Legislature(2015 - 2016)SENATE FINANCE 532
03/07/2016 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB139 | |
| SB140 | |
| SB74 | |
| SB139 || SB140 | |
| Public Testimony: Juneau | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 74 | TELECONFERENCED | |
| += | SB 139 | TELECONFERENCED | |
| += | SB 140 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SENATE FINANCE COMMITTEE
March 7, 2016
9:08 a.m.
9:08:22 AM
CALL TO ORDER
Co-Chair Kelly called the Senate Finance Committee meeting
to order at 9:08 a.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
James Armstrong, Staff, Senator Pete Kelly; Erin Shine,
Staff, Senator Anna MacKinnon; Jon Sherwood, Deputy
Commissioner, Medicaid and Health Care Policy, Department
of Health and Social Services; Karen Forrest, Deputy
Commissioner, Commissioner's Office, Department of Health
and Social Services; Senator Dennis Egan; Forest Wagner,
Assistant Professor Outdoor Studies, University of Alaska
Southeast (UAS), Juneau; Jayne Andreen, President, Alaska
Public Health Association (ALPHA), Juneau; Mark Miller,
Superintendent, Juneau School District, Juneau; John
Clough, President, Alaska Public Broadcasting, Juneau;
Michelle Weaver, Self, Juneau; Ian Niecko, Case Manager,
Juneau Alliance for Mental Health, Juneau; Gus Marx, Grant
Writer, Juneau Youth Services, Juneau; Mary Hakala, Self,
Juneau; Rachel Gearhart, National Association of Social
Workers, Alaska Chapter, Juneau; Callie Conerton, Vice
Chair, Coalition of Student Leaders, UAS; George
Reifenstein, Self, Juneau; Amy Lujan, Executive Director,
Alaska Association of School Board Officials, Juneau; Sasha
Soboleff, Grand President, Alaska Native Brotherhood,
Juneau; Frank Coenraad, Director, Alaska's Learning
Network, Juneau; Bob Bartholomew, Finance Director, City
and Borough of Juneau, Juneau; Gordon Kruse, Director,
Fisheries Division, University of Alaska Fairbanks (UAF),
Juneau; Kathi Collum, Board Chair, Juneau Youth Services,
Juneau; Alex McGuan, Self, Juneau; Melinda Messmer, Home
Visitor, Parents as Teachers, Juneau; Jada Kahl, Early
Education, LEND, Juneau School District, Juneau; Talea
Kellar, Home Visitor, Parents as Teachers, Juneau; Kelsey
Venechuk, Self, Juneau; Amber Frommhere, Self, Juneau; Tina
Peyerk, Self, Juneau; Cynthia Katzeek, Self, Juneau; Brenda
Taylor, Self, Juneau; Andrea Dewees, Assistant Professor of
Spanish, UA, Juneau; Beth Weldon, Self, Juneau; Kirk
Duncan, Chair, Coast Alaska, Juneau; Rick Iannolino, Self,
Juneau; Nick Crowe, Juneau Youth Services, Juneau; Rick
Svobodny, Self, Juneau; Kathie Wasserman, Alaska Municipal
League, Juneau; Clay Walker, Denali Borough Mayor, Vice-
president, Alaska Municipal League (AML), Juneau; Mike
Mann, Self, Juneau; Anne Fuller, Self, Juneau; Aaron
Brakel, Self, Juneau; Amy Jo Meiners, 2016 Alaska Teacher
of the Year, Juneau; Dave Newton, Self, Juneau; Lisa Eagan
Lagerquist, Self, Douglas; Josh Keaton, Self, Juneau; Frank
Rue, Self, Juneau; Sally Rue, Self, Juneau; Denise
Doniello, Alaska Commission on Aging, Juneau; Marcelo
Quinto, Self, Juneau; Shayna Rohwer, Self, Juneau; Tom
Brice, Self, Juneau; Emily Thompson, Parents as Teachers,
Self; June Rogers, Self, Juneau; Lillian Worl, Self,
Juneau; Mara Early, Self, Juneau; Andi Story, Member,
Juneau School Board, Juneau; Kelly Sorensen, Self, Juneau;
Katey Blagden, Self, Juneau; Noah Williams, Self, Juneau.
PRESENT VIA TELECONFERENCE
SUMMARY
SB 74 MEDICAID REFORM/PFD/HSAS/ER USE/STUDIES
SB 74 was REPORTED out of committee with
individual recommendations and with 1 new fiscal
impact note from the Department of
Administration; 1 new fiscal impact note from the
Department of Commerce, Community and Economic
Development; 1 new fiscal impact note from the
Department of Law; and 13 new fiscal impact notes
from the Department of Health and Social
Services.
SB 139 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 139 was HEARD and HELD in committee for
further consideration.
SB 140 APPROP: MENTAL HEALTH BUDGET
SB 140 was HEARD and HELD in committee for
further consideration.
PUBLIC TESTIMONY: JUNEAU
SENATE BILL NO. 139
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, making
reappropriations, making supplemental appropriations,
and making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date."
9:09:11 AM
Co-Chair MacKinnon directed attention to a proposed
committee substitute for SB 139.
Co-Chair MacKinnon MOVED to ADOPT proposed committee
substitute for SB 139 (FIN), Work Draft 29-GS2740\W
(Wallace, 3/3/16).
Senator Bishop OBJECTED for discussion.
9:10:13 AM
JAMES ARMSTRONG, STAFF, SENATOR PETE KELLY, explained that
the committee substitute (CS) incorporated all of the
numbers that the budget subcommittees had forwarded to the
committee the previous week. He continued that the language
section of the budget had some major technical changes to
the bill that was introduced and amended by the governor's
office. The title was amended to include FY 16
appropriations, and the new version removed all the
dividend "plumbing" that had been encapsulated in the
governor's bill. Additionally, the CS reformatted to
resemble a typical operating budget similar to years past,
and removed the pension obligation bonds contained in the
original bill. In the numbers section of the CS, all the
funding for the Alaska's Liquid Natural Gas Project (AKLNG)
was removed, totaling almost $29 million. He added that the
other body had used excess PCE funds to help fund one of
the agencies, but the provision was not in the CS being
considered.
9:11:31 AM
Mr. Armstrong continued that the CS contained funding for
the single audit within the Department of Health and Social
Services (DHSS), which would be a three-year project of
approximately $932,000. He specified that the CS capped
funds for firefighting crews, not to exceed $1,125,000. He
stated that the CS smoothed out the funding for the
Division of Elections, with $1.9 million in FY 16, and $1.9
million in FY 17. He clarified that in future years, the
division would have $1.9 million in the budget.
9:12:32 AM
Mr. Armstrong pointed out new fund capitalization in the
amount of $7.5 million for Group Health and Life Benefits
Fund, which would fund approximately half of what the
administration was proposing. He directed attention to
excess funding from FY 16 that was put toward the Public
Education Fund in the amount of approximately $435 million.
He highlighted that one third of the amount was used to
displace FY 17 funding for education. He asserted that the
change resulted in education being fully funded, but had a
different fund source.
9:13:18 AM
Mr. Armstrong stated that the CS contained no funding in FY
16 or FY 17 for the Community Revenue Sharing Program. He
furthered that the program utilized a three-year rolling
average, and if the CS remained as it was currently
written, revenue sharing would receive approximately $38
million in FY 17.
