Legislature(2001 - 2002)
03/01/2002 09:13 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 01, 2002
9:13 AM
TAPES
SFC-02 # 23, Side A
SFC 02 # 23, Side B
CALL TO ORDER
Co-Chair Pete Kelly convened the meeting at approximately 9:13 AM.
PRESENT
Senator Dave Donley, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Lyda Green
Senator Alan Austerman
Senator Donny Olson
Senator Lyman Hoffman
Also Attending: SENATOR BEN STEVENS; ALISON ELGEE, Department of
Administration; ELMER LINDSTROM, Deputy Commissioner, Department of
Health and Social Services; PAUL GROSSI, Director, Workers
Compensation Division, Department of Labor and Workforce
Development
Attending via Teleconference: From Anchorage: LIEUTENANT JULIA
GRIMES, Alaska State Troopers, Department of Public Safety
SUMMARY INFORMATION
SB 222-REQUIRE SLOW DRIVERS TO PULL OVER
The Committee adopted a committee substitute and moved the bill out
of Committee.
SB 266-FISHERY ENHANCEMENT LOANS
The Committee heard public testimony, and reported the bill from
Committee.
SB 182-PRO RATA REDUCTIONS IN BENEFIT PROGRAMS
The Committee heard public testimony, adopted a committee
substitute as a working draft and held the bill in Committee.
CS FOR SENATE BILL NO. 222(TRA)
"An Act relating to certain motor vehicles that are required
to yield to following traffic."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Donley stated the intent of this legislation is to
encourage slow traffic to comply with existing state regulations
requiring any vehicle traveling below the speed limit to safely
pull off the road, where feasible, when followed by five or move
vehicles. He informed the Committee that the Department of
Transportation and Public Facilities "has agreed to put up more
signage" near the Canadian border and other "critical places…to
inform the public about this legislation." He communicated there is
an accompanying fiscal note for $30,000 to cover the costs of
proposed road signage.
Co-Chair Donley informed the Committee this legislation would also
increase the fine levels for the offense, and add two points to the
offending driver's license record.
Co-Chair Donley noted that the Senate Transportation Committee
Substitute of this bill removed language from the original bill
that specified where signage would be placed.
Co-Chair Donley noted the Alaska State Troopers "exercise a lot of
discretion" when determining "when it is appropriate" to enforce
the regulation as bad weather and poor road conditions could slow
drivers down; however, the legislation "would beef up" the
requirement "to pull over."
Senator Green asked what size the proposed accompanying signage
would be.
Co-Chair Donley stated there are specific regulations regarding
highway signage.
Senator Green inquired if the signage could be considered as
billboards.
Co-Chair Donley responded they would not.
Co-Chair Donley voiced appreciation for the Department of
Transportation and Public Facilities efforts in formulizing this
legislation, and stressed the importance of signage in educating
drivers, and of having "significant" penalties as a deterrent to
violating this statute.
Co-Chair Kelly cited his experience of watching frustrated drivers
taking risks to pass slower moving vehicles. He stated this
legislation could help address the cause of the frustration;
thereby lowering the danger presented by the risk takers.
Senator Green stated this legislation might be expanded to
accommodate other highway signage.
LIEUTENANT JULIA GRIMES, Alaska State Troopers, testified via
teleconference from Anchorage to communicate that the proposed
committee substitute addresses the department's concerns. She
stressed that Alaska's roads are frustrating as there is limited
opportunity for people to safely pull off the road to allow for
others to pass. She stated the proposed signage would serve as a
reminder to drivers.
Senator Ward made a motion to move SB 222 (FIN) 22-LS0611\L out of
Committee with accompanying Department of Transportation and Public
Facilities fiscal note of $30,000.
There were no objections, and the bill MOVED from Committee.
At ease 9:26 AM / 9:27 AM
CS FOR SENATE BILL NO. 266(RES)
"An Act authorizing the commissioner of community and economic
development to refinance and extend the term of a fishery
enhancement loan."
This was the first hearing for this bill in the Senate Finance
Committee.
SENATOR BEN STEVENS, sponsor of the bill, informed the Committee
this bill would provide the Commissioner of Department of Community
and Economic Development the ability to refinance loans made by the
Fisheries Enhancement Revolving Loan Fund, and "extend the term of
a loan when justified." He continued that the Department would be
required "to submit an annual report to the Legislature summarizing
the commissioner's decisions during the prior calendar year to
approve or deny requests to extend loans."
