Legislature(1997 - 1998)

04/01/1998 09:08 AM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE                   
                          April 1, 1998                                        
                            9:08 a.m.                                          
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Senator Gary Wilken, Chairman                                                  
Senator Loren Leman, Vice-Chairman                                             
Senator Lyda Green                                                             
Senator Jerry Ward                                                             
Senator Johnny Ellis                                                           
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
SENATE BILL NO. 253                                                            
"An Act relating to medical assistance for certain disabled                    
persons; relating to personal care services for recipients of                  
medical assistance; and providing for an effective date."                      
     HEARD AND HELD                                                            
                                                                               
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 203                                     
"An Act relating to phonemic awareness, letter-sound                           
correspondence, word-attack skills, spelling, vocabulary, use of               
decodable text, reading comprehension strategies, and testing for              
basic reading and reading comprehension skills in the public school            
system."                                                                       
     HEARD AND HELD                                                            
                                                                               
PREVIOUS SENATE COMMITTEE ACTION                                               
                                                                               
SB 253 - No previous Senate committee action.                                  
                                                                               
SB 203 - See HESS minutes dated 2/20/98, 2/23/98 and 3/23/98.                  
                                                                               
WITNESS REGISTER                                                               
                                                                               
Patti Swenson                                                                  
Legislative Aide to Representative Con Bunde                                   
Alaska State Capitol                                                           
Juneau, Alaska  99801-1182                                                     
POSITION STATEMENT:  Answered questions about SB 253                           
                                                                               
Robert Briggs                                                                  
Disability Law Center                                                          
230 South Franklin, Suite 209                                                  
Juneau, Alaska  99801                                                          
POSITION STATEMENT:  Supports SB 253                                           
                                                                               
Jon Sherwood                                                                   
Division of Public Health                                                      
Department of Health and Social Services                                       
P.O. Box 110610                                                                
Juneau, Alaska  99811-0610                                                     
POSITION STATEMENT:  Answered questioned and expressed support of              
SB 253                                                                         
                                                                               
Mr. Dennis Murray                                                              
Heritage Place                                                                 
232 Rockwell Avenue                                                            
Soldotna, Alaska  99669                                                        
POSITION STATEMENT:  Commented on the provision dealing with                   
personal care attendants in SB 253                                             
                                                                               
Howard Hedges                                                                  
Box 779                                                                        
Homer, Alaska  99603                                                           
POSITION STATEMENT:  Supports SB 253                                           
                                                                               
Ms. Patricia Arnold                                                            
3600 Crittendon  #A3                                                           
Homer, Alaska  99603                                                           
POSITION STATEMENT:                                                            
                                                                               
Millie Ryan                                                                    
Governor's Council on Disabilities and Special Education                       
P.O. Box 240249                                                                
Anchorage, Alaska  99524                                                       
POSITION STATEMENT:  Supports SB 253                                           
                                                                               
Patrick Reinhart                                                               
Alaska Independent Living Council                                              
1016 W 6th Avenue #205                                                         
Anchorage, Alaska  99501                                                       
POSITION STATEMENT:  Commented on SB 253                                       
                                                                               
Dr. Nick Stayrook                                                              
North Star Fairbanks School District and Consultant to DOE                     
520 Fifth Avenue                                                               
Fairbanks, Alaska  99701                                                       
POSITION STATEMENT:  Commented on SSSB 203                                     
                                                                               
Mr. A.M. Johnson                                                               
1527 Pond Reef Road                                                            
Ketchikan, Alaska 99901                                                        
POSITION STATEMENT:  Supports SSSB 203                                         
                                                                               
Ms. Hannah Ramiskey                                                            
Alaska School Board                                                            
428 Tower Road                                                                 
Ketchikan, Alaska  99901                                                       
POSITION STATEMENT:  Commented on SSSB 203                                     
                                                                               
Greg Garrison                                                                  
Hoonah, Alaska                                                                 
POSITION STATEMENT:  Supports SSSB 203                                         
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-29, SIDE A                                                             
Number 001                                                                     
                                                                               
CHAIRMAN WILKEN called the Senate Health, Education and Social                 
Services (HESS) Committee to order at 9:08 a.m.  Present were                  
Senators Green, Ellis and Chairman Wilken.  The first order of                 
business before the committee was SB 253.                                      
                                                                               
       SB 253 - MEDICAL ASS'T FOR CERTAIN DISABLED PERSON                      
                                                                               
CHAIRMAN WILKEN announced a committee substitute for SB 253 had                
been prepared (version E).  SENATOR ELLIS moved to adopt the                   
committee substitute as the working document of the committee.                 
There being no objection, the motion carried.                                  
                                                                               
CHAIRMAN WILKEN asked whether CSSB 253(HES) was identical to the               
House version of the bill.                                                     
                                                                               
PATTI SWENSON, legislative aide to Representative Con Bunde, stated            
CSSB253(HES) is identical to the House version.                                
                                                                               
CHAIRMAN WILKEN noted the bill would be presented by Ms. Swenson,              
on behalf of Representative Bunde, and Bob Briggs.                             
                                                                               
