Legislature(2003 - 2004)
04/16/2003 05:00 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 16, 2003
5:00 PM
TAPES
SFC-03 # 56, Side A
SFC 03 # 56, Side B
SFC 03 # 57, Side A
SFC 03 # 57, Side B
SFC 03 # 58, Side A
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 5:00 PM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice-Chair
Senator Robin Taylor
Senator Donny Olson
Senator Lyman Hoffman
Senator Ben Stevens
Also Attending: CATHERINE BARLIN, Small Business Owner and
Substance Abuse Technician Student; URLINDA KENDALL VORGEES,
Wrangell resident, senior student in Alyeska Central School; LINDA
VORGEES, Wrangell resident, parent of Alyeska Central School
Student; NICHOLAS GROSSKRUTH, Student, University of Alaska
Southeast; JENNIFER LOESCH, Student, University of Alaska,
Southeast; CHRISTIN HOWARD, Transfer Student, University of Alaska
Southeast; RYAN GREEN, Third-Year Out-of-State Student, University
of Alaska Southeast; ERIC MORRISON, Student, University of Alaska
Southeast; JOYCE KITKA, Representative, Alaska Association for
Community Education; MARIE DARLIN, Capital City Task Force
Coordinator, AARP Alaska; ROSALEE WALKER, Representative, Older
Persons Action Group and AARP Alaska-Juneau Chapter; SAM TRIVETTE,
President, Retired Public Employees of Alaska; NANCY ANDISON; MARC
WHEELER, Member, City & Borough of Juneau Assembly; JIM CARROLL,
37-Year Juneau Resident, Member, AARP Alaska, and President,
Retired Teachers Association-Juneau Chapter; DANIEL PETERSON,
Member, City & Borough of Juneau Board of Education, and Student,
University of Alaska Southeast; PAUL DOUGLAS; EARL CLARKE,
Employee, Independent Living Center; KEVIN RITCHIE, Executive
Director, Alaska Municipal League; KACI HAMILTON, President Elect,
University of Alaska Southeast; NELI NELSON, Environmental Science
Major, University of Alaska Southeast; JONATHAN SMITH, High School
Biology Teacher, Juneau School District; ANDREA DOLL, Teacher; BOB
BRIGGS, Staff Attorney, Disability Law Center; ALINA DULUSKI; LISA
HOFERKAMP, Chemistry Professor, University of Alaska Southeast;
PEGGY COWAN, CATHY CONNOR, Geology Professor, University of Alaska
Southeast; TOBIN COATE, Student, University of Alaska Southeast;
JEANNE FOY, Teacher, Alyeska Central School; JIM DOUGLAS,
Professor, University of Alaska Fairbanks and Southeast Alaska and
Kodiak 4-H Agent, and the Cooperative Extension Service Program
Agent; CECILEA MILLER, Teacher, Alyeska Central School; MICHELLE
AKERS, Student and Employee, University of Alaska Southeast,
Employee, National Oceanic and Atmosphere Administration (NOAA),
and Employee, Department of Environmental Conservation Laboratory;
CHARLES LINDLEY, Student, University of Alaska Southeast; JEREMIAH
CRAIG, Student, University of Alaska Southeast
Attending via Teleconference: *teleconference participants from the
communities of Barrow, Kotzebue, Nome, Tok, Ketchikan, Delta
Junction, Kodiak, Bethel, Glennallen, Petersburg, Sitka, Wrangell,
and offnet sites who testified on the FY 04 Operating Budget are
listed in the body of the minutes in the order in which they
testified.*
SUMMARY INFORMATION
HB 75-APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 76-APPROP:MENTAL HEALTH BUDGET
The Committee heard public testimony from the communities of Nome,
Kotzebue, Barrow, Tok, Ketchikan, Delta Junction, Kodiak, Bethel,
Glennallen, Petersburg, Sitka, and Juneau. The bills were held in
Committee.
CS FOR SS FOR HOUSE BILL NO. 75(FIN) am(brf sup maj fld)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; and providing for an effective date."
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 76(FIN)
"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."
This was the sixth hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken notified testifiers that any written testimony
received by the Committee would become part of the public record on
this legislation. He stated that verbal testimony would be limited
to two minutes.
MICHAEL JEFFERY testified via teleconference from Barrow and urged
the Committee to continue funding the "high quality" year-round
education that is provided through the Alyeska Central School (ACS)
correspondence program. He spoke of the positive educational
experience that his family members have received from the program,
and he attested that closing the school would not save the State
any money, as the base student foundation formula funding would
follow the students to another school.
PEGGY WOOD, Interim Director, University of Alaska Northwest Campus
in Nome, testified via teleconference from Nome to urge for full
funding support of the University. She noted that, of her
seventeen-year association with the University system, adequate
funding has only been provided during the past five years. She
stated that this funding has, after a decade of reductions, allowed
the University to provide "critical job skills" for such things as
the education, health, and vocational programs required to support
the economic development needs of the State. She stated that were
the funding level being requested disallowed, the result would be a
reduction in program funding, as staff salary increases have been
approved by the House Finance Committee.
LAVERNE SMITH, Employee, University of Alaska Northwest Campus and
Member, Common Council, City of Nome, testified via teleconference
from Nome and urged for continued support of the Northwest Campus
funding which provides the area's students with important skills.
JERRY TRAINOR testified via teleconference from Nome and asserted
that funding for education should be a State priority. He stated
that such things as the educational partnerships that the Northwest
Campus has made available in the area is providing workforce
training that has benefited the area and increased the number of
locally hired employees. He stated that such things as carpentry
and computer skills have also been provided.
JEFF SELVEY, Employee, Bering Straits School District, testified
via teleconference from Nome in support of funding education to
allow the continuation of such things as the joint effort in
support of the area's developmental learning center called the
Northwestern Alaska Career Technical Center (NACTC). He noted that
with the cooperative efforts by such entities as the Northwest
Campus, NACTC has been able to provide quality educational training
to assist, for instance, the area's health care field.
ROGER WRIGHT, Executive Director, [name of organization
indiscernible], from an offnet site in Kotzebue and urged that
funding for the Center be reinstated.
NEAL GEORGE, President, Association of Homes for Children,
testified via teleconference from Barrow and urged for the
continued support of the Department of Health and Social Services'
Family Preservation Fund grant as it provides early intervention in
a cost effective manner and serves to "strengthen families and
communities" from Ketchikan to Barrow. In addition, he urged for
funding for the Tobacco Cessation and Education program, as the
program is effective.
BARBARA COLE, Health Education Program Manager, Maniilaq
Association, testified via teleconference from Kotzebue and spoke
in opposition to any reduction in the twenty percent allocation of
the Master Tobacco Settlement the State received from the tobacco
industry, to support tobacco cessation and education programs in
the State. She stated that this program "is an act of preventive
medicine" and is effective and supported by the citizens of the
State.