Mr. Armstrong continued discussing the CS, noting that the
new version would deposit $80 million in to the Higher
Education Fund in FY 16, and then capitalized the fund. In
FY 17 an appropriation was made to displace funds within
the statewide assistance to TERS, lowering the general fund
(GF) component in FY 17 by $77 million.
9:14:09 AM
Mr. Armstrong noted that the work draft reduced the deposit
to the Renewable Energy Fund by $5 million. He mentioned
three small retirement accounts (for the Elected Public
Offices, Alaska Nation Guard, and Alaska Naval Militia
retirement systems) that were embedded in the numbers
section which were moved to statewide retirement so as to
be housed in the same area of the budget. He added that
there were no Constitutional Budget Reserve provisions in
the CS.
9:15:03 AM
Co-Chair Kelly explained that there would be public comment
on the budget at a later time, and members would submit
amendments later in the week.
9:15:35 AM
Senator Dunleavy asked for a total of reductions when
considering the governor's plan to the House and then to
the Senate. Mr. Armstrong replied that there was a report
from the Legislative Finance Division (LFD) in the member's
packets. He directed member's attention to the bottom of
column 2, $4,511,000,000 was the total listed for the
governor's amended total budget. The House total was
$4,093,520,000 and the Senate total was approximately $27
million higher. He noted that the other body was
considering amendments the following day, and would be
using some PCE funds in non-traditional places. He
summarized that the changes between the two bodies were
contained within DHSS, University of Alaska, and the
Department of Transportation and Public Facilities.
9:16:49 AM
Senator Dunleavy clarified that the amount being considered
was of $4,120,098,000. Mr. Armstrong answered in the
affirmative.
Mr. Armstrong explained that the blue binders before the
members contained the budget action sheets for each
subcommittee, as well as the narratives, so members could
follow along to understand the changes. He noted that after
the CS was adopted, the LFD website would have each
comparison available for consideration.
9:17:29 AM
Co-Chair MacKinnon asked if Mr. Armstrong could quantify
the percentage or dollar amount total of an overall cut
from the previous year to the current year.
Co-Chair Kelly commented that whatever number Mr. Armstrong
discussed, the amount would be different after the upcoming
work on the budget was completed.
Mr. Armstrong discussed the reductions and estimated that
between the governor's reductions, the reductions in the
House, and the reductions from the CS; reduced the budget
overall by nearly $215 million.
Co-Chair Kelly stated that number was consistent with what
he had discussed during a press conference earlier in the
day.
9:19:07 AM
Senator Hoffman asked if column 2 of the LFD report
included all of the governor's amendments that had been
submitted to the Senate for consideration.
Mr. Armstrong stipulated that there had been an amendment
for $2 million that was not included in the CS. He could
not recall the details of the amendment, but was confident
that the governor's office would have a list of amendments
it would want to see restored in the budget.
9:19:38 AM
Co-Chair Kelly clarified that only members of the Senate
Finance Committee would be offering amendments to the
budget. If other Senate members wanted to offer amendments,
they would need to work through the committee members.
Mr. Armstrong discussed the upcoming schedule for
amendments and public testimony.
9:20:39 AM
Senator Bishop REMOVED his objection. There being NO
OBJECTION, it was so ordered. The CS for SB 139(FIN) was
ADOPTED.
9:21:04 AM
Senator Hoffman asked if amendments would be considered if
they were not available to the legal drafters by the
specified time.
Co-Chair Kelly answered in the affirmative.
9:21:19 AM
Vice-Chair Micciche considered that there had been a lot of
misunderstanding regarding past budgetary work, and thought
that it might be helpful to get an overview from LFD
regarding budget changes in the departments over the
previous few years.
Co-Chair Kelly mentioned a recent question from a reporter,
thought it was important the public understood that the
Senate and the House had different ways of counting things
as cuts. He referred to a question about $200 million in
tax credits that were reduced the previous year, and he had
expressed that the Senate did not count the reduction as a
legitimate cut, but rather a "false cut." He characterized
the committee's budget methodology as a form of discipline
that the committee engaged in. He agreed that it would be
positive for LFD to overview budget processes for
clarification. He thought some bloggers had made outrageous
statements about budgetary decisions, and thought it showed
a lack of understanding of the process.
SB 139 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 140
"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."
9:24:25 AM
Co-Chair MacKinnon MOVED to ADOPT proposed committee
substitute for SB 140(FIN), Work Draft 29-GS2742\W
(Wallace, 3/4/16).
Senator Bishop OBJECTED for discussion.
Mr. Armstrong discussed the proposed CS. He stated that in
years past, traditionally the other body removed one
capital project from the proposed budget. He clarified that
there were five projects currently incorporated in the
bill. He continued that when the committee received the
House version of the bill on Friday, it would reverse the
order and not fund the other four projects, which would
render the mental health bill conferenceable.
Mr. Armstrong continued that the House had removed the
mental health coordinated transportation in vehicles, in
the amount of $1.1 million, which he considered standard
operations.
Senator Bishop REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
Co-Chair Kelly handed the gavel to Co-Chair MacKinnon.
SB 140 was HEARD and HELD in committee for further
consideration.
9:26:34 AM
AT EASE
9:30:54 AM
RECONVENED
SENATE BILL NO. 74
"An Act relating to permanent fund dividends; relating
to a medical assistance reform program; establishing a
personal health savings account program for medical
assistance recipients; relating to the duties of the
Department of Health and Social Services; establishing
medical assistance demonstration projects; and
relating to a study by the Department of Health and
Social Services."
9:31:18 AM
Co-Chair Kelly MOVED to ADOPT proposed committee substitute
for SB 74, Work Draft 29-LS0692\U (3/4/16, Glover).
Co-Chair MacKinnon OJBECTED for discussion.
ERIN SHINE, STAFF, SENATOR ANNA MACKINNON, discussed the CS
for SB 74, and explained that the work draft incorporated
all of the amendments that had passed the previous week.
She highlighted two additional changes reflected in the CS
and directed attention to page 39, line 15 of the bill. The
change added the word "retirees" to the draft, after it had
been inadvertently omitted in the amendment pertaining to
the Healthcare Authority study with the Department of
Administration. She pointed out another change on page 40,
lines 27 through 31 of the bill. Previously, the section
had required all of the False Claims Act to require a two-
thirds vote; after conversation with the legal department,
members decided to remove the sections that did not require
a two-thirds vote.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, it was so ordered.
9:33:42 AM
Co-Chair MacKinnon directed the committee's attention to an
overview document prepared by the department "DHSS Fiscal
Impacts for CSSB74(FIN), version U - with amendments,"
(copy on file). She explained that the document encompassed
all of the fiscal notes that were in draft form, but were
not anticipated to change. She thought the overview would
simplify the process of examining the fiscal impact, and
detailed that she and Senator Kelly's staff had met with
the department and LFD over the weekend to update the
fiscal notes. She furthered that she had observed a
reaction from committee members pertaining to the number of
personnel being requested by the department to implement
the Medicaid program, as well as observing less savings
than expected.
