Legislature(2003 - 2004)

04/30/2003 05:27 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                          April 30, 2003                                                                                      
                              5:27 PM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-03 # 70,  Side A                                                                                                            
SFC 03 # 70,  Side B                                                                                                            
SFC 03 # 71,  Side A                                                                                                            
SFC 03 # 71,  Side B                                                                                                            
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Gary Wilken convened the meeting at approximately 5:27 PM.                                                             
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Lyman Hoffman                                                                                                           
Senator Donny  Olson                                                                                                            
Senator Ben  Stevens                                                                                                            
Senator Con Bunde                                                                                                               
                                                                                                                                
Also Attending:  JOE BALASH, Staff to Senator Therriault;                                                                     
Testifiers are listed in the order they spoke.                                                                                  
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 117-ELIMINATING LONGEVITY BONUS PROGRAM                                                                                      
                                                                                                                                
The Committee heard from the Senate President and took public                                                                   
testimony. The bill was held in Committee                                                                                       
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 117                                                                                                        
     "An Act eliminating the longevity bonus program and making                                                                 
     related conforming changes; and providing for an effective                                                                 
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
This was the second hearing for this bill in the Senate Finance                                                                 
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken  reminded that the committee substitute  proposes to                                                            
"continue  the  Alaska  Longevity  Bonus Program  as  a needs-based                                                             
program for  Alaskan seniors  with a monthly  income of 150  percent                                                            
over the Alaska federal poverty level."                                                                                         
                                                                                                                                
AT EASE 5:30 PM / 5:30 PM                                                                                                       
                                                                                                                                
JOE BALASH,  Staff to Senator Therriault,  re-read the statement  he                                                            
made during  the previous  hearing into the  record. [See  Committee                                                            
minutes for April 30, 2003, 9:00am.]                                                                                            
                                                                                                                                
Co-Chair  Wilken  requested  the  witness   review  the eligibility                                                             
requirements proposed in the committee substitute.                                                                              
                                                                                                                                
Mr. Balash listed monthly  income limits of $1,402 for an individual                                                            
and $1,893  for a couple,  assets that do  not exceed $4,000  for an                                                            
individual  and  $6,000  for  a couple.  He  noted  that  a  primary                                                            
residence, one  automobile and sufficient funds for  burial would be                                                            
exempted from the asset limitations.                                                                                            
                                                                                                                                
Senator Bunde commented  that the State is facing a fiscal challenge                                                            
and warned  that if not  addressed, a serious  economic downturn  or                                                            
depression would  occur. He relayed that many have  stated that this                                                            
is a legislative problem,  but he argued this is a problem shared by                                                            
all  Alaskan residents.  He  requested  that  those who  oppose  any                                                            
reduction  to  the longevity  bonus  program  offer  suggestions  to                                                            
compensate for the funding.                                                                                                     
                                                                                                                                
Co-Chair Wilken  stated this meeting would not "turn  into a debate"                                                            
on how to balance the budget, etc.                                                                                              
                                                                                                                                
JIM  GARRIGUES,   Abbott  Loop  Community  Council,   testified  via                                                            
teleconference from Anchorage  and asked why nonresidents and aliens                                                            
are given longevity  bonuses. He asked why people  who "never earned                                                            
a paycheck" in  Alaska are receiving these payments.  He also wanted                                                            
to know why the elderly  must shoulder the responsibility to balance                                                            
the  budget, and  asserted  it is  the  Legislature's  duty to  find                                                            
another solution.                                                                                                               
                                                                                                                                
RON COWAN,  Long Term Care Ombudsman,  testified via teleconference                                                             
from  Anchorage that  he understood  the  fiscal  challenges of  the                                                            
State. He told  of his experiences in working with  senior citizens.                                                            
He listed  two reasons  the longevity  bonus  should be maintained:                                                             
respect  for the  contributions  they have  made to  the State,  and                                                            
because  a promise  was  made  to them.  He  stated the  means  test                                                            
criterion  is too limited  and he offered  to assist in determining                                                             
more appropriate criteria.                                                                                                      
                                                                                                                                