CATHERINE BARLIN, Small Business Owner and Substance Abuse
Technician Student, testified in Juneau, in opposition to proposed
reductions in juvenile treatment programs. She shared her
experiences volunteering at the Johnson Youth Center for youth age
twelve to seventeen, and she shared that most of the youth enter
the program, initially, as the result of minor consumption of
alcohol. This vice, she continued, could evolve to more serious
crimes. She stated that these youth require program consistency and
follow-up as well as in-State treatment programs near their
families. She communicated that the youth ask such questions as:
"why aren't more youth treatment programs available and why is only
one Alcoholics Anonymous (AA) meeting a week offered." She stated
that these youth get caught in the emotional "revolving door of
anger, frustration, fear, distrust, fear, and despair." She stated
that while she is unsure how to answer the questions, she does know
that treatment programs do help in offsetting further criminal
activity and in helping families cope. She attested that, "we need
more of what we don't have enough of." In addition, she noted that
efforts must be made to ensure that whatever funding is available
be used in an effective manner.
Senator Taylor asked the testifier to supply him with a summary of
the youth treatment programs that are available on a statewide
basis.
AT EASE: 5:21 PM / 5:40 PM
TIM SMITH, President, Nome Fisherman's Association, testified via
teleconference from Nome and stated that the organization has a
charitable gaming permit and operates a pull-tab business. He
suggested that the State could generate revenue by authorizing
video gaming, which, he noted, is being proposed in separate
legislation. He informed the Committee that the State of Oregon
approved video gaming, and as a result, has tripled its revenues
above that previously earned by pull-tabs and bingo. He noted that
opposition to video gaming centers around the need "to protect
people from excessive gaming;" however, he attested that this
should not be a real consideration as multiple uncontrollable
opportunities already exist via such things as the Internet. He
declared that because other outlets exist, the State, by not
authorizing video gaming, is allowing this revenue stream to go
outside the State. He also spoke in opposition to proposed changes
to the tax-structure for pull-tabs as it would serve to remove
needed revenue from charities.
REBECCA KLEINSCHMIDT, Representative, Ketchikan General Hospital
Tobacco Cessation Program, testified via teleconference from
Ketchikan and urged the Committee to fund, at the recognized twenty
percent of the Tobacco Settlement Fund level, the Tobacco Cessation
and Education Program as, she attested, its goal of assisting
people to refrain from smoking provides health benefits to the
smoker and their children. She stated that one client recently
voiced being angry that the continued funding of this popular and
effective program might be in jeopardy. She also stated that this
same client is now experiencing financial benefit from not spending
in excess of $4,000 a year on tobacco products to support her
tobacco addiction.
LAURIE THOMAS, Representative, Alaska Infant Learning Program
Association and the Ketchikan Community Connections Program,
testified via teleconference from Ketchikan to address the
consequences that would result were the Committee's recommendation
to reduce funding for the Infant Learning Program by $250,000
approved. She stated that this reduction would result in a five
percent decrease in State grant funding and would also result in
reducing essential services to five percent of the children who
experience or are at risk of developmental delays. Furthermore, she
stated, national studies indicate that for every dollar spent on
early detection and intervention, four dollars are saved in long-
term care and support services. She stated that contrary to the
reduction's intent language, families are already billed for these
services, and, she attested, many struggle to pay. She stated that
were families required to pay more, or were more families asked to
pay, choices that might result would include whether to buy
groceries, seek medical attention, or to obtain Infant Learning
services. This, she continued, would be a hardship to some
families, and some would choose not to seek assistance. She stated
that funding is already inadequate, and she avowed that further
budget reductions would cost the State more in the long run.
MARY MARTIN, Instructor and Social Work Student, Interior-Aleutians
Campus, University of Alaska Fairbanks, testified via
teleconference from Tok and urged support of University funding.
She stated that, "the Interior-Aleutians Campus is a vital
component to the continued increase in the diversity of rural
Alaska economies." She furthered that the presence of staff in
these rural areas makes the University system "more approachable
and less intimidating as compared to working with a faceless, and
at times, voiceless educational style of Internet, mail-in, and
teleconferenced classes." In addition, she attested that students'
concerns are afforded "prompt, courteous, and knowledgeable
assistance" by the local staff. She stated that oftentimes, rural
programs are the ones that experience "budgetary cutbacks," and she
urged that the University not become "yet another effective and
needed organization that vanishes from rural Alaskan communities."
AT EASE 5:51 PM / 6:20 PM
VICKIE MUZIK-O'BRIEN testified via teleconference from Ketchikan in
support of the Infant Learning Program (ILP) and the benefits that
it has provided to her child "who is developmentally delayed." She
stated that were a budget reduction to occur to the program in FY
04, on top of a budget cut that occurred in FY 03, it would be very
difficult for the Ketchikan Community Connections program to
continue to maintain its ILP level of service. She stated that any
reductions in service would be detrimental to her son and other
people who depend on those services. She voiced that, "preventive
medicine is worth a pound of cure," and she attested that early
intervention would save the State a tremendous amount of money in
the long run and would also allow families to remain in the State
rather than being required to seek support services elsewhere.
AT EASE 6:22 PM / 6:30 PM
BING SANTAMOUR, Chair, Kuskokwim Campus Advisory Board, University
of Alaska, testified via teleconference from Bethel to voice that
the Board fully supports the University's budget request, because,
she declared, "any cuts to the University would greatly affect
rural campuses." She stated that while a large campus might be
better able to absorb budget reductions, "the ripple affect" of a
funding reduction for rural areas would be more severe in regards
to its impact on staffing and services. She urged that the budget
be funded in order to continue the already "bare-bone"
administrative units that exist.
BOB MEDINGER, Director, Kuskokwim Campus, University of Alaska,
testified via teleconference from Bethel and urged for full funding
of the University's budget request. He informed the Committee that
Campus has experienced tremendous program advancements that have,
in turn, resulted in a 110 percent enrollment increase, year to
date. He stated that local hire has also increased as a result of
these educational opportunities. In conclusion, he attested that
University staff salary increases are necessary, statewide.
ELAINE MANNING testified from an offnet site in Nelchina in support
of the Independent Living Program which has allowed her, a woman
suffering from Muscular Sclerosis to reside in her own home and be
cared for by her family. She stated that she is thankful for being
provided the opportunity to live at home, and she stated that her
being able to do so also saves the State the much higher expense of
nursing home care.
PAM KRON, Student, Interior-Aleutians Campus, University of Alaska
Fairbanks, testified via teleconference from Tok in support of
continued funding of the University and the distance learning
programs it provides to people who live in rural areas of the
State.
PHIL GUTLEBEN, Business Manager, Lower Kuskokwim School District in
Bethel, testified via teleconference from Tok and voiced, on behalf
of the school district administration, that: flat funding of the
base student foundation formula and a reduction of the learning
opportunity grants funding would not sustain current educational
programs; the base student foundation formula should be increased
to $4,500 and inflation-proofed; forward funding of education must
be provided to allow districts to provide "for long-range planning
in order to maximize the use of available resources;" reduced
Department of Health and Social Services funding would harm
families "and would place additional burdens on the educational
system;" and, increased funding of the Department of Health and
Social Services and education programs would be required to support
both families and the educational system. He suggested that a
sliding scale income tax, a restructuring of the Permanent Fund
distribution, and/or the establishment of an education endowment
fund be considered as funding mechanisms. In addition, as a private
citizen, engineer, educator and a registered Republican, he voiced
support for the government "streamlining" that Governor Murkowski
is furthering; however, as a foster parent, he stressed that
education should be considered as the top priority. He stated that
children are not only the future of the country, but also of the
State.