9:35:08 AM
Co-Chair MacKinnon directed attention to the FY2017 column
of the document, which reflected what the subcommittees had
already done. She noted that as the committee moved forward
with implementation of reform, it had identified savings in
various areas. Consequently the department had been unable
to reflect the savings on the fiscal note, because the
savings was not a result of direct policy in the bill. She
continued that there was explanation on the fiscal note
that explicated the situation. She anticipated savings of
over $100 million, and pointed out that the number from FY
17 was different than previously considered numbers because
the fiscal notes were not reflecting what was happening in
subcommittee in terms of cost savings on travel and other
items.
Co-Chair MacKinnon reminded the committee and the public
that the document being reviewed was only for DHSS, and did
not reflect savings in the Department of Law or other
areas.
9:37:40 AM
Co-Chair Kelly expressed appreciation for the work that was
completed over the weekend. He was in favor of
incorporating the aforementioned note in the fiscal note.
He discussed making departmental reductions to reflect
savings created through the passage of the bill as it moved
through committees.
9:38:31 AM
Co-Chair MacKinnon commented that the Senate Finance
Subcommittee on Medicaid would work with colleagues in the
House to identify additional funding sources that might be
available. She relayed that the Mental Health Trust Board
had indicated some willingness to examine the
implementation of the behavioral health changes. She
anticipated additional changes to fiscal notes and
additional collaboration during the bill process.
9:39:13 AM
Vice-Chair Micciche asked for clarification on the savings
reflected between the "Grand Total" table on the first page
of the fiscal impacts document, and the table on the second
page. He asked if the department could explain the
difference between the two tables.
9:39:58 AM
JON SHERWOOD, DEPUTY COMMISSIONER, MEDICAID AND HEALTH CARE
POLICY, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, addressed
Vice-Chair Micciche's question regarding the tables on the
fiscal impacts document. He clarified that the table on
first page of the document reflected every provision of the
bill and totaled them. The table on second page was
comprised of items which resulted in significant savings.
He noted that there were some provisions of the bill that
did not get included in the table, and was more intended as
a reference to observe cost saving measures and individual
impacts. He continued that the tables did not attempt to
incorporate every provision in every fiscal note, and there
were some expenses that would not be reflected in the
summary table on the first page.
9:41:02 AM
Mr. Sherwood relayed that the department had seriously
considered the committee's comments from the previous week,
and had examined its assumptions and timelines. Further,
the department had looked at the bill amendments and made
some significant changes, and in some cases had moved up
its timelines. He specified that with the incorporation of
the provisions proposed in the budget subcommittees, the
tribal claiming timeline was effectively moved up.
Additionally, the start of 1915(I) and 1915(K) provisions
were both moved up by six months.
Mr. Sherwood continued to discuss the bill and the fiscal
impacts sheet, noting that the department had identified
potential savings in areas of primary care case management,
telehealth, and pioneer homes (as a result of an
amendment). The department had also found some reductions
in positions and capital costs. He thought the co-chair had
done a great job of summarizing the first table, in terms
of the net effect of the bill. He pointed out that savings
totaling over $31 million in FY 17 was projected to grow in
GF to almost $114 million by FY 22. He added that the bill
also resulted in total fund reductions beginning in FY 17
and growing through FY 22.
Mr. Sherwood discussed the "Positions" table on the first
page, noting that the department reduced the total request
for positions. The department would add seven positions in
FY 17, including four positions to work on enhanced or
accelerated tribal claiming (also included in the budget
subcommittee proposal). He quantified that effectively, the
department reduced five of the positions it had asked for
previously. The amount of positions would peak at nine in
FY 18 while completing start-up work, gradually paring back
to five net positions as efficiencies were achieved as a
result of Medicaid reform.
9:43:23 AM
Co-Chair Kelly clarified that his earlier mention of 27
positions was incorrect.
Co-Chair MacKinnon explained that the subcommittee had gone
through an exercise with the department to reduce
positions, and the number had changed over time. The
subcommittee was trying to reflect the changes to create
transparency for the public.
9:44:18 AM
Mr. Sherwood discussed the "Capital Budget Costs" table on
page 1 of the document, explaining that capital costs had
gone down to a total of $9.1 million and were comprised of
90 percent federal funds. In addition to adjusting some
assumptions, the department had reallocated some costs more
appropriately. He noted that the committee might observe
some numbers had moved between fiscal note components, but
that overall there had been a net reduction.
9:44:53 AM
Co-Chair MacKinnon asked if the department had looked at
the 50-50 funding ratio on some items and consider how the
state might present a case to the federal government to
have some positions or capital costs specifically covered
at a 90-10 rate in aid of trying to work toward eliminating
fraud in the system (and other items).
Mr. Sherwood answered in the affirmative. He elaborated
that the department reviewed areas that indicated a 50-50
funding ratio. He thought the state had a substantial case
it could make to the federal government. He thought the
department's initial presentation might have been more
conservative due to caution and uncertainty.
9:45:43 AM
Co-Chair MacKinnon discussed the explanation of benefits
process for individuals receiving services through
Medicaid. She considered it was a false claims reporting
augmentation which was new to the system, and by virtue of
its inherent authentication with the patient [to help
prevent fraud] should qualify for a 90-10 split.
Mr. Sherwood concurred.
9:46:36 AM
Vice-Chair Micciche thought it was difficult to quantify
the savings at the current time without knowing the
effectiveness of the changes. He mentioned reductions in
emergency care through primary care and case management,
the Prescription Drug Monitoring Program and behavioral
health improvements, reduction of travel through
telehealth, changes to pioneer homes, and reduction in
fraud and abuse. He asked if it would take a couple of
years to observe the results of the improvements.
Mr. Sherwood stated that the department was trying to be
reasonable in its projections, and thought one of the
challenges was to avoid the double-counting savings through
different reform efforts. He used the example of saving
funds on travel through using both a tribal claiming
initiative as well as telehealth. He furthered that the
department's telehealth estimates did not include
substantial components of travel due to concerns about
double-counting.
9:48:35 AM
Co-Chair Kelly appreciated the level of scrutiny that Mr.
Sherwood had described. He discussed earlier comments
pertaining to quantifying budgets and thought Mr. Sherwood
had employed conservative thinking as he examined the
numbers.
9:49:10 AM
Co-Chair MacKinnon understood that two fiscal notes had
been eliminated. Mr. Sherwood thought one of the two fiscal
notes in question had come back. He clarified that one
fiscal note for the Administrative Services support was
gone. He had previously thought that a fiscal note for the
Division of Public Assistance could be eliminated, but the
department had realized it was necessary to show a
component in the fiscal note.
9:50:10 AM
Co-Chair MacKinnon pointed out that there were two
additional fiscal notes that needed updating. Mr. Sherwood
relayed that he would be making further comments on the
document, then would discuss the two additional fiscal
notes. He added that there one new fiscal note that could
be easily summarized in the cost savings table rather than
a more detailed discussion.
Co-Chair MacKinnon directed attention to fiscal note
component number 2077 and component number 2662; for a
Medicaid services appropriation, and an appropriation to
Medicaid services - senior disabilities.