J.R. HAWK  LANGMAN,  Pioneers of  Alaska, Igloo  #15, testified  via                                                            
teleconference  from Anchorage that he does not financially  rely on                                                            
the longevity  bonus  and would be  willing to  forgo receiving  his                                                            
payments if  he were assured that  the funds would be wisely  spent.                                                            
He spoke  to the  need of  these funds  for the  economies of  rural                                                            
villages.                                                                                                                       
                                                                                                                                
DELISA CULPEPPER testified  via teleconference from Anchorage, about                                                            
disparities  in the  Denali  KidCare  program criteria  compared  to                                                            
Medicare coverage  for senior citizens. She told of  the reliance on                                                            
longevity   bonus  payments   to   many  senior   citizens  to   pay                                                            
prescription drug expenses.                                                                                                     
                                                                                                                                
GORDON J. SEVERSON  testified via  teleconference from Anchorage  to                                                            
yield his time to Elizabeth Dennis.                                                                                             
                                                                                                                                
ELIZABETH   DENNIS,  Alaska  Resident   since  1957  testified   via                                                            
teleconference  from Anchorage that  the longevity bonus  is crucial                                                            
to the  economy of many  villages. She informed  that reductions  to                                                            
the  program would  remove  an important  cash  flow  source to  the                                                            
economy of the  State. She predicted many residents  would be forced                                                            
to  move  Outside  where  their  money  is  stretched  farther.  She                                                            
asserted that the state income tax must be reinstated.                                                                          
                                                                                                                                
MARGE  ZIELINSKI testified  via  teleconference  from Fairbanks  and                                                            
read statements  she  submitted earlier  to the  Committee [copy  on                                                            
file.] She  asserted, "leave  the longevity  bonus alone; it  is not                                                            
broke."  She  added that  the  issue  of the  program's  cost  would                                                            
resolve itself, remarking, "read the obituaries".                                                                               
                                                                                                                                
GLENN HACKNEY  testified  via teleconference  from Fairbanks  to his                                                            
disbelief that  the longevity bonus program is being  revised again.                                                            
He opined that  the operational expenses of the program  are minimal                                                            
and he challenged the expenses  listed in the fiscal note. He quoted                                                            
session laws from  1972 citing that the program should  not be based                                                            
on income  or assets. He  assured he would  pay taxes associated  to                                                            
operating his vehicle,  including the proposed increases in gasoline                                                            
taxes registration  fees and  the proposed  surcharges for  new tire                                                            
purchases.                                                                                                                      
                                                                                                                                
NANCY MENDENHALL  testified via teleconference from  Fairbanks about                                                            
the investments  that retirees  contribute  to the State,  including                                                            
volunteerism. She warned  that the State would suffer if many senior                                                            
citizens  relocated  to other  states.  She recommended  that  State                                                            
employee positions  should be eliminated  rather than the  longevity                                                            
bonus program.                                                                                                                  
                                                                                                                                
CLIFF  BRENNEN  testified via  teleconference  from  Fairbanks  that                                                            
"like the road to Hell"  this legislation is probably well intended.                                                            
He  cautioned that  income  qualifications  would create  a  further                                                            
divide between  rural and urban communities,  suggesting  that rural                                                            
residents are  able to hold harmless significantly  more assets than                                                            
urban residents, including boats and fish wheels.                                                                               
                                                                                                                                
GLEN FRANKLIN  testified via teleconference  from Fairbanks  that he                                                            
came  to Fairbanks  in September  1933.  He found  this legislation                                                             
degrading  and  an  insult  to  the  participants  in  the  program,                                                            
regardless  of  whether they  would  qualify  under the  income  and                                                            
assets standards. He noted today is his birthday.                                                                               
                                                                                                                                
CHARLES  MICHON testified  via  teleconference  from  Homer that  he                                                            
moved to  Alaska in 1994  for health reasons.  He stated that  if he                                                            
did not  receive  the longevity  bonus he  would need  to leave  the                                                            
State due  to cost of living.  He suggested  State employees  should                                                            
take a salary reduction.                                                                                                        
                                                                                                                                
CARL GLANVILLE  testified  via teleconference  from  Homer about  an                                                            
event   that  destroyed   his  bridge.   He   suggested  "a   little                                                            
housekeeping  on the  part of  the State"  to reduce  the number  of                                                            
employees who "actually contribute nothing".                                                                                    
                                                                                                                                