Number 045                                                                     
                                                                               
ROBERT BRIGGS, an attorney with the Disability Law Center, gave the            
following testimony on CSSB 253.  The Disability Law Center is a               
non-profit corporation that represents disabled clients, throughout            
the state, on legal matters related to their disabilities.   The               
Disability Law Center has offices in Fairbanks, Bethel, Anchorage              
and Juneau.  His primary motivation for working on this subject was            
prompted by a client, named Dawn, who was the recipient of a liver             
transplant as the result of complications from having systemic                 
lupus.  When Dawn went to work in January after recuperating from              
the transplant, she lost all health benefits she received with                 
public assistance while not working.  Because of pre-existing                  
condition rules, the health insurance she was provided through her             
employer would not cover her condition until July of 1998. After               
engaging in discussion and litigation with the State over whether              
Dawn should be eligible for Medicaid under existing law, the                   
Disability Law Center decided that DHSS was correct that she was               
not eligible.  Last fall, the Disability Law Center began to                   
consider ways to change the law.  Dawn no longer needs the benefits            
of this bill, but asked Mr. Briggs to continue to work on this                 
subject to prevent the same problem from happening to other people             
like her.  Dawn earns $1700 per month gross income; her net income             
is $1200 per month.  Her regular medical expenses are $1200 per                
month, including $900 for immunosuppressant medications.  The                  
Disability Law Center suspects there is a small group of people in             
Alaska in a situation similar to Dawn's.  A constant refrain of                
people within the disability community is that if one is medically             
fragile, bridging the gap between being on public welfare roles and            
receiving Medicaid and Medicare is difficult to do.  Frequently a              
disabling condition is life changing and causes one to enter a new             
line of work that might be part-time or an entry level job with no             
health benefits.                                                               
                                                                               
MR. BRIGGS informed committee members that Congress passed the                 
Balanced Budget Act of 1997 which gives states the option to                   
provide medicaid on a buy-in basis to low income, disabled workers.            
The basic criteria is that the participant's income cannot be                  
greater than 250 percent of the poverty threshold, and the                     
participant has to contribute into the system on a sliding fee                 
scale, to be determined at the discretion of the State.  Two bills             
exercise this option.  SB 253 is the Governor's bill on this                   
subject; the second bill is HB 459, which Mr. Briggs believes                  
contains slightly better provisions.  CSSB 253 is identical to HB
459 as it passed the House Finance Committee just last week.  The              
fiscal impact of both bills is modest.  In the first year, the                 
state will spend a total of $2,500 general fund dollars to put 17              
people back to work.  The expense is modest because of the                     
projected savings to the general fund from reducing reliance on the            
Adult Public Assistance Program.                                               
                                                                               
MR. BRIGGS handed out a document entitled, Summary of Fiscal Impact            
of CSHB 459 (FIN) (Medicaid Buy-In Option), and noted page 2                   
contains a list of the numbers extracted from the four fiscal notes            
for HB 459 that pertains to the impact on the general fund.  He                
explained the State will realize a $76,000 savings by the second               
year of this program, a $200,000 savings in the third year, and                
$300,000 in the fourth year.  The general fund impact is quite                 
favorable.                                                                     
                                                                               
Number 129                                                                     
                                                                               
CHAIRMAN WILKEN asked what the numbers in FY 00 mean.                          
                                                                               
MR. BRIGGS explained for FY 00, the projected expense of HB 459 for            
medicaid facilities is $59,000 of general fund monies.  For                    
medicaid non-facilities, the general fund expense is projected to              
be $54,700.  For health purchasing group, the projected expense is             
zero.  The savings in Adult Public Assistance funds projected from             
putting 17 people back to work in the first year, and 28 people                
back to work in the second year, is $190,000.  Mr. Briggs clarified            
these numbers were based on the fiscal notes, and are not his own              
projections.                                                                   
                                                                               
CHAIRMAN WILKEN asked if the $190,000 is the result of taking 28               
people off of the Adult Public Assistance Program.                             
                                                                               
MR. BRIGGS said yes, and the number will probably be higher than               
28.  He clarified that the fiscal notes expect 17 people to take               
advantage of the program in the first year if it begins in the                 
middle of the fiscal year, and 28 will take advantage of it in the             
second year.                                                                   
                                                                               
CHAIRMAN WILKEN asked if that number will increase continually to              
FY04 with additional people.                                                   
                                                                               
Number 152                                                                     
                                                                               
MR. BRIGGS said a sloping line is projected, with 28 people in FY              
00, 23 people in FY 01, 23 in FY 02, 22 in FY 03, and 21 in FY 04.             
                                                                               
CHAIRMAN WILKEN questioned whether the Adult Public Assistance                 
amounts are cumulative.                                                        
                                                                               
MR. BRIGGS said he believes so but has not analyzed the document               
that closely.                                                                  
                                                                               
CHAIRMAN WILKEN noted the Medicaid Facilities amounts do not appear            
to be cumulative but the Adult Public Assistance amounts do.  He               
asked Mr. Briggs to clarify those numbers for committee members at             
a later date.                                                                  
                                                                               
MR. BRIGGS stated Mr. Sherwood, from the Department of Health and              
Social Services (DHSS) was available to answer questions.                      
                                                                               