9:51:48 AM
Mr. Sherwood highlighted the "Savings Measures (UGF)" table
on page 2 of the document, noting that the table included
the additional funds anticipated to be saved in the tribal
claiming policy change. He noted that the department had
increased and accelerated the savings in primary care case
management, and also showed savings in telehealth beginning
in FY 18. He highlighted savings of approximately $1
million GF annually as a result of an amendment the
previous week to the payment assistance language, which
would correspond the new fiscal note for the pioneer homes.
The department was also able to reduce the start-up cost
for the eligibility verification system, and identify some
operational savings in the same area.
Mr. Sherwood summarized that one thing that was not in the
fiscal notes was the impacts of the work to develop more
effective and integrated behavior health system and 1115
waiver.
9:53:27 AM
KAREN FORREST, DEPUTY COMMISSIONER, COMMISSIONER'S OFFICE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, noted that the
department expected that behavioral health reform (as
demonstrated in the bill but not shown in the fiscal notes)
would result in significant savings in other state agencies
and municipalities across the state. She particularly
expected to see savings in the criminal justice system, the
Department of Corrections, the Alaska Court System, and the
Department of Public Safety. She thought it was hard to
quantify potential savings at the current time, and
highlighted past committee testimony regarding the
importance of behavioral health reform as it pertained to
the criminal justice reinvestment and reform.
9:54:29 AM
Co-Chair MacKinnon asked if Ms. Forrest would be giving an
indeterminate fiscal note related to a separate corrections
bill that was in the committee process. She wondered about
the possibility of additional savings that committee
members might need to take into account when considering
the bill. Ms. Forrest avowed to look into the matter.
9:54:51 AM
Mr. Sherwood directed attention to fiscal note component
number 2077 for healthcare Medicaid services, which he
explained was the largest component of the Medicaid
services and had the most features. He pointed out a very
small increase in operating cost for FY 17, but a
substantial reduction in GF. He discussed the savings to
the program that would start at over $3.7 million in FY 18,
and growing to over $28 million in FY 22. He referred to
the substantial reduction in GF, reducing from
approximately $27 million in the first year to over $60
million in FY 22.
9:56:35 AM
Mr. Sherwood continued to discuss the fiscal note, and
pointed out an error pertaining to position requests. He
reported a capital cost of $6.9 million associated with the
fiscal note. He explained that the fiscal note encompassed
a number of provisions relating to sections of the bill
relating to fraud. He mentioned savings from the False
Claims Act, savings from the self-review for overpayment,
savings from civil penalties, and projected savings from
the civil forfeiture provisions. He added that savings
would be reflected in the summary document on the first
table on the first page. He discussed primary care case
management, which showed savings beginning in FY 18. He
mentioned the health homes options, which would save the
state substantial amounts of money. He pointed out
telehealth provisions, the coordinated care demonstration
projects, and the hospital emergency room reduction
project, which were all included in the fiscal note. There
were savings associated with the tribal health travel
claiming, as well as provisions for a health information
infrastructure plan. He clarified that although the health
information infrastructure plan did involve a modest
expense, almost all of the funds were a 90-10 federal
money.
9:58:55 AM
Mr. Sherwood addressed fiscal note component number 2662,
for senior and disabilities Medicaid services, and noted
that the allocation involved three different provisions.
There would be an impact to services in the tribal claiming
change, which showed strictly as a fund source switch. The
second provision concerned 1915(k), which would create a
new home and community-based program to provide personal
care services for people who qualified for waivers, and
came with an enhanced match rate 6 percent greater than the
regular match rate. Consequently, the department would move
personal care services from the current optional service to
the 1915(k) option; and there would be a fund source switch
after receipt of enhanced federal funds. He discussed the
third provision, the 1915(i) option under Medicaid, in
which a new option would be used for home and community-
based services to cover individuals currently receiving
services through state-funded programs under the Medicaid
program. He continued that rather than paying for the
services at 100 percent general fund, the state would get a
50 percent federal match.
Mr. Sherwood continued to the fiscal note, communicating
that other fiscal notes demonstrated reductions in grant
programs that equaled the amount of increased operating
costs; the fiscal note showed $5.8 million beginning in FY
18 and growing to $17 million by FY 22. He summarized that
the fiscal note encompassed where the state would pick up
the general fund cost as well as the federal cost and
savings. He highlighted the capital cost of $1.2 million,
which was 90-10 funded; and recognized that the department
needed to allocate some of the funds that it had put in
other fiscal notes for capital projects to senior and
disability services.
10:01:43 AM
Mr. Sherwood addressed fiscal note component number 2671,
an allocation for pioneer homes, and explained that the
fiscal note reflected a change in fund source. Due to the
language in a recent amendment to the pioneer home payment
assistance program, the department believed it could
collect additional funds from the Medicaid waiver program
as opposed to having to pay for it out of the state's
payment assistance plan. The fiscal note showed a reduction
in GF, which was a reduction to the payment assistance plan
and an increase in interagency receipts that received the
federal Medicaid funds into the pioneer home budget.
10:03:33 AM
Vice-Chair Micciche asked what part of the bill the fiscal
note corresponded to. Mr. Sherwood pointed out language on
page 35, lines 21 through 23, pertaining to requiring an
individual applying for medical assistance coverage to
provide the decision letter regarding the application.
10:04:44 AM
Mr. Sherwood recalled that he misspoke earlier regarding
changes to fiscal notes. The fiscal note addressing
behavioral health administration had not been eliminated,
in aid of demonstrating reductions in staff. The department
had eliminated the Public Assistance Administration fiscal
note and combined information in to the fiscal note
component number 237 addressing the fraud component.
10:05:41 AM
Co-Chair MacKinnon expressed appreciation for the work the
department had done over the previous weekend.
Co-Chair MacKinnon reminded the public that the fiscal
impacts document being addressed was only pertaining to
DHSS and no other agencies.
10:07:08 AM
AT EASE
10:08:57 AM
RECONVENED
Vice-Chair Micciche reviewed fiscal note component number
45, for centralized administrative services in the office
of the commissioner of Department of Health and Social
Services. He listed a personal services cost of $134,600 in
FY 17, combined with a services cost of $700,000 for a
total of $834,600. He pointed out there was a further cost
in FY 18 of $33,600 in personal services, and then no cost
from FY 19 through FY 22. He clarified that the funds were
for a temporary position in FY 17 and FY 18 and there was
no capital cost.
10:10:17 AM
}John Boucher, Deputy Commissioner, Department of
Administration{ addressed the fiscal note. He understood
that the intent of the health care authority feasibility
study referenced in the fiscal note was to provide impetus
for a broader discussion of healthcare spending in the
state beyond Medicaid benefit recipients. He mentioned a
study by Commonwealth North that had quantified the total
state spend (including Medicaid) at $1.55 billion. He did
not think the total had included some of the indirect costs
through the foundation formula for teachers and other
categories. He read from the analysis section of the fiscal
note:
The Committee Substitute for SB 74 requires the
Department of Administration, in collaboration with
the Legislative Finance Committees, to procure a study
to determine the feasibility of creating a health care
authority that could coordinate health care plans and
consolidate purchasing effectiveness for all state
employees, retired state employees, retired teachers,
medical assistance recipients, University of Alaska,
state corporation, and school district employees.
