Legislature(1999 - 2000)

02/16/2000 01:32 PM 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                                                                    
                        February 16, 2000                                                                                       
                            1:32 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Mike Miller, Chairman                                                                                                   
Senator Pete Kelly, Vice-Chairman                                                                                               
Senator Gary Wilken                                                                                                             
Senator Kim Elton                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Drue Pearce                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
SENATE BILL NO. 127                                                                                                             
"An Act relating to scholarships to attend the University of                                                                    
Alaska; and providing for an effective date."                                                                                   
     -HEARD AND HELD                                                                                                            
                                                                                                                                
SENATE BILL NO. 254                                                                                                             
"An Act relating to heirloom certificates of marriage."                                                                         
     -MOVED CSSB 254(HES) OUT OF COMMITTEE                                                                                      
                                                                                                                                
SENATE BILL NO. 233                                                                                                             
"An Act relating to priorities, claims, and liens for payment for                                                               
certain medical services provided to medical assistance recipients;                                                             
and providing for an effective date."                                                                                           
     -MOVED SB 233 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 244                                                                                                             
"An Act increasing the eligible maximum amount for quality school                                                               
grant funding for school districts; and providing for an effective                                                              
date."                                                                                                                          
     -MOVED SB 244 OUT OF COMMITTEE                                                                                             
                                                                                                                                
Alaska Mental Health Board Presentation on the December, 1999                                                                   
Report by the U.S. Surgeon General on Mental Health                                                                             
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
SB 127 - No previous Senate action.                                                                                             
                                                                                                                                
SB 233 - No previous Senate action.                                                                                             
                                                                                                                                
SB 244 - No previous Senate action.                                                                                             
                                                                                                                                
SB 254 - No previous Senate action.                                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Elmer Lindstrom, Special Assistant                                                                                              
Department of Health and Social Services                                                                                        
PO Box 110601                                                                                                                   
Juneau, AK  99801-0601                                                                                                          
POSITION STATEMENT:  Supports SB 254                                                                                            
                                                                                                                                
Carol Brice, President                                                                                                          
Alaska Childrens' Trust                                                                                                         
c/o Department of Community and Economic Development                                                                            
PO Box 112100                                                                                                                   
Juneau, AK  99811                                                                                                               
POSITION STATEMENT:  Supports SB 254                                                                                            
                                                                                                                                
Jon Sherwood, Program Officer                                                                                                   
Division of Medical Assistance                                                                                                  
Department of Health and Social Services                                                                                        
PO Box 110660                                                                                                                   
Juneau, AK  99801-0660                                                                                                          
POSITION STATEMENT:  Supports SB 233                                                                                            
                                                                                                                                
Rick Cross, Commissioner                                                                                                        
Department of Education                                                                                                         
801 W 10th St. Ste. 200                                                                                                         
Juneau, AK  99801-1894                                                                                                          
POSITION STATEMENT:  Supports SB 244                                                                                            
                                                                                                                                
Carl Rose, Executive Director                                                                                                   
Association of Alaska School Boards                                                                                             
316 W 11th                                                                                                                      
Juneau, AK  99801                                                                                                               
POSITION STATEMENT:  Supports SB 244 and SB 127                                                                                 
                                                                                                                                
Vernon Marshall                                                                                                                 
National Education Association of Alaska                                                                                        
114 2nd                                                                                                                         
Juneau, AK  99801                                                                                                               
POSITION STATEMENT:  Supports SB 244                                                                                            
                                                                                                                                
Ann Ringstad                                                                                                                    
Director of Government Relations                                                                                                
University of Alaska                                                                                                            
PO Box 755120                                                                                                                   
Fairbanks, AK  997775                                                                                                           
POSITION STATEMENT:  Supports SB 127                                                                                            
                                                                                                                                
Jim Lynch                                                                                                                       
Vice President of Finance                                                                                                       
University of Alaska                                                                                                            
PO Box 755120                                                                                                                   
Fairbanks, AK  997775                                                                                                           
POSITION STATEMENT:  Supports SB 127                                                                                            
                                                                                                                                
Walter Majoros, Executive Director                                                                                              
Alaska Mental Health Board                                                                                                      
431 N.Franklin Street                                                                                                           
Suite 200                                                                                                                       
Juneau, AK 99801-1121                                                                                                           
                                                                                                                                
