Legislature(1999 - 2000)
04/08/1999 06:06 PM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 8, 1999
6:06 PM
TAPES
SFC-99 # 83, Side A and Side B
CALL TO ORDER
Co-Chair John Torgerson convened the meeting at
approximately 6:06 PM.
PRESENT
Senator John Torgerson, Senator Sean Parnell, Senator Randy
Phillips, Senator Loren Leman, Senator Gary Wilken, Senator
Al Adams and Senator Lyda Green were present when the
meeting convened. Senator Pete Kelly and Senator Dave
Donley arrived shortly thereafter.
Also Attending:
SENATOR MIKE MILLER; ALISON ELGEE, Deputy Commissioner,
Department of Administration; JANET CLARKE, Director,
Division of Administrative Services, Department of Health
and Social Services; GINA MACDONALD, Special Projects
Coordinator, Division of Mental Health and Developmental
Disabilities, Department of Health and Social Services;
Attending via Teleconference: From Anchorage: KAY BURROWS,
Director, Division of Senior Services, Department of
Administration; DWIGHT BECKER, Protective Services
Coordinator, Division of Senior Services, Department of
Administration; From Fairbanks: JEFF JESSIE, Executive
Director, Alaska Mental Health Trust Authority; MONTA FAYE
LANE, President, Alaska Caregivers Association; LESTER
WESTLING and CATHY WESTLING, Owners, Downtown Care.
SUMMARY INFORMATION
SB 73-ASSISTED LIVING FACILITIES
The committee heard testimony from the sponsor, the
Department of Administration, the Department of Health and
Social Services and the Mental Health Trust Authority and
members of the public. The bill was held in committee.
SB 111-PIONEERS HOME RECEIPTS
The committee heard testimony from the sponsor, the
Department of Administration and a member of the public.
The bill was held in committee.
SJR 9-CONST. AM: WAYS AND MEANS BILLS
Senator Dave Donley handed out a proposed committee
substitute and a memo from the Division of Legal Services
for the member's consideration. There was discussion on
the CS. The bill was held in committee.
CS FOR SENATE BILL NO. 73(HES)
"An Act relating to assisted living homes; and
providing for an effective date."
SENATOR MIKE MILLER, sponsor of the bill, testified. He
told the committee the main purpose of the bill was to
increase the daily rate paid to the "mom and pop"
facilities around the state that provided a place for
adults that could not provide for their own safety, medical
or emotional and personal care needs. Currently in the
Anchorage area, the state paid the facilities $30 per day
to take care of these adults.
He told of how he became aware of the services the
facilities provided. He spoke of his father's experience
with Alzheimer's disease. His family was able to place him
in a home in the family hometown of North Pole rather then
sending him to the Fairbanks Pioneers Home. While his
family paid privately for the care, he saw first-hand the
services that were provided. The care was good and
provided inexpensively in comparison to other types of care
provided by the Denali Center or a pioneer's home. However,
he felt the state reimbursement rate of $30 per day was
inadequate. Like it or not, Alaska's population was growing
older and there would be more people in these types of
situations. In his opinion, the assisted living homes were
a very cost-effective way to deal with some of the problems
that the state would be faced with in the future. He would
recommend this type of care to others in his situation.
He was sensitive to the fiscal situation in the state. He
noted a rate structure report, released this year, which
stated that assisted living facilities should receive $70-
75 per day. He structured the bill in a three-step phase
that graduated the rate over three years. The rate would
raise to $50 the first year, $75 the second year and $100
the third year.
He believed the facilities provided a good service and if
the state did not raise the rates, many of the facilities
would leave the market. It would then have a negative
impact to the budget because the patients would have to go
to the nursing homes and hospitals at a much higher rate
than what was proposed here. The committee needed to make a
decision whether the facilities should be kept in
operation.
He had the departments break down the fiscal notes in two
different ways. One included a geographic differential and
the other did not. He recommended maintaining the program
with the geographic differences in the rate system. Homes
in Barrow and Kotzebue, for example, would receive higher
compensation than those located in Anchorage. He felt that
was fair. The other fiscal notes were submitted for the
committee's consideration, should it choose to forgo the
differential.