Mr. Boucher continued to discuss the fiscal note, pointing
out that it required the feasibility study to be completed
on or before June 30, 2017. He relayed that the department
had looked at comparable studies the previous week, and
found that they cost around $350,000. He thought
considering the scope of the study, and the public process,
the state would need to rely on other states that had
examined the same topics. He estimated that the state could
spend up to $700,000 on the study. He specified that the
department envisioned one temporary position to manage the
study through the commissioner's office.
10:12:58 AM
Co-Chair MacKinnon clarified that Senator Dunleavy had
proposed a similar study previously. She hoped that the
administration would review the report and consider the
challenges that the legislature had faced in extracting
information needed to evaluate long-term benefits for
Alaskans. She emphasized the need for awareness of the
bargaining cycle that determined health benefits as the
state moved forward to look at health care savings.
10:13:56 AM
Senator Dunleavy asked about the fiscal note narrative, and
wondered if active teachers were included under the heading
of 'school district employees,' Mr. Boucher answered in the
affirmative, and stated that the language in the bill
referred to "direct and indirect funding by the state of
Alaska." He had not listed every group that could
potentially be covered. He thought one challenge the study
would have to meet was determining the most important scope
first. He thought it would be important to ensure that the
state received the best value out of the study.
10:15:04 AM
Co-Chair MacKinnon emphasized that the state spent an
incredible amount of money on insurance through local
governments and through state government entities.
Individual communities and larger cities were also
negotiating for health benefits. She thought that the state
had incredible buying power that had been fractured. She
thought there was a belief that with such great buying
power, the people of Alaska should not be paying some of
the costs of the benefits being received. She hoped,
through collaboration with the administration, to bring the
bargaining units together and try and get better services
with the money being spent.
10:16:09 AM
Co-Chair Kelly thought it was important to address some
comments made by Senator Dunleavy when the committee worked
on the issue three years prior. He recounted that there had
been a different financial environment at the time, and
Medicaid expansion created a much larger pool.
10:16:55 AM
Senator Dunleavy agreed that there had been a different
financial climate when the topic was discussed previously.
He referred to certain groups in opposition to health care
consolidation. He furthered that with a worsening financial
climate, he hoped that the overall benefit to the state
would take precedence over a small amount of groups that
would not benefit from such consolidation.
10:17:28 AM
Mr. Boucher stated that the department looked forward to
the challenge of moving forward with Medicaid reform, and
thought that everyone recognized that the state was
spending a tremendous amount on healthcare. He thought that
it was a good idea for the state to leverage its buying
power.
10:17:51 AM
Vice-Chair Micciche discussed fiscal note component number
2203, for criminal appeals and special prosecution in the
Department of Law's Criminal Division. He reviewed the
total operating costs from FY 17 through FY 22 at $365,000,
comprised of $273,700 in federal receipts and of $91,300 in
state funds. The fiscal note listed two full-time positions
from FY 17 through FY 22. There was a change in positive
revenues of about $500,000 per year.
10:18:40 AM
}John Skidmore, Director, Criminal Division, Department of
Law{ addressed the fiscal note, making note of one
substantive change. The department had changed the funding
from GF to statutorily designated receipts (SDR) after
responded to members concerns about the added number of
positions associated with the legislation. Additionally,
DOL had indicated that the state would be collecting
significant monies from fraud, which would serve as the new
fund source. He noted that in the first year the funds
would been split equally between GF and SDR to allow the
program to develop fully. Thereafter the funds would be 100
percent SDR.
10:20:15 AM
Senator Dunleavy cautioned careful and cognizant reflection
on the collection of department funding, and hoped it would
be done the right way. He thought a number of members would
be observing the process and listening to their
constituents on the matter.
Senator Dunleavy asked if Mr. Skidmore's division also
prosecuted permanent fund dividend (PFD) fraud.
Mr. Skidmore stated that there was a prosecutor within the
Office of Special Prosecutions that prosecuted PFD fraud.
He added that he agreed with Senator Dunleavy that
collection of fraud funds needed to be monitored carefully,
and it was not the department's intent to go after
individuals simply for the point of recovering money. He
clarified that the act [the proposed Medical Assistance
False Claim and Reporting Act] was set up so that the state
could collect attorney's fees, the same way in which one
would in most civil cases.
Senator Dunleavy used an example of other states collecting
greater and greater amounts of fees through traffic
violations. He was concerned that the collection was done
in the right way and that people were not overstepping
their authority.
10:22:15 AM
Vice-Chair Micciche appreciated Mr. Skidmore's earlier
comments, and thought he had been conservative in the
estimated change in revenues from fraud collection. He
recounted historical cases of fraud in Alaska and imagined
that a dedicated effort could result in significant savings
for the state. He expressed appreciation for Mr. Boucher's
explanation and efforts. He hoped that the message was
being conveyed regarding fraud and abuse of the Medicaid
system.
10:23:24 AM
Senator Bishop thought the sections of the bill referring
to fraud set a high bar for the burden of proof in order
for the attorney general to proceed.
Mr. Boucher stated that there was a higher burden of proof
for the claims than there was for the grand jury. He added
that there was a lower burden of proof to pursue the cases
civilly rather than criminally.
10:24:29 AM
Senator Hoffman expressed concern that the state
constitution did not allow for dedicated funds. He referred
to the potential savings of $800,000 in the first year. He
wondered if the cost would be recurring every year. He
thought there could be substantial increases to DOL's
budget and bottom line, and wondered if the SDR would
increase cumulatively over time.
Mr. Skidmore stated that DOL anticipated that in the first
year there would be initial start-up activities, and would
build momentum in the future. He specified that each year
there would be payouts of Medicaid monies. Consequently,
each year the department expected to pursue anyone that was
engaged in fraudulent activities and thereby collect
designated receipts estimated in the amount listed on the
fiscal note. The amount $91,300 was the state's portion of
funding the positions, which were 75 percent funded by the
federal government. He confirmed that the amount would be
recurring.
10:27:28 AM
AT EASE
10:28:00 AM
RECONVENED
Co-Chair Kelly thanked staff.
Co-Chair Kelly MOVED to REPORT CSSB 74(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes.
There being NO OBJECTION, it was so ordered. CSSB 74(FIN)
was REPORTED out of committee with individual
recommendations and with 1 new fiscal impact note from the
Department of Administration; 1 new fiscal impact note from
the Department of Commerce, Community and Economic
Development; 1 new fiscal impact note from the Department
of Law; and 13 new fiscal impact notes from the Department
of Health and Social Services.
Co-Chair MacKinnon thanked staff // She // She hoped
10:30:49 AM
Senator Bishop briefly //
10:31:29 AM
AT EASE
10:31:41 AM
RECONVENED
Co-Chair MacKinnon discussed the schedule.
Co-Chair MacKinnon handed the gavel to Co-Chair Kelly.
10:32:49 AM
RECESSED
3:49:42 PM
RECONVENED
SENATE BILL NO. 139
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, making
reappropriations, making supplemental appropriations,
and making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date."
SENATE BILL NO. 140
"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."
3:50:12 PM
^PUBLIC TESTIMONY: JUNEAU
3:50:51 PM
FOREST WAGNER, ASSISTANT PROFESSOR OUTDOOR STUDIES,
UNIVERSITY OF ALASKA SOUTHEAST (UAS), JUNEAU, spoke in
support of funding University programs. He shared that he
was born and raised in Fairbanks, and was an alumni of
University of Alaska. He shared that he had taught at UAS
for ten years. He stressed that the University system was
important to him.