BING SANTAMOUR, testified via teleconference from Bethel as a
citizen and resident of Bethel, against reduced funding for
postsecondary funding as it would negatively affect the quality and
quantity of postsecondary education and would, in addition,
negatively affect the opportunities of citizens and would result in
an increase in unemployment.
SFC 03 # 56, Side B 06:40 PM
DON ROBERTS JR. testified via teleconference from Kodiak and voiced
displeasure with the actions of the State's elected Republican
legislators.
Senator Bunde suggested that the testifier consider running for an
elected office as, by doing so, he could thereby offer his services
and ideas.
PATT GIBBS testified via teleconference from Kodiak against the
proposed decrease in funding for student transportation, as he
contended, the providing of transportation is required under the
State's Constitution. In addition, she voiced support for the
continued appropriate funding level of Learning Opportunity Grants.
BETTY WALTERS, Superintendent, Kodiak Island Borough School
District testified via teleconference from Kodiak to urge that the
base student foundation funding formula, the Learning Opportunity
grants, and pupil transportation be fully funded at the appropriate
levels.
MARY FORBES testified via teleconference from Kodiak in support of
education funding. She stated that the reason she has remained
living in Kodiak is because of the quality of life, to which, she
attested, educational opportunities are a contributing factor. She
stated that she would forego her Permanent Fund Dividend to support
education. Furthermore, she voiced support for a State income tax
and/or an education tax.
MERI HOLDEN testified via teleconference from Kodiak to state that
she has lived in Kodiak for 29-years because of the quality of
education and the quality of life that the area offers. She urged
for full education funding, inflation proofing, an increase in the
base student foundation formula, and full funding for
transportation, opportunity grants, and community schools. She
suggested that a statewide tax be implemented to support education
as, were it short-funded, the quality of education would suffer and
the State would be negatively affected. She voiced support of an
income tax or a school tax, "or whatever it takes" to properly fund
education. In addition, she stated that further funding reductions
would force school programs to be eliminated, would result in
further staff reductions, and would force such things as the school
pool to be close.
CAILEY STEVENS, Seventh Grade Kodiak Middle School Student,
testified via teleconference from Kodiak and urged for continuing
support of education funding as, she attested, students must be
challenged and education must be enhanced by the offering of
expanded programs such as music, physical education, swimming,
advanced classes, and a quality teaching staff.
VALERIE WHITE, Educator, Kodiak Middle School, testified via
teleconference from Kodiak to voice concern that, in the past
thirteen years, the base student foundation funding formula has
increased only $190.63 for a 3.56 percent overall funding increase.
However, she stated that during that same amount of time, inflation
has been 36.6 percent. In addition, she noted that during this same
time period, the State's contribution to the total annual school
budget has decreased from 79.55 percent to 60.62 percent. She
stressed that flat funding of education and the lack of proper
inflation proofing measures are not allowing schools to keep up
with the rising expenses of property insurance, health insurance,
and fuel costs, and she stressed, it is harming schools' ability to
provide new textbooks and to meet new federal and State education
requirements such as the No Child Left Behind mandate. In addition,
she stated that funding to upgrade and replace such things as
school equipment, furniture, and carpets is not available. She
declared that students are not being provided the education they
need, and she concluded that, in order to support education, she
would "gladly" pay a State income tax as proposed in SB 137.
However, she stressed that were a tax imposed, it should be
equitable across all income levels.
BETTY O'DELL, Member, Kodiak School Board, testified via
teleconference from Kodiak, and urged for full funding for schools
and pupil transportation. She stated that declining student
enrollment, combined with increased expenses resulting from such
things as rising fuel costs and property insurance, as well as the
requirements set forth by the No Child Left Behind Act are
resulting in increased class sizes of between 35 to 40 students.
Larger class sizes, she stressed are harder for teachers to teach
and make a more difficult learning environment. She urged that the
Legislature "explore other avenues" such as a State income tax or
State lottery to fund education.
PAT CARLSON, City Manager, Kodiak Island Borough, testified via
teleconference from Kodiak to stress that people in Kodiak are
"extremely concerned about preserving the level of quality in
education" for their students. He stated that the local government
is contributing the maximum allowable financial support toward this
goal, and now, he attested, the community requires the assistance
of the Legislature to further these endeavors. He stressed that the
size of a community is a major factor when determining its cost per
capita debt commitment in its participation in the State's bond
proposal to upgrade or build new facilities, and, he stressed that
a small community's commitment toward this endeavor could
negatively impact its budget. He urged that, when addressing the
bond issue, the State would also address municipal revenue sharing
as it has a major affect on small communities' budgets as "they
don't have the money, the resources, or the tax base to absorb"
large municipal revenue sharing reductions. He suggested that a
"floor be established" and that a "hold harmless bottom" be
identified. He concluded that the State should develop a fiscal
plan, and he attested "that folks are willing" to contribute to the
State's budget.
WAYNE STEVENS, Executive Director, Kodiak Chamber of Commerce,
testified via teleconference from Kodiak and spoke to the
importance of providing children with good educational
opportunities by exampling a Junior Achievement (JA) Program he had
utilized while teaching his fourth grade JA program. He explained
that in the program, economy is defined as a system of using and
taking care of natural resources, human resources, and capital
resources. He submitted that, we as a State must take care of our
human resources by providing them with a quality education. He
declared that it would be cheaper to provide a quality education
per capita than it would be were these youth negatively affected
and perhaps incarcerated because of their inability to find gainful
employment and other activities after high school. He voiced
support for full funding of the base student foundation formula for
local schools and for full funding for the University. He stated
that the Kodiak Chamber of Commerce would be submitting a letter in
support of full funding for education.
MIKE MILLIGAN testified via teleconference from Kodiak and stated
that he is pleased with the administration of the State's public
school system. He noted that during his tenure on the Kodiak Island
Borough Assembly, he voted to raise taxes, "and the sky didn't fall
in." He factiously exampled that Alaskans have gotten and continue
to get "a free ride" at the state and national level. He stated
that instituting an income tax "is not a bad thing," and he shared
that the state of Mississippi has a higher funded school system and
a higher gas tax than Alaska. He reminded the committee that Alaska
used to have a sales tax. He stated that Alaska must become a
progressive State, and he urged the Committee to "please send the
State in a different direction."
JERRY KAINULAINEN, [indiscernible] Specialist, Southeast Alaska
Independent Living, and Member, Governor's Committee on Employment
and Rehabilitation of Persons with Disabilities, testified via
teleconference from Sitka, and spoke to the value of Independent
Living Centers. He shared the Center's national mission statement
as follows: "Assistance to persons with disabilities is
accomplished by providing information advocacy, independent living
skills training, peer support, and services that allow persons with
disabilities to live outside of an institution, to move toward
independence and employment." He stated that it is a very cost
effective program when considering that, for an approximate annual
cost of $43,000, a person with disabilities could live
independently as opposed to living in a nursing home at an
approximate annual cost of $130,000 per person. He stated that the
Center has been successful in transitioning several persons out of
nursing home care to "living independently in their own homes in
their own communities." He stated that were the proposed budget
reductions to this program adopted, two centers would be forced to
close and seventeen persons with disabilities would not be
transitioned from a nursing home to their own home. He stated that
this would incur a $1.5 million expense to the State. Furthermore,
he attested that 49 individuals would be forced to move into
nursing homes at a cost of approximately $4.4 million. He stated
that this is evidence that Independent Living Centers are cost
effective programs, and he urged that the proposed funding
reductions be reinstated to the program.
