Legislature(2019 - 2020)SENATE FINANCE 532
03/19/2020 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Public Testimony: Ketchikan, Wrangell, Petersburg, Sitka, Kenai, Seward, Valdez, Homer, Cordova | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 205 | TELECONFERENCED | |
| += | SB 154 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 19, 2020
9:00 a.m.
9:00:41 AM
CALL TO ORDER
Co-Chair von Imhof called the Senate Finance Committee
meeting to order at 9:00 a.m.
MEMBERS PRESENT
Senator Natasha von Imhof, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Lyman Hoffman
Senator Donny Olson
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
PRESENT VIA TELECONFERENCE
John Sweeney, Chief Financial and Administrative Officer,
City and Borough of Sitka, Sitka; Marilyn Menish-Meucci,
Self, Petersburg; Brian Merritt, Self, Wrangell; David
Beebe, Self, Petersburg; Jeffrey Short, Juneau School
Board, Juneau; Joel Jackson, President, Organized Village
of Kake; Malena Marvin, Self, Petersburg; Robert Purcell,
KBBI Radio, Homer; Gary Paxton, Mayor of Sitka, Sitka;
Elizabeth Medicine Crow, Self, Anchorage; Adam Davis, Self,
Kake; Tommy Glanton, Chief Clinical Officer, Seaview
Community Services, Seward; Marla Howard, Self, Kake;
Rebecca Knight, Self, Petersburg; Dianna Carbonell, Self,
Homer; Christine Bitterman, City Clerk, City of Kake; Terry
Haines, Self, Kodiak; Douglas Pengilly, Self, Kodiak;
Deborah Potter, Self, Skagway; Scott Meszarous, City
Manager, Seward; Rachel Lord, Self, Homer; Herman Morgan,
Self, Aniak; Charity Pomeroy, Self, Skagway; Della Cheney,
Self, Juneau; Bridget Weiss, Superintendent, Juneau School
District, Juneau; Jeff Meucci, Self, Petersburg; Phillip
Moser, Self, Juneau; Rudy Bean, Self, Kake; Penny Vadla,
Board President, Kenai School District, Kenai; Jody Tow,
Finance Director, Petersburg Borough, Petersburg; Pat
Branson, Mayor of Kodiak, Kodiak; Mark Larsen, Self,
Skagway; Carrie Harris, Self, Anchor Point; Scott Arndt,
Kodiak Island Borough, Kodiak; Lloyd Davis, Mayor, Kake;
Sharon Hunter, Self, Petersburg; Kaitlyn Jareg, Self,
Skagway; Paul Kelly, Juneau Board of Education, Juneau; Joy
Baker, Self, Nome;
SUMMARY
SB 154 APPROP: CAPITAL; SUPP; OTHER APPROP.
SB 154 was HEARD and HELD in committee for
further consideration.
CSHB 205(FIN)(Corrected) am(brf sup maj fld)
APPROP: OPERATING BUDGET/LOANS/FUNDS
CSHB 205(FIN) was HEARD and HELD in committee for
further consideration.
Co-Chair von Imhof explained that the committee would be
hearing public testimony on the operating budget. She
discussed the parameters for offering testimony.
SENATE BILL NO. 154
"An Act making appropriations, including capital
appropriations, supplemental appropriations,
reappropriations, and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
CS FOR HOUSE BILL NO. 205(FIN)(Corrected) am(brf sup maj
fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; making
supplemental appropriations; and providing for an
effective date."
^PUBLIC TESTIMONY: KETCHIKAN, WRANGELL, PETERSBURG, SITKA,
KENAI, SEWARD, VALDEZ, HOMER, CORDOVA
9:01:42 AM
Co-Chair von Imhof OPENED public testimony.
JOHN SWEENEY, CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER,
CITY AND BOROUGH OF SITKA, SITKA (via teleconference),
spoke in support of school bond debt reimbursement. He
discussed the unprecedented nature of the health crisis of
the COVID-19 pandemic. He commented on the importance of
the tourism industry for the economy in Southeast Alaska.