Caren Robinson, Chair                                                                                                           
Alaska Mental Health Trust Authority                                                                                            
550 W 7th Ave., Suite 1820                                                                                                      
Anchorage, AK  99501                                                                                                            
                                                                                                                                
Karl Brimner, Director                                                                                                          
Division of Mental Health & Developmental Disabilities                                                                          
Department of Health and Social Services                                                                                        
PO Box 110620                                                                                                                   
Juneau, AK  99811-0620                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-5, SIDE A                                                                                                               
Number 001                                                                                                                      
                                                                                                                                
CHAIRMAN MILLER called the Senate Health, Education and Social                                                                  
Services (HESS) Committee to order at 1:32 p.m.  Present were                                                                   
Senators Pete Kelly, Elton and Miller.  The first order of business                                                             
to come before the committee was SB 254.                                                                                        
                                                                                                                                
             SB 254-HEIRLOOM MARRIAGE CERTIFICATES                                                                              
                                                                                                                                
ELMER LINDSTROM, Special Assistant to Commissioner Karen Perdue of                                                              
the Department of Health and Social Services (DHSS), gave the                                                                   
following testimony on SB 254. Several years ago the Legislature                                                                
passed legislation that allowed for the issuance of heirloom birth                                                              
certificates.  That program has been quite successful and has                                                                   
generated thousands of dollars for the Alaska Childrens' Trust.  SB
254 expands that program to allow the sale of heirloom marriage                                                                 
certificates.  DHSS collects the funds for the Alaska Childrens'                                                                
Trust.  The DHSS fiscal note estimates additional revenues in the                                                               
amount of about $270,000.  That amount would be offset by the                                                                   
operating costs of issuing the certificates.                                                                                    
                                                                                                                                
MR. LINDSTROM noted that Commissioner Perdue suggested, rather than                                                             
limiting the fee to $25, leaving the bill open-ended to allow DHSS                                                              
to issue limited or special edition certificates to commemorate                                                                 
particular events.  He offered a proposed amendment to allow DHSS                                                               
to establish the surcharge in regulation and set the amount at no                                                               
more than the estimated actual cost to DHSS not to exceed the                                                                   
estimated fair market value of comparable artistic rendition.  That                                                             
language would make the fee market driven.  He pointed out that the                                                             
fiscal note assumes that the surcharge will be $25 at the outset.                                                               
                                                                                                                                
Number 302                                                                                                                      
                                                                                                                                
SENATOR ELTON said he believes SB 254 is a great idea but he is                                                                 
chagrin that an Alaska adopted child is not eligible for an                                                                     
heirloom birth certificate.  He asked DHSS staff to respond to his                                                              
concern at a later date.                                                                                                        
                                                                                                                                
CAROL BRICE, Chair of the Alaska Children's Trust, speaking via                                                                 
teleconference from Fairbanks, said the Trust needs to address                                                                  
Senator Elton's concern, as well as a concern expressed about                                                                   
making heirloom birth certificates available for people born in                                                                 
territorial days.  She then made the following comments.  At a cost                                                             
of $25 per marriage certificate, the Alaska Children's Trust could                                                              
deposit as much as $150,000 to $200,000 per year.  On the average,                                                              
5300 marriages take place in Alaska each year.  She asked for                                                                   
committee members' support of the legislation.                                                                                  
                                                                                                                                
SENATOR PETE KELLY moved to adopt Amendment 1 proposed by Mr.                                                                   
Lindstrom of DHSS.  Amendment 1 reads as follows.                                                                               
                                                                                                                                
     Page 1, line 6:                                                                                                            
          Delete "of $25"                                                                                                       
          Insert "established by regulation"                                                                                    
     Page 1, line 8:                                                                                                            
          Following "registrar."                                                                                                
          Insert:                                                                                                               
               "(b) The department shall adopt regulations that                                                                 
establish the amount of the fee for each design of an heirloom                                                                  
certificate of marriage.  Notwithstanding AS 37.10.050(a), each fee                                                             
shall be set at an amount that is more than the estimated actual                                                                
costs to the department not to exceed the estimated fair market                                                                 
value of a comparable artistic rendition."                                                                                      
                                                                                                                                