Senator Stevens stressed, "there is no forgiveness of principle or
interest allowed under this legislation, and all payments are made
directly to the loan fund."
DAVE COBB, Business Manager for the Valdez Fisheries Development
Association (VFDA) testified via teleconference from Valdez,
voicing strong support for this bill; however, he expressed this is
"just one of many changes that must be made in Alaska if the
commercial fishing industry is to survive." He commented that the
hatchery program in Alaska has been successful, and that every
opportunity to make hatcheries more efficient and more economical
makes "good business sense." He warned that the "competitive
playing field" for Alaska fisheries has changed dramatically, and
all industries must adapt to survive in the "competitive global
market." He reiterated "this bill makes good business sense and
will have no impact on general fund dollars."
SUE ASPLUND, Executive Director, Cordova District Fishermen's
United (CDFU), testified via teleconference from Cordova, and
detailed the positive economic impact hatcheries have in the Prince
William Sound area. She stressed that this bill would result in the
immediate ability of Hatcheries to produce more fish, which "means
more fish into the nets of commercial fishermen as well as sport
fishermen." She asked the Committee for their support of this bill.
GREG WINEGAR, Director, Division of Investments, Department of
Community and Economic Development, stated this bill would provide
aquaculture associations an opportunity to refinance existing loans
to take advantage of lower interest rates. He stated it is
important to note this legislation would not "adversely impact" the
integrity of the Fisheries Enhancement Revolving Loan Fund, would
improve hatcheries financial picture, and would have no negative
impact on the Department.
JON CARTER, Director, Douglas Island Pink and Chum Hatchery (DIPAC)
testified in support of this bill. He cited the positive impacts
hatcheries have on fisheries and communities, and that this bill
"simply allows hatcheries to do good business" by offering them the
opportunity to refinance at rates lower than the current nine
percent. He stated that enabling hatcheries to remain strong and
healthy would result in a positive impact on the general fund from
increased revenue generated from State taxes on commercial fish
harvesting.
CARL ROSIER, President of the Alaska Outdoor Council, testified in
support of the bill. He stressed the positive impact hatcheries
have on recreational fishermen, and stated refinancing of
hatcheries is "good business for the State of Alaska."
AT EASE 9:43 AM / 9:57AM
Senator Ward made a motion to move SB 266 (RES) 22-LS1216\T from
Committee with accompanying zero fiscal note from the Department of
Community and Economic Development.
There were no objections, and the bill MOVED from Committee.
SENATE BILL NO. 182
"An Act requiring reductions in payments to individuals under
certain benefit programs if appropriations are not sufficient
to fully fund the statutorily established levels of payments."
This was the first hearing for this bill in the Senate Finance
Committee.
PAM KARALUNAS, Arctic Alliance for People, and The Resource Center
for Parents and Children, testified via teleconference from
Fairbanks and stated this bill "is one of the least effective ways"
to balance the budget because "it punishes people who are poor and
disabled." She asked the Committee to consider how program
recipients would pay expenses if payments were reduced.
Co-Chair Kelly clarified this bill is not an elimination of
benefits, but a pro ration of funds if deemed necessary.
LYNNE KORAL, Alaska Independent Blind, testified via teleconference
from Anchorage that decreases in benefits to the poor would reduce
monies to buy groceries and pay rent. She stressed this would have
a negative effect on those who could least afford it. She applauded
the Legislature's efforts to balance the budget, but stated this
bill would not have the intended affect.
TABER REHBAUM, member, Arctic Alliance for People, testified via
teleconference from Fairbanks that Artic Alliance remains
"unequivocally opposed" to this bill. She stated this legislation
would place the burden of balancing the budget onto the backs of
the "most venerable Alaskans: the poor, the elderly and the
disabled," and might force more Alaskans to seek welfare
assistance. She asked the Committee to seek ways to increase
revenue.
LAEL VENTA, President, People First, testified via teleconference
from Anchorage to concur with prior testifiers that this bill would
cause "a hardship on people who are already living at the poverty
level."
JEANNETTE GRASTO, Board of Directors of the National Alliance for
the Mentally Ill (NAMI) Fairbanks, NAMI Alaska and Family Center
Services of Alaska, testified via teleconference from Fairbanks
stating she "vehemently opposes this bill." She asserted that "no
one chooses to have a disability or to have a child with a
disability, and it can be a devastating experience." She urged the
Committee to consider the negative effects this bill would have.