IRIS  DOUGLAS  testified  via teleconference   from Homer  that  the                                                            
program should not be changed  because participants are "dying out".                                                            
She did not want to be forced to receive welfare.                                                                               
                                                                                                                                
VI  JERREL,  PhD.   testified  via  teleconference   from  Homer  in                                                            
opposition  to  the  committee  substitute,  stressing  the  program                                                            
should remain  unchanged.  She qualified that  she does not  receive                                                            
longevity  bonus payments.  She informed  that  former Governor  Jay                                                            
Hammond established the  program as an incentive for senior citizens                                                            
to remain in Alaska.  She requested identification  of those seniors                                                            
who supposedly do not depend on the bonus income.                                                                               
                                                                                                                                
JAMES DENNIS,  testified via teleconference from an  offnet location                                                            
in Craig                                                                                                                        
                                                                                                                                
                                                                                                                                
SFC 03 # 70, Side B 06:14 PM                                                                                                    
                                                                                                                                
                                                                                                                                
Mr. Dennis  continued  that the  "free ride  is over"  and that  the                                                            
State income tax must be reinstated.                                                                                            
                                                                                                                                
JUNE HAAS testified  via teleconference  from an offnet location  in                                                            
Haines that  she missed qualifying  for the longevity bonus  program                                                            
by  three days;  however  she has  many friends  who  depend on  the                                                            
benefits. She expressed  the program was never intended as an income                                                            
program.  She suggested  that  if a means  test  is implemented  the                                                            
income level  should be set at $2500  per individual. She  furthered                                                            
that  the  income  for  couples  should  be no  less  than  for  two                                                            
individuals, as living  expenses are the same for one person as two.                                                            
                                                                                                                                
LORILYN SWANSON,  Manager, Fireweed Place, and Board  Member, Alaska                                                            
Commission  on Aging, testified  in Juneau  that of the seniors  who                                                            
qualify for  subsidized housing,  30-40 percent  of their income  is                                                            
comprised  of  longevity   bonus  benefits.  She  spoke   of  income                                                            
qualifications for low-income  senior housing, stressing the amounts                                                            
are significantly higher  than the amounts proposed in the committee                                                            
substitute.                                                                                                                     
                                                                                                                                
DORIS  ROBBINS, Retired  Public Employees  of  Alaska, testified  in                                                            
Juneau that this  bill breaks a promise made when  the provisions to                                                            
phase out the  program were implemented in 1994. She  suggested that                                                            
those  seniors  who  would  no  longer  qualify   would  take  their                                                            
remaining income,  leave the State  and spend that money  elsewhere.                                                            
                                                                                                                                
MYRNA GARDNER,  Juneau resident, testified in Juneau  that this bill                                                            
would impact  Alaska's most vulnerable  citizens. She suggested  two                                                            
options  to  the  State's   budget  crisis,  reduced   spending  and                                                            
generating  revenues. She  asserted that  generating revenues  would                                                            
"make  those requesting  programs  pay". She  compared the  revenues                                                            
potentially  generated  by a  State  income tax,  particularly  from                                                            
nonresidents.                                                                                                                   
                                                                                                                                
ROSALEE WALKER,  AARP and board member, Older Persons  Action Group,                                                            
testified in Juneau that  since this proposal was first offered, the                                                            
organizations   have   offered  services   to   assist  in   finding                                                            
alternatives.  However, she stated  those offers have not  been well                                                            
received.   She  referenced   the  application   for  adult   public                                                            
assistance programs [copy  on file] and stated the qualifications do                                                            
not address senior citizens' particular circumstances.                                                                          
                                                                                                                                
MIKE RACE, Vice  President, Pioneers of Alaska, testified  in Juneau                                                            
that  the organization  is  in opposition  to  the bill.  He  quoted                                                            
Robert  Service regarding  the  obligations  of a  promise made.  He                                                            
suggested the Committee consider all testimony received.                                                                        
                                                                                                                                
EMMA ANDREW  testified via  teleconference  from an offnet  location                                                            
about the impacts  of elimination  of the longevity bonus  to elders                                                            
residing  in  villages.  She noted  many  of  these elders  are  not                                                            
educated and have no other means of income.                                                                                     
                                                                                                                                