JOHN HOLST testified via teleconference from Sitka regarding "the
current under-funding of the bonded indebtedness issue, which is of
particular interest to Sitka as it recently adopted a referendum to
build a new auditorium, based on the fact that there was going to
be 60 percent funding from the State." He stated that the
auditorium is a serious matter, as it has been needed for forty
years, and he continued that were the bond program changed, the
project would be placed in jeopardy. He stated that the
Legislature's change of position, within a six-month timeframe "is
bothersome in that a promise made is a promise kept." He voiced
being "mildly appalled" at this change of events.
JOHN FERRICK, Volunteer Digital Media Teacher, Sitka High School,
testified via teleconference from Sitka regarding the bond
indebtedness issue. He stated that voters "constantly renew" their
commitment to education by approving these programs, strictly based
on the Legislature's promise to support the program. He stated that
the prospect of the Legislature reducing the funding of the bond
indebtedness program is unsettling, and he suggested that, were
plans afoot to reduce the program's funding, it should "only apply
going forward" to any bond project that would be approved after the
Legislature makes this decision.
SHARYN FERRICK testified via teleconference from Sitka and voiced
distress regarding the possibility that the Legislature might
change its mind in regards to funding, at the 60-percent level, a
local auditorium project that people in the community approved due
to their understanding that this would be the level of the State's
obligation under the bond indebtedness program. She stated that
were the State's obligation to lessen, then it would appear that
once a politician is elected, "then the public falls behind." She
urged the Legislature "to live up to its word" regarding what was
initially voted on during the statewide election and represent the
wishes of the people. She stated that the recently approved
auditorium is critical to the Sitka community.
JEAN FRANK testified via teleconference from Sitka and spoke in
concern regarding the proposal to reduce funding for the Tobacco
Cessation and Prevention program. She stated that an investment in
tobacco control saves lives and dollars. She likened the tobacco
control program to building a fence along a raging river to prevent
people from falling in and drowning.
TOM CONLEY, President, Sitka School Board, testified via
teleconference from Sitka and stated that the community is
"discouraged" about the proposal to further reduce education
funding, as he stated, the Board was already approaching their
budget under the auspice of operating within the previous year's
reduced funding levels. He stated that the proposed reduction to
education and pupil transportation would serve to "seriously
cripple schools" and would thereby serve to eliminate more teaching
jobs and induce other budget "paring." He stated that, "it is
unfathomable" how we, as a State, do not support our children, as
Alaska has one of the lowest levels of state taxes in the nation
and has "lots of money in the bank." He concluded that, were a
State tax required to support education, then "so be it."
Senator Taylor voiced support for the testifier's comments. He also
noted, in response to the prior testimony regarding the Tobacco
Control Program that he has fought hard to retain the twenty
percent of the Master Tobacco Settlement that was allocated toward
Tobacco Cessation and Prevention programs.
SUSAN SCIABBARRASI testified via teleconference from Wrangell and
reminded the Legislature and the Governor that recent election
campaigns focused on the need to provide good public education in
the State. Therefore, she urged the Committee to provide "adequate
and equitable funding for education." She stressed that this should
include providing adequate funding for the learning opportunity
grants, pupil transportation, debt reimbursement, and community
schools funding. She stated that the City of Wrangell financially
supports its education system to the fullest allowable level
through such means as imposing the highest tax rate in the State.
However, she attested, education mandates such as the No Child Left
Behind, inflation, and other expenses continue to force program and
teacher reductions. She stated that further reductions in the
City's revenue budget would negatively affect the local monetary
support of schools, as currently one-third of the school district's
budget is attributed to City contributions.
ROBERT PRUNELLA, Former Schoolteacher and Administrator, Current
City Manager, City of Wrangell, testified via teleconference from
Wrangell and informed the Committee that the City, like other
communities in the State, "is on the verge of imploding" as it has
lost a third of its population and its logging and fishing
resources are declining. He noted that while the State is
attempting to balance its budget by implementing such things as
more taxes, user fees and program reductions, these moves would
further damage the City. He stated that a decision must be made to
seek other revenue sources, specifically to further discussions
regarding making Alaska a resource-based State in order to create
jobs and to promote industry.
URLINDA KENDALL VORGEES, Wrangell Resident and Student, Alyeska
Central School (ACS) Correspondence Program, testified in Juneau,
and stated that were the ACS program eliminated, her ability, as a
senior, to graduate by the end of the school year, would be placed
in jeopardy. She stated that not only is this program the only
accredited correspondence program in the State, it is the only one
that accommodates students with special needs. She stated that of
most importance to her is the quality of the program's 25 teachers.
While she agreed to the elimination of its summer school program,
she besieged the Committee "to keep ACS open for one more year" in
order to allow the school to regroup as perhaps a charter school,
and to allow students to transition from the program.
Co-Chair Wilken replied that discussions to this effect are
occurring.
SFC 03 # 57, Side A 07:28 PM
LINDA VORGEES, Wrangell Resident and Parent of Alyeska Central
School Student, testified via teleconference in Juneau, and advised
that other than the expense associated with operating the ACS
summer school, closure of ACS would not save the State money. She
voiced that ACS "is a wonderful and unduplicated" program and is
the only accredited correspondence program in the State.
Furthermore, she shared that one of the accreditation requirements
is that each teacher, at the high school level, must possess 21
credit hours in the subject they teach. She stated that ACS offers
"a safety net" to students at risk of dropping out of school. She
requested that "to not breach" the agreement with the parents of
youth enrolled in ACS, the school must be kept open until August
2003, and she urged that the school be allowed to operate, for at
least one more year, to allow parents and students to regroup. She
also suggested that legislation be authorized to allow ACS to be
recognized as a new independent school district.
Senator Taylor asked the testifier to describe where she resides.
Ms. Vorgees stated that rather than being on a road system, her
home is approximately a three-mile walk down a shoreline and that,
due to its remote location, access to a school is prohibited in the
wintertime. She avowed that the ACS program was created, in 1949,
to provide for the educational needs of families such as hers, and
she assured the Committee that the need for this type of program
continues.
Senator Bunde opined that while the State currently has
approximately 53 school districts, "educational judgment" would
allow that half of that number would be sufficient. Furthermore, he
noted that additional administrative expenses would negatively
affect classroom funding.
Ms. Vorgees understood the concern, and noted that a district
reduction would be helpful to the State. However, she stated that
the creation of a new district to accommodate ACS would continue to
be on "the Christmas Wish List."
LAURIE BERGREN, Parent and Member, Petersburg School Board,
testified via teleconference from Petersburg to attest to the harm
that would be incurred were school district funding to be further
reduced. She shared that staff and course offerings have already
been negatively affected, and that in addition to being required to
provide for mandated programs, lower funding, combined with the
increasing costs of such things as retirement benefits and fuel
would continue to erode the quality of education being provided.
SHERI WIKAN, President, Petersburg School Board, testified via
teleconference from Petersburg to share with the Committee the
staff and program reductions that the Petersburg school system has
already experienced due to budget shortfalls. In addition, she
voiced how difficult it is to plan a budget when the level of
funding from the State and the City are unknowns. She asked that
the Legislature provide some "stability" to the education system in
the State.
