislature for additional funds. They estimate that the project will generate $1.35 million of increased revenues. Co-chair Pearce introduced the children from parents employed by the Department of Natural Resources and the Department of Military & Veterans' Affairs present in the committee room. The children were participating in the "take your children to work" day. LAURIE HUGINEN, Director, Alaska Network on Domestic Violence and Sexual Assault was invited to join the committee. She expressed the Network's appreciation to the Department of Public Safety subcommittee for maintaining funding and providing an increase for federal funding which would allow for a Victims' Service Coordinator through the Department of Corrections. She also noted additional money for grants for Victims' Services and an increase to the Violent Crimes Compensation Board. Ms. Huginen further commented that she hoped the committee would restore some of the funding to the general relief medical program. She felt it was important that Alaska, as a community, do what could be done to provide at least basics and medical for those who could not. Co-chair Pearce reminded the committee of the evening schedule set to begin at 6:00 p.m. She said the committee would set aside fifteen minutes for Juneau folks to testify and then go directly to teleconference. ADJOURNMENT Co-chair Pearce recessed the committee at approximately 9:40 a.m. The committee will meet again at 6:00 p.m. SFC-98 -8- 4/23/98
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