Legislature(2013 - 2014)SENATE FINANCE 532
03/21/2014 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Public Testimony: Juneau | |
| Public Testimony: Kodiak, Dillingham, Kenai | |
| Public Testimony: Offnet | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 266 | TELECONFERENCED | |
| += | HB 267 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 21, 2014
1:39 p.m.
1:39:12 PM
CALL TO ORDER
Co-Chair Kelly called the Senate Finance Committee meeting
to order at 1:39 p.m.
MEMBERS PRESENT
Senator Pete Kelly, Co-Chair
Senator Kevin Meyer, Co-Chair
Senator Anna Fairclough, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Donny Olson
MEMBERS ABSENT
Senator Lyman Hoffman
ALSO PRESENT
Peter Freer, Board President, Juneau Youth Services,
Juneau; Pam Watts, Executive Director, Juneau Alliance for
Mental Health Inc., Juneau; Marianne Mills, President,
Alaska Geriatric Exchange Network, Juneau; Denise Daniello,
Executive Director, Alaska Commission on Aging, Juneau; Tom
Chard, Executive Director, Alaska Behavioral Health
Association, Juneau; Ron Little, Director, Adult Services,
Reach Inc., Juneau; Millie Ryan, Executive Director, Reach
Inc., Juneau; Joy Lyon, Juneau Early Literacy Council,
Juneau; Jennifer Brown, Director, Rainforest Recovery
Center, Bartlett Regional Hospital, Juneau; Robert Muller,
Board Member, National Alliance for the Mentally Ill,
Juneau; Elizabeth Eilers, Planned Parenthood, Juneau;
Alyson Curry, Self, Juneau; Robyn Stevens, Self, Juneau;
Vickie Tinker, Coordinator, Kenai Peninsula Fetal Alcohol
Spectrum Disorder (FASD) Partnership, Kenai Peninsula; Phil
Mattheis, Physician, FASD Partnership, Juneau; June Degnan,
President, Haven House Juneau, Juneau; Michelle Vaughn,
Self, Juneau; Dr. J. Kennan Kirk, Self, Juneau; Christina
Love, Juneau Reentry Coalition, Juneau; Kara Nelson, Juneau
Reentry Coalition and Haven House, Juneau; Bob Bartholomew,
Finance Director, City and Borough of Juneau;
PRESENT VIA TELECONFERENCE
Pat Branson, Mayor, City of Kodiak; Carol Shade, Finance
Director and Acting City Manager, City of Dillingham;
Dillon Ray Bennett, Bristol Bay Area Health Corporation,
Dillingham; Elaine Phillips, Training Supervisor, Community
Health Aide Program, Bristol Bay Area Health Corporation,
Dillingham; Berna Rae Andrews, Manager, Community Health
Aide Program, Bristol Bay Area Health Corporation,
Dillingham; Robyn Chaney, Chair, Dillingham Imagination
Library, Dillingham; Monica Adams, Chief Executive Officer,
Peninsula Community Health Services, Soldotna; Patty
Eissler, Human Relations Director, Peninsula Community
Health Services of Alaska, Soldotna; Mary Toutonghi, Self,
Soldotna; Pepper Pond, Kenai/Soldotna Imagination Library,
Central Peninsula; Dan McCoy, City Manager, City of Akhiok,
Akhiok; Linda Amodo, Mayor, City of Akhiok, Akhiok; Rick
Koch, City Manager, City of Kenai, Kenai; Patricia
Phillips, Mayor, City of Pelican, Pelican; Susana Spinnett,
City Manager, City of St. Mary's, St. Mary's; Patrick
Cleveland, Administrator, City of Quinhagak, Quinhagak;
Skip Ryman, Manager, City and Borough of Yakutat, Yakutat;
Sarah Miller, Self, Nome; Don Pegues, Mayor, City of
Tenakee Springs, Tenakee Springs; Elsie Vent, City
Administrator, City of Huslia, Huslia; Barbara Higgins,
City Manager, City of Pilot Point, Pilot Point; Isabelle
Jackson, City Clerk, City of Shaktoolik, Shaktoolik; Paul
Chimiugak, Administrator, City of Toksook Bay, Toksook Bay;
Emily Gray, City Council Member, City of Allakaket,
Allakaket; George Sam, Administrator, City of Lower
Kalskag, Kalskag; Boris L. Epchook, Mayor Pro Tempore, City
of Kwethlak, Kwethlak; Jacques Longpre, Mayor and Volunteer
City Manager, City of Aniak, Aniak; Emily Deach, Interim
Borough Manager, Municipality of Skagway, Skagway;
Stephanie Scott, Mayor, Haines Borough, Haines; Janet
Mitchell, City Administrator, Kivalina City Council,
Kivalina; Amy Titus, City Clerk, City of White Mountain,
White Mountain; Layton Lockett, City Manager, City of Adak,
Adak; Glenna Benjamin, City Clerk, City of Shageluk,
Shageluk; Doug Whiteman, Mayor, City of Atqasuk, Atqasuk;
James Berlin, Mayor, City of Nunapitchuk, Nunapitchuk;
William C. Peterson, Administrator, City of New Stuyahak,
New Stuyahak; Scott Anderson, Mayor, Port Hyden, Port
Hyden; Richard Elachik Sr., City Clerk, City of St.
Michael, St. Michael; Susanna Wassillie, City Clerk, City
of Newhalen, Newhalen; Brenda Brown, City Manager, City of
Mountain Village, Mountain Village; Dan Clarion, Mayor and
City Manager, City of Ouzinkie, Ouzinkie.
SUMMARY
CSHB 266(FIN)
APPROP: OPERATING BUDGET/LOANS/FUNDS
CSHB 266 (FIN) was HEARD and HELD in committee
for further consideration.
CSHB 267(FIN)
APPROP: MENTAL HEALTH BUDGET
CSHB 267(FIN) was HEARD and HELD in committee for
further consideration.
PUBLIC TESTIMONY:
JUNEAU
KODIAK, DILLINGHAM, KENAI
OFFNET
CS FOR HOUSE BILL NO. 266(FIN)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, and making
reappropriations; and providing for an effective
date."
CS FOR HOUSE BILL NO. 267(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."
^PUBLIC TESTIMONY: JUNEAU
1:40:44 PM
PETER FREER, BOARD PRESIDENT, JUNEAU YOUTH SERVICES,
JUNEAU, spoke in support of funding for Juneau Youth
Services (JYS) and substance abuse grants. He provided
information about the organization. He emphasized that
state and federal funding were vital to the organization's
operations and success. He thanked the committee for not
including the cuts that had been included in the House
budget for substance abuse grants. He spoke against the
cuts in excess of $2 million in addition to a $3.3 million
cut to behavioral health grants and a $9.4 million cut to
behavioral health Medicaid services. He discussed that
there had been no extensive Medicaid rate increases for
several years while expenses continued to rise. He stressed
that the proposed cuts would undermine the success of the
Bring the Kids Home initiative and could threaten the
financial viability of existing programs. He relayed that
Alaska has one of the highest rates for alcoholism and drug
abuse in the country; accompanying issues include suicide,
domestic violence, sexual assault, child abuse, and other
violent crimes. The McDowell Group estimated in 2010 that
the socioeconomic costs of drug and alcohol abuse totaled
approximately $1.2 billion in Alaska. He stressed that
treating adults and youths with alcohol and substance abuse
addictions saved money. He spoke to other negative impacts
of substance abuse.