Number 168                                                                     
                                                                               
JON SHERWOOD, Division of Medical Assistance, DHSS, explained the              
Adult Public Assistance amounts are cumulative.  That category                 
applies to people who would otherwise be on Adult Public                       
Assistance, return to work, and no longer receive public                       
assistance.  The medical assistance line is not cumulative.  The               
phenomenon that DHSS tried to capture is that the people who will              
be most impacted by this bill are people who will receive medicaid             
whether this legislation is enacted or not.  For those people, the             
issue is whether they can return to work and go off of Adult Public            
Assistance.  Because this provision is available, people who are               
already transitioning off of Medicaid and returning to work may                
stay on Medicaid a little longer as a result of these provisions.              
What DHSS is trying to reflect in the fiscal notes is the fact that            
there will be a small increase as some people who would otherwise              
go off Medicaid a little sooner will stay on a little longer, but              
overall, DHSS does not expect the people generally impacted by this            
bill to be people who would stop receiving Medicaid because they               
cannot afford to take the risk of returning to work without medical            
coverage.                                                                      
                                                                               
MR. BRIGGS concluded his testimony by urging committee members to              
favorably consider CSSB 253(HES), or similar legislation, and to               
take advantage of the opportunity provided by Congress for offering            
Medicaid on a buy-in basis for disabled workers.  In our society,              
work is one of the most valuable attributes of being a citizen, and            
people who are disabled want to be part of that community.                     
                                                                               
MR. SHERWOOD added that DHSS is very supportive of this                        
legislation.  He commented the option became available through the             
federal program this past summer, and DHSS is pleased to see                   
legislation before the Legislature this session.                               
                                                                               
Number 209                                                                     
                                                                               
SENATOR GREEN asked for the definition of the phrase "disabled                 
persons" used in the bill.                                                     
                                                                               
MR. BRIGGS replied a disabled person is someone who has an                     
impairment that affects one or more life activities, such as                   
impairment of vision or hearing, and usually that impairment has to            
be severe enough to prevent the person from being able to engage in            
substantial gainful activity of $500 or more in a particular month,            
according to the Social Security Administration.                               
                                                                               
SENATOR GREEN asked whether that definition is included in the                 
bill.                                                                          
                                                                               
MR. BRIGGS said it is not.                                                     
                                                                               
SENATOR GREEN remarked the current challenge to the term "disabled"            
is the inclusion of people with HIV.  Her concern was that the                 
phrase is broad and not clearly defined, and it might have                     
unintended consequences.                                                       
                                                                               
MR. BRIGGS responded that a definition of "disability" is                      
referenced in the bill on page 2, lines 6-8.  That language is a               
reference to eligibility requirements based on disability.  He                 
pointed out the federal rules pertaining to disability are                     
specific.  The litigation referred to by Senator Green is before               
the Supreme Court and relates to who is a disabled person under the            
Americans with Disabilities Act.  That is a separate question from             
who is eligible for disability benefits.  He believed there is a               
higher threshold for eligibility for disability benefits under the             
Social Security Act.  Mr. Briggs said the federal program will be              
paying 60 percent of the costs of this Medicaid program, and he                
believes it will have stringent eligibility rules.                             
                                                                               
Number 254                                                                     
                                                                               
SENATOR GREEN asked if there is any overlap with the Comprehensive             
Health Insurance Association (CHIA) plan.                                      
                                                                               
MR. BRIGGS replied it is possible for some people to take advantage            
of the CHIA program if they have been denied insurance by two or               
more insurance carriers.  He noted his client, Dawn Pedersen, did              
not take advantage of the CHIA program is because it has a six                 
month pre-existing rule and because the premiums are not always                
affordable.                                                                    
                                                                               
SENATOR GREEN noted the list in CSSB 253 contains a prioritization             
of services but then changes to a list of individuals.  She asked              
what range of services those individuals, listed in numbers 28                 
through 32, are eligible for.                                                  
                                                                               
Number 283                                                                     
                                                                               
MR. BRIGGS said he would interpret the section to follow the legal             
doctrine of the specific controls the general, meaning that where              
specific services are listed in priority, and the list later                   
contains specific categories of people, an individual in the 26th              
category could not get social worker services if no funds are                  
available for those services.                                                  
                                                                               
SENATOR GREEN asked if the people who fall under category #26 would            
be ineligible for any services except those on the list.                       
                                                                               
Number 302                                                                     
                                                                               
SENATOR LEMAN clarified those people would not be eligible for any             
service that has been excluded because of lack of funding.                     
                                                                               
MR. SHERWOOD clarified the services on the list are the services               
which are optional: states have the option of including those                  
services in their medicaid programs.  The mandatory services in the            
program are available to anyone who is eligible for medicaid, if               
he/she has a medical need for those services, i.e., inpatient                  
hospital stays or physician's visits.  The mandatory services are              
not listed in CSSB 253.                                                        
                                                                               
CHAIRMAN WILKEN noted Senators Leman and Ward joined the committee.            
                                                                               
SENATOR LEMAN referred to Section 4, the Transitional Provision,               
and asked if it would make more sense for DHSS to establish a                  
temporary sliding fee scale now, otherwise there is little                     
incentive for DHSS to get the sliding fee scale regulations                    
completed.                                                                     
                                                                               