MARILYN MENISH-MEUCCI testified via teleconference from Petersburg
and voiced dismay that the Legislature, after the recent election
campaigns that focused on supporting education, is proposing to
reduce education funding. She stated that pertinent programs are
being eliminated in the high school due to budget shortfalls, and
she urged the Legislature to adequately fund education in order to
prevent education from "going backwards."
JOHN BRINGHURST, Parent, Local Businessman, Former School Board
Member, testified via teleconference from Petersburg to attest to
the "overall devastating" harm that would result from a consistent,
gradual reduction in school funding. He shared that from a business
point-of-view, the ability to attract new people to a community is
enhanced by such things as a good hospital or school system, and
now, he stated insufficient funding is negatively impacting these
community attributes. He urged that other options, including
elimination of the Permanent Fund Dividend program, should be
scrutinized before further school short funding occurs.
JIM SCHWATZ, Teacher, testified via teleconference from Petersburg
and voiced concern regarding the reduction in educational
opportunities that are being provided to youth today as compared to
the education he had received as a student in Petersburg. He voiced
disbelief that elected officials are "blind" to the needs of
students. He stated that further education funding reductions would
begin a downward spiral that the State would regret, as it would
serve to undermine people's desire to remain in the State. He urged
that "this trend" be reversed.
Senator Taylor voiced that, of the Committee members, "for the last
four years, nobody has worked harder to get education funding
increases passed through this Legislature" than Co-Chair Wilken and
himself. He stated that he is proud of the fact that education
received "a greater increase in funding than inflation was running
at the time," and in the fact "that it was the first time that any
significant increase in funding was approved in a long time."
Continuing, he applauded local efforts to further control rising
education costs by reducing local expenses between seven and 30
percent, and he understood that further reductions would be
incurred, even were State funding maintained at the FY 03 level. He
voiced concern; however, that continued reductions in education
funding would "destroy the whole program."
DONNA MARSH, Parent, and Member, Petersburg School Board, testified
via teleconference from Petersburg to voice concern about the
erosion of education funding as expenses such as property
insurance, are surpassing funding allocations. She stated that
continuing to reduce education programs is negatively affecting the
quality of education being provided. While she appreciated
Legislative efforts, she avowed that further State assistance would
be required.
GARY PAXTON, Interim City Administrator, City and Borough of Sitka,
testified via teleconference from Sitka, regarding the State's
obligation to pay 60-percent of the General Obligation (GO) bonds
to pay for the Sitka auditorium and school upgrades. He stressed
that the State's reneging on its commitment would create a
credibility issue. Furthermore, he stressed that the citizens of
the State must contribute to generating a revenue stream for State
expenses such as education.
STEVE BRADSHAW, Sitka School District, testified via teleconference
from Sitka to explain how "painful" it was to reduce teaching staff
in local schools during the previous budgetary process, and he
attested that were the Governor's proposed education reductions
furthered, the City would be required to again reduce staffing
levels. He stated that this would result in larger class sizes and
limited programs. He stated that alternate revenues sources must be
identified, as "better" State funding must be forthcoming
FRED REEDER, Mayor, City and Borough of Sitka, testified via
teleconference from Sitka and voiced agreement with the testimony
of Gary Paxton who specified that Alaskans should pay for the
services that are provided to them. He urged the Legislature to
look to the State's citizens for help, and he shared that Sitka
would be looking to its citizens for help. He addressed the GO Bond
issue as a covenant between the State's citizens and the State
government in that voters "overwhelmingly" approved the issue. He
continued that, for the Legislature to alter the approved program,
"is a break in faith." In conclusion, he asked that the Legislature
provide funding to support important and mandated programs, such as
education.
Senator Taylor agreed with Mr. Reeder's comments. He asked the
consequences to the City and Borough of Sitka's FY 04 budget were
current State funding levels maintained or reduced.
Mr. Reeder responded that were the current level maintained, an
eight percent budget reduction would be anticipated. Further State
funding reductions, he continued, would negatively impact the
budget another two percent.
Mr. Reeder pointed out that "had the City not stepped up to plate,"
the school district "would be in a world of hurt" as, he noted that
approximately 50 percent of the school district's budget could be
attributed to the City. He noted that every community in Alaska is
facing the dilemma of adequately funding its school district within
the allowable funding parameters dictated by State law.
Senator Taylor acknowledged Co-Chair Wilken's efforts in support of
increased education funding. Nonetheless, he noted that even with
the adoption over-the-years of legislation to assist with school
funding, he asserted that the FY 04 proposed budget reductions, in
addition to reduced State base student foundation formula funds due
declining enrollments, would have a "devastating impact" on the
school districts that have testified during this meeting. He stated
that the budgetary numbers being presented by these communities, as
opposed to the hardships attested by other school districts,
reflects the "real" situation being faced.
Co-Chair Wilken acknowledged that other Alaskan communities, such
as Kenai, are also experiencing foundation formula funding
reductions due to declines in student enrollment.
Senator Hoffman acknowledged the Members' efforts exerted in
support of education funding.
The following testifiers testified in Juneau.
NICHOLAS GROSSKRUTH, Student, University of Alaska Southeast,
shared how he has personally benefited from the services provided
by the Southeast Alaska Independent Living Program, and he urged
for continued support of the program and the services it provides
to enable people to live independently.
JENNIFER LOESCH, Student, University of Alaska Southeast, informed
the Committee that after graduation from high school in Petersburg,
she attended a university in Texas for one year, where she stated
she was identified by her student identification number rather than
by her name. She shared that as a recipient of the Alaska Scholars
program, she decided to return to college in Alaska. Now, she
attested, she is involved in University life and is enjoying small
classes and a "tremendous academic program." She shared her plans
to remain in the State after she earns her college degree, and she
urged the Committee to support the funding request of the
University.
CHRISTIN HOWARD, Transfer Student, University of Alaska Southeast,
spoke in support of University funding. She stated that, although
the campus is much smaller than the school she previously attended,
it offers more, "educationally and socially." She praised the
school's program that is allowing her to earn her "Masters Degree
in Education in only one year." She attested that the small class
sizes and student activities are attributes; however, she shared
that were programs, classes, and staff eliminated or reduced due to
budget reductions, she would be required to leave the State to
pursue her education, and, furthermore, she stated that the
school's ability to attract out-of-state students would be
curtailed.
RYAN GREEN, Third-Year Out-of-State Student, University of Alaska
Southeast, testified in support of full funding for the University
as, he attested, recent years' funding support has allowed the
University to expand its facilities and its course offerings. He
stated that these "immense changes" have made the University "full
of life" and full of students.
ERIC MORRISON, Student, University of Alaska Southeast, urged that
the University be fully funded, as, he attested, it is difficult to
understand why funding opportunities are in peril, as they assist
in providing a better quality of life. He stated that "education is
the key to the country's and world's salvation," and serve to
defeat ignorance and ideologies that contribute to world problems.
He characterized the improvements afforded to the University by
recent years' funding as good; however, he stressed that, with
continued adequate funding the University could achieve
"greatness." He encouraged the Committee to revisit the decision to
reduce community school, K-12, and University funding, and to "do
the right thing" for the futures of youth, Alaska, and the nation,
by fully funding education.
Senator Bunde commented that the State is spending more than its
budget allows; therefore, he requested that testifiers include
program funding source suggestions in their testimony.