1:43:31 PM
PAM WATTS, EXECUTIVE DIRECTOR, JUNEAU ALLIANCE FOR MENTAL
HEALTH INC., JUNEAU, thanked the committee for restoring
funds to the behavioral health budget for residential
substance abuse treatment and outpatient services. She
communicated that the cuts would have shifted the problem
to primary care, the courts, corrections, children's
services, and public safety. She was grateful for the work
of the Department of Health and Social Services budget
subcommittee. She shared that the organization provided
psychiatric emergency services, outpatient mental health
services, and housing to mentally ill adults. The agency's
recent approval as a SHARP II loan program had been
transformative. Prior to approval the agency had lost two
trained staff to a tribal agency that was a SHARP eligible
program. The loan program had enabled the organization to
hire a psychiatric advanced nurse practitioner who provided
services that reduced annual costs for psychiatric services
by 50 percent. She stated that if the proposed cuts to the
SHARP II program resulted in the loss of employees who were
recipients of the program it would pull the rug out from
many organizations depending on the valued employees. She
spoke to other negative impacts that would occur if the
program was discontinued. She urged the committee to
restore the funding.
1:46:15 PM
MARIANNE MILLS, PRESIDENT, ALASKA GERIATRIC EXCHANGE
NETWORK, JUNEAU, spoke in support of $325,000 for the
Family Caregivers Support program and $545,000 for
Nutrition Transportation and Support (NTS) grants, which
effectively prevented or delayed costly institutional care.
She communicated that family members were the foundation of
long-term care for older persons in Alaska. The goal was to
help caregivers last as long as possible in the unpaid but
rewarding role. She relayed that caring for an older person
with dementia or physical disabilities could be physically
and emotionally demanding and caregivers often neglect
their own health. The Family Caregivers Support program
offered training and provided services such as respite
care. She listed other program benefits. She shared that
the NTS grants served an increasing number of seniors. The
program resulted in greater reductions in nursing home
placement. She addressed additional program benefits
including cost savings.
1:49:59 PM
DENISE DANIELLO, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
AGING, JUNEAU, spoke in support of additional funding for
the Family Caregivers Support program and the NTS program.
The programs provided core services that helped older
people retain or regain their health and independence for a
low cost. She detailed that additional funding was needed
to support a greater number of unpaid family caregivers and
seniors. Additionally she spoke in favor of funding for the
Alaska Heating Assistance Program; the program had served
20,453 low income households in FY 13. The program was very
important for elderly individuals who were living on a
fixed income. She testified in support of funding for the
Complex Behavior Collaborative (CBC) that served vulnerable
Alaskans with challenging behaviors including Alzheimer's
and related dementia. She believed the program would help
to build the state's community network of care and prevent
out-of-state institutionalization. Collectively, the
services helped seniors to live in their homes and
communities with dignity.
1:52:09 PM
TOM CHARD, EXECUTIVE DIRECTOR, ALASKA BEHAVIORAL HEALTH
ASSOCIATION, JUNEAU, urged the committee to adopt the
recommendation to fully fund substance abuse services. He
relayed that cutting residential treatment funding would
mean cutting programs such as Akeela, Cook Inlet Tribal
Council, Fairbanks Native Association, Nugen's Ranch,
Salvation Army, Volunteers of America in Alaska, and other.
He discussed the governor's proposed $3.3 million
behavioral health grants would wipe out the remainder of a
one-time capital increment from a couple of years back.
Providers had been flat-funded for several years in grants
and Medicaid reimbursement. He stressed the importance of
increasing the priority of working on mental health and
substance abuse in Alaska. The effects were seen in the
state's prison system, on the street, in hospitals, and in
other locations. He applauded the co-chair on his work
battling Fetal Alcohol Spectrum Disorder. He observed that
the budget reality was not matching up with the priority.
He did not know how to reconcile a $2 million cut included
by the House with some of the priority projects.
1:55:20 PM
RON LITTLE, DIRECTOR, ADULT SERVICES, REACH INC., JUNEAU,
testified in support of funding for the Complex Behavior
Collaborative. He detailed that the program was developed
the prior year to assist individuals and their families who
were experiencing severe behavioral issues putting the
individuals in a category as possible candidates for long-
term institutionalization. He spoke to the program's
success and dramatic developments for clients that had been
in danger of being institutionalized. He greatly
appreciated the funding.
1:56:37 PM
MILLIE RYAN, EXECUTIVE DIRECTOR, REACH INC., JUNEAU,
testified in support of funding for the Complex Behavior
Collaborative. She communicated that the program had made a
significant difference in people's lives. She detailed that
the program had allowed families to keep individuals with
behavioral issues at home instead of in institutions.
Additionally, the program benefitted Reach staff who were
more confident serving individuals with complex behaviors.
She thanked the committee for its support.
1:57:32 PM
JOY LYON, JUNEAU EARLY LITERACY COUNCIL, JUNEAU, spoke in
support of funding for early education and Best Beginnings.
She thanked the committee for holding the line on funding
early education. She stated that investing in a child's
early learning experience would save money in the future.
She communicated that all of the Southeast communities
enrolled in the Imagination Library had shown remarkable
gains. She expected to see the same results in other
communities supported by the programs throughout the state.
She stressed that starting from birth was the key; by the
time a child is four years of age there is a 30 million
word gap in what some children had been exposed to versus
others. She detailed that 20 minutes a day of reading time
with parents equated to 500 hours of reading time by a
child entered Kindergarten. The program cost approximately
$30 per year for each child. She elaborated that for an
additional $150,000 Alaska could be tied with Tennessee
(Dolly Parton's home state where she had started the
program).
2:00:26 PM
JENNIFER BROWN, DIRECTOR, RAINFOREST RECOVERY CENTER,
BARTLETT REGIONAL HOSPITAL, JUNEAU, thanked the committee
for restoring the $2.43 million cut to substance abuse
treatment programs. She asked members to adopt the budget
subcommittee recommendation to maintain the funding. The
center received grant funding totaling $589,000; the center
had served 633 clients in FY 13 with 194 served in the high
intensity short-term residential treatment program.
Approximately 26 percent of the individuals served in
residential treatment services were from outlying areas.