MR. BRIGGS replied the House HESS committee came up with that                  
section as a proposal for the transition.  The Governor's bill, SB
253, is silent as to how the sliding fee scale is to be                        
implemented.  He thought the addition of that section is an                    
improvement because it does require regulations, and by a specific             
time.  Mr. Briggs said he was formerly an assistant attorney                   
general, and is now involved in litigation with the State over                 
getting some regulations promulgated, and he knows how slow that               
process is.  He thought one year is the minimum amount of time                 
necessary to get regulations out.  He did not believe this                     
particular provision would classify as a subject for emergency                 
regulations.  He added the fiscal note projection is based on a                
five percent contribution and the purpose of the program is to help            
people get back to work.  If the premiums are set too high, the                
purpose will be frustrated.                                                    
                                                                               
Number 358                                                                     
                                                                               
CHAIRMAN WILKEN  asked Senator Leman if he was referring to page 4,            
line 19.                                                                       
                                                                               
SENATOR LEMAN stated he was referring to both Sections 4 and 5, and            
the language on page 2, lines 7 through 11.  He thought the bill               
should have a different type of transitional provision.  He                    
suggested using a sliding fee scale that ranges from zero to ten               
percent from the poverty line to 250 percent of the poverty line.              
                                                                               
CHAIRMAN WILKEN said he will follow up on that idea.  He noted the             
title was changed on the House bill so that it no longer pertains              
only to disabled people, but also to midwives.  He asked if Ms.                
Swenson could share any information about that change.                         
                                                                               
MS. SWENSON explained the House Finance Committee members changed              
the list that appears on page 2 of CSSB 253(HES) by moving midwife             
services down to number 15 because they wanted to make those                   
services available.  Representative Bunde offered the amendment to             
the committee at the request of Senator Leman.  Representative                 
Therriault asked to have the title tightened up so that those                  
services could not be moved again.  She clarified the change only              
had to do with where midwife services were placed on the list.                 
                                                                               
Number 390                                                                     
                                                                               
MR. HOWARD HEDGES testified via teleconference from Homer on his               
own behalf.  He stated on April 1, 1993, he had a stroke that                  
attacked his left side.  He continues physical therapy today, and              
has regained some functions.  In June of 1996, he felt strong                  
enough to return to work.  When he did so, his medicaid benefits               
would expire after one year.  During that year, he tried to find a             
way to get continued medicaid coverage because of the complications            
caused by his stroke and diabetes.  Coverage through the CHIA                  
program would have cost $705 per month with a $2500 deductible and             
a six month waiting list before any payment would occur.  He was               
released from his job June 1, 1997 so that he could again receive              
public assistance and medicaid.  CSSB 253 will allow him to return             
to work.  He was earning $28,000 per year; now he draws social                 
security disability insurance and Adult Public Assistance.                     
                                                                               
Number 414                                                                     
                                                                               
MILLIE RYAN, a planner with the Governor's Council on Disabilities             
and Special Education, made the following remarks via                          
teleconference.  The Council recently completed its three year                 
state plan planning process.  The Council heard from many people               
around the State about the different work disincentives that affect            
them.  The Council is working with a number of different agencies              
and people to address those work disincentives. The Council                    
supports this bill because it will help disabled people return to              
work.                                                                          
                                                                               
PATRICK RINEHART, Executive Director of the State Independent                  
Living Council, testified in support of CSSB 253.  He informed                 
committee members that Council members discussed this issue with               
the Senate HESS committee earlier in the session.  The Council is              
very supportive of CSSB 253 and urges the committee to support the             
bill as well.                                                                  
                                                                               
Number 430                                                                     
                                                                               
DENNIS MURRAY, testifying via teleconference from Kenai, made the              
following comments about the provision in Section 3 that pertains              
to personal care attendant services.  Lutheran Health Systems                  
Heritage Place provides services to some 50 persons in the Kenai               
Peninsula.  He is a provider of those services in the Kenai                    
Peninsula area.  CSSB 253 proposes to eliminate language in Alaska             
statute regarding authorization and oversight for personal care                
services.  The personal care attendant (PCA) coordinator at                    
Heritage Place is a registered nurse, as required under current                
statute.  CSSB 253 changes that requirement and provides that the              
oversight of personal care attendants must be consistent with a                
care plan.  The R.N. requirement was placed in statute as a                    
protection to the consumer and to the State, in terms of use of its            
resources.  Some believe the R.N. requirement is overkill and                  
creates unnecessary costs to the program, however he believes the              
requirement is valid to provide standards of service, and its                  
elimination could have untold consequences.  Mr. Murray explained              
the personal care attendant service is medical in nature and is                
paid for by medicaid. He urged the committee to look at recent                 
audits of services and some of the problems that occur when clear              
standards of practice are not established.  He did not think an                
individual care plan will address the issues identified.  He urged             
caution with respect to who can provide the service.  The federal              
government has redefined a recipient's family to only include a                
spouse and/or parent.  With all of the legislation that has                    
recently been passed in the last two or three years to protect                 
frail and vulnerable individuals, he is concerned that the state               
will be paying for services on a routine basis provided by family              
members.  He felt that situation should be the exception and not               
the rule.                                                                      
                                                                               
Number 469                                                                     
                                                                               
SENATOR GREEN asked Mr. Murray which version of the bill he was                
referring to.                                                                  
                                                                               
MR. MURRAY said he was referring to page 4 of CSSB 253, subsection             
15.                                                                            
                                                                               