ROBERT  NICK, village  mayor  and lifelong  Alaskan,  testified  via                                                            
teleconference  from an offnet location  about the large  percentage                                                            
of residents over the age  of 65 in the Bethel area. He was thankful                                                            
for the longevity  benefit payments received by his  deceased mother                                                            
for four years.                                                                                                                 
                                                                                                                                
PETRIA FALKENBERG testified  via teleconference from Kenai about the                                                            
dependence  on  the longevity  bonus  by  many seniors  for  medical                                                            
expenses. She  noted she is not a  senior citizen. She asserted  the                                                            
seniors have  made the "ultimate sacrifice"  in making Alaska  "what                                                            
it is  today."  She suggested  implementing  a state  lottery as  an                                                            
alternate method of addressing the State's budget situation.                                                                    
                                                                                                                                
LENORE JONES  testified via  teleconference  from Kenai that  Alaska                                                            
voters elected the legislators to represent them.                                                                               
                                                                                                                                
DALE JOHNSON testified  via teleconference from Kenai  that he would                                                            
be willing  to forgo  his $100  monthly longevity  bonus payment  if                                                            
other concessions were made by the Legislature.                                                                                 
                                                                                                                                
THELMA LUDWIGSEN  testified via teleconference  from Ketchikan  that                                                            
she opposes elimination  of longevity benefits for seniors living on                                                            
a "close budget"                                                                                                                
                                                                                                                                
MARGARET  ANTONSON, employed  by the Division  of Public  Assistance                                                            
for 28 years, testified  via teleconference from Ketchikan about the                                                            
difficulties  for elderly people to  request public assistance.  She                                                            
pointed out that the paperwork itself is difficult.                                                                             
                                                                                                                                
CLEO  WESTON, 51-year  Alaskan,  testified via  teleconference  from                                                            
Ketchikan that  she had felt "shortchanged" when she  first received                                                            
the bonus  as payment amounts  should have  been based on length  of                                                            
Alaskan  residency.  She expressed  it  is  hard to  request  public                                                            
assistance and that she grew up when welfare was a "nasty word".                                                                
                                                                                                                                
DEE DALHAUG, 36-year old,  administrator of an assisted living home,                                                            
testified via  teleconference from Ketchikan about  the difficulties                                                            
of elderly  to obtain housing.  She stressed  those who receive  the                                                            
longevity bonus have earned it and deserve it.                                                                                  
                                                                                                                                
Senator  Bunde commented  on  testimony  given indicating  that  the                                                            
longevity  bonus program  was  established  as a  promise. He  cited                                                            
discussions   held  during   the  consideration   of  the   enabling                                                            
legislation noting  that former Senator Coghill testified  that when                                                            
the State funds  were diminished,  the program could be eliminated.                                                             
                                                                                                                                
MARY HASTINGS,  75-year resident, testified via teleconference  from                                                            
Ketchikan that  the longevity bonus program should  remain unchanged                                                            
and not be needs based.                                                                                                         
                                                                                                                                
MARY HARDER, 40-year  Kodiak resident, testified via  teleconference                                                            
from  Kodiak  that  although  Kodiak   is  beautiful  place,  it  is                                                            
impossible to  exist in this location on income less  than $2500 per                                                            
month. She said losing  seniors would have a "sad effect" on Kodiak,                                                            
particularly on local churches,  as they pledge larger percentage of                                                            
their incomes to churches.                                                                                                      
                                                                                                                                
DEE LOESCHE,  Wasilla Senior  Center, testified  via teleconference                                                             
from Mat-Su  in agreement  with most of the  other testimony  given.                                                            
She  had  questions  about  the  qualifications  and  predicted  the                                                            
administrative costs of the amended program would be too high.                                                                  
                                                                                                                                
BETTY MERCER, 78-year old,  testified via teleconference from Mat-Su                                                            
that she  is responsible  for the distribution  of food in  Wasilla.                                                            
She listed  the income  requirements for  participation in  the food                                                            
bank  program,  which are  considerably  higher  than  the  proposed                                                            
amounts in the committee substitute.                                                                                            
                                                                                                                                