Senator Randy Phillips asked if this would only apply to
licensed assisted living facilities. Senator Mike Miller
was not sure but thought it was because it would only apply
to those facilities that received state-assisted patients.
Senator Loren Leman wanted to know about the geographical
differential and didn't see the numbers listed in the bill
although he did see those reflected in the fiscal note.
Senator Mike Miller deferred to the department. Senator
Loren Leman noticed that the rate for Fairbanks was 15
percent higher. Senator Mike Miller agreed that was correct
and noted the other areas with higher rates. He did not
establish that structure and again deferred to the
department.
Senator Loren Leman then asked about doing only two steps
going up to $75 and then reaching $100 in future
legislation. Senator Mike Miller responded that was a
policy call for the committee. However, he stressed the
rates had not been raised in 15 years and felt the reality
was that the matter would not be addressed again before
another 15 years. He believed that by the third year of the
implementation when the rate would be $100, that would be
the actual recommended compensation amount.
Senator Gary Wilken appreciated the committee hearing the
bill and Senator Mike Miller for sponsoring the
legislation. Senator Gary Wilken said one of the
recommendations of the Long-Term Care Task Force was to
keep the elderly in home environments for as long as
possible and this legislation would help accomplish that.
KAY BURROWS, Director, Division of Senior Services,
Department of Administration, testified via teleconference
from Anchorage in support of the bill. She told the
committee there were Alaskans who spent their adult lives
being the best they could be and where now vulnerable,
alone and at-risk for illness, disability and homelessness.
There were also Alaskans willing to help those fellow
citizens; to provide a home, caring, hope and a chance for
a loving, caring environment where Alaskans could age with
day to day peace. The State Of Alaska needed to help those
Alaskans to find each other and to make it work. This bill
would do that. Most could pay their own way and only
needed help finding each other. Some needed the help
Medicaid provided. However, this bill related to those who
were not able to get Medicaid support immediately or were
too vulnerable to wait the system out before their world
disintegrated into terror, homelessness and despair.
Alaskans who provided those services needed a living wage.
That was what this bill was about. The rate had not changed
since 1986. However, the care needs had greatly increased.
The facilities were now able to care for people in assisted
living homes with much higher needs than before. The
patient's choice was to not live in a nursing home. The
state as public funders should be not to have them in a
nursing home if at all possible.
There had been a significant industry growth in assisted
living facilities. Since 1996, the Division of Senior
Services had seen these homes grow in number from
approximately 65 to 95 licensed homes today. There were 90
to 100 adults each month that would be covered under this
bill. Thirty-eight percent had Alzheimer's disease, 12
percent had other mental illnesses, six percent were adults
with developmental disabilities, 12 percent were chronic
alcoholics, 32 percent were physically disabled or were
vulnerable adults who would be on the street otherwise.
Seventy percent were over the age of 60. Most of them
received this type of general relief funding for one year
or less until other parts of the system could take care of
them. These were truly the most needy.
She referred to the rate study, which was funded by the
Alaska Mental Health Trust Authority and done by the
nationally known Assisted Living Training Institute. The
study reported that 33 homes provided actual financial
information; 20 percent of those were from the Division of
Mental Health. Those figures built the rate the division
believed to be appropriate. The study also showed that the
current rate if it only adjusted 1986 rate for inflation,
the cost of living and social security, would be $68.
Actual costs were $73 per day with higher costs for those
needing extra assistance.
The study had other recommendation, which the division
planned to follow up with regulations. They included
increased training and education requirements for assisted
living administration and staff. The division also planned
to look at separate and additional standards for those
homes that housed 15 and fewer patients and those that
housed 16 and over. The division was very supportive of
this bill.
Senator Loren Leman had a question on the fiscal notes and
wanted to know the source of the geographic differential
factors. He was specifically interested in the Kenai
Peninsula.