She spoke to the shortage of available treatment beds
throughout the state; the average wait time for a bed at
the center was 14.5 days. She expounded that the prior year
60 percent of the individuals receiving services were self-
pay; $2 million had been written off by the organization as
charity care. She shared a story related to a woman who had
lost the battle with substance abuse. She stressed that
substance dependence was a disease and not a choice; people
needed proven treatment and not judgment. She stated that
no one needed to die from the disease.
2:03:35 PM
ROBERT MULLER, BOARD MEMBER, NATIONAL ALLIANCE FOR THE
MENTALLY ILL, JUNEAU, urged the committee to restore
funding for residential substance abuse treatment programs,
behavioral health programs, and mental health programs. He
spoke from the perspective of a consumer of mental health
services in the community. He shared a personal story
related to his past homelessness and difficulties with
recovery. Various programs in Juneau had allowed him to
begin the path towards full recovery. He emphasized that
mental illness and substance abuse recovery was not always
a clear upward trajectory. The support systems were crucial
to maintaining the ability for consumers of the services to
move forward. He shared that he was currently a full-time
student at the University of Alaska Southeast. He thanked
the committee for retaining the $2.043 million that had
been cut from the House version of the budget. He shared
that individuals who overcame the stigma of mental illness
and substance abuse wanted to be contributing members of
the community.
2:06:50 PM
ELIZABETH EILERS, PLANNED PARENTHOOD, JUNEAU, urged the
committee to restore funding for the third year of the
Chlamydia Campaign. Since the year 2000 Alaska had ranked
one or two for the highest rate of Chlamydia; the sexually
transmitted infection was so pervasive because many
infected individuals did not show symptoms. When treated
promptly the disease has no long-term health effects, but
in order for individuals to be diagnosed health
professionals required adequate resources. Funding the
program enabled people to take responsibility for their
health and wellbeing. She stressed that the costs of
ignoring the public health issue was much greater than the
cost of the intervention program. She emphasized that the
state could not afford to not continue funding for the
program.
2:08:16 PM
ALYSON CURRY, SELF, JUNEAU, spoke in support of restoring
funding for the Chlamydia Campaign. She stressed that the
state could not afford to discontinue funding for the
program due to the devastatingly high rates of Chlamydia in
Alaska. She thanked the committee for its consideration.
Vice-Chair Fairclough asked if there was a dollar amount
associated with the funding request. Ms. Curry replied that
the figure was $360,000.
2:09:08 PM
ROBYN STEVENS, SELF, JUNEAU, spoke in support of restoring
funding for the Chlamydia Campaign. She voiced that
sexually transmitted disease was the first point of contact
for many people taking charge of their own health and
wellbeing. She stated that sexual health was not a
continual upward trajectory. She communicated that setting
a person on a clear path from the beginning the benefits
would far outweigh the detriments.
2:10:12 PM
VICKIE TINKER, COORDINATOR, KENAI PENINSULA FETAL ALCOHOL
SPECTRUM DISORDER (FASD) PARTNERSHIP, KENAI PENINSULA,
thanked the committee for continued funding for residential
substance abuse treatment programs. She pointed to an
obvious overlap between FASD and substance abuse. She
discussed that the reasons women knowingly drink during
pregnancy were complex. Studies showed that women who drink
during pregnancy have significant trauma histories. She
urged the state to support long-term substance abuse
treatment that addressed trauma. She asked for long-term
inpatient treatment with quality follow up for women with
FASD.
2:11:45 PM
PHIL MATTHEIS, PHYSICIAN, FASD PARTNERSHIP, JUNEAU, urged
the committee to restore funding for residential substance
abuse treatment programs. He had diagnosed well over 500
people in the state with FASD in the past 15 to 20 years.
He stated that maintaining the funding for alcohol
treatment directly related to the partnership's clientele.
He was primarily interested in maintaining and improving
outcomes for individuals with FASD. He shared that
individuals with FASD were more difficult to treat and were
more likely to need substance abuse treatment. He relayed
that women with FASD were the most likely to drink when
pregnant.
2:12:55 PM
JUNE DEGNAN, PRESIDENT, HAVEN HOUSE JUNEAU, JUNEAU, spoke
in support of funding for Haven House Juneau. The faith-
based organization provided accommodations for women
exiting prison. The organization had struggled with the
"not in my back yard (NIMBY)" challenge. The group had a
home and wanted to provide women coming out of prison with
a safe shelter. The group had received to grants in the
past two years; however, it was struggling with the NIMBY
challenge. She hoped the situation would change. She hoped
the legislature could help. Her goal was to help provide
Alaskans with the opportunity for a better life. She read a
piece of writing she had authored:
They could be a cousin, sister, mother, or a distant
relative living out a sentence for a number of
associated felonies tucked away in Lemon Creek or in
the Highland Park Correctional Center. Repeat
offenders in a vicious cycle of recidivism in a state
where incarceration is a business without an ounce or
thought of rehabilitation. Locked up in a Gulag of
hopelessness as victims of domestic violence, mental
illness, alcoholism, or drug abuse. Whose problems are
never addressed during confinement or contact. Leaving
a prison to live in the outside world they become
repeat offenders due to neglect, abuse, and the
justice system's blind-eye approach to rehabilitation.
We can stop this vicious cycle through intervention by
creating safe shelters like Haven House Juneau; a
501(c)3 faith-based non-profit charity, a safe shelter
for women exiting prison. Join our team today and help
offer hope. It is better to light one candle than to
curse the darkness.
2:16:39 PM
MICHELLE VAUGHN, SELF, JUNEAU, testified in favor of full
funding for the SHARP II loan repayment program. She worked
as a clinical pharmacist at SEARHC in Juneau and was a
SHARP II recipient. She echoed comments from prior
testimony that the loss of funding would be devastating for
clinicians who moved to live and work in Alaska while
carrying a significant student loan burden. She disputed
the perception that recruitment and retention of medical
professionals was strictly a rural issue; the problem also
existed in urban areas in safety net clinics that served
underserved and Medicaid patients. She detailed that SEARHC
currently had more than 10 unfilled clinical positions;
several of the positions had been open for over one year.
The high turnover rates were disruptive to patient care.
She discussed that Juneau's high cost of living combined
with high student loan debts it was difficult to recruit
people to move to Alaska. She pointed out that temporary
workers came to Alaska, earned money, and took their
earnings back to the Lower 48. She shared that she had made
Juneau home; the money professionals earned in Alaska
stayed in state. She stressed the successfulness of the
program.
Co-Chair Kelly noted that there were no guarantees, but an
amendment to restore a substantial portion of the funding
had been drafted.
2:20:13 PM
DR. J. KENNAN KIRK, SELF, JUNEAU, testified in favor of
full funding for the SHARP II loan repayment program. He
thanked the committee for its consideration on restoring
the funding. He emphasized that the costs associated with
the continual recruitment of healthcare providers and
temporary providers were significant. He spoke to the
difficulty of retaining quality healthcare providers. The
turnover and inconsistency of providers negatively impacted
patients. He relayed that costs spent on recruitment of
providers and temporary providers could be better spent on
providing healthcare.