He lamented that the loss of local tax revenue would result
in communities being unable to pay school bond debt
service. He asserted that Southeast Alaska and other parts
of the state would rely on the government for support to
meet the basic needs of Alaskans. He emphasized the need
for support through school bond debt reimbursement, the
Community Assistance Program, and the Alaska Marine Highway
System (AMHS).
9:04:43 AM
MARILYN MENISH-MEUCCI, SELF, PETERSBURG (via
teleconference), testified in support of fully funding the
AMHS and public radio. She discussed the adverse effects of
being without ferry service. She discussed the importance
of public radio for providing updates on COVID-19 virus.
She supported funding for the University and public
schools. She supported a state income tax and a small
permanent fund dividend (PFD).
9:05:43 AM
BRIAN MERRITT, SELF, WRANGELL (via teleconference),
supported not paying a PFD in the current year, but rather
using it for social programs such as food stamps. He
supported full funding for the AMHS. He thought that barge
and ferry systems would be necessary to keep the state in
operation. He discussed the need for ferry service for the
fisheries.
9:07:08 AM
DAVID BEEBE, SELF, PETERSBURG (via teleconference), urged
the committee to take a triage approach to the budget for
the highest and best use of the state's limited resources.
He mentioned the Katlian Bay Road in Kake road project,
which he did not think was necessary at this time. He
thought the social safety net had already been eviscerated.
He stressed the importance of the AMHS. He hoped there
would be a process through which the state could
reappropriate the Kake road funds for the highest and best
use.
Co-Chair von Imhof mentioned that Senator Bishop, Senator
Olson, Senator Wielechowski, and Senator Wilson had joined
the meeting.
9:10:18 AM
JEFFREY SHORT, JUNEAU SCHOOL BOARD, JUNEAU (via
teleconference), supported an increase to the Base Student
Allocation (BSA). He emphasized that the legislature had a
constitutional duty to support public education. He
discussed the adverse effects of past cuts to education and
expressed concern that funding for education was not
keeping up with inflation.
9:12:50 AM
JOEL JACKSON, PRESIDENT, ORGANIZED VILLAGE OF KAKE (via
teleconference), requested that the committee repeal the
unexpected balance of the 2012 Kake Road Project. He
referenced a poll in Kake in which 217 people in Kake
opposed the road, and 27 supported the road, with 24 people
undecided. He stated that the people of Kake wanted to
protect its traditional hunting and gathering area. He
referenced a letter from the city of Kake to the governor
in support of the road and maintained that the larger
community was strongly opposed to the road. He urged that
the funds be used for another purpose such as education or
the AMHS. He listed the myriad of ways the AMHS was vital
to rural communities.
9:15:46 AM
MALENA MARVIN, SELF, PETERSBURG (via teleconference), spoke
in support of the AMHS and re-directing Kake Road Project
funds. She operated a direct-market seafood company. She
echoed the testimony of the previous speaker. She urged the
committee to listen to the people about the road project.
She supported full funding for the AMHS. She thought the
Kake road project had been shelved because it was not the
best use of funds. She believed that the state should
govern from a place of consensus and not controversy.
9:18:37 AM
ROBERT PURCELL, KBBI RADIO, HOMER (via teleconference),
supported full funding for public radio. He spoke to his
experience in emergency response and had seen the important
role played by public radio. He discussed the importance of
public radio providing critical information in times of
emergency. He relayed that the radio station had a formal
agreement with the City of Homer to provide emergency
information to the community. He relayed the radio station
provided updates on community response to the COVID-19
virus, which he thought was important for addressing needs
at the community level. He summarized that public radio was
critical at the state and local levels.
9:21:22 AM
GARY PAXTON, MAYOR OF SITKA, SITKA (via teleconference),
testified in support of school bond debt reimbursement,
community assistance, and full funding for the AMHS. He
stressed that full funding for AMHS should be a priority.
Co-Chair Stedman requested that Mayor Paxton compose a
letter summarizing the potential economic impacts of a
downturn in fisheries and reduced cruise ship tourism. He
offered a brief background of Mr. Paxton.
