Legislature(2021 - 2022)SENATE FINANCE 532
03/18/2021 01:00 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Public Testimony: Fairbanks, Interior, Copper River Valley, and All Other Locations | |
| 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
1:01 p.m.
1:01:54 PM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 1:01 p.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
Lucy Nelson, Mayor of Kotzebue, Kotzebue; Jim Matherly,
City of Fairbanks, Fairbanks; Sue Sherif, Self, Fairbanks;
Mike Welch, Mayor of North Pole, North Pole; Patrick
Reinhart, Executive Director, Alaska Mobility Coalition,
Eagle River; Katie Botz, Self, Juneau; Mat Tekker, Mayor of
Kotzebue, Kotzebue; Laurie Wolf, Foraker Group, Anchorage;
June Rogers, City Council Member, Fairbanks; Krista
Maciolek, Matsu Youth Court, Matsu; Jesse Riehm, Tanana
Chiefs Conference, Fairbanks; Bryce Ward, Mayor of
Fairbanks, Fairbanks; Megan Weston, Anchorage Youth Court,
Valdez; Sara Irwin Goudreau, Valdez Youth Court, Valdez;
Carol Piscoya, Kawerak Inc, Nome; Miranda Nelson, Self,
Nikiski; Layton Lockett, City Manager, City of Adak, Adak;
Cindy Wright, University of Alaska Fairbanks Alumni
Association, Fairbanks; Clay Walker, Mayor of Denali
Borough, Healy; Carin Adickes, Self, Sitka; George Butt,
Klondike Electric Bicycles, Skagway; Christian Scantling,
Self, Sitka; Stacey Lucason, Self, Chugiak; Adam Chinalski,
Self, Sitka; Kris Chinalski, Self, Sitka; Annelise Burgess,
Self, Anchorage; Robert Radovan, Self, Anchorage; Kate
Loewen, Self, Kodiak; Mickey Barker, Self, Sitka; Carolyn
Evans, Self, Sitka; Amy Bethune, Self, Sitka; Ron Johnson,
Self, Fairbanks; Elijah Jackson, Mayor of Ouvinki, Ouvinki;
Laura Bonner, Self, Anchorage; Deb Potter, Self, Skagway.
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."
^PUBLIC TESTIMONY: FAIRBANKS, INTERIOR, COPPER RIVER
VALLEY, AND ALL OTHER LOCATIONS
1:03:06 PM
LUCY NELSON, MAYOR OF NORTHWEST ARCTIC BOROUGH, KOTZEBUE
(via teleconference), testified against proposed cuts to
the Community Assistance Program (CAP), the Power Cost
Equalization (PCE) Program), and the School Bond Debt
Reimbursement Program. She discussed the importance of the
CAP to water, sewer, and sanitation as well as fire and
safety for the borough. She noted that money saved through
the PCE program was used for basic expenses. She discussed
the impact of the proposed cuts. She relayed that the
consequences of the proposed cuts would be felt far into
the future.
1:06:29 PM
JIM MATHERLY, CITY OF FAIRBANKS, FAIRBANKS (via
teleconference), spoke in support of funding the state's
contributions to the Public Employees' Retirement System
(PERS). He discussed Fairbanks' 22 percent contribution
rate towards the unfunded liability. He supported funding
for the CAP. He urged the members to recapitalize the fund
to the full $90 million level. He opposed the prosecution
of misdemeanor crimes by municipalities as proposed by the
Department of Law. He believed the state had an obligation
to prosecute the crimes.
1:08:37 PM
SUE SHERIF, SELF, FAIRBANKS (via teleconference), testified
in support of the Alaska Library Network and restoration of
$635,000 to the Alaska State Library budget. The network
allowed libraries in the state to collaborate to achieve
efficiencies of scale. She discussed benefits of the
network such as a statewide catalog and access to online
resources. Libraries could pool resources negotiate
contracts and make purchases. She discussed the important
services the network provided during the year of mostly
online schooling. She thought support of the library
network was a fiscally responsible and sensible expenditure
for a conservative and sustainable budget.
1:11:36 PM
MIKE WELCH, MAYOR OF NORTH POLE, NORTH POLE (via
teleconference), spoke in support of funding for the
unfunded liability for PERS and the Teacher's Retirement
System (TRS). The City of North Pole spent 11 percent of
its overall budget towards PERS. He cited that his city was
currently paying $672,000 for its $3.1 million payroll,
which was 11 percent of its overall budget. He discussed
unfunded ratios per capita.
1:14:11 PM
PATRICK REINHART, EXECUTIVE DIRECTOR, ALASKA MOBILITY
COALITION, EAGLE RIVER (via teleconference), testified in
support of a $1 million capital budget item for the transit
match program that helped transit providers achieve federal
matching requirements. He had submitted written testimony.
