Legislature(2021 - 2022)SENATE FINANCE 532
03/18/2021 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB49 || SB50 || SB51 | |
| Public Testimony: Southeast, Prince William Sound, and Kodiak | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 49 | TELECONFERENCED | |
| += | SB 51 | TELECONFERENCED | |
| += | SB 50 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 18, 2021
9:02 a.m.
9:02:29 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:02 a.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Natasha von Imhof
Senator Bill Wielechowski (via teleconference)
Senator David Wilson (via teleconference)
MEMBERS ABSENT
None
PRESENT VIA TELECONFERENCE
Rebecca Himschoot, Self, Sitka; Mike Coons, President,
Association of Mature American Citizens - Alaska Chapter,
Palmer; Pat Branson, Mayor of Kodiak, Kodiak; Tom Brice,
University of Alaska Fairbanks Alumni Association Board of
Directors, Juneau; Dianne MacRae, Self, Kasilof; Josie
Bahnke, City of Kodiak, Kodiak; Darlene Turner, Kodiak Teen
Court, Kodiak; Richmond Tolles, Self, Haines; Vikki Jo
Kennedy, Self, Juneau; Mark Detter, City Manager, Valdez;
Nikki Love, Community Engagement Coordinator, Association
for the Education of Young Children SE AK, Juneau; Shannon
Adamson, Masters, Mates, and Pilots Union, Juneau;
Elizabeth Leban, Juneau Youth Court, Juneau; Andrew
Cremata, Mayor of Skagway, Skagway; Nancy DeCherney, Juneau
Arts and Humanities Council, Juneau; Amy Lujan, Alaska
Association of School Business Officials, Juneau; Nancy
Bird, Self, Cordova; Paul Rioux, Sitka School Board, Sitka;
Mike Brown, Matsu Borough, Palmer; John Erickson, City
Manager, Yakutat; Larry Lewis, Self, Kasilof; John Sonin,
Self, Juneau-Douglas; Jim Tebow, Self, Kodiak; Michele
Elfers, Alaska Professional Design Council, Juneau; Beth
Weldon, Mayor of Juneau, Juneau; Katie Bender, President,
UAA Alumni Association, Anchorage; Don Sorenson, Self,
Wasilla; Mary Loewen, Member of UAF Alumni Association,
Kodiak; Erin Reinders, City Manager, Unalaska; Joy Lyon,
Executive Director, Association for the Education of Young
Children, Juneau.
SUMMARY
SB 49 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 49 was HEARD and HELD in committee for further
consideration.
SB 50 APPROP: CAP; REAPPROP; SUPP; AMEND
SB 50 was HEARD and HELD in committee for further
consideration.
SB 51 APPROP: MENTAL HEALTH BUDGET
SB 51 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 49
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making reappropriations; making
supplemental appropriations; 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. 50
"An Act making appropriations, including capital
appropriations, reappropriations, and other
appropriations; making supplemental appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
SENATE BILL NO. 51
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making
supplemental appropriations; and providing for an
effective date."
9:03:56 AM
^PUBLIC TESTIMONY: SOUTHEAST, PRINCE WILLIAM SOUND, AND
KODIAK
9:03:56 AM
REBECCA HIMSCHOOT, SELF, SITKA (via teleconference),
testified in support of funding for Pre-K education. She
had been a teacher and a member of the Sitka Assembly. She
asserted that investment in Pre-K education had lifetime
benefits to children and society and saved public funds in
the long term. She thought COVID-19 had created innovation
in schools. She noted the Sitka had been able to keep
schools open with small class sizes. She discouraged
cutting education funding. She noted that Sitka did not
have equitable federal funds. She relayed that Sitka did
not have Title 1 needs that other districts had. She
suggested that the legislature allowed for districts to use
the 2019 student count because of enrollment losses over
the previous year during the pandemic. She asserted that
the October 2020 student count would not accurately reflect
the number of students that would be there in the fall of
2021. She mentioned the importance of school bond debt.
Co-Chair Stedman noted that the legislature had not yet
discussed how it would deal with the student count issue
due to COVID-19.