3:53:14 PM
JAYNE ANDREEN, PRESIDENT, ALASKA PUBLIC HEALTH ASSOCIATION
(ALPHA), JUNEAU, spoke in support of programs that
encouraged healthy communities, specifically public health
nursing and other public health centers. She stressed that
the citizens of the state need to have access to public
health. She stressed that the elimination of funding for
Public Health nurses would affect the public health
centers.
3:55:51 PM
MARK MILLER, SUPERINTENDENT, JUNEAU SCHOOL DISTRICT,
JUNEAU, testified in support of funding for cultural
education paraprofessionals. He offered a coin toss analogy
as related to Alaska Native male students. He stressed that
the graduation rate in Alaska was increasing, but needed to
continue to increase with the help of education
paraprofessionals.
3:57:49 PM
AT EASE
3:58:41 PM
RECONVENED
3:58:44 PM
JOHN CLOUGH, PRESIDENT, ALASKA PUBLIC BROADCASTING, JUNEAU,
spoke in support of funding for public broadcasting. He
shared that his organization provided cost saving support
to public broadcasting across the state. He shared that
Alaska was diverse, and throughout the state's history
there had always been an intention to bring the communities
together. He shared that public radio depended on state,
federal, and public funding. He shared that much of the
federal funding for public radio was dependent on the
amount of state funding available to the radio. He felt
that the funding for public broadcasting should be, at
least, reinstated to the governor's proposed budget. He
also spoke in support of developing new sources of revenue
for the state.
4:01:32 PM
MICHELLE WEAVER, SELF, JUNEAU, spoke in support of the
Parents as Teachers program. and early childhood education
programs. She shared that the Parents as Teachers program
had provided tools for her family. She stressed the
importance of early childhood programs. She shared that
each year the child and parent were given new appropriate
tools to fully understand the fundamental developmental
phases.
4:04:09 PM
IAN NIECKO, CASE MANAGER, JUNEAU ALLIANCE FOR MENTAL
HEALTH, JUNEAU, spoke in support of behavioral health
programs. He felt that mental health problems did not
discriminate: they affect all classes, races, ages,
genders, and religions. He shared that the World Health
Organization identified mental illness as the most
disabling health condition in the world, above heart
disease and cancer. He stressed that behavioral health
programs saved time and money. He remarked that the
programs were associated with higher productivity in the
workplace and reduced absenteeism.
4:06:32 PM
GUS MARX, GRANT WRITER, JUNEAU YOUTH SERVICES, JUNEAU,
spoke in support of behavioral health programs. He stressed
that behavioral grants would continue to provide treatment
for teenagers and children facing severe emotional issues.
4:07:40 PM
MARY HAKALA, SELF, JUNEAU, testified in support of public
education. She urged the committee to adopt the governor's
funding level for K-12 education. She stressed that early
childhood education would result in a successful future.
She also urged support of funding for distance learning.
She testified in support of funding for the University. She
spoke in support of an education head tax and a statewide
income tax.
4:10:10 PM
RACHEL GEARHART, NATIONAL ASSOCIATION OF SOCIAL WORKERS,
ALASKA CHAPTER, JUNEAU, testified in support of programs
for mental health programs. She spoke in support of
behavioral health programs. She stressed that Medicaid did
not cover all individuals, and shared that her organization
was required to provide service to everyone.
4:12:07 PM
CALLIE CONERTON, VICE CHAIR, COALITION OF STUDENT LEADERS,
UAS, testified in support of funding for the University.
She stressed that the university provided community support
and events. She also declared the UA support strong
economies for the communities across the state. She shared
that she was currently seeking a degree in elementary
education, and hoped that the funding would continue, so
she could remain in Alaska after graduation.
4:14:03 PM
GEORGE REIFENSTEIN, SELF, JUNEAU, urged the committee to
restore funding for public broadcasting. He shared that he
had worked in various capacities including the fire
department and boy scouts. He remarked that many larger
radio stations provided support for smaller stations, and
reached over 95 percent of Alaska's population. He felt the
savings and new revenue sources should be utilized to pay
for the budget.
4:16:07 PM
AMY LUJAN, EXECUTIVE DIRECTOR, ALASKA ASSOCIATION OF SCHOOL
BOARD OFFICIALS, JUNEAU, testified in support of broadband.
She also spoke in support of funding for education
programs. She stressed that many of the state funding for
education programs provided leverage for federal funding.
She advocated for a state financial plan; specifically
spending cuts, new sources of revenue, and use of savings.
4:18:09 PM
SASHA SOBOLEFF, GRAND PRESIDENT, ALASKA NATIVE BROTHERHOOD,
JUNEAU, testified in support of funding for K-12 education
programs, and other education programs. He felt that the
cuts to education marginilized the children. He stressed
that learning should provide challenges through a cultural
lens. He felt that the dropout rate for native Alaskans
should be addressed, like the Alaska's Learning Network. He
stressed that the Alaska's Learning Network provided a
skillset.
4:21:27 PM
FRANK COENRAAD, DIRECTOR, ALASKA'S LEARNING NETWORK,
JUNEAU, spoke in support of funding the Alaska's Learning
Network. He stated that there had been significant
increases in enrollment. He echoed the remarks of Mr.
Soboleff. He stressed that the Alaska's Learning Network
provided support that resulted in an increased graduation
rate.
4:23:33 PM
BOB BARTHOLOMEW, FINANCE DIRECTOR, CITY AND BOROUGH OF
JUNEAU, JUNEAU, shared that the City and Borough of Juneau
had developed significant budget cuts, and shared that he
understood the current fiscal situation. He encouraged the
committee to share the budget cuts in advance. He testified
against a potential increase to the communities'
contribution to the unfunded liability. He stressed that
the unfunded liability was based on the annual
contribution. He stressed that the impacts of the FY 14
contribution had not yet been evaluated, so increasing the
contribution would be premature.
4:26:02 PM
AT EASE
4:26:34 PM
RECONVENED
4:26:56 PM
GORDON KRUSE, DIRECTOR, FISHERIES DIVISION, UNIVERSITY OF
ALASKA FAIRBANKS (UAF), JUNEAU, testified in support of
funding for the University. He shared that the Fisheries
program was ranked one of the highest in the country. He
stressed that UAF trained 65 percent of the fishery related
professions in the state. He stressed that the state was
facing a sharp decline in the state. He shared that UAF
provided outstanding service to the outside of Alaska. He
personally supported a modest income tax, revision to the
oil tax credit structure, and use of the permanent fund.
4:29:54 PM
KATHI COLLUM, BOARD CHAIR, JUNEAU YOUTH SERVICES, JUNEAU,
spoke in support of behavioral health programs,
specifically Juneau Youth Services. She shared that the
grants served many communities across the state. She
stressed that the behavioral health grant funding had been
reduced for the third year in a row. She understood that
many budget cuts needed to occur, but encouraged the
committee to make thoughtful reductions. She spoke in
support of the governor's proposed budget for spoke in
support of behavioral health programs.
4:31:48 PM
ALEX MCGUAN, SELF, JUNEAU, testified in support of early
childhood education programs. She shared a personal story
about her experience educating a developmentally difficult
student, who she was able to education and intervene at an
early age.