     Page 1, line 11:                                                                                                           
          Delete "(b)"                                                                                                          
          Insert "(c)"                                                                                                          
     Page 1, line 14:                                                                                                           
          Delete "(c)"                                                                                                          
          Insert "(d)"                                                                                                          
     Page 2, line 1:                                                                                                            
          Delete "(d)"                                                                                                          
          Insert "(e)"                                                                                                          
     Page 2, line 5:                                                                                                            
          Correct section number.                                                                                               
                                                                                                                                
There being no objection, CHAIRMAN MILLER announced Amendment 1 was                                                             
adopted.                                                                                                                        
                                                                                                                                
There being no further testimony or discussion, SENATOR PETE KELLY                                                              
moved SB 254 as amended to its next committee of referral with                                                                  
individual recommendations and its accompanying fiscal note.  There                                                             
being no objection, the motion carried.                                                                                         
                                                                                                                                
            SB 233-MEDICAL ASSISTANCE:LIENS & CLAIMS                                                                            
                                                                                                                                
JON SHERWOOD, Division of Medical Assistance, DHSS, gave the                                                                    
following testimony.  SB 233 has two purposes.  The first regards                                                               
DHSS's third party recovery efforts.  A federal Medicaid                                                                        
requirement mandates applicants for medical assistance to sign                                                                  
their right to third party recovery to the State of Alaska.  The                                                                
State of Alaska has a duty to exercise that right to recover.  Over                                                             
the years, contractors hired by DHSS to pursue third party                                                                      
recoveries have identified weaknesses in Alaska statutes that                                                                   
prevent DHSS from assuming its rightful place at the table during                                                               
the settlement of lawsuits.  SB 233 amends Alaska statutes to                                                                   
enhance the State's ability to recover money.  SB 233 requires                                                                  
recipients to notify DHSS of recovery action, creates an authority                                                              
for DHSS to place a lien upon such recoveries and gives a precedent                                                             
to that lien, and gives DHSS the right to take actions in third                                                                 
party recoveries.  DHSS believes these changes will increase                                                                    
collections from lawsuits and settlements.                                                                                      
                                                                                                                                
MR. SHERWOOD explained that other provisions in the bill pertain to                                                             
timely filing of claims for provider payment for medical                                                                        
assistance.  Currently, providers are allowed up to six months to                                                               
make claims for payment unless the provider has to bill private                                                                 
insurance first, in which case the deadline is 12 months.  SB 254                                                               
changes the limit to 12 months for all claims.  Providers are                                                                   
forced to do a lot of additional processing when submitting claims                                                              
if they are unable to get all of the information they need within                                                               
the six month window.  Often these situations occur when patients                                                               
have a serious illness or have been in an accident and are unable                                                               
to get Medicaid eligibility information to their provider.  SB 254                                                              
also allows DHSS, when it finds basis for a good cause exception,                                                               
to pay 100 percent of a late claim.  Current statute limits that                                                                
payment to 50 percent.  DHSS sees this provision as a basic                                                                     
fairness issue - if the provider has a good reason for not filing                                                               
in a timely fashion, the provider should be entitled to the full                                                                
payment.                                                                                                                        
                                                                                                                                
Number 920                                                                                                                      
                                                                                                                                
SENATOR PETE KELLY asked whether Medicaid pays all of the bill.                                                                 
                                                                                                                                
MR. SHERWOOD explained that DHSS would pay the entire bill but it                                                               
would file a lien in a case where a patient was hit by a drunk                                                                  
driver and received a settlement from a third party - for example,                                                              
a bar, insurance company, or other business.                                                                                    
                                                                                                                                
There being no further testimony or discussion, SENATOR ELTON moved                                                             
SB 233 from committee with individual recommendations and its                                                                   
accompanying fiscal note.  There being no objection, the motion                                                                 
carried.                                                                                                                        
                                                                                                                                