He suggested that the program be revived as a needs-based
program. He discussed division of COVID-19 relief funds for
rural transit. He discussed CARES Act funding, of which
funds had been split between the AMHS and rural transit
providers. He understood there would be more funding coming
in the amount of $57 million. His group supported a funding
split of two-thirds for rural transit with one-third for
AMHS. He supported the AMHS.
1:17:30 PM
KATIE BOTZ, SELF, JUNEAU (via teleconference), spoke in
support of full funding for the mental health budget. She
discussed her personal diagnosis. She discussed the impacts
of COVID-19. She cited that many people in the state were
suffering from poor mental health. She asserted that people
did not understand mental illness and depression. She
emphasized the importance of understanding the reality of
mental illness.
1:21:39 PM
MAT TEKKER, MAYOR OF KOTZEBUE, KOTZEBUE (via
teleconference), testified in support of maintaining PCE
payments, funding for PERS and TRS, and funding for
broadband assistance. He supported increased funding for
regional jails. He opposed closures of Division of Motor
Vehicles (DMV) offices. He supported outreach for the Read
I.D. in rural areas. He supported full funding for the
Community Assistance Fund. He supported funding for harbor
facility matching grants. He was grateful for the capital
bond packing, including to leverage federal funds for the
road project to Cape Blossom. He was grateful for Mt.
Edgecombe High School being open for the year.
1:24:12 PM
LAURIE WOLF, PRESIDENT, FORAKER GROUP, ANCHORAGE (via
teleconference), spoke in support of maintaining
partnerships with non-profits. She asserted that non-
profits had been on the front lines in response to the
global pandemic. She thought non-profits had operated as a
safety net. She thought the pandemic had heightened the
multi-sector approach that worked well in the state. She
thought non-profits would be an integral part of the
state's long-term recovery. She discussed federal relief
funds. She encouraged lawmakers to make long-term plans
with the temporary funds.
1:26:54 PM
JUNE ROGERS, CITY COUNCIL MEMBER, FAIRBANKS (via
teleconference), spoke in support of funding for the
state's PERS contribution. The city supported maintaining
the 22 percent PERS contribution rate to pay off the
unfunded liability. She opposed the Department of Law's
proposed change that would charge the municipality for
prosecution of misdemeanor crimes. She spoke to the
importance of the CAP and urged recapitalization to the
full $90 million. She opined that the programs former name,
Community Revenue Sharing, better described the program's
original intent.
1:29:10 PM
KRISTA MACIOLEK, MATSU YOUTH COURT, MATSU (via
teleconference), testified in support of funding for youth
courts. She refenced earlier testimony regarding the
effectiveness of youth courts. She proposed that youth
courts provided thousands of community work service hours
to the local community. She mentioned the low recidivism
rate of juvenile offenders that participated in the youth
court.
1:31:00 PM
JESSE RIEHM, TANANA CHIEFS CONFERENCE, FAIRBANKS (via
teleconference), supported maintained funding for sobering
centers across the state. The sobering center was opened to
reduce use of the emergency department. He discussed the
work of the sobering center and cited its cost
effectiveness. He asked the committee to maintain funding
for sobering centers.
1:33:21 PM
BRYCE WARD, MAYOR OF FAIRBANKS, FAIRBANKS (via
teleconference), testified in support of revenue sharing
and funding the full $90 million for the CAP. He asserted
that the recovery of communities was dependent upon the
state coming up with a stable plan. He mentioned impacts
such as school bond debt reimbursement and the timing of
municipal and state budgets. He encouraged the legislature
to complete the budget as soon as possible to provide
stability.
1:35:28 PM
MEGAN WESTON, ANCHORAGE YOUTH COURT, VALDEZ (via
teleconference), spoke in support of funding for youth
courts and the Division of Juvenile Justice's budget. She
was formerly a member of the program. She discussed the
effectiveness of youth courts in changing the lives of
young people.
1:37:57 PM
SARA IRWIN GOUDREAU, VALDEZ YOUTH COURT, VALDEZ (via
teleconference), testified in support of restored funding
for youth courts and the DJJ budget. She had worked with
youth courts for 17 years and believed in the value of the
program. She noted that both youth offenders and youth peer
participants benefitted from youth court programs. She
cited a newspaper article that compared the benefits of
investing in prisons versus higher education. The article
cited Alaska's high recidivism rate. She noted that
recidivism was reduced when youth participated in youth
court.
1:40:34 PM
CAROL PISCOYA, KAWERAK INC, NOME (via teleconference),
spoke in support of increased funding for children and
family services. She explained that Kawarak Inc. was a
regional tribal consortium. She relayed that Kawarek had
signed on to the Alaska Tribal Child Welfare Compact. She
discussed activities through the compact. She referenced
the high turnover rate at the Office of Children's Services
and requested increased funding for Kawarek to assist
children in the region.