Mr. Paxton stated the City of Sitka was drafting a letter
to provide to the legislature.
9:23:59 AM
ELIZABETH MEDICINE CROW, SELF, ANCHORAGE (via
teleconference), spoke in support of repealing the
remaining appropriation for the 2012 Kake Road Project. She
was from the community of Kake and worked in Anchorage. She
believed that the funds could be better utilized for
transportation needed and wanted by the community. She
thought the AMHS was incredibly important to Kake and other
coastal communities. She considered that the road project
was controversial and should be tabled for the time being.
She stressed that the committee should to listen to the
people of Kake and Petersburg.
9:26:04 AM
ADAM DAVIS, SELF, KAKE (via teleconference), supported the
Kake Road Project. He stated that the community of Kake
needed economic opportunity and believed that the road
would provide more economic options. He supported funding
the AMHS.
9:26:58 AM
TOMMY GLANTON, CHIEF CLINICAL OFFICER, SEAVIEW COMMUNITY
SERVICES, SEWARD (via teleconference), supported increased
capital funding for mental health and substance use
disorder treatment. He was a licensed clinical social
worker. He expressed significant concern regarding the
underserved population in his area during the COVID-19
outbreak. He thought with increased mental health stress
there would be need for additional services and physical
capacity.
9:28:29 AM
MARLA HOWARD, SELF, KAKE (via teleconference), testified in
support of reappropriating Katlian Bay Road Project funds.
She discussed the cost of maintaining the road. She asked
that the $40 million be put towards the AMHS. She thought
some residents wanted economic growth, but she did not
support the road at the cost of the community's way of
life.
9:30:28 AM
REBECCA KNIGHT, SELF, PETERSBURG (via teleconference),
supported repealing the remaining appropriation for the
Katlian Bay Road Project. She thought there were many more
important needs for which the funding could be used.
9:31:22 AM
DIANNA CARBONELL, SELF, HOMER (via teleconference), spoke
in support of funding for public radio. She appreciated the
timely and accurate information provided by public radio.
She thought it was important to keep citizens informed. She
supported additional revenue measures such as a broad-based
tax.
9:32:36 AM
CHRISTINE BITTERMAN, CITY CLERK, CITY OF KAKE (via
teleconference), supported the Katlian Bay Road Project.
She was not aware of a petition that was put forth by the
city.
9:33:19 AM
TERRY HAINES, SELF, KODIAK (via teleconference), spoke in
support of additional funding for the AMHS and public
radio. He supported funding the Community Assistance
Program. He supported funding for coastal communities
during the COVID-19 crisis. He supported school bond debt
reimbursement. He pointed out that school bond debt
reimbursement did not affect all communities in the same
way. He thought there should be a reasonable oil tax system
that would provide dependable revenue. He supported a
broad-based tax.
9:35:51 AM
DOUGLAS PENGILLY, SELF, KODIAK (via teleconference),
supported funding for public radio at the level proposed by
the House, or higher. He discussed the importance of public
radio in remote areas, specifically during a health crisis.
He discussed isolation during the global pandemic, and the
importance of public radio. He believed that now was not
the time to rely on the public for funding as many people
have lost their jobs due to COVID-19.
9:38:38 AM
DEBORAH POTTER, SELF, SKAGWAY (via teleconference),
testified in support of full funding for public radio and
the AMHS. She thought the COVID-19 pandemic had showcased
the public safety role that public radio played in Alaska
life. She noted there had been a special city meeting that
had been livestreamed in her community. She discussed the
importance of public radio in the community, for
disseminating up to date important information during
mandatory social isolation. She expressed support for AMHS.
9:40:26 AM
SCOTT MESZAROUS, CITY MANAGER, SEWARD (via teleconference),
testified in support of additional capital funding for
additional bed capacity for opioid and drug rehabilitation.
He thanked the committee for its work. He supported closing
airport operations save for freight. He noted that the
Alaska Sea Life Center was shut down and had been severely
impacted economically.