           SB 244-QUALITY SCHOOL GRANT FUND INCREASE                                                                            
                                                                                                                                
COMMISSIONER RICK CROSS, Department of Education and Early                                                                      
Development, informed committee members that SB 244 increases the                                                               
current $16 average daily membership amount paid in quality school                                                              
grants to $52.  The cost of this proposal will amount to about $7.6                                                             
million.  The quality school grant is a targeted, value added,                                                                  
accountability grant, designed to accomplish the State's goal of                                                                
bringing accountability and high standards of student achievement                                                               
in Alaska's public schools.  In 1998, when the Quality School                                                                   
Initiative and grant program was established, it was specifically                                                               
targeted by the Legislature to fund accountability.  The                                                                        
accountability grants will jump start the kind of changes that need                                                             
to occur in Alaska's schools to ensure that all students reach high                                                             
standards.                                                                                                                      
                                                                                                                                
COMMISSIONER CROSS said the State will save $19.9 million this year                                                             
as the result of three changes:  declining school enrollment;                                                                   
increased local property values which have shifted the                                                                          
responsibility for school funding from the State to local                                                                       
communities; and increases in federal Impact to Aid payments that                                                               
Alaska receives.  School districts anticipated higher revenues this                                                             
year and have had to make significant adjustments to their budgets                                                              
to accommodate for the loss of revenue.  Some districts are facing                                                              
as much as $4 million in reductions in expenditures.  The $7.6                                                                  
million of grants will give school districts money to raise                                                                     
standards and student achievement, and it will allow teachers to                                                                
spend more time on task with students.                                                                                          
                                                                                                                                
In 1998, Minnesota allocated $70 million to help school districts                                                               
implement new standards.  Last year, the Washington State                                                                       
Legislature passed a $113 million package of initiatives to support                                                             
reforms.  In 1999, the Connecticut Legislature passed a budget that                                                             
added $70 million to help schools get better results.  The State of                                                             
Louisiana set aside $200 million for reforms which amounts to about                                                             
$256 per student.  These states, and a number of others, are                                                                    
recognizing that additional resources are needed to support schools                                                             
as they raise standards and hold students and teachers accountable.                                                             
He hopes Alaska will do the same.                                                                                               
                                                                                                                                
Number 1239                                                                                                                     
                                                                                                                                
SENATOR WILKEN pointed out that DOE submitted a zero fiscal note                                                                
although the cost of the increase will be $7.6 million.                                                                         
                                                                                                                                
COMMISSIONER CROSS explained the zero fiscal note reflects the fact                                                             
that the Governor's budget for the foundation includes the $7.6                                                                 
million.  If a different budget is used, the fiscal note will need                                                              
to be changed.  He noted that the fiscal note contains a statement                                                              
explaining that the money has been accounted for in the Governor's                                                              
budget in the Foundation Program.                                                                                               
                                                                                                                                
SENATOR WILKEN maintained that fiscal notes are to reflect changes                                                              
in current spending.                                                                                                            
                                                                                                                                
SENATOR PETE KELLY agreed that the fiscal note should reflect the                                                               
$7.6 million.                                                                                                                   
                                                                                                                                
SENATOR WILKEN surmised that the fiscal note reflects a diversion                                                               
from the normal process and requires users to "connect the dots."                                                               
                                                                                                                                
CHAIRMAN MILLER agreed.                                                                                                         
                                                                                                                                
COMMISSIONER CROSS said his understanding is that DOE is to work                                                                
off of the Governor's budget and therefore the fiscal note is                                                                   
correct.  He added that the fiscal note is clear about the costs                                                                
associated with the bill.                                                                                                       
                                                                                                                                
CHAIRMAN MILLER stated that the next committee of referral is where                                                             
the fiscal note will be reviewed.                                                                                               
                                                                                                                                
Number 1282                                                                                                                     
                                                                                                                                
SENATOR PETE KELLY asked if DOE has written its fiscal notes based                                                              
on the current year's budget or the projected budget in the past.                                                               
                                                                                                                                
COMMISSIONER CROSS acknowledged that he has not been involved for                                                               
too many years but he repeated that the rules DOE is to go by                                                                   
require that the fiscal note reflect the cost if the money is not                                                               
accounted for in the Governor's budget.                                                                                         
                                                                                                                                
SENATOR ELTON asked for an explanation of the application process                                                               
the districts use and the number of districts that have                                                                         
participated in the Quality Schools grant program at the $16 level.                                                             
                                                                                                                                