CHESTER  WEBB testified  via  teleconference  from  Mat-Su that  the                                                            
legislators continue to  increase their salaries, although considers                                                            
decreasing benefits to  seniors. He supported funding for education,                                                            
and suggested  elimination of unnecessary  programs and pork  barrel                                                            
projects.  He asserted  that seniors  built this  State. He  charged                                                            
that Governor  Murkowski lied during the gubernatorial  campaign and                                                            
threatened that those legislators  who vote for passage of this bill                                                            
would be removed from office.                                                                                                   
                                                                                                                                
RUSSELL  SANDERS,   Alaska  resident   since  1955,  testified   via                                                            
teleconference  from Mat-Su that he  works with seniors and  that he                                                            
has seen the state  develop. He directed the Committee  to leave the                                                            
senior citizens alone.                                                                                                          
                                                                                                                                
LOUISE HARRIS,  89-years old, and  President, Palmer Senior  Center,                                                            
testified  via  teleconference   from  Mat-Su  that  seniors  are  a                                                            
resource  to the  State.  She  explained  that seniors  spend  their                                                            
income,  pensions and  bonuses  in Alaska.  She also  informed  that                                                            
seniors  are proud  and  that it  would be  demeaning  to apply  for                                                            
welfare benefits.                                                                                                               
                                                                                                                                
JIMMY STEVENS testified  via teleconference from an offnet location,                                                            
on behalf of elders, about  the expenses of operating a boat as well                                                            
as heating  expenses.  He stressed  that if  legislators care  about                                                            
elders they should no change the longevity bonus program.                                                                       
                                                                                                                                
NORMA   NICLAS,  Director,   XYZ   Senior  Center,   testified   via                                                            
teleconference  from Nome, that the longevity bonus  program must be                                                            
left in place.  She stated that these  benefits funds are  necessary                                                            
for  seniors to  remain  in the  community,  as no  pioneer home  or                                                            
assisted living housing exists in the Nome area.                                                                                
                                                                                                                                
                                                                                                                                
SFC 03 # 71, Side A 07:03 PM                                                                                                    
                                                                                                                                
                                                                                                                                
DAN KARMUN,  AK Commission  on Aging-Northwest  Area, testified  via                                                            
teleconference  from Nome,  that he considers  his parents  his best                                                            
teachers.  They  taught him  to respect  his  elders,  he noted.  He                                                            
informed that  Northwest Alaska has  the highest cost of  living and                                                            
that consideration of this  should be made in the income eligibility                                                            
criteria.                                                                                                                       
                                                                                                                                
ALBERT KENHERDER  testified via teleconference  from Sitka  that the                                                            
longevity bonus  benefits paid remain  in the State. He warned  that                                                            
if the program  were eliminated he would leave Alaska  and spend his                                                            
social security income elsewhere.                                                                                               
                                                                                                                                
CHARLES BROKER [spelling  not verified] testified via teleconference                                                            
from  Tok that  the  existing  program  should  not be  changed.  He                                                            
pointed out that  the local senior program assists  about 45 seniors                                                            
daily. He noted seniors  are year-round residents do not only reside                                                            
in Tok during the summers to serve tourists.                                                                                    
                                                                                                                                
JOHN  CERUTTI,  83-years  old,  testified  via  teleconference  from                                                            
Valdez  that the Governor  and  the legislators  lack the  political                                                            
will to  implement an income  tax. He disagreed  with the change  to                                                            
the one-year residency  requirement, asserted it was  "stupid". As a                                                            
civil  engineer  he  informed  that  he  helped  build  the  State's                                                            
infrastructure.                                                                                                                 
                                                                                                                                
ETHEL  K. BROWN testified  via  teleconference  from Anchorage  that                                                            
although  senior  citizens  never  paid  into  the  longevity  bonus                                                            
program, they  receive benefits due  to the contributions  they made                                                            
to  the State.  She noted  she  remained in  Alaska  because of  the                                                            
bonuses.                                                                                                                        
                                                                                                                                