4:34:02 PM
MELINDA MESSMER, HOME VISITOR, PARENTS AS TEACHERS, JUNEAU,
spoke in support of reinstating funds early childhood
education programs.
4:34:42 PM
JADA KAHL, EARLY EDUCATION, LEND, JUNEAU SCHOOL DISTRICT,
JUNEAU, spoke in support of funding for early childhood
development programs. She stressed the importance of the
current programs within the communities.
4:36:27 PM
TALEA KELLAR, HOME VISITOR, PARENTS AS TEACHERS, JUNEAU,
spoke in support of funding for early childhood development
programs. She stressed that the proposed cuts were directed
at Alaska's most vulnerable citizens. She stressed that the
programs helped to eliminate the negative issues with the
students. She hoped that the state would continue to invest
in Alaska's future.
Co-Chair Kelly shared that the meeting was broadcast in the
Tom Stewart building.
4:38:59 PM
KELSEY VENECHUK, SELF, JUNEAU, spoke in support of early
childhood education programs. She urged support of Parents
as Teachers. She felt that the program provided essential
support as a parent. She shared that her son had been given
valuable information and education as a result of the
Parents as Teachers program.
4:41:01 PM
AMBER FROMMHERE, SELF, JUNEAU, spoke in support of funding
for early childhood education, specifically Tlingit and
Haida Head Start. She shared that the Tlingit and Haida
Head Start served up to 262 children and their families
throughout Southeast Alaska. She shared that many of the
children also received services through the community
schools by way of infant learning programs and special
education. She furthered that early childhood education
also encouraged family involvement.
4:42:26 PM
TINA PEYERK, SELF, JUNEAU, spoke in support of early
childhood literacy and education programs, specifically the
Parents as Teachers program. She shared that she and her
son benefited from a home visitor, who observed and
discussed his development. She remarked that, because of
the program, it was discovered that her son had some
hearing and vision issues that were able to be treated
early.
4:44:14 PM
CYNTHIA KATZEEK, SELF, JUNEAU, testified in support of
funding for Parents as Teachers. She shared that she was
assisting in raising her own children and nieces and
nephews. She shared some critical information about how to
interact with her infant. She also spoke in support of the
Imagination Library. She shared that her home visitor
helped her move into her new home, and provided referrals.
4:47:14 PM
BRENDA TAYLOR, SELF, JUNEAU, spoke in support of education
funding. She shared that her son had visited the
legislature at a very young age. She shared that her son
was currently in Greenland representing the Alaska Winter
Games. She stressed that she was supportive of other
programs, but remarked that education was visible in the
schools. She announced that the library in her son's school
was not open during lunch time. She encouraged the
committee to create an income tax and utilize the permanent
fund.
4:49:58 PM
ANDREA DEWEES, ASSISTANT PROFESSOR OF SPANISH, UA, JUNEAU,
spoke in support of funding submitted by the UA Board of
Regents. She stressed that the small campus on UAS saw
significant cuts. She shared that many students at UAS were
the first in their families to attend college. She remarked
that education was essential to the state's intellectual
diversity.
4:51:33 PM
BETH WELDON, SELF, JUNEAU, testified in support of funding
for education. She felt that the career and technical
programs were essential to her business, so she could hire
skilled at trained workers. She specifically spoke in
support of the $50 increase to the Base Student Allocation
(BSA).
4:53:02 PM
KIRK DUNCAN, CHAIR, COAST ALASKA, JUNEAU, urged the
committee to restore funding for public broadcasting. He
shared that public broadcasting provided essential
services. He urged the committee to reinstate the
governor's proposed budget for public broadcasting. He also
spoke in support of a state income tax.
4:54:55 PM
RICK IANNOLINO, SELF, JUNEAU, spoke in support of
behavioral health programs. He shared that he had served
vulnerable adults and children for many years. He remarked
that Medicaid did not cover all of the residents of Alaska,
but stressed that his program could not turn people away.
He shared that decreasing funding for mental health
programs would not decrease the number of people with
mental health problems. He remarked that reducing the
grants would be costly to the entire mental health system.
4:56:50 PM
NICK CROWE, JUNEAU YOUTH SERVICES, JUNEAU, spoke in support
of behavioral health programs. He specifically spoke to
support of funding for mental health and substance abuse
programs. He shared that he was currently a member of the
transitional housing programs, to ensure that individuals
did not end up on the street. He stressed that there should
be a consideration of the individuals who were at risk of
various negative influences.
4:58:51 PM
RICK SVOBODNY, SELF, JUNEAU, advocated support of funding
for a portion of the public integrity unit. He stressed the
importance of public integrity for law enforcement. He
shared that there needs to be funding to prosecute for
"white collar crimes." He recollected a case that he
prosecuted for price fixing.
5:02:05 PM
KATHIE WASSERMAN, ALASKA MUNICIPAL LEAGUE, JUNEAU,
testified in support of the governor's proposed $35 million
deposit in the revenue sharing fund. She remarked that
there had already been some cost shifting in school bond
debt, jails, policing, capital budget and Public Employees'
Retirement System (PERS) costs. She was concerned about
smaller municipalities and their ability to provide needed
services.
5:04:00 PM
CLAY WALKER, DENALI BOROUGH MAYOR, VICE-PRESIDENT, ALASKA
MUNICIPAL LEAGUE (AML), JUNEAU, related that the AML body
passed three resolutions. He shared that the top priorities
for AML were the sustainable budget plan, supportive
community revenue sharing, and maintaining the PERS rate.
He spoke to the community revenue sharing program, which he
described as vital to the functional existence of
municipalities. He thought it would be devastating if the
funds were to go to zero in two years as proposed.
5:06:40 PM
MIKE MANN, SELF, JUNEAU, testified in support of funding
the Alaska Marine Highway. He also spoke in support of K-12
and University funding. He shared that his children had
grown up in the Alaska education system. He shared his
extensive experience as a fisherman in the state.
5:11:10 PM
ANNE FULLER, SELF, JUNEAU, testified in support of Pre-K
funding, Mt. Edgecumbe, and research and study at the
University. She spoke in support of the $50 increase to the
BSA. She shared that she remembered paying a state school
tax.
5:12:33 PM
AARON BRAKEL, SELF, JUNEAU, spoke in support of behavioral
health programs. He also spoke in support of all education
programs. He shared that he had attended school across the
street from the Capitol. He acknowledged that his son was
in attendance in the audience, and that his son was the
first child born in the millennium in Alaska. He shared
that he son was a freshman in high school, and had enrolled
in some courses at the University. He urged support of the
University Board of Regents budget recommendations. He aslo
spoke in support of a state income tax and a cap to the
permanent fund dividend.
5:15:52 PM
AMY JO MEINERS, 2016 ALASKA TEACHER OF THE YEAR, JUNEAU,
testified in support of funding for education. She
encouraged the committee to stabilize multiple funding
sources. She felt that the initial oil money revenue was
able to supplant the need for taxes, so quality education
and other services could maintain funding. She expressed
willingness to pay to support a quality public education.