COMMISSIONER CROSS replied that all districts have participated in                                                              
the grant program and the application process was designed by DOE.                                                              
Each district submits an application explaining how the money will                                                              
be targeted and on what programs.  The districts use the money for                                                              
various programs that target poor student performance, i.e. summer                                                              
school programs, tutoring, and extended-day programs.  DOE reviews                                                              
applications and asks for clarification if the use of the money is                                                              
unclear.  The program is not competitive: each district is allotted                                                             
a specific amount.                                                                                                              
                                                                                                                                
SENATOR ELTON asked if DOE checks to see whether it is substituting                                                             
Quality Schools Initiative grant funding for programs that would                                                                
have otherwise been funded from other sources, thereby freeing up                                                               
dollars in an existing budget to be spent on functions not related                                                              
to quality schools.                                                                                                             
                                                                                                                                
COMMISSIONER CROSS indicated that DOE's auditing of school                                                                      
districts is fairly broad but is getting better as time goes on.                                                                
If DOE found a district was substituting quality school money for                                                               
a different program funded through a different grant, it would                                                                  
question that expenditure.                                                                                                      
                                                                                                                                
Number 1497                                                                                                                     
                                                                                                                                
SENATOR ELTON commented that he is not opposed to the concept of SB
244, but he sees several ways to tackle this problem.  He noted                                                                 
that if DOE does not audit to ensure that the additional money will                                                             
be spent on academics, then Senator Wilken's approach (SB 198)                                                                  
might be better.                                                                                                                
                                                                                                                                
COMMISSIONER CROSS said he supports Senator Wilken's bill but he is                                                             
asking for support of SB 244 because it will ensure that money is                                                               
targeted to meet an immediate need that school districts face.                                                                  
Regarding the auditing, DOE follows up to make sure the districts                                                               
are providing the services they were given the grant money for.                                                                 
                                                                                                                                
CARL ROSE, Executive Director of the Association of Alaska School                                                               
Boards (AASB), expressed support for SB 244 for the following                                                                   
reasons.  Many school districts anticipated the $19 million that is                                                             
not forthcoming so they are going through severe budget reductions                                                              
as a result.  Two issues face Alaska school districts:  operational                                                             
costs and the quality initiatives that have been mandated.  The                                                                 
quality initiatives serve a purpose but will require school                                                                     
districts to address student achievement on the upcoming exams.  He                                                             
does not believe Alaska will see wholesale success on those exams                                                               
at the start.  As younger students go through the bench marking                                                                 
process at the third, sixth and eighth grades, they will be ready                                                               
for the qualifying exam.  He is very concerned about remediation                                                                
for those students who do not fare well in the new system.  The                                                                 
AASB supports both SB 244 and SB 198.  Each bill addresses a                                                                    
different issue: one is categorical through grants, the other gives                                                             
districts latitude for operations.  Alaska has the responsibility                                                               
of ensuring that its students are as successful as possible in our                                                              
global economy.                                                                                                                 
                                                                                                                                
SENATOR ELTON asked if remediation programs would be eligible for                                                               
funding from a quality school grant.                                                                                            
                                                                                                                                
MR. ROSE said the question of why students do not score well on the                                                             
upcoming exam and what we can do to help those students will be on                                                              
the table.  Providing those students with more of the same is                                                                   
probably not the answer so the AASB is looking at new strategies.                                                               
                                                                                                                                
SENATOR ELTON asked if the grant money is used for remediation,                                                                 
whether the district would receive $52 per student who needed                                                                   
remediation or whether it would get $52 per ADM in the district                                                                 
which could be used to remediate fewer students.                                                                                
                                                                                                                                
MR. ROSE said he believes each school district will come up with                                                                
strategies they feel will meet their students' needs and they will                                                              
apply to DOE.                                                                                                                   
                                                                                                                                