DWIGHT BECKER, Protective Services Coordinator, Division of
Senior Services, Department of Administration, testified
via teleconference from Anchorage. He explained the
geographic differential rates were currently in the
Department of Health and Social Services regulations, which
the Department of Administration had been following to
apply to the administration of general medical relief. The
Kenai Peninsula fell within the SouthCentral region, which
had an index of one. There was currently no increase for
that area. He detailed the index breakdown and the
different rates for each area of the state.
The index was consistent with the pay rates for state
service and also for Medicaid rates.
Senator Loren Leman wanted to know how long ago the rates
were revised. Dwight Becker said the last major change to
the general relief regulations was made in 1983 but that
other studies and adjustments were done since then.
Senator Loren Leman felt they did not reflect studies the
committee had seen.
ALISON ELGEE, Deputy Commissioner, Department of
Administration responded to Senator Loren Leman's question.
While they were developed in regulation several years ago,
they were directly tied to differential from AS 39 that
applied to revenue sharing and determined the state
employee pay rates. Co-Chair John Torgerson added
education as well.
Senator Loren Leman asked if the department felt it was
time to analyze those. Alison Elgee replied they did think
it was appropriate and had introduces prior legislation to
amend the schedule for pay differentials. However she felt
that continued differential rates for the rural areas was
necessary to foster the assisted living industry.
Senator Loren Leman was aware of that past legislation and
wanted to ensure consistency. Alison Elgee said the
geographic differential was not in statute but in
regulation and department would revise those regulations
with the passage of this bill.
Co-Chair John Torgerson was concerned with the fiscal note.
Were the only funds available general funds, or could
federal funds or other sources be utilized? Alison Elgee
replied that the program would assist those who were in the
process of qualifying for Medicaid or other assistance.
There were others who would never qualify for Medicaid
because they would never require full nursing home care.
The department pushed the Medicaid process as rapidly as
possible. The department also required patients to utilize
their own resources first. Many of the clientele
represented here were covered by adult public assistance
and social security payments. SSI and APA payments would
cover most of the $30 per day rate and the division only
made up the difference. The Division of Senior Services
budgeted $400,000 to augment the rate to make up the
difference. She explained that was why the fiscal note was
disproportionately higher than the underlying cost of the
present program.
Co-Chair John Torgerson referred to Section 6 that stated
if there was not enough funds for the entire program, the
division would establish by regulation a pro-rata payment
system. However, the other sections dictated that the rate
could never go below $50. Alison Elgee explained there were
two rates, the base rate and the augmented rate. The
augmented rate was designed to pay up to $22 but was very
specific in terms of the needs of the individual that was
treated and was negotiated with the provider. Section 6
allowed for changes to the augmented portion of the rate
only.
Co-Chair John Torgerson asked if this would take away the
department's ability to pro-rate funding if the full
appropriation was not granted to the program. Alison Elgee
believed the intention of the program was to keep the base
rate intact without pro-ration.
JEFF JESSIE, Executive Director, Alaska Mental Health Trust
Authority, testified via teleconference from Fairbanks in
support of the bill. This bill was a high priority for the
trustees. Having funded the rate study and looked at the
information supplied by the Commission on Aging, the Trust
believed that this was an essential component of a long-
term strategy to meet the growing needs of a variety of the
Trust's beneficiaries in the coming millenium.
The elderly population in Alaska was the largest growing
segment. Fully 50 percent of those individuals over the age
of 85 had some degree of Alzheimer's disease or related
dementia.
Increased demands were being placed on the pioneer homes
and other facilities to serve that population in an ever-
increasing degree. Eventually the state would exceed the
capacity to treat these individuals in nursing home
settings. In fact it was not the most efficient or cost
effective options of treatment nor did it meet the desire
to keep people in their homes and in their home communities
for as long as possible.
The trustees had already authorized the expenditure of $
300,000 in Mental Health authorized receipts for FY00 to
assist in the transition to the higher rates. This was not
reflected in the information provided to the committee. The
Trustee's made it clear they were willing to put their
money were their mouth was. They were working closely with
Senator Pete Kelly, the subcommittee chair for the
Department of Health and Social Services budget who was
working with the Trust on the mental health budget bill.