MR. BRIGGS commented that with regard to personal care attendant               
services, to a certain extent it is unrelated to the question of               
whether the state should exercise the option to provide medicaid on            
a buy-in basis.  The issues are connected in the sense that the                
definition that would be changed does relate to medicaid.  The                 
current definition of personal care services under state law is                
more restrictive than the definition used for medicaid                         
reimbursements under federal law.  The purpose of the change in                
CSSB 253 is to make the state and federal definitions the same                 
which will allow more flexibility in how those services are                    
provided.  He said regarding the provision that prevents family                
members from receiving medicaid reimbursement for personal care                
attendant services, he noted there are cases in which family                   
members are the only people able to care for the recipient because             
no other services are available in the area.  He stated he believes            
that provision is a good idea, but the committee should not let the            
inclusion of Section 3 prevent movement of the bill.  Mr. Briggs               
thought the change in definition of personal care services will                
broaden the way those services can be delivered and help people get            
to work who are unable to work now because of their severe                     
disabilities.                                                                  
                                                                               
MR. MURRAY stated he is certainly not arguing against passage of               
the bill, but payment to family members for personal care services             
should be the exception, not the rule.  He said his concern, after             
25 years in the business, is that there are some dangers associated            
with that provision.   He cautioned that eliminating standards that            
have validity is ill advised.                                                  
                                                                               
CHAIRMAN WILKEN asked Mr. Murray to describe Heritage Place.                   
                                                                               
MR. MURRAY answered Heritage Place is a nursing facility that also             
provides home care services.  He thought nursing facilities play an            
integral role in the delivery of services.                                     
                                                                               
Tape 98-29, Side B                                                             
                                                                               
SENATOR GREEN questioned whether Mr. Briggs found any inconsistency            
in the definition of "disability" within the U.S. Code, because the            
bill implies that the person, to be defined as disabled, could not             
work.                                                                          
                                                                               
MR. BRIGGS stated he was unprepared to answer Senator Green's                  
question and he would like to do some research and provide the                 
committee with a specific definition.  He pointed out the                      
definition for social security benefits is an eligibility                      
definition.  He clarified a person can be disabled, yet not be                 
eligible for social security benefits.                                         
                                                                               
CHAIRMAN WILKEN referred to the summary of fiscal notes, and stated            
if a cumulative amount is used for the Adult Public Assistance                 
Program, then a cumulative amount should be used for the other                 
categories.  He noted the $553,000 will diminish substantially if              
cumulative amounts are used throughout.  He suggested that DHSS                
prepare another fiscal note using all cumulative amounts, or none,             
before the bill is heard in the Finance Committee.  He asked if 20             
to 25 different people will benefit each year by going off of Adult            
Public Assistance with this legislation.                                       
                                                                               
MR. SHERWOOD answered yes.                                                     
                                                                               
Number 504                                                                     
                                                                               
SENATOR GREEN asked if the costs to the medicaid program in FY 00              
will be about $110,000.                                                        
                                                                               
MR. BRIGGS said the cost would be about $114,000.                              
                                                                               
SENATOR GREEN questioned whether the subtotals will reflect the                
impact on medicaid money no longer available to someone lower on               
the list.                                                                      
                                                                               
MR. BRIGGS said yes, that is the general fund expense.                         
                                                                               
SENATOR GREEN asked if the general fund expense covers 60 percent              
of the cost of the program.                                                    
                                                                               
MR. BRIGGS explained the numbers on the page Senator Green was                 
looking at are general fund numbers.  The numbers on the next page             
are the overall numbers.                                                       
                                                                               
There being no further discussion on CSSB 253, CHAIRMAN WILKEN                 
announced the committee would hold the bill for further work.                  
                                                                               
MS. SWENSON added that the effect of the amendment would have been             
to open the list up to any service that wanted to get around the               
intent of the list.  Instead of adopting the amending, the midwife             
services were moved down on the list which had the same effect.                
                                                                               
SENATOR LEMAN clarified that the amendment may have done that, but             
not necessarily would have.  He noted it was not his intent to open            
the list, so to prevent that from happening, the other approach was            
used which accomplished the desired result.                                    
                                                                               
CHAIRMAN WILKEN thanked all participants for attending.                        
The committee took a brief at-ease.                                            
                  SB 203 - PHONICS CURRICULUM                                  
                                                                               
MEL KROGSENG, legislative aide to Senator Taylor, sponsor of SSSB
203, informed committee members she spoke with Dr. Stayrook                    
regarding DOE's proposed amendments.  Senator Taylor, after looking            
at the last proposal from the Department of Education (DOE), still             
believes that DOE's proposal does not do what he feels is                      
necessary.  She pointed out one of the issues of contention is the             
use of a nationally normed test.  She noted that as Senator Green              
pointed out, tests are available so Alaska does not have to                    
reinvent the wheel.  She referred to a faxed document from Texas               
which speaks to some of the problems experienced in that State.                
Senator Taylor believes Alaska schools should use a nationally                 
normed test to determine where students' deficiencies are.  She                
stated she had a proposed amendment to change the word "majority"              
on page 2, line 13, to "no more than 25 percent of the students."              
                                                                               