Senator Olson asked Dr. Kirk where he was from and where he
had attended medical school. Dr. Kirk replied that he was
from Virginia. He had attended Eastern Virginia Medical
School and had completed a residency program at North
Colorado Family Medicine in Greely, Colorado.
Senator Olson inquired how instrumental the SHARP program
had been in Dr. Kirk's decision to practice in Alaska. Dr.
Kirk responded that the program was very important to him.
He had graduated medical school and finished residency with
over $200,000 in loans.
2:22:49 PM
CHRISTINA LOVE, JUNEAU REENTRY COALITION, JUNEAU, urged
spoke in support of residential substance abuse treatment
programs. She discussed her past history with substance
abuse and her family history. She spoke about addiction to
drugs and alcohol and the feeling of hopelessness and
despair. She shared that her disease had been a catalyst
for discrimination, verbal abuse, and physical and sexual
assault. She recalled a suicide attempt. She felt she had
been saved in her process of recovery. She shared that a
vital step for her recovery was sobriety. She understood
that her disease was a meaningful response to a traumatic
life event. She learned that she could be healed and whole
again. She pointed to statistics that 1 in 100 citizens in
the U.S. were confined to jail; 80 percent of the offenders
abuse drugs and alcohol and 50 percent were clinically
diagnosed. She spoke to the importance of treating the
disease and not only the side effects. She thanked the
committee for funding treatment programs.
2:25:51 PM
KARA NELSON, JUNEAU REENTRY COALITION AND HAVEN HOUSE,
JUNEAU, thanked the committee for funding residential
substance abuse treatment programs. She emphasized that
recovery is a solution. She was co-director of the Haven
House and was honored to be a part of healing for women.
She spoke of her past issues with substance abuse. She
relayed that incarceration had not been the answer for her,
but that treatment had worked. She spoke of the value of
reentry services and peer support after the completion of
treatment. She noted that the stigma on active addiction
was also placed on individuals in recovery. She reiterated
her thanks to the committee.
2:28:49 PM
BOB BARTHOLOMEW, FINANCE DIRECTOR, CITY AND BOROUGH OF
JUNEAU, appreciated the various forms of state assistance
included in the operating budget, grants, and capital
projects. He spoke in support of the restoration of $10
million in revenue sharing. He detailed that the proposed
revenue sharing reduction would mean a loss of $340,000 to
Juneau. He stressed that the community revenue sharing was
essential funding that went to road maintenance in Juneau.
The reduction would add to deferred maintenance issues the
city was working to balance. He understood challenges the
state had related to determining how to allocate the
limited resources. He shared that Juneau was also facing
the challenges of working with a limited budget; it was
looking at reducing services and had proposed a tax
increase. The city was using reserves to balance the
following two years. He asked the committee to consider
revenue sharing as an essential program. Additionally, he
spoke in support of restoring the governor's proposed $3
billion cash infusion to PERS. He believed it would take a
large upfront contribution from the state and local
governments to reach a sustainable operating budget that
would fund the annual unfunded liability. He believed the
proposal offered a good balance. He encouraged the
committee to consider that the plan had a sustainable
component that would benefit the state and local
governments.
Co-Chair Kelly reiterated his earlier remark that an
amendment was being drafted to restore most of the funding
to the SHARP program.
^PUBLIC TESTIMONY: KODIAK, DILLINGHAM, KENAI
2:34:19 PM
PAT BRANSON, MAYOR, CITY OF KODIAK (via teleconference),
spoke in support of the restoration of $10 million in
revenue sharing, the governor's proposed $3 billion cash
infusion into PERS, and the 22 percent cap for the
employers' share of PERS. She addressed revenue sharing and
relayed that Kodiak currently had approximately $400,000
from the program; the funds were used to fund multiple
agencies and infrastructure in the community. The proposed
decreases through FY 20 would ultimately provide the
community with $165,000. She spoke to the importance of the
funds for police, fire, ports, harbors, and city water and
sewer. The community had raised its sales tax to 7 percent
in order to support city services. She stressed than an
increase in the employers' contribution to PERS from 22
percent to 24 percent would have an impact of over
$300,000.
2:36:43 PM
CAROL SHADE, FINANCE DIRECTOR AND ACTING CITY MANAGER, CITY
OF DILLINGHAM (via teleconference), spoke against the
proposed $10 million cut to revenue sharing. She stated
that a cut of any magnitude would leave the community
reeling to find footing. She relayed that the community
needed more time to find fair solutions to problems that
were not necessarily its doing. Currently the citizens of
Dillingham paid 13 mills on real and personal property, 6
percent sales tax, and a 10 percent alcohol and bed tax.
The city did not have room to increase the taxes due to the
high cost of living in the community. She testified in
favor of the governor's proposed $3 billion cash infusion
into PERS. She offered that the $3 billion cash infusion
would help in the long-term.
2:39:11 PM
DILLON RAY BENNETT, BRISTOL BAY AREA HEALTH CORPORATION,
DILLINGHAM (via teleconference), spoke in support of
Community Health Aide Training Program grants. He relayed
that two-thirds of patients in the Bristol Bay region saw a
community health aide prior to seeing any other provider. A
funding cut of 50 percent would be detrimental to the
program. He stated that it was unrealistic to think that
telemedicine and distance learning would compensate for
hands on training. He stressed that the transition to the
distance learning and telemedicine had just begun; he did
not believe the full transition would occur for some time.
He stated that the new distance learning would only save
about $2,000 for each student out of the allotted $15,000.
He listed new costs associated with distance learning. He
urged the committee to maintain funding for the program.
2:41:40 PM
ELAINE PHILLIPS, TRAINING SUPERVISOR, COMMUNITY HEALTH AIDE
PROGRAM, BRISTOL BAY AREA HEALTH CORPORATION, DILLINGHAM
(via teleconference), spoke in support of funding for the
Community Health Aide Training Program grants. She shared
that the population of Bristol Bay villages all increased
five-fold each May to August. Commercial fishermen and
tourists all lived in the area during the summer season.
She asked the committee to consider what would happen if
one of the tourists were injured or became sick. She
discussed health aides in various areas. She discussed how
inadequate training would impact the communities. She
shared that the training centers already struggled to
provide sufficient training. She pointed to the importance
of the health of the Alaska Native population. The grants
filled a statewide need.
2:44:45 PM
BERNA RAE ANDREWS, MANAGER, COMMUNITY HEALTH AIDE PROGRAM,
BRISTOL BAY AREA HEALTH CORPORATION, DILLINGHAM (via
teleconference), spoke in support of funding for Community
Health Aide Training Program grants. She spoke to the
origin of the program. She communicated that the program
had been a great step forward in providing healthcare in
remote regions of the state. She stressed that community
health aide practitioners took on a significant
responsibility in villages and were the first line of
healthcare. In many villages the aides were the only ones
to respond to emergency situations. She urged the
legislature to maintain funding for the program.