9:08:08 AM
MIKE COONS, PRESIDENT, ASSOCIATION OF MATURE AMERICAN
CITIZENS - ALASKA CHAPTER, PALMER (via teleconference),
spoke in support of reduced spending. He thought the state
had a revenue problem. He was concerned about socialism. He
suggested that socialists ran the presidency and the United
States Congress. He had concerns about education outcomes.
He did not support additional funding for Pre-K education.
He mentioned an audit as proposed by Senator Shelley
Hughes. He supported SJR 1 and a full Permanent Fund
Dividend (PFD).
9:09:48 AM
PAT BRANSON, MAYOR OF KODIAK, KODIAK (via teleconference),
testified in support of funding for the Kodiak Fire
Station. The building was constructed in the 1940s and was
in the tsunami inundation zone. She discussed the origin of
the buildings and the lack of structural integrity. She
mentioned earthquakes in previous years. The building was
not Americans With Disabilities Act, Occupational Safety
and Health Administration, or Federal Emergency Management
Agency compliant. The building had insufficient offices and
resources for emergency response. She asserted that
renovation was not an option. The city expected to purchase
a site by the end of June 2021 and had invested $1.3
million in the project. The city was requesting $18.6
million in funding from the state. She thought the project
might be suitable for general obligation bonds if the state
pursued bonds as a capital budget financing mechanism.
Co-Chair Stedman stated that the committee was aware of the
project.
9:12:09 AM
TOM BRICE, UNIVERSITY OF ALASKA FAIRBANKS ALUMNI
ASSOCIATION BOARD OF DIRECTORS, JUNEAU (via
teleconference), testified in support of funding for the
University. He noted that he understood the difficult
issues that needed to be addressed in the state. He
asserted that the University was a part of the solution. He
wanted the University budget to be stabilized. He mentioned
SJR 8 [Urging the Alaska delegation in Congress, the United
States Department of the Interior, and the Governor to
facilitate a land grant endowment to the University of
Alaska as well as other measures]. He mentioned the
Technical Vocational Education Program (TVEP). He thought
addressing deferred maintenance and debt relief helped with
operating costs. He thanked the committee for its hard
work.
9:13:22 AM
DIANNE MACRAE, SELF, KASILOF (via teleconference), spoke in
support of a government audit. She shared that her husband
experienced disabilities. She thought funding had been set
aside for her husband's care and discussed funding
challenges. She mentioned an audit and Senator Shelley
Hughes. She discussed use of land grants and lack of
federal patents. She thought many agencies had money in
different accounts that was not being fully used.
9:16:13 AM
JOSIE BAHNKE, DEPUTY CITY MANAGER, CITY OF KODIAK, KODIAK
(via teleconference), supported funding for regional and
community jails, pre-trial services, funding to prosecute
state misdemeanors and the Alaska Marine Highway System
(AMHS). She referenced the city's contract with the
Department of Corrections (DOC). She asked for full funding
of the DOC budget. The city opposed the governor's proposal
to charge home rule municipalities for the prosecution of
state misdemeanor crimes by the Department of Law. The city
supported full funding for AMHS. She discussed how Kodiak
utilized the ferry system to support supply of construction
projects and transfer of U.S. Coast Guard personnel.
9:18:34 AM
DARLENE TURNER, EXECUTIVE DIRECTOR, KODIAK TEEN COURT,
KODIAK (via teleconference), spoke in support of funding
for the Kodiak Youth Court and the Division of Juvenile
Justice (DJJ). She asserted that the youth court saved the
DJJ a great deal of money. She shared a story of a student
experiencing challenges and utilizing the Kodiak Youth
Court process. She asserted that teen and youth courts
saved the division money and changed the lives of young
people.
9:22:53 AM
RICHMOND TOLLES, SELF, HAINES (via teleconference),
testified against continued cuts to state services. He
supported a state income tax. He suggested a seasonal tax.
He opposed budget cuts to the AMHS and the University. He
discussed challenges with accessing medical care without
reliable ferry service. He did not support using the PFD as
a political weapon.