They believed in the long run, this was a cost effective
Co-Chair John Torgerson asked if the $300,000 commitment
was only for one year. Jeff Jessee said the authorization
was currently only for FY00.
Senator Lyda Green wanted to know if that was in addition
to the funds listed in the fiscal note. Jeff Jessee
guessed it was to augment those amounts. Kay Burrows
confirmed that.
Co-Chair John Torgerson clarified that was for the
Department of Health and Social Services, Community Mental
Health Grant fiscal note. Kay Burrows believed the
$300,000 was put into the budget for the Division of Social
Services portion. Jeff Jessee added that the intent of the
trust authority was to support the bill. It was not
important to them which division in particular the funds
went to since they both served the clients.
GINA MACDONALD, Special Projects Coordinator, Division of
Mental Health and Developmental Disabilities, Department of
Health and Social Services, came to the table to explain
that the $300,000 was not currently included in the fiscal
note. It was not important to the department which agency
the funds went to either.
Co-Chair John Torgerson clarified that there were two
fiscal notes, one for Department of Health and Social
Services and the other for Department of Administration.
Gina MacDonald detailed and further explained there were
actually four fiscal notes. Two included the geographical
differential and the other two left that out.
Co-Chair John Torgerson detailed the amounts requested.
Senator Randy Phillips repeated his question of Senator
Mike Miller if this would apply to licensed assisted living
facilities only. Co-Chair John Torgerson pointed out the
language stating that is was. Senator Randy Phillips
wanted it clear on the record. Alison Elgee believed homes
housing one to three patients did not need to be licensed.
Dwight Becker confirmed that. If a non-licensed home
wished to participate, the division would assist them in
becoming licensed.
Senator Randy Phillips stated he had experience with the
non-licensed facilities.
Co-Chair John Torgerson asked if the $300,000 authorization
was currently contained in the $5.1 million figure from the
mental health bill or would he anticipate an amendment to
the bill to increase it. Jeff Jessee responded that it was
his understanding that because the $300,000 was attached to
legislation rather than the Governor's Operating Budget
that it was not currently in the budget bill. However, the
trust authority had obligated the funds.
Co-Chair John Torgerson agreed that if the committee had a
fiscal note before it; they could quantify the details.
MONTA FAYE LANE, President, Alaska Caregivers Association
and owner of two assisted living homes in North Pole,
testified via teleconference from Fairbanks in support of
the bill. She spoke to the services the caregivers
provided. They did all the hands-on care and they needed to
earn a living wage. She did not know where the committee
would find all the money needed for the change, but urged
the members to do so because the State Of Alaska really
needed the assisted living homes. She thanked the committee
for their efforts.
She felt the increase should be $70 per day with the
geographical differential because the cost of electricity,
fuel and food in the Interior, the Northern region and the
Western region. She said that if the homes could not afford
to operate, they would close and the patients would need to
be housed in more expensive nursing home facilities.
She told the committee about the Mary Conrad Assisted
Living Home Center in Anchorage that had raised its base
rates to $295 per day. The rates were higher for those
patients requiring extra care. The monthly rates for these
services were between $9000 and $10,000.
She compared that rate to the Denali Care Center of $345
per day and the hospital rate of $1335 per day.
She earned $34.50 per day for a general relief client. She
had an indigent patient suffering from chronic alcoholism
and yet received none of the $21 million alcohol treatment
funds the state issued. She had another mental health
patient for whom she received only $700 per month - less
than $34.50 per day. She could not evict the patient
because he had no where else to go.
She thanked the committee.
Senator Randy Phillips commented that there was a member of
the committee who worked in and around assisted living
facilities.
LESTER WESTLING, testified via teleconference from
Fairbanks in support of the legislation and the geographic
differential. He thanked the Mental Health Trust Authority
for offering to assist in the funding. He talked about the
benefits of assisted living services and the functions they
performed. The savings to the State of Alaska would be
exponential because of the ability to care for patients
without the need for doctors, nurses and pharmacies on
site.