CATHERINE BURGESS, employee, Parents Inc. testified via
teleconference from Anchorage to "strongly oppose" this bill.
COLLEEN AKPIK-LEMAN, Social Services Director, Barrow Arctic Slope
Native Association, testified via teleconference from Barrow in
opposition to this legislation, as it would negatively affect
benefits to people who live in the North Slope region, an area with
a high cost of living.
Co-Chair Kelly reiterated this bill "is not a blanket reduction,"
but rather would allow the Legislature to address short-funding "on
a case by case basis."
ALISON ELGEE, Deputy Commissioner, Department of Administration,
testified that the Department of Administration has determined this
bill would affect its Longevity Bonus program recipients. She
stated it would subject these individuals "to a feeling of
uncertainty" that would be further complicated when the Department
tried to project if and when benefits might be pro-rated. She
informed the Committee the expenses of this program have been very
difficult to project, even though the program has its recipients
identified.
Ms. Elgee detailed that the Department's projection formula for "a
high case, mid-case and low-case" model of needs from which a full-
funding-needs budget recommendation is presented to the
Legislature. She stressed that over the course of the year, these
projections are recalculated, "and it is frequently the case" that
in September, "it appears the program will be short-funded due to
participants' travel patterns" and other factors. She continued
that the program numbers are recalculated again in March, and the
program has "plenty of money." She stated the way this bill is
written, according to the September numbers, the payments would
have to be pro-rated, "where in fact," there is adequate money when
the numbers are re-run in March.
ELMER LINDSTROM, Deputy Commissioner, Department of Health and
Social Services, stated this bill appears to affect a number of
programs in the Department of Health and Social Services including
the Alaska Temporary Assistance Program for Families (ATAF) and
children. He stated pro-rating this program would jeopardize
federal Block Grant funding that is a crucial part of the total
program's funding.
Co-Chair Donley stated a change in federal law might address the
requirements for state funding.
Mr. Lindstrom stated that is possible, although the Department is
not aware of any pertinent legislation pending at the federal
level.
Mr. Lindstrom informed this bill would also affect the Adult Public
Assistance (APA) Program for "the aged, blind, and disabled."
SFC 02 # 23, Side B 10:15 AM
Mr. Lindstrom profiled the approximately 14,000 APA recipients as
follows: approximately 33 percent suffer from mental disorders;
approximately 15 percent have developmental disabilities;
approximately 11 percent have muscular/skeletal system problems;
and approximately four percent participate in the program as a
result of injury. He stated that APA benefits, combined with
Supplemental Security Income benefits, do not allow these people
"to live extravagantly," and in fact, often do not "even cover room
and board." He stated that after paying rent, food, utilities and
basic living needs, the discretionary income remaining for a
typical APA recipient is approximately $125.
Mr. Lindstrom commented this legislation would also affect the
Department's General Relief Assistance Program. He informed the
Committee that approximately 75 percent of this program's funding
pays for indigent burials with the balance providing some
assistance to persons who are not eligible for other assistance
programs; "typically for rent costs to keep people from being
evicted" from their homes.
Mr. Lindstrom informed the Committee the Foster Care Payment
Program might also be affected by this bill. He stated this program
is the key to the child protection system and the retention and
recruiting of foster parents. He stated the Department's fiscal
notes explain the scenario for each program depending on the
funding reduction percentage.
Senator Green asked if the recipients for these programs are
identified by the state, the federal government, or both?
Mr. Lindstrom responded the primarily federally funded ATAF program
has both federal and state requirements; whereas, the APA program
is a state regulated program. He stated the Legislature could
address "eligibility and needs standards" changes to both these
programs through statute.
Senator Green asked if the state has requested waivers from the
federal government for programs "that are very costly" and "could
restrict covering a wider base of people." She also inquired if the
Department had addressed with the Legislature, "moderating
programs" that are expensive to operate or have "expanded too
wide."
Ms. Elgee responded that the Legislature is currently considering
HB 162 that could reduce the cost of the Longevity Bonus Program.
Co-Chair Donley stated that 27 states do not have an APA program,
and asked if the Department has any information on those states.