2:46:36 PM
ROBYN CHANEY, CHAIR, DILLINGHAM IMAGINATION LIBRARY,
DILLINGHAM (via teleconference), spoke in support of
funding for Best Beginnings and the pre-school grant
program. The Imagination Library currently provided a free
book to over 90 percent of the children under the age of
five in Dillingham and surrounding communities. She asked
for continued support for the pre-school grant program. Her
adopted special needs daughter had entered Head Start as a
three year old due to the program. The extra year of Head
Start impacted children's ability to learn and to start
Kindergarten on track.
2:48:16 PM
MONICA ADAMS, CHIEF EXECUTIVE OFFICER, PENINSULA COMMUNITY
HEALTH SERVICES, SOLDOTNA (via teleconference), testified
in favor of full funding for the SHARP loan repayment
program. She provided an example related to the importance
of the program; the organization had recently lost a
candidate for a position due to the uncertainty of the
SHARP program. She noted that an immediate and urgent need
existed related to the restoration of funds for the
program.
2:49:30 PM
PATTY EISSLER, HUMAN RELATIONS DIRECTOR, PENINSULA
COMMUNITY HEALTH SERVICES OF ALASKA, SOLDOTNA (via
teleconference), thanked the committee for reconsidering
the SHARP loan repayment program. The program had been a
great recruitment tool for the organization.
2:49:53 PM
MARY TOUTONGHI, SELF, SOLDOTNA (via teleconference), spoke
in support of funding for education. She agreed with
gubernatorial candidate Byron Mallott that education was
essential to the state and should be funded as a priority.
She believed underfunding education was the equivalent to
shortchanging Alaska's future. She spoke against cuts to
infant learning programs. She shared that the Kenai school
district would require a minimum Base Student Allocation
(BSA) increase of $268 to meet the $4.5 million deficit it
was currently facing. She highlighted cuts to the reduction
in medical services for low income citizens. She stressed
that the proposed budget did not meet needs or priorities
related to the topics she discussed.
2:52:20 PM
PEPPER POND, KENAI/SOLDOTNA IMAGINATION LIBRARY, CENTRAL
PENINSULA (via teleconference), spoke in support of funding
for Best Beginnings and for an increase of $150,000 to the
Imagination Library. She relayed that the state had 40
percent of its children signed up to receive a free book
from birth to the age of five. The program was currently
maxed out financially and could not afford to provide books
to any additional children. The additional funding would
provide books to an additional 5,000 children. She spoke to
an increase in Kindergarten readiness and literacy
resulting from the program. She spoke to the importance of
parents reading to their children. She shared information
about specific services provided by the program. She
relayed that investing in children was an investment in the
state's future.
^PUBLIC TESTIMONY: OFFNET
2:54:40 PM
DAN MCCOY, CITY MANAGER, CITY OF AKHIOK, AKHIOK (via
teleconference), spoke in support of the restoration of $10
million in revenue sharing funding. He stated that the
revenue sharing funding went towards Akhiok's
infrastructure and that the cuts would affect small
communities the most. He was unsure how Akhiok would
provide for water, sewer, power, and basic infrastructure
needs without the funding. He related that Akhiok used
diesel-electric for power and that without the revenue
sharing, its infrastructure would continue to crumble and
go away.
2:56:44 PM
LINDA AMODO, MAYOR, CITY OF AKHIOK, AKHIOK (via
teleconference), testified in support of the restoration of
$10 million in revenue sharing and the governor's proposed
$3 billion cash infusion into PERS; additionally, she spoke
in support of keeping the 22 percent salary cap that went
towards PERS. She stated that as a small community,
Akhiok's survival depended on the funding that revenue
sharing provided.
2:57:38 PM
RICK KOCH, CITY MANAGER, CITY OF KENAI, KENAI (via
teleconference), spoke in support of the restoration of $10
million in revenue sharing and the governor's proposed $3
billion cash infusion into PERS. He related that revenue
sharing was one of the ways that the state reached citizens
in communities or municipalities in Alaska. He stated that
the City of Kenai understood that the $3 billion cash
infusion was a significant amount, but noted that the
unfunded liability was also a significant amount that was
shared by the state, communities, and municipalities. He
thought that there was some room for compromise on the
unfunded liability and opined that if the $3 billion cash
infusion was made, some municipalities and other pension
plan participants might favorably consider raising the
contribution rate to 24 percent. He thought that there was
a real opportunity for the legislature and elected
officials to show leadership and deal with the unfunded
liability in the state's pension plan. He did not want to
see the problem with the unfunded liability passed on for
future generations to solve.
3:00:26 PM
PATRICIA PHILLIPS, MAYOR, CITY OF PELICAN, PELICAN (via
teleconference), spoke in support of the restoration of $10
million in revenue sharing and the governor's proposed $3
billion cash infusion into PERS. She related that revenue
sharing targeted unmet needs in chronically disadvantaged
rural areas and helped pay for clean water, bulk fuel, the
operation and maintenance of water and wastewater treatment
facilities, and the operation and maintenance of electrical
power generation facilities. She stated that the residents
of Pelican paid a 4 percent sales tax, a 7 mill rate on
property tax, a 10 percent bed tax, and user fees for
public services; the community did not have cell phone
service, the health clinic was 35 years old and did not
meet code, and there was a housing shortage. She stated
that through property tax foreclosure, the city now owned
the former Pelican Seafood plant; furthermore, the Pelican
City Council realized that this facility was crucial to its
economic recovery. She spoke of the challenge of realigning
and revitalizing Pelican's economic recovery and offered
that community revenue sharing was also key to the effort;
it was the one program that favored all communities equally
and represented a significant commitment to approving the
future of Pelican. She spoke to the $3 billion cash
infusion into PERS and thought that it made sense to deal
with the issue now. She thanked the legislature for
stabilizing the PERS requirement to 22 percent and related
that as a contributor to PERS, it helped the City of
Pelican attain a fiscally sound budget if there was a
feasible dollar-certain amount requirement.
3:02:35 PM
SUSANA SPINNETT, CITY MANAGER, CITY OF ST. MARY'S, ST.
MARY'S (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing and related
that the funding was very important to St. Mary's and other
communities for securing diesel for heating in the winter.
She explained that diesel for heating was a major expense
in sustaining operations such as the water plant in St.
Mary's. She explained that water was a basic need in life
and that the revenue sharing would help St. Mary's sustain
its community.