He stressed that the facilities could not pay employees a
competitive wage. They could not offer benefits either,
which he felt would keep turnover down. "Please help
stabilize our businesses because we're here for you." He
said he didn't want to see homes shut down because they
could not afford to do business or people being warehoused
because they did not have the funds necessary to pay the
rate needed to live in assisted living homes.
CATHY WESTLING, owner of Downtown Care, testified via
teleconference from Fairbanks in support of the bill. She
was greatly concerned with mental illness and alcoholism in
Alaska. The state needed to be very proactive. She spoke of
the difficulties in dealing with alcoholics and their
related behavior problems.
The employees could not be paid well or receive benefits.
There was not a lot of community support. Their only reward
was the feeling of doing something that was good. They saw
very few patients who were financially self-sufficient.
Those that did have funds, ran out after a short period of
time.
Co-Chair John Torgerson ordered the bill held in committee
so the members could work with Jeff Jessee and the sponsor
on the funding issue.
Tape: SFC - 99 #83, Side B 6:54 PM
Break 6:54PM / 7:00PM
SENATE BILL NO. 111
"An Act designating certain Pioneers' Home receipts as
program receipts, appropriations of which are not made
from the unrestricted general fund; and providing for
an effective date."
Senator Gary Wilken, sponsor of the bill, testified. He
told the committee he had come to learn that designated
receipts roped off monies that were put into the general
fund and showed intent that the Legislature would spend
those monies in certain areas. From a cost-accountant
standpoint, he liked the theory that the cost-causer was
the cost payer. This legislation, as similar legislation in
the past, would add set up designated receipts for Pioneer
Homes receipts.
If there was one type of receipts that should be designated
for state services was the Pioneer Home receipts, he
stressed. The people who used the pioneer homes essentially
divorced themselves from all other state services other
than the pioneer home itself. When a resident paid for
those services, he or she had the right to expect that
those monies be spent on their care.
He gave a history of the pioneer homes. They were in the
fourth of a seven-year rapid-ramp program to pay for their
own costs. He pointed out to committee members, a schedule
showing that the homes would be self-supported for those
patients who could afford it. He stressed that this was a
steep ramp. He gave an example of his two parents living in
the Fairbanks Pioneer Home. The services were not cheap;
his parents wrote a check for $6125 per month. Starting in
July 1999, the fee will rise to $7480. That will be a 22
percent increase. By the time the program is fully
implemented, his family will have to pay $11,515 per month.
He stressed that the care his parent's receive was
excellent and he did not oppose the high costs. He did
have concerns that any part of his parent's payment could
be used for other state services such as road repairs. He
wanted those funds to only pay for the care of residents in
the pioneer homes.
He noted the requirements for care in the pioneer homes was
changing. The need for an increased number of caregivers
was increasing and therefore the pioneer home dollars were
precious.
He concluded by saying, this was the time to rope off that
money and show the Legislature's intent that the cost
payers were the cost providers and that those in the
pioneers homes deserved 100 percent benefit of their
payments.
Senator Lyda Green asked for explanation of the
Legislature's role with this money as it was done currently
and if the bill were adopted into law. Senator Gary Wilken
compared this to Item #2 of the bill, listing University of
Alaska receipts. Those receipts were from tuition receipts
and were designated as University of Alaska monies unless
the Legislature intervened.
Co-Chair John Torgerson clarified that the money could only
be spent in the category in which it was designated to be
spent. It was still subject to the power of appropriation
by the Legislature, but could not be appropriated for
another category. This bill would designate that the
pioneer home receipts could only be spent for pioneer home
programs. The funds would still have to be appropriated.
If the Legislature appropriated a lesser amount than was
collected, the balance would remain as a designated receipt
for the pioneer homes.
Senator Lyda Green went back to an earlier conversation on
the FY99 supplemental budget request relating to the
additional Certified Nursing Assistants positions that
would be funded with the increased fees. It was said that
would be awkward because previous funding had been from a
different source for other employees. She wanted to know
if this was an attempt to solve that problem, or would this
leave the Legislature out of the loop on decisions to add
new positions.