JOYCE KITKA, Representative, Alaska Association for Community
Education, informed the Committee that, for $500,000 a year,
Alaska's community schools' staff and volunteers provide 20,000
activities for 464,000 children and 390,000 adults. She attested
that the program "is not a luxury," and she exampled parenting
programs and after-and-before school childcare programs as being
representative of the types of programs and services being provided
to people. She urged the Committee to fully fund community schools,
K-12 and University education. She suggested that Committee Members
visit a local school program to witness and understand why funding
educational programs is so important. In addition, she voiced
support for implementation of a State income tax.
MARIE DARLIN, Capital City Task Force Coordinator, AARP Alaska,
spoke, on behalf of the organization, in opposition to the proposed
elimination of the Longevity Bonus program. She stated that the
primary purpose for establishing this program was to keep people in
the State, and she specified that every dollar distributed to
seniors through the Bonus program "turns over at least twice" in
the State's economy. In addition to the economic impact of the
program, seniors living in the State contribute a tremendous amount
of volunteer and caregiver hours. Furthermore, she noted that due
to recipient deaths, the cost of the program is decreasing by more
than three million dollars per year and would gradually be phased
out. She urged the Committee to leave the program alone, as it, in
some cases, provides approximately ten percent of some individuals'
income.
Ms. Darlin, in addition, urged for funding support for community
schools, K-12 and University education, the State Museum, State
Historical Library, State Archives, and the Shelton Jackson Museum.
ROSALEE WALKER, Representative, Older Persons Action Group and AARP
Alaska-Juneau Chapter, spoke in opposition to the proposed
elimination of the Alaska Longevity Bonus Program, as the funding
support is important to senior citizens. She stated that, in
response to Senator Bunde's request for funding suggestions, the
program already existed in the budget and that it should simply be
reinstated.
SFC 03 # 57, Side B 08:16 PM
Ms. Walker continued that the Administration's proposal to
eliminate the program was implemented "in haste," and that vital
information was not provided to assist in the decision making
process. She assured the Committee that Alaska's senior citizens
are cognizant of the State's fiscal dilemma and "that AARP works
diligently with all levels of State government in reaching
effective solutions to budgetary problems." She asserted that the
Administration's swift action to eliminate the Longevity Bonus
program did not allow sufficient time to thoroughly investigate
"alternative strategies that could be easily implemented in order
to avoid a disastrous and devastating situation for a most
vulnerable portion of Alaska's population." She stated that seniors
were not included in the discussion process, and she stated that
arguments in support of the Bonus program elimination are
unreasonable. She asked that senior citizens be provided an
opportunity to work with the Legislature and the Administration to
determine a more acceptable alternative.
SAM TRIVETTE, President, Retired Public Employees of Alaska,
requested, on behalf of the members of the organization, that the
Longevity Bonus Program be restored in the FY 04 budget, as its
elimination would severely impact its recipients. He noted that the
majority of the program's recipients are women, 75 years of age or
older who have "some of the lowest retirement incomes and some of
the highest medical expenses" of the State's citizens. He stated
that the loss of the Bonus program might result in many of these
senior citizens being required to leave the State in order to
receive care. Furthermore, he stated that local businesses would be
harmed by the elimination of the monthly payments, as this would
effectively remove approximately $94 million worth of economic
benefits to the State.
Mr. Trivette also requested that no changes be imposed to the GO
Bond indebtedness language that was recently approved by the
citizens of the State, as it would negatively affect locally
approved projects. He voiced support for the continuation of ACS as
it is only accredited correspondence program; and urged for full
funding of the University as it is a positive presence in the State
and in retaining Alaskan students.
NANCY ANDISON testified in support of the Independent Living Grants
program through which she and numerous others have received
assistance.
MARC WHEELER, Member, City & Borough of Juneau Assembly, voiced
concern regarding the proposed changes to the school bond
proposition as he noted that any funding changes might negatively
affect the community's ability to build a new high school. He noted
that 70-percent of Juneau's voters approved the November 2002
Statewide ballot bond proposition, even though no Juneau projects
were identified in it. He also voiced support for a State income
tax.
JIM CARROLL, 37-Year Juneau Resident, Member, AARP Alaska, and
President, Retired Teachers Association-Juneau Chapter urged the
Committee to adequately fund education, as he pointed out that
people are the State's greatest resource and they should be
provided a quality education. In addition, he urged that the
Longevity Bonus Program be allowed to terminate as currently
specified.
DANIEL PETERSON, Member, City & Borough of Juneau Board of
Education, and Student, University of Alaska Southeast, stated that
education should be a top priority in the State. He pointed out
that the proposed FY 04 budget reductions for K-12 education would
trigger an $800,000 budget loss to the Juneau school district,
primarily due to the proposed funding for pupil transportation,
which he described as a "fixed cost." He stated that being
obligated to provide transportation funding at the local level
would remove funding from all budget components, and from teaching
positions in particular. Therefore, he urged that full pupil
transportation funding be restored. Furthermore, he stated that the
proposed ten-percent reduction in the bond indebtedness program
would harm communities, on a statewide basis, that have projects in
progress. He stated that the proposed education reductions are
contrary to the education mandates being implemented such as the
federal No Child Left Behind Act.
Senator Taylor asked the total City and Borough Of Juneau school
district budget.
Mr. Peterson responded that the budget is approximately $35
million.
PAUL DOUGLAS stated that, as a parent of an adult son with multiple
disabilities, he is urging that the proposed 42.7 percent funding
reduction to Centers for Independent Living be restored, as were it
not, services to individuals would be prohibited. He stated that
the Administration's position that the program be self-sufficient
is unrealistic, as the federally funded State Independent Living
Council Executive Director position, through which key grant
writing is done, has been eliminated by State Administrators. He
wondered why this decision was made, as he attested, the
elimination of the position would not benefit the State.
Continuing, he stated that the House of Representatives Finance
Committee has recognized the importance of the program and has
restored the majority of the program's FY 04 funding. He
"respectfully requested" that the Senate Finance Committee do
likewise. In summary, he provided information attesting to the
personal and financial benefits derived from allowing disabled
individuals to independently live in their own home as opposed to
receiving institutional care. He stated that the "math is
compelling," and, he attested, that eliminating these funds would
serve to increase costs to the State elsewhere.
Senator Bunde, Chair of the Senate Labor & Workforce Development
subcommittee, noted that, while the Senate Labor and Commerce
Committee restored $300,000 to the budget, a $318,000 shortfall
remains.
Senator Hoffman asked for further information regarding the intent
of the Senate Labor and Commerce funding.
[Note: Senator Bunde's response was indiscernible.]
Mr. Douglas noted that some of the program's federal funding is
earmarked for specific programs.
Co-Chair Wilken assured the testifier and the Committee that Co-
Chair Green is working on this issue.
EARL CLARKE, Employee, Independent Living Center, informed the
Committee that continuous efforts are being made by the Center to
identify people who could be transitioned from living in a nursing
home to living independently in their community. He stated that
assisting people in this manner has saved, and would continue to
save, the State a tremendous amount of money. Therefore, he urged
the Committee to support Independent Living Centers as he declared
that, "money put into this program is generating a lot more savings
than one would think." He stated that "the simple answer" to the
State's budgetary problem, is to allow Alaskans "to pay some
additional taxes because we do not want our care system or our
people decimated by a budgetary tool."