3:04:04 PM
PATRICK CLEVELAND, ADMINISTRATOR, CITY OF QUINHAGAK,
QUINHAGAK (via teleconference), testified in support of the
restoration of $10 million in revenue sharing. He stated
that Quinhagak was a second class city with a population of
about 689 and relayed that revenue sharing accounted for 39
percent of the city's total budget; the funding was
essential for the city's efforts to provide basic municipal
services that were likely taken for granted in many hub
towns and urban areas. He stated that diminished commercial
fishing opportunities in the area had reduced Quinhagak's
revenue from local sales tax, which accounted for 42
percent of its revenues; more importantly, the loss of
fishing opportunities was diminishing Quinhagak's citizens'
ability to pay for services. He relayed that losing the
revenue sharing funding would result in cuts to Quinhagak's
administration, public works, and village council
functions. He recalled hearing of urban school districts
and large municipalities having difficulties dealing with 5
percent and 10 percent cuts and wondered why rural
residents were expected to deal with less funding and cuts
like the possible 39 percent budget cut that the loss of
revenue sharing would mean to Quinhagak. He stated that it
took money to make money and that the loss of revenue
sharing would severely limit Quinhagak's ability to obtain
any community development grants. He admitted that there
were some families and communities who were experiencing
third-world conditions and asserted that revenue sharing
should not be taken away from rural villages as it might be
their only option for funding.
3:07:15 PM
SKIP RYMAN, MANAGER, CITY AND BOROUGH OF YAKUTAT, YAKUTAT
(via teleconference), spoke in support of keeping the
revenue sharing at the $180 million level and testified in
favor of the governor's proposed $3 billion cash infusion
into PERS. He read from submitted written testimony (copy
on file).
Good afternoon Mr. Chairman, my name is Skip Ryman. I
am the manager for the City and Borough of Yakutat and
a sixty year resident of that municipality. I am proud
to be a part of a community that stepped up to the
plate 22 years ago and took on the responsibility to
become a borough in partnership with the State.
I recognize the challenging revenue picture
looming before you. I appreciate the fact that the
operating budget for the State is in deficit spending
and you are challenged to find a sustainable spending
level as we move into the future. Nonetheless, I am
adding my voice to the chorus of those requesting that
municipal revenue sharing remain in your operating
budget at the 180 million dollar level.
The City and Borough of Yakutat, like all
municipalities exists to offer basic necessary
services to our citizens. Sewer and water, highway
maintenance, police protection, fire protection,
harbor facilities, electrical power, waste disposal,
planning, etc. To provide these services our operating
budget too has risen. So much so that the amount we
have received in revenue sharing over the years has
been totally consumed by increases in insurance, fuel
and transportation.
We have done everything we can to secure revenues
necessary to continue these basic services. Our wage
scale rests around 40% below state averages. We have a
10mil property tax, a 5% sales tax, an 8% visitor bed
tax, graduated severance tax, a raw fish tax on
landings and reasonably aggressive enterprise fund
fees. At every opportunity we parley local and state
revenue into federal matching programs. Concentrating
on efficiency, we have consolidated staffing through
attrition and cross utilization. We have invested in
the distribution of waste heat from our electrical
plant to the school campus and public safety
facilities. We are investing in the use of biofuels to
heat public buildings. We have upgraded our school
campus's electrical and lighting system and achieved a
60% cost savings to them by doing so. Still we are
losing ground in our battle to meet rising costs.
In closing I want to add how the Governor's 3
billion dollar deposit in response to the PERs
unfunded mandate is sound fiscal policy and I urge its
favorable consideration.
I am not here looking for a handout. I am
seeking to be your partner in providing vital service
to Alaskans and I thank you for your time and
consideration.
3:09:50 PM
SARAH MILLER, SELF, NOME (via teleconference), testified in
favor of full funding for the SHARP loan repayment program.
She related that she was testifying on behalf of her
husband who was physician at Norton Sound Health
Corporation. She shared that her husband had begun working
in Nome in August and that he had accepted the job over
jobs in the Mat-Su and Anchorage because of the SHARP
program. She understood that funding would be restored to
the program. Co-Chair Kelly interjected that her
understanding was correct.
Ms. Miller continued her testimony and related that the
SHARP program not only benefited her family, but was also a
direct investment in patient care; it was one of the only
incentives that bush regions of the state had to offer to
new physicians. She stated that because of the high volume
of medical school loans, her family had to be selective
with the employment opportunities that they took. She
stated that half of her family's income when they were
living in a bush area went towards medical school loans and
that the other half just about covered the cost of living;
without SHARP funding, her family would be unable to afford
living and working in Rural Alaska. She related that the
hospital in Nome also served 14 surrounding villages and
that there were not that many doctors on staff there; there
was a large need for physicians in Nome. She reported that
60 percent of doctors on staff in Nome were within 5 years
of retirement and that North Sound Health Corporation would
need every incentive it could offer to attract new
physicians; SHARP was not only a recruiting tool, but was
also a direct investment in providing direct access to
patient care in Rural Alaska.
3:12:21 PM
DON PEGUES, MAYOR, CITY OF TENAKEE SPRINGS, TENAKEE SPRINGS
(via teleconference), spoke in support of the restoration
of $10 million in revenue sharing. He related that the
revenue sharing funding was 67 percent of Tenakee Springs'
general government budget and that it was really needed.
3:13:06 PM
ELSIE VENT, CITY ADMINISTRATOR, CITY OF HUSLIA, HUSLIA (via
teleconference), testified in support of the restoration of
$10 million in revenue sharing and the governor's proposed
$3 billion cash infusion into PERS. She related that the
City of Huslia would not be able to operate without revenue
sharing and that it kept the city going; without the funds,
Huslia would not be able to pay for its fuel, electricity,
water, and basic services.
3:14:03 PM
BARBARA HIGGINS, CITY MANAGER, CITY OF PILOT POINT, PILOT
POINT (via teleconference), testified in support of the
restoration of $10 million in revenue sharing. She related
that the revenue sharing allowed Pilot Point to provide the
critical services of water, sewer, landfill, and bulk fuel
to its residents; a reduction in these funds would
jeopardize people's health and limit economic development
and other functions that served the regional fishing
community and industry. She concluded that without
committee revenue sharing, Pilot Point's ability to provide
for its own self-governance would be greatly diminished.
3:15:17 PM
ISABELLE JACKSON, CITY CLERK, CITY OF SHAKTOOLIK,
SHAKTOOLIK (via teleconference), testified in favor of
restoring the $10 million in funding for community revenue
sharing; the funds were beneficial to the cities for
operating expenses. She supported keeping the PERS rate at
22 percent.
Co-Chair Kelly inquired what the name Shaktoolik meant. Ms.
Jackson was unsure of the answer.
3:16:45 PM
PAUL CHIMIUGAK, ADMINISTRATOR, CITY OF TOKSOOK BAY, TOKSOOK
BAY (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing and spoke
against cuts to PERS. He stated that as a rural-village
community, Toksook Bay did not have any sources of funding
to fall back on if the revenue sharing funding was cut; as
a result, it would not have any other means to cover the
loss in revenue. He reported that revenue sharing was a
huge part of Toksook Bay's budget and that cuts in revenue
sharing the previous year had cost the city 1 employee. He
concluded that cutting revenue sharing would be a big loss
to his community's economic situation and spoke against
PERS being cut.