9:24:00 AM
VIKKI JO KENNEDY, SELF, JUNEAU (via teleconference), spoke
in support of funding essential services. She thought some
reappropriation of funds was needed. She mentioned $40
million appropriated for a 13-mile road in Kake that was
not wanted by the residents. She thought there should be
some auditing of funds. She thought reappropriations could
be done. She supported an income tax. She had been
contributing funds to the state. She emphasized finding
ways to make the budget work. She wanted to protect the
Permanent Fund and protect essential services like the
AMHS. She discussed the poor condition of the road from
Homer to Kenai.
9:27:40 AM
MARK DETTER, CITY MANAGER, VALDEZ (via teleconference),
urged the committee to fund the Division of Motor Vehicles
(DMV) office in Valdez. He discussed the aging population
that needed in-person DMV services in Valdez. He urged the
committee to fund school debt reimbursement. He supported
funding the AMHS at 2020 funding levels. He expressed that
the City of Valdez opposed any plan to force municipalities
to pay for the prosecution of misdemeanors.
9:29:20 AM
NIKKI LOVE, COMMUNITY ENGAGEMENT COORDINATOR, ASSOCIATION
FOR THE EDUCATION OF YOUNG CHILDREN SE AK, JUNEAU (via
teleconference), supported funding for early childhood
education. She supported Head Start, Parents as Teachers,
Best Beginnings, REACH Infant Learning Programs, and
supports to help children's earliest years. She had seen
success over time and emphasized that the investments in
early childhood were working. She asked the committee to
remember families and young children when working on the
budget.
9:30:39 AM
SHANNON ADAMSON, MASTERS, MATES, AND PILOTS UNION, JUNEAU
(via teleconference), testified in support of funding for
the AMHS. She was also speaking on behalf the Marine
Engineers Beneficial Association. She was on the Marine
Transportation Advisory Board and the Southeast
Conference's AMHS Reform Steering Committee. She had sailed
as a licensed deck officer for the AMHS for seven years.
She discussed the importance of the AMHS. She noted that
the vast majority of AMHS employees were Alaska residents
that were invested in the ferry system. She suggested that
the legislature engage with crew members. She asserted that
management disregarded the opinions and feedback given by
captains, chief engineers, and other department heads,
specifically with regard to maintenance of vessels. She
proposed that significant savings could be achieved by
putting people with shipping expertise in charge of the
ferry system. She encouraged the committee to increase
funding for AMHS. As a private citizen, she believed the
PFD could be put to better use supporting public services
rather than as a dividend. She supported a tax structure to
pay for state service. She encouraged the committee to seek
revenue solutions to stabilize the budget.
9:33:12 AM
ELIZABETH LEBAN, JUNEAU YOUTH COURT, JUNEAU (via
teleconference), supported funding for state youth court
programs. She encouraged the committee to reinstate the
cuts proposed by the governor. She had been director of the
Juneau Youth Court for 15 years. She had witnessed the
success of the youth court programs. She discussed
successful outcomes from youth court programs, including
reduced recidivism. The programs had part time staff and
utilized a small amount of funds from the Division of
Juvenile Justice. She thought the proposed cuts would limit
the ability to support families and teens in Alaskan
communities.
9:34:49 AM
ANDREW CREMATA, MAYOR OF SKAGWAY, SKAGWAY (via
teleconference), spoke in support of local government
funding. He mentioned that Senator Lisa Murkowski had
mentioned that no community had been more affected by the
pandemic as much as Skagway and the Denali Borough. He
discussed the loss of municipal funding. He discussed use
of CARES Act funding and local government reserves to help
the economy in Skagway. He hoped for a fruitful cruise ship
season the upcoming summer. He advocated for funding for
the AMHS. He discussed the importance of the ferry system
in Skagway. He emphasized the need for local control of
finances. He discussed focusing on independent tourism and
the need for a robust ferry system.
9:37:21 AM
NANCY DECHERNEY, EXECUTIVE DIRECTOR, JUNEAU ARTS AND
HUMANITIES COUNCIL, JUNEAU (via teleconference), echoed the
comments of the previous speaker regarding support for the
AMHS. She commended the legislature for supporting non-
profits. She commented that the arts council had a budget
of over $900,000. The council provided educational
services, facilities services, and did other things in the
community. She encouraged support of non-profits, which
were nimble and could effectively address social issues in
the community. She thanked the members for their work.