Mr. Lindstrom responded that the APA program is the State of
Alaska's supplement to the federal Supplemental Security Income. He
noted that while not all states provide supplements, of those that
do, there is a "broad range" of payments based on a multitude of
circumstances such as assisted living or independent living.
Co-Chair Donley communicated that 22 states do not provide
supplemental coverage for individuals who live independently, and
Alaska pays approximately three times the average supplement of the
states that do. He continued that 27 states have no program for
individuals living in another household, and Alaska, in this case,
pays approximately three times the average of those states that do.
Mr. Lindstrom thanked Co-Chair Donley for the information and
reiterated that an individual living alone in Alaska, after paying
for basic living needs, would have approximately $100 remaining
income.
Co-Chair Donley commented that this would not be their sole source
of income as they receive a Permanent Fund Dividend.
Mr. Lindstrom suggested having these individuals testify before the
Committee about what it is like to live on public assistance.
PAUL GROSSI, Director, Division of Worker's Compensation,
Department of Labor and Workforce Development, informed the
Committee about the impact this bill might have on two programs
administered by the Department: the Fisherman's Fund, which pays
for emergency medical benefits to fisherman who have no other
coverage for work related injuries or illnesses; and the Second
Injury Fund which pays benefits to employers for payments of
benefits for certain types of "long-term second degree injuries."
He stated, "these are constitutionally dedicated funds" that might
have to be reduced under HB 182 if there is not enough
appropriations in a given year.
Senator Green asked how short funding of these programs is
currently handled.
Mr. Grossi stated the Department requests supplemental funding.
Co-Chair Donley mentioned he has not noticed dedicated funding for
these programs in prior legislation.
Mr. Grossi noted the omission might have been an oversight by the
Department.
MARIE DARLIN, representing the American Association of Retired
Persons, referenced a letter submitted by the Association, stating
its opposition to this bill. She mentioned that if benefits are cut
to seniors, many of them could not remain in their own home, and
the state would subsequently pay for them to live in assisted
living facilities.
LIN CRAIG, member, Key Coalition for the Blind, voiced concern that
this bill would affect people living at or below poverty level. He
stated this bill could ultimately result in higher costs to the
state if people have to move into assisted living facilities.
PHYLLIS HART, member, Parents, Inc. testified via teleconference
from Anchorage that she is familiar with services the State offers
to families as she has an autistic grandchild and a grandchild
adopted through the state foster program. She voiced opposition to
the bill and stated, "there are more effective ways to come up with
funding for these programs."
ALFRED MCKINLEY SR, Executive Committee Member, Grand Camp Alaska
Native Brotherhood, and Delegate to Central Council, testified in
opposition to SB 182 and the reductions it may present. He voiced
this bill would be detrimental to people and to the state,
explaining if people housed in state-assisted living programs
receive reduced cash benefits, their rent payment to the state
"will go down too." He requested the Committee recognize the high
cost of living in Alaska, and that the cost of living in Anchorage
and Juneau is lower than in rural communities.
FRANK C WHITE SR, Alaska Native Brotherhood, Camp #2 testified
there are many handicapped people, such as himself, who would be
affected by any decrease in assistance, as many are at or near the
poverty level already. He stated he worked all his life to be
independent, and that he still lives independently, but is afraid
this bill might force him, a handicapped, retired veteran, and
people like him, to move out of their homes. He urged the Committee
to leave programs at current funding levels.
AT EASE 10:51 AM / 10:52 AM
Co-Chair Donley stated the committee substitute for SB 182
clarifies how the pro ration would function: the Executive Branch
would have the discretion to reduce payments, if necessary, based
on the budget, or to plan for subsequent appropriations as
specified in Section 1, subsection (1) of the bill. He continued
that Section 1, subsection (2), mandates pro ration if the
Legislature "specifically instructs the Executive Branch to do so."
Co-Chair Donley made a motion to adopt SB 182 (FIN), 22-LS0675\J as
a working draft.
There were no objections, and the committee substitute was ADOPTED.
Co-Chair Donley clarified that, contrary to public testimony
comments, SB 182 does not reduce payments: "it provides for a
budgeting mechanism whereby payments could be reduced" and
"payments would only be reduced if they were short-funded in the
actual budgeting document."
Co-Chair Kelly stated it also does not preclude a supplemental
request.
The bill was HELD in Committee.
ADJOURNMENT
Co-Chair Pete Kelly adjourned the meeting at 10:57 AM
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