EMILY GRAY, CITY COUNCIL MEMBER, CITY OF ALLAKAKET,
ALLAKAKET (via teleconference), testified in support of the
restoration of $10 million in revenue sharing and related
that the funding went a long way in communities. She
pointed out that the state revenue sharing was vital for
various projects that communities needed. She asked the
committee not to forget Alaskan residents and those that
lived in rural communities.
3:20:39 PM
GEORGE SAM, ADMINISTRATOR, CITY OF LOWER KALSKAG, KALSKAG
(via teleconference), spoke in support of the restoration
of $10 million in revenue sharing and read a letter from
the city council. He related that revenue sharing funds had
always helped the city keep its municipal office open to
its full capacity; the community of Lower Kalskag would be
starting a water and sewer project in the following summer.
He related that the residents of Lower Kalskag were looking
forward to the local income from working on the project for
the next 6 years; the water and sewer project would greatly
improve the area's health standards. He concluded that the
revenue sharing funds would enable the city office to be
open at all kinds of hours while the project was underway.
3:23:06 PM
BORIS L. EPCHOOK, MAYOR PRO TEMPORE, CITY OF KWETHLAK,
KWETHLAK (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing and related
that the funding was a vital piece of revenue to the City
of Kwethlak in terms of providing adequate public health
and safety services; the funding also assisted with the
high cost of heating fuel in the region. He spoke of the
high costs of living in rural communities and related that
revenue sharing was an important part of Kwethlak's
operating budget; the cut in funding would lead to proposed
reductions in services, general administrative services,
and public safety services. He stated that revenue sharing
was very important to rural communities that had
subsistence-based economies.
3:24:46 PM
JACQUES LONGPRE, MAYOR AND VOLUNTEER CITY MANAGER, CITY OF
ANIAK, ANIAK (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing and spoke
against the concept of phasing revenue sharing out. He
reported that he had been volunteering as the city manager
for about a year and that due to budgets cuts, Aniak could
no longer pay for a city manager. He thought that cutting
revenue sharing was another way of phasing out the village
communities in Alaska and reported that state revenue
sharing accounted for one-third of Aniak's budget; it would
"break" the community to not have the funding. He relayed
that Aniak was the hub community for the region and that it
housed the regional clinic, school district, and trooper
post; it was also the freight and commerce hub. Currently,
fuel in Aniak was selling for $7.27 per gallon and gas was
$7.40 per gallon. He related that Aniak was not asking for
handouts, but was requesting basic services such as heating
its fire station, plowing roads, maintaining sewer service,
and keeping a safe dump. He opined that without revenue
sharing, a lot of smaller communities across Alaska would
die off.
3:26:33 PM
EMILY DEACH, INTERIM BOROUGH MANAGER, MUNICIPALITY OF
SKAGWAY, SKAGWAY (via teleconference), testified in support
of the restoration of $10 million in revenue sharing and
the governor's proposed $3 billion cash infusion into PERS.
She stated that although Skagway was not as small as some
communities, it was still fairly small and that the cut in
revenue sharing would affect the city greatly. She stated
that Skagway used the revenue sharing funding to subsidize
its fuel and electricity costs, to offset increasing
insurance costs, and other general operating costs. She
appreciated that the 22 percent contribution rate for PERS
was maintained.
Ms. Deach thanked the committee for listening to everyone
around Alaska. Co-Chair Kelly responded that it was a not a
courtesy that the committee was extending, but that public
testimony was a constitutional right that the committee was
privileged to reside over.
3:28:17 PM
STEPHANIE SCOTT, MAYOR, HAINES BOROUGH, HAINES (via
teleconference), spoke in support of the restoration of $10
million in revenue sharing and the governor's proposed $3
billion cash infusion into PERS. She agreed with the
governor that payments to the unfunded liability were the
greatest threat to the communities and municipalities. She
thanked the committee for holding the 22 percent rate of
the salary that municipalities contributed to PERS. She
agreed with the governor that the payments to the unfunded
liability were the single largest cost driver in the
state's operating budget and biggest threat to its credit
rating. She suspected that the health of the state may be
the largest predictor of the health of communities,
particularly regarding the small municipalities. She
explained that Haines' tax base was constrained by the
acreage owned by the state and the federal government, and
reported that the federal government owned 66 percent of
the land in the Haines Borough; thanks to help from the
federal delegation, Haines would receive payment in lieu of
taxes again this year for those lands. She stated that
privately held land accounted for 1.3 percent of the Haines
Borough's land base and that it represented the borough's
tax base. She explained that the state held 32 percent of
the land in the Haines Borough and that the state's payment
in lieu of taxes program was the revenue sharing. She
stated that as long as the Haines Borough had so little
private taxable land at its disposal, maintaining the $60
million dollar amount in revenue sharing would be critical
to maintaining the essential services the borough provided.
3:30:26 PM
JANET MITCHELL, CITY ADMINISTRATOR, KIVALINA CITY COUNCIL,
KIVALINA (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing and the
governor's proposed $3 billion cash infusion into PERS. She
stated that Kivalina had to ensure the health and safety of
its community, which was already difficult financially
without the cuts to revenue sharing; the city's operating
budget averaged about $1.3 million annually and the city
received $114,000 from the State of Alaska. She explained
that Kivalina had to supplement a majority of its revenues
with its gaming permit in order to supplement the water
operations. She explained that Kivalina did not have water
and sewer services and did not collect fees on a monthly
basis from the community; part of revenue sharing was used
to purchase fuel at $6.54 per gallon and the plant used 546
gallons per month. She explained that electricity was pre-
paid every year because $114,000 did not stretch very far.
She related that Kivalina supplemented general operations,
road maintenance, landfill maintenance, erosion control,
emergency administration, and snow removal for public
facilities. She reported that Kivalina only averaged
$25,000 in additional revenues from the Northwest Arctic
Borough annually if it was lucky; most of the city's
revenue came from income for gaming activities. She opined
that it would be very difficult for the city to operate if
it lost its gaming revenues. She stated that the lack of
funds had forced Kivalina to cut work hours, but observed
that it would be unable to cut anymore hours if the revenue
sharing funding was cut; the workload was too high to make
additional work-hour cuts. She stated that there were 2
employees in Kivalina's city office that wore "many hats"
and relayed that the city was very short staffed.
3:33:58 PM
AT EASE
3:34:05 PM
RECONVENED
3:34:07 PM
AMY TITUS, CITY CLERK, CITY OF WHITE MOUNTAIN, WHITE
MOUNTAIN (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing and related
that it was 68 percent of White Mountain's municipal
budget. She stated that the revenue sharing helped pay for
utilities, insurance, fuel, personnel wages and benefits,
bulk fuel, public safety, water, sewer, road maintenance,
as well as for coordinating state and municipal elections.
She thought that the revenue sharing program was critical.