Co-Chair Wilken stated that Committee Members have been provided a
packet [copy on file] from the Alaska Municipal League that the
following testifier might reference.
KEVIN RITCHIE, Executive Director, Alaska Municipal League, voiced
appreciation for the Member's efforts to address the State's fiscal
crisis, and he acknowledged Senator Taylor's remarks regarding the
efforts exerted by communities to contain expenses and address
local funding issues. He stated that the aforementioned packet
contains information regarding how 60 communities are addressing
the State's "spiraling economic decline." He noted that issues
being addressed include how to maintain and provide for such things
as utilities and education infrastructure in light of declining
population and student enrollment. He stated that the good news is
that the communities are working with the Administration to address
revenue and spending issues in an efficient and creative manner.
Co-Chair Wilken agreed that the willingness of the Administration
to work with municipalities would be beneficial.
Senator Bunde asked whether the Alaska Municipal League has taken a
position regarding HB 11 which would reduce the State's
contribution to the Permanent Fund from the current 50 percent of
such things as mineral lease rentals, royalties, royalty sale
proceeds, and net profit share revenues to the constitutionally
mandated 25 percent.
Mr. Ritchie informed that the League has not, of yet, taken a
position on this legislation; however, he noted that the League
would be meeting with Governor Frank Murkowski to discuss this and
other issues.
Senator Taylor recalled that several communities testified that
their insurance expenses have risen dramatically, and therefore, he
inquired as to whether the Alaska Municipal League (AML) joint
insurance arrangement (JIA) "significantly increased its premiums"
to cities. In addition, he asked whether the joint insurance
arrangement for schools' premiums have increased.
Mr. Ritchie responded yes, that both joint insurance arrangements
have experienced "massive increases in the cost of re-insurance and
were forced to pass" that increase on to municipalities and
schools. He noted that both of these Alaska-based organizations
with Alaska-based assets were able "to blunt some of the impact."
Senator Taylor asked regarding the percentage of the increase.
Mr. Ritchie responded that he did not have that information.
Senator Taylor clarified that the increase could be attributed to
the cost of re-insurance as opposed to the cost of claims.
Mr. Ritchie concurred.
Senator Taylor asked whether the AML is advocating, like numerous
others, that such things as the Permanent Fund's earnings or
instituting taxes be used to address the State's budgetary
shortfalls. Continuing, he asked whether anyone is furthering the
idea of resource development as a funding mechanism, as he
declared, that he would cut and sell every tree in the State before
he would opt to reduce funding to such things as the Independent
Living program or to education.
Mr. Ritchie voiced support for furthering resource development.
KACI HAMILTON, President Elect, University of Alaska Southeast,
stated that he had recently moved to Alaska from Jamaica, and he
applauded the quality education and the willingness to assist
students that the University's teaching faculty demonstrates. He
stated that funding is important to the continuance of the
University's attributes.
NELI NELSON, Environmental Science Major, University of Alaska
Southeast, urged the Committee to fund the University. He showed
the Committee some of the water sampling experiments that are being
conducted, and he voiced that adequate funding is required in order
for the University to continue to offer and expand the
environmental science program. He voiced that "he was blown away"
by Senator Taylor's declaration that he would cut down every tree,
as he attested, that "is not the answer."
Senator Taylor stated that he "firmly believes that these resources
are here" in order to provide some funding to meet the needs of the
citizens of the State. He stated that were access to these
resources denied, then all that would remain would be "the back
pocket of every working man in this State," and he continued that
without a resource base, jobs would not be available for long. He
stressed that people need jobs to survive, and that he would
utilize every resource in the State before he would deny people
access to assisted living programs or to an education. He attested
that Juneau was created because of mineral resources, and that
other communities in Southeast also depend on resources.
JONATHAN SMITH, High School Biology Teacher, Juneau School
District, stated that rather than the two previous individual's
"extreme" positions regarding resource development, he described
himself as a moderate who realizes that the State must develop its
resources, especially mining and timbering in Southeast Alaska;
however, he noted that "controlled development" must be implemented
in order to avoid "polarization" of people. He suggested that "the
right thinking and the right heart" should be present when making
decisions, and he attested that not every tree must be cut down to
provide for jobs and that such things as buffer zones should be
designated to protect streams. He noted that in addition to
resource development, sales taxation is also an option; however, he
stated that consideration must be given to not taxing to an extreme
level and that, again, "moderation is the key."
Mr. Smith continued that, as chair of the Southeast Alaska State
Science Fair, which is one of only two science fairs conducted in
the State, he spoke in support of retaining rather than eliminating
the Department of Environmental Conservation laboratory in Juneau
as it provides equipment support annually to the student science
fair projects. He stated that contrary to Governor Murkowski's
explanation that the laboratory provides "redundant" equipment; the
equipment is not redundant to students in Southeast Alaska. He
noted that without the support of this facility, the Juneau science
fair winners would not be able to compete and win at the national
science fair as they have done in the past.
ANDREA DOLL, Teacher, stated that she is testifying out of concern
for the State's youth, its values, and its expenditures. She urged
the Committee to not "take services from those who already have so
little and who need them the most," particularly the State's youth.
She shared that, in her teaching experience, she has worked with
youth who have grown up without a parent to pick their pre-school
or to help them with their homework or to read to them and provide
other guidance. She stated that, while the State, like individuals,
must make decisions regarding where to spend its money, she voiced
that the State should spend its money to save the youth of the
State rather than to put them in places such as "detention centers
to contain them." She voiced confidence that the Legislature would
provide support to youth that would assist them in finding "their
rightful future." She voiced strong support for a State income tax.
BOB BRIGGS, Staff Attorney, Disability Law Center, accompanied by
his stepdaughter, ALANA DULUSKI, distributed a copy of the
testimony [copy on file] that he had presented on behalf of the
Disability Law Center before the House of Representative in support
of funding for Independent Living Centers (ILC). He urged the
Committee to increase the proposed funding levels for the ILC and,
in addition, he requested that the program be transferred to the
Department of Health and Social Services and that the ILC
coordinator position be funded.
Mr. Briggs urged the Committee, on behalf of himself and his
family, to fund the Alyeska Central School and "to consider the
human impact of its closure." He stated that Alaska has several
very small schools with limited teaching staff, and he questioned
the desire to eliminate ACS's "very qualified teaching staff,"
particularly in light of recently enacted federal No Child Left
Behind Act. He declared that the Legislators are "the champions of
education," and as the policy makers of the State, he urged them to
persuade the Governor to not follow through on his proposal to
eliminate ACS.
Mr. Briggs suggested the following program funding mechanisms: that
the ILC be awarded half of a percent of the savings generated from
allowing people to live independently rather than in nursing homes;
that a percentage of the funding allocated to a school district be
awarded to ACS for each child enrolled in ACS from that district;
and that an income tax and the Permanent Fund be used to fund State
government rather than imposing higher gasoline taxes or other user
taxes that might disproportionately affect low and fixed income
individuals.
LISA HOFERKAMP, Chemistry Professor, University of Alaska
Southeast, urged for continued funding of the State Laboratory in
Juneau as the facility and staff provide "critical" and "integral"
support to the environmental science programs offered by the
University. She stated that the laboratory and its professional
staff are an asset to the University, and its closure would hinder
State and University efforts. She noted that the environmental
science program is very popular and attracts numerous out-of-state
students.