Number 1880                                                                                                                     
                                                                                                                                
VERNON MARSHALL, NEA-Alaska, stated support for SB 244 and                                                                      
commended the committee for acting on SB 198.  The Senate HESS                                                                  
committee has been the first committee to step to the plate and try                                                             
to deal with the school funding issue as it applies to 2001 and                                                                 
beyond.  The school year of 1999-2000 will probably be remembered                                                               
as the year of the "test."  In March the first exit exam will be                                                                
administered and he assumes that before the end of the school term,                                                             
the bench mark testing at grades 3,6, and 8 will occur.  The next                                                               
significant date will be the year 2002 because the exam given in                                                                
March will be given to seniors and determine whether they receive                                                               
a diploma.  During that year every school will be designated. The                                                               
next two years are years of opportunity.  Test results will be                                                                  
available in the fall of the year 2000 and at that time educators                                                               
will have to review the results and look at the curriculum to                                                                   
educate better.  The issue of remediation will also have to be                                                                  
addressed.  He hopes the remediation programs in place in Fairbanks                                                             
are replicated throughout Alaska because that model is held up with                                                             
respect.  The average teacher salary in Alaska has fallen to                                                                    
$47,100.  The average is decreasing, but the money saved does not                                                               
appear to be used for other personnel services by school districts.                                                             
He suspects that much of that money is being plowed into                                                                        
remediation, curriculum realignment, and other things.  He asked                                                                
for support of SB 244 and said it is a good coupler with SB 198.                                                                
                                                                                                                                
There being no further testimony or discussion, SENATOR WILKEN                                                                  
moved SB 244 with individual recommendations and its accompanying                                                               
fiscal note.  There being no objection, the motion carried.                                                                     
                                                                                                                                
            SB 127-UNIVERSITY OF ALASKA SCHOLARSHIPS                                                                            
                                                                                                                                
ANN RINGSTAD, Government Relations Director for the Statewide                                                                   
Office of University Relations, University of Alaska (UA), stated                                                               
support for SB 127 and made the following comments.  This                                                                       
legislation came before the committee in a different form last                                                                  
year. It allowed the UA to get from high schools the names and                                                                  
addresses of students who qualify for the Alaska Scholars Program.                                                              
SB 127 will put the Alaska Scholars Program into statute and it                                                                 
repeal statutory language about other scholarship programs that may                                                             
or may not be in effect right now.                                                                                              
                                                                                                                                
CHAIRMAN MILLER noted the committee has a work draft before it                                                                  
labelled "Ford 2/16/00 - GS 1029/D."  He asked Ms. Ringstad to                                                                  
address that version (Version D) of the bill.                                                                                   
                                                                                                                                
MS. RINGSTAD said Version D aligns the legislation with the program                                                             
that is in place today.                                                                                                         
                                                                                                                                
SENATOR WILKEN asked if Version D funds the Alaska Scholars Program                                                             
out of the Alaska Student Loan Corporation (ASLC) profits.                                                                      
                                                                                                                                
MR. JIM LYNCH, Vice President of Finance for the University of                                                                  
Alaska, replied he does not think this bill does that.                                                                          
                                                                                                                                
MS. RINGSTAD clarified that the Governor has submitted legislation                                                              
to use proceeds from the ASLC.  That legislation does not                                                                       
necessarily state that those funds will be applied to SB 127 but                                                                
the bill's fiscal note could lead one to believe that some of that                                                              
money will be used to fund it.  The UA plans to fund the program                                                                
out of its own pocket in FY00 and FY01 and is not asking for                                                                    
general funds until next year.                                                                                                  
                                                                                                                                
CHAIRMAN MILLER asked if Version D merely sets the scholarship                                                                  
eligibility criteria in statute.                                                                                                
                                                                                                                                
MS. RINGSTAD said that is correct.                                                                                              
                                                                                                                                
Number 2229                                                                                                                     
                                                                                                                                
SENATOR WILKEN asked whether there is any connection between                                                                    
Version D and the ASLC proceeds.                                                                                                
                                                                                                                                
MS. RINGSTAD replied, "There could be, that could be part of the                                                                
funds to be used in the future to be paid in the future to pay for                                                              
a portion of it."                                                                                                               
                                                                                                                                
CHAIRMAN MILLER asked if anything attaches those funds to this                                                                  
bill.                                                                                                                           
                                                                                                                                
MS. RINGSTAD said there is not.                                                                                                 
                                                                                                                                
Number 2258                                                                                                                     
                                                                                                                                
CARL ROSE, Association of Alaska School Boards, stated support for                                                              
this legislation because it addresses the AASB's concern that                                                                   
education be viewed as a kindergarten through university level                                                                  
experience rather than a K-12 experience.                                                                                       
                                                                                                                                