3:35:04 PM
LAYTON LOCKETT, CITY MANAGER, CITY OF ADAK, ADAK (via
teleconference), spoke in support of the restoration of $10
million in revenue sharing and the governor's proposed $3
billion cash infusion into PERS. He related that revenue
sharing made up about 15 percent of Adak's municipal budget
and offered that the municipality could not afford to cut
more without denying its citizens basic services. He
reported that about 30 percent of Adak's municipal budget
was used for electricity and that its police department had
only 1 officer; additionally, there was no support staff in
the city office other than the clerk and himself and the
municipality was generally understaffed for maintaining its
basic services of sewer, water, and garbage. He stated that
Adak's school district was a Regional Educational
Attendance Area (REAA) and that the city provided a
facility that housed the city office, school, clinic, and
post office; Adak was recovering what it could through the
limited financial resources from each agency, but was doing
so well below the costs incurred in providing the school
district and the clinic with the ability to provide core
services. He stated that Adak was conserving resources in
order to meet significant current and future needs of the
community; however, it needed the assistance that it
obtained through the revenue sharing program. He spoke of
the high cost of residential electricity rates in Adak and
thought that increasing the sales tax rate would cause more
harm to the community than help to the city government. He
understood that the $3 billion was a large sum of money,
but spoke in support of some sort of substantial cash
infusion into the PERS system. He concluded that Adak was
doing everything it could to save money, including
consolidation and energy efficiency.
3:37:34 PM
GLENNA BENJAMIN, CITY CLERK, CITY OF SHAGELUK, SHAGELUK
(via teleconference), spoke in support of the restoration
of $10 million in revenue sharing and related that the
funding was one of the main funds that Shageluk used to
sustain its community for public services; the funds also
assisted with electricity and diesel to heat the
"washateria" and clinic, as well as wages and workers
compensation. She explained that Shageluk's only source of
drinking water was its "washateria." She stated that
communities in Rural Alaska lacked employment and had poor
economic development; as a result, cutting $10 million in
revenue sharing would result in Shageluk's local budget
becoming unstable.
3:38:35 PM
DOUG WHITEMAN, MAYOR, CITY OF ATQASUK, ATQASUK (via
teleconference), testified in support of the restoration of
$10 million in revenue sharing funds and related that the
funding gave each small rural community a chance to
administer funds from the ground up, which was important.
3:39:13 PM
JAMES BERLIN, MAYOR, CITY OF NUNAPITCHUK, NUNAPITCHUK (via
teleconference), spoke in support of the restoration of $10
million in revenue sharing and the governor's proposed $3
billion cash infusion into PERS. He stated that the revenue
sharing funds helped with most of Nunapitchuk's city budget
and related that the city needed continued help with state
revenue. He pointed out that Nunapitchuk's insurance,
electricity, and heating costs were very high and were
going up every year. He reported that the city's main
services were water, sewer, the police department, and the
"washateria." He stated that the city's police department
and the washateria were both in need of new facilities. He
spoke of the high cost of basic needs in Nunapitchuk and
thought that freight and postage accounted for 40 percent
of the cost of obtaining new goods in the village.
3:41:32 PM
WILLIAM C. PETERSON, ADMINISTRATOR, CITY OF NEW STUYAHAK,
NEW STUYAHAK (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing. He related
that New Stuyahak was dependent on revenue sharing and that
it used the funds for public safety, landfill operations
management, water, sewer, road maintenance, and other
activities. He stated that New Stuyahak would be in a bind
without revenue sharing and pointed out that the village
was in one of the highest poverty areas in the state; he
thought that public assistance was also declining. He
stated that restoring the funding would be beneficial to
all of the villages.
3:43:16 PM
SCOTT ANDERSON, MAYOR, PORT HYDEN, PORT HYDEN (via
teleconference), spoke in support of the restoration of $10
million in revenue sharing and supported the 22 percent
rate cap in PERS. He stated that without funding from
revenue sharing, Port Hyden would not be able to keep its
infrastructure operational.
3:44:13 PM
RICHARD ELACHIK SR., CITY CLERK, CITY OF ST. MICHAEL, ST.
MICHAEL (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing, supported
the governor's proposed $3 billion cash infusion into PERS,
and also supported the 22 percent salary rate cap for
contributions into PERS. He related that the revenue
sharing funding helped keep the community of St. Michael
going and helped reduce the pressures of rising sewer and
water rates. He pointed out that the funding reductions
would really hurt those who were not working.
3:45:14 PM
SUSANNA WASSILLIE, CITY CLERK, CITY OF NEWHALEN, NEWHALEN
(via teleconference), testified in support of the
restoration of $10 million in revenue sharing and indicated
that over half of Newhalen's income came from community
revenue sharing.
3:45:42 PM
BRENDA BROWN, CITY MANAGER, CITY OF MOUNTAIN VILLAGE,
MOUNTAIN VILLAGE (via teleconference), spoke in support of
the restoration of $10 million in revenue sharing and the
governor's proposed $3 billion cash infusion into PERS. She
stated that revenue sharing had a huge impact on Mountain
Village and that it covered about 60 percent of its budget;
without the funding, there would be a downfall in public
safety, as well as the water and sewer system. She stated
that although the infusion into PERS would not affect the
local city government in Mountain Village, it would impact
the Lower Yukon School District. She offered that the
revenue sharing funding was vital for many communities,
particularly for those in Rural Alaska.
Ms. Brown addressed a previous question from Co-Chair Kelly
and responded that "Shaktoolik" meant "scattered things."
She explained that the meaning came from the reindeer
herding days. Co-Chair Kelly thanked Ms. Brown for the
answer.
3:47:34 PM
DAN CLARION, MAYOR AND CITY MANAGER, CITY OF OUZINKIE,
OUZINKIE (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing and the
governor's proposed $3 billion cash infusion into PERS. He
related that the revenue sharing funding was a huge portion
of the City of Ouzinkie's budget and that the $10 million
cut represented the entirety of its public safety and road
maintenance budget; the funding also paid a large portion
of the city's insurance. He pointed out that a lot of the
larger communities in Alaska might be able to absorb the
cuts, but that Ouzinkie had a very small tax base;
therefore, the city would have very little economic
opportunity to absorb the revenue sharing cuts. He stated
that Ouzinkie had recently been forced to increase the
utility rates in order to make ends meet. He opined that if
the cuts to revenue sharing were made straight across for
all of the communities, Ouzinkie would have to discontinue
several services. He recalled that it had been discussed in
the past to do away with revenue sharing, but noted that
the funding was very critical for Ouzinkie and other
communities. He stated that Ouzinkie did not have health
insurance or retirement benefits and that people were
trying to get by with an income of somewhere between
$15,000 and $25,000 per year, which barely paid the fuel
for heating your house.
3:50:42 PM
Co-Chair Kelly discussed the schedule for the following
week.
CSHB 266 (FIN) was HEARD and HELD in committee for further
consideration.
CSHB 267(FIN) was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
3:50:55 PM
The meeting was adjourned at 3:50 p.m.