9:38:46 AM
AMY LUJAN, LEGISLATIVE LIAISON, ALASKA ASSOCIATION OF
SCHOOL BUSINESS OFFICIALS, JUNEAU (via teleconference),
supported increased funding for education. She thought past
legislatures had been kicking the can down the road and had
not addressed the long-term financial needs of the state.
She cautioned there would be a fiscal cliff after the
pandemic funds ran out. She thought it was misleading to
say that the current level of Base Student Allocation (BSA)
was fully funded. She cited that the BSA had been flat
since 2017. She mentioned inflation and increased costs,
while the legislature asked for increased results with
reduced funding. She encouraged the members to visit the
association's website to see inflation adjusted BSA charts.
She noted that less than 10 percent of the capital budget
maintenance projects requested by school districts had been
funded in recent years. She asserted that infrastructure
was crumbling. She stressed the need for a long-term fiscal
plan. She supported a broad-based tax.
9:41:59 AM
NANCY BIRD, SELF, CORDOVA (via teleconference), spoke in
opposition to cuts to services, specifically to the
University and the AMHS. She supported additional revenues
through an income tax and changes to the oil and gas tax
structure. She thought the deficit could be addressed by
multiple new revenue sources. She supported the percent of
market value (POMV) draw from the Earnings Reserve Account.
She did not support the governor's proposed PFD. She urged
the committee to maintain the AMHS funding so that year-
round service could continue.
9:43:21 AM
PAUL RIOUX, SITKA SCHOOL BOARD, SITKA (via teleconference),
testified in support of fully funding public education. He
appreciated the funding added outside the formula in
previous years. He supported full funding for school bond
debt reimbursement. He supported funding for the AMHS,
which he thought was a prime economic driver that supported
industries in Southeast.
9:44:30 AM
MIKE BROWN, MANAGER, MATSU BOROUGH, PALMER (via
teleconference), spoke in support of full funding for
school bond debt reimbursement for past projects. He
advocated for support for school construction and major
maintenance grant funding in the capital budget. He
supported the Community Assistance Program. He noted that
the borough had a ballot measure approved by voters that
required a 50 percent match for road infrastructure.
9:45:44 AM
JOHN ERICKSON, CITY MANAGER, YAKUTAT (via teleconference),
supported funding for the Power Cost Equalization Program.
He noted that there was PFAS pollution at the airport in
Yakutat, which he had tried to address with the Village
Safewater Program. He supported funding for the AMHS. He
relayed the Physical Recovery Fund. The city had only
received $112,000 because of its small population.
9:47:13 AM
Co-Chair Stedman thought there were several communities
that faced the same issue as Yakutat due to the population.
He stated that the legislature would be looking at the
matter.
9:47:26 AM
LARRY LEWIS, SELF, KASILOF (via teleconference), testified
in support of frugal government. He was a retired state
employee and current business owner. He thought there was
an "either/or" option to raise revenue via taxes or cut
spending. He thought there should be more options. He
proposed that the state look at restructuring how money was
spent in the state. He discussed zero-based budgeting and
the year-end expenditure of funds. He wanted the state to
encourage frugality. He suggested that there should be a
method for state employees to communicate ideas to the
legislature regarding agency spending.
9:51:56 AM
JOHN SONIN, SELF, JUNEAU-DOUGLAS (via teleconference),
spoke in support of funding for essential services for
children such as education and the AMHS. He reminded that
even in the current constrained fiscal climate, it was
important to remember that essential services allowed
society to remain civilized. He stressed the importance of
children and the future. He requested full funding for
essential services.
9:53:45 AM
JIM TEBOW, SELF, KODIAK (via teleconference), testified in
support of budget reductions as proposed by the governor.
He had lived in the state since 1972. He supported
conservative candidates. He thought the state should live
within its means. He supported Senator Mike Shower,
Representative George Rauscher, and the governor for
working to reduce spending. He thought the state should not
over-spend. He took issue with the school system and
thought there should be less principals and more teachers.
He thought there were too many administrative positions in
education.