PEGGY COWAN, Superintendent, Juneau School District, supported Mr.
Peterson's and Mr. Wheeler's comments in support of education. She
declared that teachers and support staff work hard to provide
students with a quality education, and that reduced funding would
negatively affect these efforts. In addition, she characterized
flat funding as a decrease in funding due to the district's fixed
expenses such as the recent 300 percent increase in insurance
premiums. She stated that the Governor's proposed budget "would
cripple" the district's ability to do its job and provide a quality
education system as mandated in the State's Constitution. She
stated that the Juneau Board of Education is urging for: an
increase in the base student foundation funding formula in order to
protect the purchasing power of the educational dollar; to restore
pupil transportation funding as reductions in this funding would
result in fewer teachers rather than in savings in transportation
expenses; and for the restoration of the learning opportunity
grants which are used to assist students who are not meeting the
State's mandated standards. She also voiced support for the
restoration of the full level of bond debt reimbursement, and
voiced support for the continuation of the Department of
Environmental Conservation laboratory, as it is part of the
district's student support system.
Senator Hoffman asked the testifier for funding option suggestions.
Ms. Cowan voiced that a balanced approach should be implemented,
and in support of such, a State income tax should be considered,
"as it is the most fair." She also noted that other revenue sources
should be identified.
Senator Bunde commented that there are those who believe that
parents' Permanent Fund Dividend (PFD) checks could be retained to
support the high cost of education.
Senator Taylor inquired as to whether the 300-percent insurance
increase is the amount charged through the Joint Insurance
Agreement pool or through a private insurance carrier.
SFC 03 # 58, Side A 09:05 PM
Ms. Cowan responded that she is unsure.
Senator Taylor asked the Superintendent to provide him with further
information regarding school insurance fees.
CATHY CONNOR, Geology Professor, University of Alaska Southeast,
informed the Committee that the University "already" generates
money from logging that is conducted on University lands. She
stated that these funds once supported program research, but now
support the Alaska Scholars program which helps keep Alaskan
students in the State. In addition, she noted that the tuition
generated by attracting more in-state and out-of-state students
provides funds to the University. She voiced support for a State
income tax, and she also suggested that communities such as
Anchorage incorporate local sales taxes. She stated that currently,
the University is playing "a shell game" with its financing. She
also urged for the continued funding of the State Laboratory in
Juneau as the science programs at the University depend on the
facility to support a variety of programs.
TOBIN COATE, Student, University of Alaska Southeast, voiced that
he supports resource development and, he stressed that Alaskans
should manage those resources. He shared his family's education and
work history, and he urged the Committee to fully fund the
University in order to retain and attract students to the State.
JEANNE FOY, Teacher, Alyeska Central School, stated that closing
this correspondence program would not save the State money. She
noted that while eleven school districts offer Statewide education
programs, they differ from ACS in that they provide home-school
support programs. She stated that elimination of ACS would deny
Alaskan families a choice of educational programs.
Co-Chair Wilken asked Ms. Foy to provide his office with a short
explanation regarding the meaning of accreditation as it applies to
ACS, as he noted that Legislators might benefit from this
information.
Senator Hoffman asked for suggestions regarding how to fund the ACS
program.
Ms. Foy reiterated that the State would not be saving any money as
the State's student foundation formula funding "follows the
student," and therefore, were ACS eliminated, the funding would
shift to whatever district the student enrolled in. She attested
that correspondence and home school programs cost the State less
money per student as these programs are allocated a lesser amount
than that allotted to brick and mortar schools. She furthered that
were the Department of Education and Early Development to fund the
statewide home school support programs in the manner that they fund
the ACS program, nine million dollars would be saved on an annual
basis.
JIM DOUGLAS, Professor, University of Alaska Fairbanks and
Southeast Alaska and Kodiak 4-H Agent, and the Cooperative
Extension Service Program Agent, informed the Committee that
because of reduced funding over the years, numerous Cooperative
Extension Service instructors have been laid off, and he stated
that the State cannot afford this "brain drain" to continue. He
stated that inadequate funding is harmful in that these programs
lose a vast amount of pertinent information when staffing is
reduced.
CECILEA MILLER, Teacher, Alyeska Central School, affirmed that the
base student foundation formula funding travels with the student to
whatever State education program a student enrolls in. She urged
the Committee to adequately fund K-12 education, including pupil
transportation and the school bond debt reimbursement program. In
addition, she questioned Legislative action regarding the increase
in University tuition fees, as she understood that an agreement was
in place whereby the State "would split the cost that the
University needed for funding," whereby half would be raised by
tuition and the other half would be provided through the
Legislature. In conclusion, she stated that the following week, she
would be attending a seminar regarding school accreditation and
that upon her return, she would be happy to share updated
information with the Committee.
Senator Taylor voiced that, no matter what type of State
correspondence program a student enrolled in, the base student
foundation formula funding would equal 80-percent of traditional
school funding. However, he continued, that the costs to the State
would be five-fold were those same students to enroll in a school,
for example, in Bethel.
Ms. Miller voiced that this was also her understanding.
Furthermore, she stated that correspondence programs, such as ACS,
provide learning opportunities to students with health issues or
who are traveling, in addition to allowing other students an
opportunity to transition back to a brick and mortar school. She
concurred that elimination of the ACS summer program would provide
savings to the State.
Senator Hoffman asked for suggestions as to how the State could
address its fiscal gap.
Ms. Miller responded that her sister, who is a teacher in Kansas,
has no sympathy for the State's financial crisis as the sister
contends that the State has money as attested by its annual
Permanent Fund Dividend disbursements and the fact that the State,
unlike the State of Kansas, has no income tax, property tax or
sales tax legislation. Ms. Miller stated that perhaps it is time
for the citizens of the State to pay for what they need.
Co-Chair Wilken asked the testifier to work with Ms. Foy to provide
an explanation, in layman's terms, as to what accreditation is and
what graduating from an accredited program means to a graduating
student. He stated that this information would assist in
determining whether elimination of the summer program might, in
effect, might allow for the continuance of the regular school year
correspondence program and provide the Legislature with sufficient
information as to whether the ACS program be allowed to operate one
more year to provide a transitional period of time.
Ms. Miller informed the Committee that she would soon be attending
a distance accreditation seminar and would be able to supply
appropriate information upon her return.
MICHELLE AKERS, Student and Employee, University of Alaska
Southeast, Employee, National Oceanic and Atmosphere Administration
(NOAA), and Employee, Department of Environmental Conservation
Laboratory, urged the Committee to adequately fund the University.
She also besieged that the Committee continue operating the State
laboratory in Juneau, as the facility is crucial to NOAA and the
Department of Environmental Conservation research as well as to the
environmental science and other programs offered at the University.
CHARLES LINDLEY, Student, University of Alaska Southeast, stated
that he is an out-of-state, full-tuition student from Georgia who
is studying environmental science. He stated that he has "found a
home up here," and he thanked the Legislature for the opportunity
to live and receive a quality education in Alaska.
JEREMIAH CRAIG, Student, University of Alaska Southeast urged for
full funding for the University system. He stressed that it is
imperative that this support continue as he opined that being able
to provide an education to local people, who want to live in the
State, is the key to growing a strong State.
The bills were HELD in Committee.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 09:30 PM
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