Number 462                                                                     
                                                                               
CHAIRMAN WILKEN announced that four people were waiting to testify             
via teleconference.  He asked Ms. Krogseng if she met with DOE                 
after the Senate HESS meeting on March 23, to discuss the                      
committee's concerns.                                                          
                                                                               
MS. KROGSENG said she did.                                                     
                                                                               
CHAIRMAN WILKEN asked if DOE proposed some amendments which Senator            
Taylor rejected.                                                               
                                                                               
MS. KROGSENG confirmed that is what occurred.                                  
                                                                               
CHAIRMAN WILKEN asked Mr. Garrison to testify.                                 
                                                                               
Number 454                                                                     
                                                                               
GREG GARRISON testified on his own behalf from Hoonah via                      
teleconference.  Mr. Garrison said this issue is a personal one for            
him, because he said when a new reading instruction approach (the              
Arizona system which has been transformed into whole language)                 
began in the 1950's, it was done on a trial basis as the result of             
politics.  In retrospect, that approach is no better and is not                
very much worse than the phonics approach that was used earlier.               
He believes school systems should go back to teaching phonics, and             
then use the whole language approach with the children who have                
mastered phonics.   Mr. Garrison said in first and second grade, he            
had difficulty learning to read, and no one monitored his progress             
or tried to correct his problems until he was in high school.  He              
feels robbed of his education.  He added he was punished and told              
he was dumb because he had difficulty learning to read, when it was            
the school system that failed.  Mr. Garrison stated 20 percent of              
students had difficulty learning to read with the phonics approach,            
but 40 to 50 percent have difficulty with the whole language                   
approach.  He urged committee members to not reinvent the wheel but            
instead to teach reading using the phonics approach.  Mr. Garrison             
stated that "right-brained" children do not pick up on the speed               
reading approach, they need to learn phonics.  He noted the main               
argument by teachers in the Hoonah school system against teaching              
phonics is that it is time consuming and difficult to teach.  Mr.              
Garrison concluded by saying we have to go back to the system that             
works and use speed reading as an alternative for students who have            
shown progress and can handle it.                                              
                                                                               
CHAIRMAN WILKEN asked Ms. Krogseng to describe the faxes she                   
mentioned.                                                                     
                                                                               
MS. KROGSENG informed committee members the document she handed out            
was faxed from Dr. Bergman of the Texas Reading Institute.  It                 
describes Texas's experience with developing its own assessment as             
the Alaska DOE proposes to do.  The Texas assessment did not                   
provide the indicators the schools really needed.  Students' scores            
on that test differed greatly from the standardized normed test                
scores.  She explained the second document was from Education Week.            
She added that Senator Taylor's office has received reams of                   
material in support of reintroducing phonics into the school                   
system.                                                                        
                                                                               
Number 349                                                                     
                                                                               
SENATOR TAYLOR noted Ms. Krogseng has spent a lot of time working              
with DOE staff on its two concerns: how the word "phonics" can be              
kept out of the bill because the education community is frightened             
by the imposition of mandates; and DOE's belief that Alaska needs              
to draw up its own measuring device.  Senator Taylor said DOE                  
believes it needs to create its own yardstick so that Alaska                   
students do not have to be measured by a nationally normed test.               
He questioned who DOE thinks Alaska students will be competing                 
against.  He said an Alaska test would be handy if all Alaska                  
students remain within the confines of the State of Alaska, and                
other students were not allowed in, because DOE could "dumb down"              
the standard far enough to show that all Alaskan students are above            
average.  Senator Taylor said that is what this Administration did             
by eliminating the use of nationally normed tests and now DOE "is              
off in the ethers of educational theory trying to determine what               
our standards will be."  Senator Taylor pointed out a national                 
speaker visited Juneau a month ago and after reviewing DOE's                   
current draft standards, the speaker said DOE has no standards.  He            
said DOE's draft standards provide for a hiring preference for                 
educators with certain backgrounds and DOE wants to set up its own             
test so as not to gauge Alaska students against anyone else.                   
Senator Taylor noted he modified the bill significantly because                
people were concerned that the bill is a direct mandate.  The bill             
now requires that nationally normed tests be used for three                    
consecutive years on elementary school students.  At the end of the            
first three year period, if students are scoring well, schools do              
not have to do anything.  If a certain percentage of students score            
below the national norm, schools will be mandated to teach a                   
phonics-based program as the major part of the reading program.                
Senator Taylor emphasized that his only concern is that children               
learn how to read, and he would hope that the same concern was                 
shared by the educational community.  He said it obviously is not,             
or we would not have such disastrous statistics today in our                   
educational system.  He stated he wished the educational community             
would join him in trying to stop the downward slide of reading                 
proficiencies.                                                                 
                                                                               
SENATOR TAYLOR stated Commissioner Holloway knows a problem exists             
and also supports a phonics-based curriculum.  He stated it takes              
a very courageous administrator in this state to walk into a school            
system and try to convince the cadre of whole-language based                   
instructors that they are not doing a very good job.  He stated                
moving this institution just a little bit is a huge problem, and it            
should not be.                                                                 
                                                                               
Number 280                                                                     
                                                                               
CHAIRMAN WILKEN noted discussion took place at a previous meeting              
about the advisability of testing first graders, and maybe even                
second graders.  He asked Senator Taylor what his thoughts are on              
that topic.                                                                    
                                                                               