PEG STOUT,  Chapter President,  AARP, testified  via teleconference                                                             
from  Anchorage  that obituaries  published  in  the past  two  days                                                            
indicate seven  deaths of people over  the age of 73. She  asked the                                                            
savings  of  making   the  longevity  bonus  program   needs  based,                                                            
predicting  it would  be costly to  implement and  another layer  of                                                            
bureaucracy. She  surmised the recipients "pay" for  the benefits in                                                            
the form of sharing their experiences.                                                                                          
                                                                                                                                
LOIS ARNOLD  testified via teleconference  from Anchorage  that most                                                            
recipients of  longevity bonus payments do not deposit  their checks                                                            
into  a Swiss  bank account.  He asserted  that  by sponsoring  this                                                            
legislation,  Governor  Murkowski "shot  himself in  the foot".  She                                                            
questioned  the cost  to implement  and  monitor  the means  program                                                            
compared to  retaining the existing  program until all participates                                                             
pass away.                                                                                                                      
                                                                                                                                
WINFRED EASTFIELD  testified via teleconference from  Anchorage that                                                            
at 88-years  of age, along  with her husband  who is 93, they  would                                                            
not be on the  program too much longer. She told of  living on a low                                                            
income  and  said  she did  not  receive  food  stamps  because  she                                                            
scrounged grocery stores for leftovers.                                                                                         
                                                                                                                                
NORMAN EASTFIELD  testified via teleconference from  Anchorage about                                                            
his youth,  pointing out that  he does not  drink or smoke  and does                                                            
volunteer work.                                                                                                                 
                                                                                                                                
CHARLOTTE   M.   DAVIS,   Public   Health   Nurse,   testified   via                                                            
teleconference  from Fairbanks that  she is not an elder  and has no                                                            
family in Alaska. She furthered  that she has worked with elders for                                                            
over 20 years.  She stated that elimination  of the longevity  bonus                                                            
program  would  have   severe  impacts,  specifically   relating  to                                                            
Medicaid. She  explained that more people would become  eligible and                                                            
forced  to  enlist  in  the  Medicaid  program.  She  predicted  the                                                            
Pioneers' Homes would be affected as well.                                                                                      
                                                                                                                                
ED SHELLINGER  testified via teleconference from Fairbanks  that the                                                            
Governor  and the  members  of the  Legislature  do  not listen.  He                                                            
suggested  that senior citizens  work with  a legislative  committee                                                            
for a  two-year  period to  reach solutions  to  the State's  fiscal                                                            
situation.  He told of  his recent hospitalization  and the  related                                                            
expenses.                                                                                                                       
                                                                                                                                
BOB  HUFMAN  testified  via  teleconference   from  Fairbanks  about                                                            
newspaper articles  that have made a "major issue"  of the longevity                                                            
bonus program  creating two  classes of senior  citizens: those  who                                                            
receive  benefits  and  those  who  do not.  He  surmised  that  the                                                            
provisions of this committee  substitute would create two classes of                                                            
welfare recipients.                                                                                                             
                                                                                                                                
HAL LEVEY  testified  via teleconference  from  Fairbanks that  this                                                            
would create a hardship for those with moderate incomes.                                                                        
                                                                                                                                
BETTY HUFMAN  testified via teleconference  from Fairbanks  that she                                                            
is  opposed  to  any  kind of  means  test,  asserting  it  is  "ill                                                            
conceived".  She stated that seniors  are being asked to  "build the                                                            
bridge"  until revenues  from the  Governor's  resource development                                                             
programs are realized.  She pointed out that seniors  would not live                                                            
long enough to see the benefits.                                                                                                
                                                                                                                                
ERNEST LINE  testified via  teleconference  from offnet location  in                                                            
Wasilla that  candidate Murkowski  did not speak of an intention  to                                                            
eliminate the longevity  bonus program. He stated that the committee                                                            
substitute  should  be  reviewed and  rewritten.  He  suggested  the                                                            
Legislature  should "bite the bullet"  and reinstate an income  tax.                                                            
                                                                                                                                
MARIE DARLIN, Coordinator,  Capital City Task Force, AARP, testified                                                            
in Juneau that  seniors could be involved in reaching  a solution to                                                            
Alaska's budget problems.                                                                                                       
                                                                                                                                
