Legislature(2005 - 2006)SENATE FINANCE 532

04/12/2005 09:00 AM Senate FINANCE


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09:07:38 AM Start
09:09:18 AM HB66
10:50:55 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 66 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+= HB 67 APPROP: OPERATING BUDGET/LOANS/FUNDS/CBR TELECONFERENCED
Heard & Held
Statewide Public Testimony - (Public
Testimony May Be Limited to No More Than
3 Minutes)
9:00 am Bethel, Nome, Kotzebue
9:30 am Barrow, Tok, Delta Junction
10:00 am Ketchikan, Wrangell, Petersburg
10:30 - 11:00 Sitka, Cordova, Valdez
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                          April 12, 2005                                                                                      
                             9:07 a.m.                                                                                        
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Wilken convened the meeting at approximately 9:07:38 AM.                                                             
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Lyda Green, Co-Chair                                                                                                    
Senator Bert Stedman                                                                                                            
Senator Donny Olson                                                                                                             
Senator Lyman Hoffman                                                                                                           
Senator Fred Dyson                                                                                                              
Senator Con Bunde                                                                                                               
                                                                                                                                
Also Attending:  Testifiers are listed in the minutes in the order                                                            
they testified.                                                                                                                 
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
HB  67-APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                     
                                                                                                                                
HB  66-APPROP: MENTAL HEALTH BUDGET                                                                                             
                                                                                                                                
The Committee adopted committee substitute for both bill and heard                                                              
public testimony. The bills were held in Committee.                                                                             
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 67(FIN)(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 HOUSE BILL NO. 66(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."                                                                             
                                                                                                                                
                                                                                                                                
The Committee scheduled testimony from the Legislative Information                                                              
Offices  in Bethel,  Nome, Kotzebue,  Barrow,  Tok, Delta  Junction,                                                            
Ketchikan, Wrangell, Petersburg, Sitka, Cordova and Valdez.                                                                     
                                                                                                                                
Senator Stedman  moved for  adoption of CS  HB 67, 24-GH1073\L  as a                                                            
working document.                                                                                                               
                                                                                                                                
Without objection the committee substitute was ADOPTED.                                                                         
                                                                                                                                
9:09:18 AM                                                                                                                    
                                                                                                                                
Senator Stedman  moved for  adoption of CS  HB 66, 24-GH1075\Y  as a                                                            
working document.                                                                                                               
                                                                                                                                
There was no objection and the committee substitute was ADOPTED.                                                                
                                                                                                                                
9:10:11 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilken outlined the public testimony procedures.                                                                       
                                                                                                                                
9:12:15 AM                                                                                                                    
                                                                                                                                
CHARLENE SACLAMANA  testified via teleconference from  Nome directed                                                            
testimony to  page 26 of HB 67 and  requested increased funding  for                                                            
the Local Emergency Planning Committee.                                                                                         
                                                                                                                                
9:15:10 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  spoke  to the  budget  subcommittee's  efforts  in                                                            
securing an additional  $100,000 for this component,  increasing the                                                            
amount  to $150,000.  Efforts  would continue  to  secure the  total                                                            
$300,000  requested.  He  detailed  the process  in  examining  this                                                            
program.                                                                                                                        
                                                                                                                                
AT EASE 9:16:47 AM/9:17:38 AM                                                                                               
                                                                                                                                
9:17:40 AM                                                                                                                    
                                                                                                                                
JOAN  HAMILTON,  Chair,  Bethel  Broadcasting  Board  testified  via                                                            
teleconference  from Bethel  to thank the  Committee for support  of                                                            
public radio  broadcasting. Public  radio is important in  emergency                                                            
broadcasting  and  in providing  weather  reports,  critical to  the                                                            
region.                                                                                                                         
                                                                                                                                
9:20:44 AM                                                                                                                    
                                                                                                                                
Senator Hoffman asked the status of the Camai Festival.                                                                         
                                                                                                                                
Ms.  Hamilton  reported  the  festival  was a  success  and  Senator                                                            
Hoffman's presence was missed.                                                                                                  
                                                                                                                                
AT EASE 9:21:29 AM/9:34:55 AM                                                                                               
                                                                                                                                
9:35:34 AM                                                                                                                    
                                                                                                                                
NATE OLEMAUN,  Mayor, City of Barrow,  testified via teleconference                                                             
from  Barrow  in reference  to  a  resolution  adopted by  the  city                                                            
council in opposition  to municipal funding reductions.  He spoke to                                                            
the  increased  employer  contributions   required  for  the  Public                                                            
Employees Retirement  System (PERS),  increased insurance  costs and                                                            
other expenses.                                                                                                                 
                                                                                                                                