9:55:57 AM
MICHELE ELFERS, ALASKA PROFESSIONAL DESIGN COUNCIL, JUNEAU
(via teleconference), supported the Land and Water
Conservation Fund within the Department of Natural
Resources. There was approximately $2.1 million of
Unrestricted General Funds (with $3.5 million of federal
matching funds from the Great American Outdoors Act. Her
organization included ten other organizations. She was a
landscape architect. The federal funding had not been
accepted by the state and could provide jobs through design
and construction of outdoor spaces.
9:57:33 AM
AT EASE
10:15:58 AM
RECONVENED
BETH WELDON, MAYOR OF JUNEAU, JUNEAU (via teleconference),
testified in support of a broad-based tax as part of a
sustainable budget. The city supported a broad-based tax,
particularly an income tax. She noted that Juneau expected
to receive only about $12 million from the Recovery Act.
The city was hoping for independent travelers. The city
supported funding for the AMHS. She mentioned federal funds
for rural transit, which she felt could be used to support
the ferry system. She supported funding for school bond
debt reimbursement.
10:19:03 AM
KATIE BENDER, PRESIDENT, UAA ALUMNI ASSOCIATION BOARD OF
DIRECTORS, ANCHORAGE (via teleconference), spoke in support
of funding for the University of Alaska. She asserted that
a strong university would bring stability to the state. She
spoke to addressing deferred maintenance and debt relief.
She mentioned SJR 8 and the Technical Vocational Education
Program (TVEP).
10:20:06 AM
DON SORENSON, SELF, WASILLA (via teleconference), testified
against funding increases in education. He asked why there
was increased funding for education when there was
decreasing results. He supported decreasing education
funding to reflect decreasing results.
10:21:28 AM
MARY LOEWEN, MEMBER OF UAF ALUMNI ASSOCIATION, KODIAK (via
teleconference), supported funding for the University, the
AMHS, and supported a broad-based tax. She and many of her
family members were graduates of the UA system. She
asserted that a strong University made for a strong state.
She advocated for funding for AMHS, which was important to
Kodiak and other remote areas on the coast.
10:22:50 AM
AT EASE
10:37:32 AM
RECONVENED
ERIN REINDERS, CITY MANAGER, UNALASKA (via teleconference),
spoke in support of recapitalizing the Community Assistance
Fund to the full amount. The city supported retaining
shared taxes in place for distribution to communities. The
city supported PCE payments and all efforts towards
reliable internet broadband assistance. She cited that
Unalaska's internet connection speed impeded business
growth, medical services, postsecondary education and the
overall quality of life. The city supported funding for
AMHS at the previous year's level. She expressed that the
AMHS provided a cost-effective way for community members
and business to travel and ship materials. She discussed
the important uses of the AMHS, including transport of the
mobile mammogram. The city supported funding for the harbor
facility matching grants. She mentioned the boat harbor
inherited from the state. She asserted that public safety
and emergency preparedness were vital and supported
renegotiated agreements and funding. The city supported
reinstatement of the local emergency planning committee.
10:41:14 AM
JOY LYON, EXECUTIVE DIRECTOR, ASSOCIATION FOR THE EDUCATION
OF YOUNG CHILDREN, JUNEAU (via teleconference), supported
stable funding for early learning programs: Head Start,
infant Learning, Parents as Teachers, Best Beginnings, and
Imagination Library. She thanked the committee for its hard
work during challenging times. She asserted that the
programs she referenced were helping parents cope during
the difficult times being experienced. She encouraged the
committee to take a strong role in the large wave of
federal relief funding coming to the state. She thought it
was expected that Alaska would receive over $90 million to
stabilize childcare. She questioned whether the state was
ready to have the staffing in place to put the funds to the
best use. She hoped that the legislature would be devoted
to improving the wages for childcare providers. She thought
better coordination would help to utilize the funds more
effectively.
Co-Chair Stedman discussed the agenda for the afternoon
meeting.
SB 49 was HEARD and HELD in committee for further
consideration.
SB 50 was HEARD and HELD in committee for further
consideration.
SB 51 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
10:44:44 AM
The meeting was adjourned at 10:44 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 49.51.50 Public Testimony Packet 2.pdf |
SFIN 3/18/2021 9:00:00 AM |
SB 49 |
| SB 49.51.50 Public Testimony Packet 3.pdf |
SFIN 3/18/2021 9:00:00 AM |
SB 49 |