1:42:57 PM
MIRANDA NELSON, SELF, NIKISKI (via teleconference),
testified in support of the governor's budget proposal and
smaller government. She supported using the statutory
formula to calculate PFDs. She thought Covid-related
shutdowns highlighted what services were essential. She
thought reduced government allowed small businesses to
flourish.
1:44:38 PM
LAYTON LOCKETT, CITY MANAGER, CITY OF ADAK, ADAK (via
teleconference), spoke in favor of the PCE Program. He
supported shared fish taxes, which contributed to Adak's
operating budget. Some of the funds were used to fund the
Village Public Safety Officer (VPSO) in Adak. He supported
recapitalization of the CAP. He asked for support in
funding Department of Transportation and Public Facilities'
rural airports. He was concerned that any impact on funding
rural airports would have disastrous effects because of the
lack of other transportation options. He discussed the
critical nature of air traffic in providing goods and
services to Adak and the surrounding area.
1:47:33 PM
CINDY WRIGHT, UNIVERSITY OF ALASKA FAIRBANKS ALUMNI
ASSOCIATION, FAIRBANKS (via teleconference), testified in
support of University funding. She thought the University
was part of the state's fiscal solution. She mentioned
additional federal acres that were to be allocated to UA.
She supported the continuation of the Technical Vocational
Education Program (TVEP) program. She asserted that capital
appropriations were important to stabilize the budget. She
supported addressing deferred maintenance.
1:49:17 PM
CLAY WALKER, MAYOR OF DENALI BOROUGH, HEALY (via
teleconference), spoke in support of funding the CAP. He
discussed cuts to the CAP. He had served as mayor of the
Denali Borough for the previous eight years. He discussed
major maintenance of school facilities. He urged the
committee to support recapitalization of the CAP to the
full $90 million, which would help stabilize local
governments. He asked for consideration of at least $25
million for the state's share of the major school
maintenance program. He asked the legislature to considered
assistance to communities that would not receive funds from
the American Rescue Plan. He urged consideration of a
balanced approach, including new revenue and steps towards
a sustainable fiscal plan.
[Co-Chair Bishop handed the gavel to Co-Chair Stedman.]
1:51:58 PM
CARIN ADICKES, SELF, SITKA (via teleconference), supported
increased funding for the AMHS. She discussed the decline
of ferry service. She discussed the importance of ferry
service to connect to services in Juneau. She thought the
current ferry schedule was totally unconscionable.
1:53:15 PM
GEORGE BUTT, KLONDIKE ELECTRIC BICYCLES, SKAGWAY (via
teleconference), testified in support of increased funding
for the AMHS. He discussed the impact of the Covid-19
pandemic on Skagway due to the lack of tourism. He
discussed the importance of ferry service for supporting
independent travelers. He advocated for funding for
municipalities to offset lost revenues. He supported
funding for tourism-related businesses.
1:54:43 PM
CHRISTIAN SCANTLING, SELF, SITKA (via teleconference),
testified in support of increased funding for the AMHS. He
discussed the importance of ferry service for accessing
goods, services, and healthcare. He urged the committee to
advocate for at least a bi-weekly ferry schedule to Sitka.
1:56:15 PM
STACEY LUCASON, SELF, CHUGIAK (via teleconference), spoke
in support of funding deferred maintenance for the
University. She disclosed that she was part of the UA
Alumni Association. She discussed the importance of
maintaining state resources. She discussed the importance
of the role of UA in workforce innovation.
1:58:21 PM
ADAM CHINALSKI, SELF, SITKA (via teleconference), supported
increased funding for the AMHS. He discussed the importance
of increased ferry service. He had been in Sitka for 14
years and had seen the service decrease significantly.
2:00:01 PM
KRIS CHINALSKI, SELF, SITKA (via teleconference), testified
in support of increased funding for the AMHS. The discussed
the importance of round-trip ferry service to Juneau in a
timely manner. She discussed purchasing goods in-state
using ferry service rather than out of state.
2:01:11 PM
ANNELISE BURGESS, SELF, ANCHORAGE (via teleconference),
spoke in support of restored funding for the Anchorage
Youth Court. She had been a past Anchorage Youth Court
lawyer and employee of the youth court. She discussed what
she had learned working with the youth court. She asserted
that the youth court was good for society. She discussed
reduced rates of recidivism due to the youth court.