SENATOR TAYLOR answered if testing does not occur at those grades,             
a student's problems will not be evident until the third grade.  He            
said his intent is that problems be addressed as soon as a student             
enters school, rather than waiting three years.                                
                                                                               
Number 270                                                                     
                                                                               
CHAIRMAN WILKEN asked if under Senator Taylor's proposal, first                
graders would be tested at the beginning of the school year.                   
                                                                               
SENATOR TAYLOR said yes.                                                       
                                                                               
CHAIRMAN WILKEN commented the committee struggled through the issue            
of using nationally-normed tests, and although everyone is not                 
happy, a concensus was reached that the problem will be finding the            
right test.                                                                    
                                                                               
SENATOR GREEN remarked that grade appropriate tests do exist and               
those tests are not as intrusive as the "bubble" tests.  She asked             
Senator Taylor if he is committed to using a group administered                
nationally-normed test.                                                        
                                                                               
SENATOR TAYLOR said he is not, and would have preferred to require             
the use of individually administered tests, but group administered             
tests are less expensive.  He stated his intent is to use the test             
as a screening device to provide an indication of the percentage of            
students who truly need help.  If a student is found to need help,             
the original draft required that an individually administered test             
then be given.  He repeated the cost of requiring individually                 
administered tests was a factor he tried to avoid.                             
                                                                               
SENATOR GREEN asked whether Senator Taylor would object to                     
providing school districts the option of giving individually                   
administered tests rather than group administered tests.                       
                                                                               
SENATOR TAYLOR said he did not object.                                         
                                                                               
SENATOR GREEN thought that option would be appropriate for first               
graders.  She moved to amend SSSB 203 to read on page 2, line 2,               
"...using a nationally normed individually-administered or group-              
administered test...."                                                         
                                                                               
SENATOR LEMAN suggested deleting the words "group-administered"                
instead.                                                                       
                                                                               
SENATOR GREEN and SENATOR TAYLOR both said they would agree to that            
amendment.                                                                     
                                                                               
CHAIRMAN WILKEN announced that there being no objection to deleting            
the word "group-administered" on page 2, line 2, and anywhere else             
it may appear in the bill, the motion carried.                                 
                                                                               
CHAIRMAN WILKEN clarified the committee was discussing SSSB 203,               
version X.                                                                     
                                                                               
SENATOR WARD moved an amendment to remove the word "majority" on               
page 2, line 13, and to insert the words "25 percent or more."                 
                                                                               
There being no objection to the adoption of Senator Ward's                     
amendment, CHAIRMAN WILKEN announced the motion carried.                       
                                                                               
SENATOR LEMAN moved to delete the word "problem" on page 2, line 10            
and replace it with the word "deficiency."                                     
                                                                               
SENATOR GREEN expressed concern that using the word "deficiency"               
might overlap with the definition of a learning disability,                    
preventing the screening of children who do not actually have a                
disability.  She cautioned against confusing the intent of the                 
language in SSSB 203 with the psycho-educational battery of tests              
used to diagnose learning disabled students.                                   
                                                                               
SENATOR LEMAN stated his intent was to include students who might              
have a deficiency that was not yet classified as a problem.                    
                                                                               
SENATOR TAYLOR commented he does not want to confuse learning                  
disabilities with learning problems because they are significantly             
different.                                                                     
                                                                               
CHAIRMAN WILKEN asked Senator Green to work on that language.  He              
announced his intent to incorporate the amendments adopted today               
into a committee substitute along with some changes requested by               
DOE, and to bring the bill back before the committee.                          
                                                                               
SENATOR WARD noted he planned to make a motion to move the bill out            
of committee today.                                                            
                                                                               
The committee took a brief at-ease.                                            
                                                                               
CHAIRMAN WILKEN took teleconference testimony on SSSB 203.                     
                                                                               
MR. A.M. JOHNSON made the following comments via teleconference                
from Ketchikan.  He informed committee members a school in Texas,              
with a 85 to 87 percent minority student body, is now ranked among             
the top 12 or 13 elementary schools after it was in the bottom                 
quartile of its district three years ago.  In the area of reading,             
the school's success is contributed to the introduction and use of             
phonics.  Systematic intensive phonics calls for repetition and                
practice.  The special education costs in the Texas school district            
have decreased, and legislative review of abuse of special                     
education funds in Alaska has been acknowledged.  He stated Alaska             
is spending as much as $17,000 per student in some districts, and              
between 50 and 100 percent of the students in those districts are              
performing at the lowest quartile in reading.  Opposition to                   
phonics instruction is coming from the very institution that has               
allowed the status quo for years; three more years of it is                    
unacceptable.  He stated 21 percent of Ketchikan's students are                
scoring in the lowest quartile on the Gates-McGinnis test.  If one             
adds the students scoring in the fourth stanine, a total of 41                 
percent of Ketchikan's first graders are performing at an                      
unacceptable level.  Local research is showing that continuance of             
this deficiency throughout students' schooling contributes to a                
high percentage of high school drop outs.  Those students become               
discouraged, dropout, and become a problem to society.  He stated              
the Ketchikan school district claims to use phonics, but he calls              
it "single digit" phonics, not extensive, specific phonics.  Mr.               
Johnson said SSSB 203 is an attempt to address a deficiency and is             
in line with a national awakening for the need to face this concern            
with a "fresh old" solution.                                                   
                                                                               