Co-Chair John Torgerson responded that the Legislature
would still be in the loop. The total budget for the
pioneer homes was $33 million so this amount was just a
portion.
Senator Sean Parnell explained the dispute on the
supplemental budget matter and how this situation was
different. The existing CAN positions were funded with
general funds and the proposed positions would have been
funded with program receipts. This legislation would treat
the program receipts as one category. He stated that this
was a good policy call because $12 million would be moved
from what was considered general fund spending. There were
many revenue or enterprise type activities throughout state
government such as the University of Alaska that were
already treated that way. At this point, he was not ready
to support the bill but felt there should be discussion as
to how these funds should be treated.
Senator Lyda Green was uncomfortable with this bill.
Senator Dave Donley suggested the Division of Insurance
should be included in the designated receipts category
because if was difficult to do their budget. He had that
budget in the past. He detailed the problem where the
companies actually paid for the services provided, but the
receipts were shown as general fund. It didn't make sense
to take cuts to that program because that would just reduce
the service to the companies who had paid for it. He spoke
of the pressure to cut general funds but felt this process
was not successful.
Senator Randy Phillips stated it in more simplistic terms
saying that the constitution prohibited the Legislature
from dedicating funds unless otherwise authorized by the
constitution. Most of the programs listed in the bill were
nothing but a "white picket fence."
Senator Lyda Green asked if Senator Dave Donley's
distinction for the Division of Insurance was for the
program receipts to fully pay for the entire division. She
warned that other departments such as Department of Natural
Resources and the Division of Motor Vehicles would then be
claiming they were entitled to collect all of their
revenues and the state would be unable to fund other
functions.
Co-Chair John Torgerson agreed and stated that was the
purpose of this discussion
Senator Gary Wilken pointed out that three out of four
patients in the pioneer homes paid for their care
themselves. From the time they moved into the home, they
did not go outside the home to use any other state
services. He felt it was easy to distinguish between their
needs and their draw on state services. He also stressed to
Senator Randy Phillips that the constitution spoke to
dedicated funds and the bill was for designated funds as
mentioned. Senator Randy Phillips commented that this was
a public policy technique.
Senator Dave Donley said the Division of Insurance used to
participate in the designated receipts but was removed
because the programs generated more money then they spent.
He felt it was unfair that the programs that made money
were penalized while the programs that under-generated were
given the designated receipts. He didn't have a solution
but wanted to see one that treated the groups that over-
generated fairer and give them the same degree of
protection as those that under-generated.
Co-Chair John Torgerson said the matter had been debated at
one time as seen in the changes to the statutes. He noted
that group insurance programs were included but that other
insurance programs were not. He didn't know of any of the
programs designated that were 100 percent funded with
program receipts.
Senator Al Adams moved for adoption of Amendment #1. Co-
Chair John Torgerson objected for discussion. Senator Al
Adams spoke to his motion saying it was not a new idea.
This amendment would designate housing receipts as well. It
would consolidate all housing programs including the
pioneer homes care and support. He provided a table that
showed the other housing receipts. He noted other programs
participating in the designated receipts method as
Department of Fish and Game, Department of Transportation
and Public Utilities and Department of Public Safety and
the amounts that would change funding categories.
The state could use the funding for maintenance and upkeep
and other operations of all those facilities.
Senator Randy Phillips asked if there would be a general
discussion on the white picket fences first. If so, he had
an amendment to offer. He did not have one prepared, but
would draft one.
Co-Chair John Torgerson said the bill would not be reported
from committee this meeting. If there were other
amendments, they could be submitted later.
Senator Al Adams did not mind if the amendment was voted
down. He did feel the legislation was important and should
not be jeopardized.
Co-Chair John Torgerson thanked Senator Al Adams. He felt
the matter was a policy call and needed to be addressed.
He would also have some amendments to offer.
Senator Al Adams withdrew his motion to adopt Amendment #1.
There was no objection and it was so ordered.
Senator Dave Donley thought the amendment had merit. He
wanted to broaden the discussion to add other programs. He
also wanted to hear how the sponsor felt about broadening
the scope of the bill.