9:39:45 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilken  noted that the PERS and Teachers  Retirement System                                                            
(TRS)   issue  has   been  undertaken   by  this   legislature   and                                                            
characterized by Co-Chair  Green as the most difficult issue she has                                                            
faced in her tenure.  Co-Chair Wilken appreciated  the assistance of                                                            
municipality officials  and the House of Representative in achieving                                                            
a solution in reforming the retirement system.                                                                                  
                                                                                                                                
9:41:13 AM                                                                                                                    
                                                                                                                                
Co-Chair  Green informed  that a  fiscal note  accompanying SB  141,                                                            
reforming  PERS  and TRS,  contains  funding  to  municipalities  to                                                            
offset increased PERS and TRS costs.                                                                                            
                                                                                                                                
9:41:58 AM                                                                                                                    
                                                                                                                                
Senator Olson thanked the mayor for his testimony.                                                                              
                                                                                                                                
9:42:34 AM                                                                                                                    
                                                                                                                                
MARY HAKALA,  education advocate,  testified in Juneau that  funding                                                            
for education  must be "substantial enough to reach  the classroom."                                                            
She  estimated  this to  be  approximately  $85  to $90  million  in                                                            
increased funding.                                                                                                              
                                                                                                                                
9:44:22 AM                                                                                                                    
                                                                                                                                
AT EASE 9:44:40 AM/10:08:18 AM                                                                                              
                                                                                                                                
10:08:35 AM                                                                                                                   
                                                                                                                                
JACK SHAY, representing  the Ketchikan Gateway Borough  and the City                                                            
of Ketchikan, testified  via teleconference from Ketchikan about the                                                            
increased  costs  for  PERS  and  TRS.  Although  every   one-dollar                                                            
increase in the price per  barrel of oil generates approximately $65                                                            
million   in  additional   revenue  to  the   State,  the   cost  to                                                            
municipalities  is approximately $20  for the increased fuel  costs.                                                            
He thanked  the  Committee  for continuing  the funding  for  public                                                            
broadcasting  at the FY 05  level. The municipalities  need  as much                                                            
assistance as possible.                                                                                                         
                                                                                                                                
Co-Chair Wilken  requested Mr. Shay's  assistance in the  retirement                                                            
system reform.                                                                                                                  
                                                                                                                                
Senator Stedman  furthered the request  that Mr. Shay encourage  the                                                            
Borough  and the  City in this  effort,  as the sooner  a remedy  is                                                            
agreed upon, the sooner relief could be possible.                                                                               
                                                                                                                                
Mr. Shay assured he would contribute what he could.                                                                             
                                                                                                                                
10:13:41 AM                                                                                                                   
                                                                                                                                
ROBERT  PRUNELLA,  City Manager,  City  of Wrangell,  testified  via                                                            
teleconference  from Wrangell, that the increased  costs of PERS/TRS                                                            
is "killing me." Insurance rates have also increased.                                                                           
                                                                                                                                
10:15:11 AM                                                                                                                   
                                                                                                                                
Senator Stedman  reiterated his statement made to  Mr. Shay that the                                                            
Committee   could  use  assistance   from  municipal  officials   in                                                            
reforming the PERS and TRS retirement systems.                                                                                  
                                                                                                                                
Mr. Prunella  indicated he  would speak to  the city council  on the                                                            
matter.                                                                                                                         
                                                                                                                                
AT EASE 10:16:35 AM/10:25:18 AM                                                                                             
                                                                                                                                
10:25:33 AM                                                                                                                   
                                                                                                                                
DAN ETULAIN, President,  North Star Television Network,  and 20-year                                                            
member   of  public   broadcasting   organization,   testified   via                                                            
teleconference from Sitka  about the benefits of public broadcasting                                                            
for  his  community.  He  was  pleased  the  legislature   supported                                                            
continued funding  for public broadcasting. Commercial  broadcasting                                                            
is his livelihood; public broadcasting is his passion.                                                                          
                                                                                                                                
10:27:45 AM                                                                                                                   
                                                                                                                                
Senator  Stedman  clarified  the witness  is  comfortable  with  the                                                            
funding levels proposed.                                                                                                        
                                                                                                                                
Mr.  Etulain   affirmed   the  level  is   adequate  for   continued                                                            
operations. He noted the amount is less than in the past, although                                                              
fund raising efforts are compensating.                                                                                          
                                                                                                                                
AT EASE 10:29:08 AM/10:50:55 AM                                                                                             
                                                                                                                                
Co-Chair Wilken announced that public testimony would continue at 5                                                             
pm.                                                                                                                             
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in Committee.                                                                             
                                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Wilken adjourned the meeting at 10:52 AM                                                                               

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