9:42:12 AM
RACHEL LORD, SELF, HOMER (via teleconference), testified in
support of community assistance and bong debt
reimbursement. She was on the Homer City Council. She
supported funding for community jails and the court system,
public broadcasting, K-12 education, the university,
healthcare, road maintenance, and AMHS. She discussed the
importance of continuity in education.
9:44:20 AM
HERMAN MORGAN, SELF, ANIAK (via teleconference), testified
in support of a PFD payback as proposed by the governor.
He spoke in support of an austere budget. He discussed the
importance of the PFD. He did not think the state could
afford Medicaid for all. He thought the legislature was
going the wrong way regarding the budget.
9:47:08 AM
CHARITY POMEROY, SELF, SKAGWAY (via teleconference), urged
the committee to fully fund public radio. She discussed the
importance of public radio in Skagway and described it as a
lifeline. She stressed that many did not have reliable
internet in their homes. She thought public radio was
additionally important during the isolation required by the
COVID-19 pandemic.
9:48:30 AM
DELLA CHENEY, SELF, JUNEAU (via teleconference), supported
funding for the AMHS. She opposed the road from Kake to
Petersburg. She pointed out that the journey would require
a ferry for part of the trip. She noted that there was a
new ferry terminal in Kake. She urged the legislature to
support the AMHS.
9:50:01 AM
BRIDGET WEISS, SUPERINTENDENT, JUNEAU SCHOOL DISTRICT,
JUNEAU (via teleconference), spoke in support of funding
for education. She thought there had been an absence of
voices in education over the past week because of the
COVID-19 pandemic. She emphasized the need for major
maintenance funding for districts. She stated that at times
it was possible for the Juneau School District to
supplement with funds, and she noted the deep impact of the
local economy due to the pandemic would make funds scarce.
She discussed increasing needs from utility costs and
salaries. She explained that flat funding was a reduction
in funding because of increasing costs. She anticipated
that schools would be closed for an extended time because
of the pandemic and encouraged funding to support districts
through this difficult time.
9:52:44 AM
JEFF MEUCCI, SELF, PETERSBURG (via teleconference), spoke
in support of public radio. He expressed concern about his
community's preparedness for the COVID-19 pandemic. He was
on the borough assembly. He said that the Raw Fish tax was
very important to Petersburg. The local radio station had
been providing updates from the hospital. He discussed the
Katlian Bay Road Project and suggested that the remaining
project funds be redirected for issues related to the
pandemic.
9:55:20 AM
PHILLIP MOSER, SELF, JUNEAU (via teleconference), testified
in support of funding for public radio and the AMHS. He did
not support continued funding for the Katlian Bay Road
Project. He discussed his past use of the ferry system. He
thought the Kake road was a waste of funds that could be
used elsewhere for existing infrastructure.
9:58:00 AM
RUDY BEAN, SELF, KAKE (via teleconference), supported
funding the Katlian Bay Road Project. He thought the road
was important for the survival of the community. He cited
economic growth and affordable electricity as benefits of
the road. He supported the Department of Transportation and
Public Facilities 50-50 grant program. He hoped the
allocation could be increased to $2 million.
10:00:07 AM
Co-Chair von Imhof handed the gavel to Senator Hoffman.
PENNY VADLA, BOARD PRESIDENT, KENAI SCHOOL DISTRICT, KENAI
(via teleconference), testified in support for increased
funding for public education. She worried that the
community would not be able to retain teachers due to lack
of adequate resources. She believed that funding education
was the most important issue in the state and strongly
supported continued and increased funding for education.
She expressed concern for the consequences that would
result without the promised $30 million in education
funding.
10:02:19 AM
JODY TOW, FINANCE DIRECTOR, PETERSBURG BOROUGH, PETERSBURG
(via teleconference), testified in support of full funding
for municipal debt reimbursement and community assistance.
She described the ways in which the school bonds had
improved the community and hoped that the state would honor
its commitment to communities by providing school debt
reimbursement.
10:04:17 AM
PAT BRANSON, MAYOR OF KODIAK, KODIAK (via teleconference),
hoped that the state would help to financially support
local governments. She noted that her community had the
largest community jail in the state and hoped that funding
could be increased by $3 million. She supported funding for
the AMHS.