2:03:36 PM
ROBERT RADOVAN, SELF, ANCHORAGE (via teleconference),
testified against increased state spending. He lamented
excess state spending and used the example of the Muldoon
Overpass project and an overpass. He recommended that the
estate institute a state income tax of 15 percent and do
away with all sales taxes. He pointed out that a sales tax
only hurt Alaska residents, while an income tax would
capture contributions from out of state workers. He
emphasized frugal budgeting.
2:05:05 PM
KATE LOEWEN, SELF, KODIAK (via teleconference), supported
increased funding for the AMHS. She had been a resident of
the state for 50 years. She discussed the importance of the
ferry for accessing services such as healthcare. She
supported full funding for UA. She thought it should be
affordable to attend college in the state. She supported
reinstatement of a state income tax.
2:06:50 PM
AT EASE
2:24:09 PM
RECONVENED
MICKEY BARKER, SELF, SITKA (via teleconference), supported
increased funding for increased ferry service. He worked as
an engineer for the AMHS. He asserted that Sitka needed
increased ferry service in order to get to and from Juneau.
He had seen that construction companies were making supply
purchases from the Lower 48 rather than in Juneau. He was
sure that businesses were losing money as a result of
decreased ferry services.
2:26:19 PM
CAROLYN EVANS, SELF, SITKA (via teleconference), spoke in
support of increased funding for the AMHS and increased
service from Sitka to Juneau. She supported a round-trip
sailing at least once per week in order to provide for
shopping, medical services, work, and other needs.
2:27:46 PM
AMY BETHUNE, SELF, SITKA (via teleconference), testified in
support of increased funding for the AMHS. She supported
increased ferry system between Sitka and Juneau. She
discussed the importance of ferry access.
2:29:09 PM
[Co-Chair Stedman handed the gavel to Co-Chair Bishop.]
RON JOHNSON, SELF, FAIRBANKS (via teleconference), spoke in
support of maintaining the current level of Percent of
Market Value draw from the Earnings Reserve Account. He was
concerned about the depletion of the ERA and the Permanent
Fund. He discussed federal stimulus funds. He supported
educating Alaskans about the statutory calculation for the
Permanent Fund.
2:31:09 PM
AT EASE
2:43:06 PM
[fix this timestamp to be 5 seconds earlier]
RECONVENED
ELIJAH JACKSON, MAYOR OF OUZINKI, OUZINKI (via
teleconference), testified against the governor's proposed
budget. He cited infrastructure issues in the city. He
relayed that the pandemic had pushed infrastructure
projects out by one to two years. He supported
recapitalization of the CAP to the $90 million level to
provide stability for local governments. He supported
reinstatement of local emergency planning committee funding
so local governments were better prepared for crises such
as the pandemic. He referenced a tsunami warning two months
previously and the conflict with positive COVID-19 cases in
the tsunami shelter. He expressed frustration with limited
resources and funding available to deal with matters at
hand. He felt as though the voices of rural Alaska were not
being heard.
2:45:48 PM
LAURA BONNER, SELF, ANCHORAGE (via teleconference), spoke
in support of a new revenue sources such as an income tax
and oil and gas tax changes. She supported funding for: K-
12 education, UA, Courts, law enforcement, the Department
of Corrections, AMHS, and the Department of Health and
Social Services. She thought there were few places left to
cut in the budget. She thought oil and gas were volatile
revenue sources. She thought paying a $5,000 PFD as
proposed was ludicrous. She did not support closing DMV
offices in rural areas. She supported funding for vital
services. She thought the state needed either a decent
capital budget and/or general obligation bonds to build
infrastructure and for maintenance backlogs.
2:47:48 PM
DEB POTTER, SELF, SKAGWAY (via teleconference), supported
additional funding for the AMHS. She noted that 90 percent
of Skagway's economy was from cruise ships. She noted that
the City of Skagway had been promoting independent travel,
which required use of the AMHS. She noted that the
municipality of Skagway had just chartered a private boat
for transportation of citizens when the ferry was broken
down. She implored the committee to support the ferry
system.
2:49:28 PM
AT EASE
2:50:07 PM
RECONVENED
ADJOURNMENT
2:50:20 PM
The meeting was adjourned at 2:50 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 49.51.50 Public Testimony Packet 4.pdf |
SFIN 3/18/2021 1:00:00 PM |
SB 49 |
| SB 49.51.50 2021.3.16.Letter from AFC and ATFM on proposed cuts to DPA.pdf |
SFIN 3/18/2021 1:00:00 PM |
SB 49 |
| SB 49.51.50 Glenn 2022 Budget Complete.pdf |
SFIN 3/18/2021 1:00:00 PM |
SB 49 |
| SB 49.51.50 NAMI Fairbanks Testimony on Governor's Budget 3-20-21.pdf |
SFIN 3/18/2021 1:00:00 PM |
SB 49 |