5:18:12 PM
DAVE NEWTON, SELF, JUNEAU, voiced support of basic funding
for education. He specifically spoke in support of Parents
as Teachers, Imagination Library, and other early childhood
education program. He remarked that he had seen changes in
academic levels and the children who had struggled because
of the lack of early childhood education. He shared that he
had worked many years in the school system, and noted that
he had personally seen the negative impact related to the
lack of proper early education.
5:20:52 PM
LISA EAGAN LAGERQUIST, SELF, DOUGLAS, voiced support of K-
12 education funding. She stressed that her children's
school had a positive impact. She shared that she was a
volunteer in her son's class, and had recently participated
in class related to learning about money. She was able to
realize the difficulties that many teachers face. She
shared that her son had seen positive strides in his
education, because of the reading specialists in his
schools.
5:23:31 PM
JOSH KEATON, SELF, JUNEAU, testified in support of fully
funding education. He urged support of funding for Pre-K
funding. He shared that his son's preschool teacher had
testified in support of education funding, and remarked
that his son had seen the benefits of public education
Alaska.
5:25:29 PM
FRANK RUE, SELF, JUNEAU, testified in support of the
budget that utilized permanent fund earnings; budget
savings; a state income tax; and an increase in tax to
various activities like gas and tobacco. He felt that the
budget options for schools and resource management would be
severe. He restated that there should be a comprehensive
approach to the budget issues.
5:27:41 PM
SALLY RUE, SELF, JUNEAU, spoke in support of education
funding. She shared that she had volunteered as an active
parent for many years in education. She shared that the
budget for education paid dividends at a later time in the
state. She supported the use of the permanent fund for
essential state services. She remarked that the permanent
fund was intended for future state services. She understood
that the state needed a state income tax and other types of
taxes.
5:31:26 PM
DENISE DONIELLO, ALASKA COMMISSION ON AGING, JUNEAU, urged
support of funding for senior services. She urged funding
for the Alaska Senior Benefits program, which provided a
critical safety net for people aged 65 years and older who
lived on a fixed income. She remarked that those
individuals depended on the program for access food,
housing, and heat. She shared that the reduction would
impact an estimated 5,438 seniors. She also spoke in
against the reduction in funding for senior community based
grants. The grant funded served the largest number of
seniors at the lowest cost: home-delivered meals,
congregate meals, transportation, adult day services, and
respite for family care givers. She stressed that the
services could prevent the need for higher cost care. She
also spoke in support of funding for the adult Medicaid
dental program, which assisted many low income seniors who
were living dental pain and decaying teeth. She stressed
that Medicaid did not pay for the cost of dentures and most
forms of dental care. Those without dental coverage, could
turn to the hospital emergency department at a
significantly higher cost. She shared that older people
with poor oral health were at a higher risk of chronic
health conditions and cardio vascular disease. She shared
that the program served 4,026 seniors in 2015.
Co-Chair MacKinnon wondered if there were 548 seniors in
the senior benefit program. Ms. Doniello replied that the
number was 5,438.
Co-Chair MacKinnon wondered if the numbers for the program
were only for the higher level, or was the number related
to the total program. Ms. Doniello responded that the
reduction affected the category of people with the highest
income who received the lowest amount of assistance.
5:33:51 PM
MARCELO QUINTO, SELF, JUNEAU, spoke in support of the
governor's proposed budget for the Alaska Marine Highway.
He felt that the committee's proposal to cut $8 million and
scrapping a vessel was too extreme. He felt that the
reduction was at too high a cost to families, and cost jobs
in the private sector. He also testified in support of
mental health programs. He urged the committee to add
$100,000 in the Suicide Prevention Council. He also
testified in support of funding for public broadcasting. He
spoked in support of continued investment in Alaska's
communities. He shared that he was a 75-year resident of
Alaska. He stressed that the native people in the rural
areas of the state felt the budget cuts.
5:37:12 PM
SHAYNA ROHWER, SELF, JUNEAU, spoke in support of funding
for early childhood education. testified in support of
Parents as Teachers. She shared that she had worked as a
doula with many high risk low income families. She shared
that she almost always referred her clients to the Parents
as Teachers program. She shared that the program was a
source of information and also provided social support. She
also urged support of a state income tax and use of the
permanent fund.
5:39:26 PM
TOM BRICE, SELF, JUNEAU, testified in support of funding
for public workers to keep transportation and facilities as
safe as possible. He also spoke in support of funding for
broad fiscal plans.
5:40:38 PM
EMILY THOMPSON, PARENTS AS TEACHERS, SELF, spoke in support
of funding for Parents as Teachers. She shared that she
wanted to stay in Alaska, but was worried about the drastic
budget cuts.
5:41:51 PM
JUNE ROGERS, SELF, JUNEAU, spoke in support of any taxes
that may be necessary to fund the budget. She also spoke in
support of early childhood education. She remarked that
there were some issues in Fairbanks that may not have
occurred, if money would have been spent on preventative
measures. She shared that she and her family were longtime
residents of Alaska. She felt that Alaskans should share
the privilege of participating in new ideas. She shared
that she had worked in the community to produce a positive
outcome.
5:44:13 PM
LILLIAN WORL, SELF, JUNEAU, spoked in support of the $50
adjustment to the BSA. She read from a prepared testimony
(copy on file). She shared that he children had felt the
cuts to education in the most recent five years' operating
budgets. The Juneau School District had a decrease in the
operating budget by nearly 17 percent, and eliminated
nearly 100 jobs or positions. The remaining staff had
worked hard to continue to provide the best teaching,
learning, and support possible to all students. She
stressed that there were limited available classes to the
students as a result of the budget cuts.
5:47:05 PM
MARA EARLY, SELF, JUNEAU, testified in support for
education, specifically the $50 increase to the BSA. She
shared that over 100 staff positions had been cut from the
Juneau School District over the last five years. She
stressed that the remaining workload had been put on the
employees in order to keep student achievement as a
priority.
5:50:03 PM
ANDI STORY, MEMBER, JUNEAU SCHOOL BOARD, JUNEAU, spoke in
support of education funding. She shared that the education
funding would be reflected in the quality of the workforce.
She spoke in support of the scheduled $50 adjustment to the
BSA. She testified in support of a comprehensive budget
plan.
5:52:27 PM
KELLY SORENSEN, SELF, JUNEAU, spoke in support of funding
for Parents as Teachers. She shared a personal story about
her toddler son, and remarked that she was able to call her
mentor in the Parents as Teachers program. She stressed
that her mentor was often available to help. She shared
that her mentor noticed that her son's vocabulary was not
developing normally. As a result of that observation, her
son was diagnosed with an ear infection.
5:54:43 PM
KATEY BLAGDEN, SELF, JUNEAU, spoke in support of early
childhood education programs like Parents as Teachers,
Imagination Library, and Online with Libraries. She
stressed that investing in early childhood education was
important for the future of Alaska.
5:55:33 PM
NOAH WILLIAMS, SELF, JUNEAU, spoke in support of funding
for the University. He stressed that the proposed budget
strategy was not sustainable to the state. He stressed that
denying Alaskans education would result in detrimental
effects in the future. He understood the need to conserve
resources, but felt that the drastic cuts would only
degrade the economic situation further.
SB 139 was HEARD and HELD in committee for further
consideration.
SB 140 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
5:57:39 PM
The meeting was adjourned at 5:57 p.m.