10:05:35 AM
Co-Chair von Imhof took back the gavel.
10:05:56 AM
MARK LARSEN, SELF, SKAGWAY (via teleconference), supported
funding for public radio. He discussed the importance of
public radio for smaller Alaskan communities. He stressed
that public radio was critical for small communities. He
believed that public radio was crucial for the
dissemination of real and fact-based news.
10:08:04 AM
Senator Hoffman understood the importance of public radio.
He shared that the funding in the current budget contained
funding equal to FY 19 numbers. A combined total of
approximately $2.7 million.
10:09:03 AM
Co-Chair Stedman interjected that budget subcommittees were
hard at work on the issue of funding for public radio.
Co-Chair von Imhof added that the senate had increased the
house numbers in the current version of the operating
budget.
10:10:40 AM
CARRIE HARRIS, SELF, ANCHOR POINT (via teleconference),
wanted the current budget thrown out and for the process to
begin again. She lamented that the PFD had been stolen from
the Alaskan people. She named her budget priorities and
referred to the committee members as "thieves".
10:11:56 AM
10:12:29 AM
AT EASE
10:12:49 AM
RECONVENED
SCOTT ARNDT, KODIAK ISLAND BOROUGH, KODIAK (via
teleconference), supported full funding for school bond
debt reimbursement. He echoed the comments of previous
testifiers on the matter. He warned against cost shifting
to municipalities and boroughs. He felt that considering
the recession spurred by COVID-19, funding should be
restored to previous levels. He urged support for the AMHS.
10:14:53 AM
LLOYD DAVIS, MAYOR, KAKE (via teleconference), testified in
support of funding for the AMHS. He supported the Katlian
Bay Road Project. He thought increased infrastructure would
provide for economic growth and employment. He discussed
the various ways that the road would improve the community.
He lamented that it was expensive to travel from Kake and
the road would alleviate much of that expense. He felt that
the petition that had been generated in the community was
invalid.
10:18:57 AM
SHARON HUNTER, SELF, PETERSBURG (via teleconference), urged
the committee to include adequate funding for the AMHS and
public radio. She thought public radio was crucial during
the COVID-19 pandemic. She supported a reduced PFD. She
supported a broad-based income tax.
10:20:44 AM
KAITLYN JAREG, SELF, SKAGWAY (via teleconference),
supported additional funding for public radio and the AMHS.
10:21:14 AM
PAUL KELLY, JUNEAU BOARD OF EDUCATION, JUNEAU (via
teleconference), supported additional funding for
education. He supported additional funding for the AMHS. He
supported allowing the moratorium on school bond debt to
expire. He thanked the legislature for the additional $30
million in education funding, which resulted in $1 million
for the Juneau School District. He asserted that teachers,
staff and administration worked harder with less funding
each year. He supported increasing the BSA. He was a
student at the University of Alaska Southeast. He was
concerned that cuts to University were not sustainable. He
supported a sustainable source of state revenue.
10:23:44 AM
JOY BAKER, SELF, NOME (via teleconference), spoke in
support of the completion of the design of the Arctic Deep-
Draft Port. She continued that the city had assisted the
Army Corps of Engineers, which had finalized a plan to
submit to congress. She thought that the state was behind
the curve in designing a deep-water port in the Arctic to
support national and security fleets. She spoke to the
timeline of design and construction.
10:26:32 AM
Senator Olson referenced the deep-water port funding and
understood that the requested amount was $3.2 million. He
asked how far that requested amount would carry the
project.
Ms. Baker stated that the funds would complete the design
and likely forward the project to the bidding phase for
construction.
SB 154 was HEARD and HELD in committee for further
consideration.
CSHB 205(FIN)(Corrected) am(brf sup maj fld) was HEARD and
HELD in committee for further consideration.
ADJOURNMENT
10:28:05 AM
The meeting was adjourned at 10:28 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 205 - SB 154 Public Testimony Packet 5.pdf |
SFIN 3/19/2020 9:00:00 AM |
HB 205 SB 154 |