Senator Gary Wilken had considered other options when
drafting the bill, but felt the pioneers home issue was
most important. He had concerns with adding other items
that could potentially cloud the issue. It was his desire
to keep the bill clean.
Alison Elgee, Deputy Commissioner, Department of
Administration, testified in support of the bill.
She added to the history of the pioneer home funding
program. When the Pioneer Home Advisory Board made the
decision to approach a seven-year ramp up to full cost of
care in 1995, they were looking at three primary
motivations. At that time there was consideration of
legislation that would have privatized the homes. The
board also felt that there was considerable inequity in the
long-term care market. The people who were not fortunate
enough to get into a pioneer home were being asked to bear
the full cost of care in whatever facility that they did
find while those who did get into a pioneer home were
getting a tremendous deal. The third reason, and probably
the most important to the board, was the fact that with the
changing mission, they recognized that they was going to be
a need to increase the dollars available to the pioneer
home program to provide additional staffing.
At the time the first rate increase went into effect in
July 1, the pioneer homes were generating approximately $5
million in program receipts. In the current year, they
generated almost $10 million in program receipts. That $5
million increase was used to offset former general fund
appropriations. In point of fact, it reflected a $5
million general fund cost that was previously part of the
pioneer home budget that was now being supported by the
users of the pioneer home system.
The fiscal note did not show the proposal before the
Legislature to increase the program by $2.367 million. The
department estimated that additional money to be the amount
generated by the increased fees between FY 99 and FY00. The
money would still have to be appropriated by the
Legislature. It would be the Legislature's decision whether
it came in as an increased allotment for spending or
continued to supplant general funds that support the
program.
The change to pioneer home revenues to designated program
receipts would allow the Legislature to recognize those
revenues as new revenues that were not taking away from
other general fund program opportunities. It would also
demonstrate the increased support by the residents of the
pioneer homes programs.
She added that it was tough emotionally for the board to
implement their plan of continuing to raise the rates.
Both the Administration and the board believed it was
necessary that the pioneer homes move to a full cost of
care. However, to address the residents who were concerned
about their own financial ability to pay the higher rates
and not be able to demonstrate improvements in the pioneer
home services as a result of those increases had been
difficult.
She concluded saying the department supported the bill
because they believed it accurately reflected the efforts
in the program to increase the revenues available other
than basic general fund resources.
Lester Westling testified via teleconference from
Fairbanks. He wanted to bring to the attention of the
committee that the pioneers homes were also assisted living
facilities. He was unfamiliar with the bill. He heard the
same concerns stressed that there was a need to compensate
those who provided assisted living to seniors.
Senator Randy Phillips explained the bill to the witness as
a potential Christmas Tree. He had another agency he
wished to add to the list of designated program receipts.
He wanted the witness to understand that.
Co-Chair John Torgerson ordered the bill held in committee.
He announced the schedule for the next meeting Friday, 8:00
AM to hear SB 93. The 6:00PM meeting scheduled for Friday
was cancelled. The scheduled Saturday meeting would still
be held.
SENATE JOINT RESOLUTION NO. 9
Proposing amendments to the Constitution of the State
of Alaska relating to ways and means bills.
Senator Dave Donley handed out to committee members
information for consideration. [No copies were made
available to the Senate Finance Committee Secretary for the
official record - see minutes from the April 9, 1999
meeting.]
He told the committee he had been working with Tam Cook,
Legal Council, Legal Services, Legislative Affairs Agency,
to find a way to allow the Governor some flexibility to do
line item veto on a ways and means bill as suggested by
Senator Al Adams. Senator Dave Donley had an amendment
drafted, which he thought could do that. He and Tam Cook
had come up with a plan that would allow the Governor to
veto a certain part of a ways and means bill, but could not
delete individual words to change the intent of the bill.
He detailed the changes to the drafting manual that would
accomplish this.
ADJOURNED
Senator Torgerson adjourned the meeting at 7:29 PM.
SFC-99 (1) 4/8/99
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