PAT LUBY,  Legislative  Representative,  AARP,  testified in  Juneau                                                            
that gerontology  studies show that as people age  they would become                                                            
poor. He added that this  would occur mostly among women, as most of                                                            
their assets  are utilized to support  dying spouses. He  calculated                                                            
the  hourly  wage of  those  seniors  who would  qualify  under  the                                                            
proposed  income requirements  would  be $5.50. He  also noted  that                                                            
prescription  drug coverage  and subsequent  expenses are  different                                                            
for each  person, which is  not considered  in this legislation.  He                                                            
asserted that  seniors told to save their money for  retirement, but                                                            
are not told that if the  do this and "follow the rules", they would                                                            
be punished.                                                                                                                    
                                                                                                                                
JOE SONNEMAN  testified in Juneau  that because his parents  live in                                                            
Chicago,  he assists seniors  in Juneau in  hopes that someone  else                                                            
will care for  his parents in Chicago.  He surmised that  a "welfare                                                            
approach"  to the  longevity bonus  program politically  would  "not                                                            
sell". He recommended a  progressive income tax. He also recommended                                                            
a  reduction  of the  Department  of  Corrections  budget  to  three                                                            
percent of total expenditures.                                                                                                  
                                                                                                                                
CAROL  FLEEK  testified  in  Juneau  on behalf  of  her  parents  in                                                            
Ketchikan  who have lived  in Alaska since  1953. She informed  that                                                            
her parents spend  $400 each month for prescriptions.  She indicated                                                            
there are few job opportunities  for elderly residents in Ketchikan.                                                            
Although  her   parents'  income   is  greater  than  the   proposed                                                            
qualifying  amount, she stated  it could be  six months to  one year                                                            
before they would qualify  for subsidized housing benefits. She told                                                            
the Committee  that  she and her  siblings assist  in supplementing                                                             
their parent's  incomes. She suggested  a $100 senior tax  levied to                                                            
all  workers  or  a  $100  reduction  taken  from   each  resident's                                                            
permanent fund  dividend to pay the expenses of the  longevity bonus                                                            
program.  She asserted she  would be willing  to forego receiving  a                                                            
permanent fund dividend.                                                                                                        
                                                                                                                                
BERTHA HANSEN  testified via teleconference  from Ketchikan  that it                                                            
is the  seniors that  made the  "great land  of Alaska"  what  it is                                                            
today.  She charged  that seniors  are now expected  to balance  the                                                            
State's budget when the  legislators have not. Seniors are proud and                                                            
should not have to go on welfare, she stressed.                                                                                 
                                                                                                                                
ED ZASTROW  testified via  teleconference  from Ketchikan about  the                                                            
multiple  times he  has testified  in opposition  to  this bill.  He                                                            
asserted that the committee  substitute is "completely unacceptable"                                                            
because the qualifying  monthly income and asset amounts are too low                                                            
and  "insulting"  to seniors.  He  expressed  that this  bill  needs                                                            
additional study, and that  changing the program is unacceptable. He                                                            
reiterated  that  he  opposes  any change  to  the  longevity  bonus                                                            
program.                                                                                                                        
                                                                                                                                
PAT FLEMMING  testified via teleconference  from Mat-Su to  tell the                                                            
Committee to leave  bonus exactly the way it is. She  noted she does                                                            
not receive bonus,  that she has lived in Alaska for  four years and                                                            
loves seniors.  She  asked if a  lawsuit would  require the  program                                                            
opened to all  seniors in the State. She spoke to  costly litigation                                                            
and the total loss of the program.                                                                                              
                                                                                                                                
Co-Chair  Wilken informed  the witness  that  a preliminary  opinion                                                            
from the Legislature's  legal council rules that this legislation is                                                            
constitutional and legal.                                                                                                       
                                                                                                                                
Senator  Bunde  asked if  the  witness' comments  pertained  to  the                                                            
longevity  bonus  program as  it was  established  in  1976, or  the                                                            
amended program implemented at the direction of the court.                                                                      
                                                                                                                                
Ms. Flemming  answered that her statement  is to the program  "as it                                                            
stands today".                                                                                                                  
                                                                                                                                