MR. JOHNSON stated he cannot locate a specific teaching college                
that teaches the instruction of intensive phonics.  Phonics is a               
result-based process.  The code learned through phonics unlocks the            
ability to understand and learn reading skills.  He encouraged                 
committee members to pass SSSB 203.                                            
                                                                               
Number 098                                                                     
                                                                               
HANNAH RAMISKEY, president of the Ketchikan School Board, testified            
on her own behalf.  She stated she believes Senator Taylor's bill              
is focussed on accountability which seems to be a major public                 
concern. The current concept in education seems to be developmental            
learning: everyone learns at a different rate and everyone learns              
in a different style.  That approach translates to the fact that no            
one is responsible.  If a child does not learn to read in first or             
second grade, it is not the fault of the school board, principal or            
teacher because everyone learns differently.  The problem is that              
the child may still not be able to read at the seventh grade level.            
If we accept the concept that through second grade children learn              
to read, and from third grade on they read to learn, every child               
who cannot read from third grade on begins to lose context,                    
therefore that child will fall further and further behind.                     
                                                                               
MS. RAMISKEY noted she discussed with the Ketchikan School                     
District's superintendent the question of what has been taught to              
our teachers over the past 20 to 30 years, to determine whether                
students are not being taught intensive phonics because it is                  
inappropriate for the particular students, or because the teachers             
are not well versed in the subject. She believes that question                 
needs to be answered if teachers want legislators to stay out of               
the classroom. She questioned who will be accountable to ensure                
that every child who is mentally capable learns to read before the             
third grade so that the lack of those skills does not become                   
detrimental to the child's education through the 12th grade.                   
                                                                               
Number 058                                                                     
                                                                               
DR. NICK STAYROOK, representing the Department of Education, noted             
he sent committee members copies of DOE's proposed amendments to               
SSSB 203.  He made the following comments on the three amendments              
made earlier during the meeting.  He thought the deletion of the               
words "group-administered" was favorable, but he noted that change             
will alter DOE's fiscal note.  Similarly, Senator Ward's motion to             
change the word "majority" to "25 percent or more" will affect                 
DOE's fiscal note.  He referred to a recent joint meeting of the               
House and Senate HESS committees to review Education Weeks' Quality            
Counts report.  In that report, the State of Alaska received many              
D and F grades in its education reform movement.  One of the major             
reasons Alaska scored so poorly is that it has no standards or                 
assessments for its students.  DOE's concern in moving toward                  
standards and assessment is to improve our educational system                  
through that process.  DOE's proposed amendments reflect that                  
concern.                                                                       
                                                                               
CHAIRMAN WILKEN commented two representatives of DOE were present              
and noted the need for a revised fiscal note.                                  
                                                                               
Number 022                                                                     
                                                                               
SENATOR TAYLOR asked Dr. Stayrook why the two amendments he                    
referred to will impact the fiscal note.                                       
                                                                               
DR. STAYROOK replied the costing DOE did to determine the cost of              
giving group-administered tests was limited to those types of tests            
only.  If individually-administered tests are given, or a different            
type of screening device is used, DOE will have to look at what the            
publishers' costs are for those tests.                                         
                                                                               
SENATOR TAYLOR asked Dr. Stayrook if he was implying those tests               
would be more expensive.                                                       
                                                                               
DR. STAYROOK said he could not say without looking at what is                  
available from test publishers.                                                
                                                                               
SENATOR TAYLOR asked why the amendment pertaining to more than 25              
percent of the students would impact the fiscal note.                          
                                                                               
DR. STAYROOK answered the original bill required that if a majority            
of the students at a specific grade level score below the 25th                 
percentile, the governing body would have to create a systematic               
phonics program.  The amendment requires the same approach if 25               
percent or more of the students score below the 25th percentile.               
That percentage change will significantly change the number of                 
districts that will be affected by Section 2.                                  
                                                                               
SENATOR TAYLOR asked what costs are associated with incorporating              
a phonics program into a school district's curriculum.                         
                                                                               
DR. STAYROOK said a number of costs are involved in reviewing what             
phonics programs are available.  Staff development costs will occur            
as well.  The original fiscal note contained funds for staff                   
development and other technical assistance to districts.  The                  
amendment will increase the number of districts needing this kind              
of assistance.                                                                 
                                                                               
CHAIRMAN WILKEN announced his intent is to bring the committee                 
substitute before the committee as soon as possible, most likely               
Wednesday.  He asked DOE staff to revise the fiscal note.                      
                                                                               
SENATOR TAYLOR commented that Dr. Stayrook stated DOE was moving               
toward educational standards.  He reminded committee members DOE               
had not moved at all toward educational standards until this                   
Legislature passed laws mandating it to do so.  DOE has now spent              
over one year working on the very standards the Legislature gave it            
the discretion to set.  If DOE is unable to come up with standards             
that are measurable, meaningful, quantifiable, and have had some               
decent peer review, Alaska will find itself in the same boat.                  
[END OF TAPE]                                                                  
CHAIRMAN WILKEN adjourned the meeting at 10:50 a.m.                            

Document Name Date/Time Subjects