                                                                                                                                
SFC 03 # 71, Side B 07:50 PM                                                                                                    
                                                                                                                                
                                                                                                                                
FRANK  GIRARD testified  via  teleconference  from  Mat-Su that  the                                                            
proposed  means testing  should  be  further reviewed.  Without  the                                                            
longevity bonus  benefits, he informed  that he and wife  would lose                                                            
their  home.  He disagreed   with the  argument  that  because  some                                                            
seniors currently  do not qualify for the program,  others should be                                                            
eliminated from  it as well. He suggested legislators  should donate                                                            
a percentage  of their "lavish" income  to fund education.  He spoke                                                            
to  a correlation   between  taxation of  church  property  to  this                                                            
matter,  surmising  that because  of  religious political  clout  no                                                            
politician would consider taxing church property.                                                                               
                                                                                                                                
JIM  WATENPAUGH  testified  via  teleconference   from  Mat-Su  that                                                            
"forcing grandma  or granddad on welfare  rolls" is "cold  blooded".                                                            
He stressed that  seniors pay the ultimate cost with  their lives in                                                            
ending receipt of longevity  bonus benefits. He charged that if this                                                            
bill  passes, some  legislators  would  have to  "learn  to walk  on                                                            
water" to get reelected.                                                                                                        
                                                                                                                                
BARBARA    KOGASSOGOON,    Savoonga    resident,    testified    via                                                            
teleconference  from  Nome that  she needs  the longevity  bonus  to                                                            
provide housing for her kids and grandkids.                                                                                     
                                                                                                                                
ED BARBER testified  via teleconference  from Anchorage to  question                                                            
the  fiscal  note.  He  expected  the  administrative   costs  would                                                            
increase  drastically,   although  the  legislature   is  supposedly                                                            
opposed to additional bureaucracy.                                                                                              
                                                                                                                                
FUTURE   MALVO  testified   via  teleconference   in  Anchorage   in                                                            
opposition to SB 117.                                                                                                           
                                                                                                                                
ANN  SECREST,  Director  of  Communications,   AARP,  testified  via                                                            
teleconference   from  Anchorage,  about  the  adverse   affects  of                                                            
reductions  to  the  longevity  bonus program.  She  spoke  of  Norm                                                            
Eastfield's volunteer work at the McLaughlin Youth Center.                                                                      
                                                                                                                                
KATHERINE  FERGUSON,  Alaska  resident  since  1958,  testified  via                                                            
teleconference  from  Fairbanks,   that  she  and  her  husband  had                                                            
expected they  would have to leave  the State after retirement.  She                                                            
noted the longevity  bonus program  was enacted and enabled  them to                                                            
remain in  Alaska near their  family. She  expressed that she  feels                                                            
she  is in  a battle  with  Governor Murkowski.  She  requested  the                                                            
Committee delay  its final decision  on this legislation  until more                                                            
information is available.  She stressed that seniors require time to                                                            
adjust to lower incomes.                                                                                                        
                                                                                                                                
JOE V. STRUNKA  testified via teleconference from  Fairbanks that he                                                            
is not a recipient of the  longevity bonus program. He added that he                                                            
came to  Alaska in 1962  and has sent letters  and testified  before                                                            
the Knowles  Administration in support  of continuing the  longevity                                                            
bonus program.  If turned into a welfare  program, he recalled  that                                                            
former  Governor  Knowles was  concerned  the eligibility  would  be                                                            
expanded to all seniors  aged 65 and older and would be a "Pandora's                                                            
box". Mr. Strunka asserted  that the "cancer" is actually the number                                                            
of  State  employees.  He  suggested  the  State  should   privatize                                                            
functions and eliminate  the Department of Transportation and Public                                                            
Facilities.  He  furthered  that the  Department  of Fish  and  Game                                                            
should  be eliminated  as well  because the  federal government  has                                                            
taken over many  management duties. He also suggested  reductions to                                                            
higher education  funding,  stating that the  many campuses  are not                                                            
necessary and telling of a distance education program in London.                                                                
                                                                                                                                
Senator Bunde  commented that if every State employee  position were                                                            
eliminated, the State deficit would only be reduced by one-half.                                                                
                                                                                                                                
Co-Chair  Wilken noted 62  testifiers spoke  at this hearing  and he                                                            
thanked them as well as those Committee members present.                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Gary Wilken adjourned the meeting at 08:10 PM                                                                          

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