CHAIRMAN MILLER asked Mr. Lynch to come back to the table.                                                                      
                                                                                                                                
SENATOR WILKEN indicated that the fiscal note for Version D (CSSB
127(HES) clearly states that the fiscal note assumes the return of                                                              
capital payments from the ASLC to partially fund the Alaska                                                                     
Scholars Program.  He maintained that language creates a very clear                                                             
connection between Version D and the Alaska Scholars Program.                                                                   
                                                                                                                                
MR. LYNCH said he has not seen that fiscal note.                                                                                
                                                                                                                                
CHAIRMAN MILLER noted that Mr. Lynch's signature is on the fiscal                                                               
note.                                                                                                                           
                                                                                                                                
SENATOR WILKEN asked Mr. Lynch when he found out about this scheme.                                                             
                                                                                                                                
MR. LYNCH replied February 11.                                                                                                  
                                                                                                                                
SENATOR WILKEN asked Mr. Lynch if he is aware of the debt that the                                                              
ASLC owes the debt to the State of Alaska.                                                                                      
                                                                                                                                
MR. LYNCH replied that he is aware that there is a debt but he does                                                             
not know the amount.                                                                                                            
                                                                                                                                
SENATOR WILKEN noted that debt is about $42 million.   He asked                                                                 
Chairman Miller if he has received any comments from Diane Barrans                                                              
of the ASLP about this legislation.                                                                                             
                                                                                                                                
CHAIRMAN MILLER said he has not.                                                                                                
                                                                                                                                
SENATOR WILKEN made the following comment.                                                                                      
     I am not particularly concerned about the bill itself - I have                                                             
     great concern about the fact that someone, somewhere decided                                                               
     that they were going to take $6 million that the student loan                                                              
     corporation has worked hard to become profitable and this                                                                  
     Legislature and Administration's helped them do that - and as                                                              
     soon as we get $6 million into the plus, we ignore the                                                                     
     promises made in the past and we come trumped up with some                                                                 
     political deal to fund the Scholars Program because some one                                                               
     person happened to think it's a great idea, and I suggest that                                                             
     we just take this bill and put it in our pockets and leave                                                                 
     until all the people can be on board."                                                                                     
                                                                                                                                
TAPE 00-05, SIDE B                                                                                                              
                                                                                                                                
SENATOR WILKEN pointed out that he sits on the ASLC Board and that                                                              
Board members had a cursory discussion at the August and December                                                               
meeting about using the $6 million to pay the debt.  Suddenly, in                                                               
February, this has been rolled out to the public as if the entire                                                               
Board believes this is a good idea. He repeated that he is totally                                                              
supportive of the Scholars Program but he does not support taking                                                               
money that should be paying back the people of Alaska without                                                                   
taking the proper steps to get the ASLC on board, as well as its                                                                
managers and the Legislature.  He expressed frustration that                                                                    
Version D short-circuits the entire process.  He repeated that he                                                               
supports making changes to fix the Scholars Program in general, but                                                             
if legislation is connected to the student loan proceeds, and prior                                                             
commitments to that money are ignored, he is opposed to it.                                                                     
                                                                                                                                
SENATOR ELTON asked Mr. Lynch and Ms. Ringstad whether the UA could                                                             
operate the Alaska Scholars Program if it is not enshrined in                                                                   
statute.                                                                                                                        
                                                                                                                                
MR. LYNCH said it is his opinion that the UA could continue to run                                                              
the program.                                                                                                                    
                                                                                                                                
SENATOR ELTON asked if Senator Wilken's concerns are extant in the                                                              
legislative body, whether the UA could continue the program until                                                               
a resolution to the funding source is found.                                                                                    
                                                                                                                                
MR. LYNCH noted the bill also contains a few repealers for other                                                                
programs.                                                                                                                       
                                                                                                                                
SENATOR ELTON asked if those provisions need to be repealed this                                                                
session.                                                                                                                        
                                                                                                                                
MR. LYNCH said there is a cost associated with those provisions.                                                                
                                                                                                                                
SENATOR ELTON suggested that Mr. Lynch get back to the committee                                                                
with those costs and provide information on why the provisions need                                                             
to be repealed.  He agreed with Senator Wilken that the committee                                                               
should hold on to the bill for awhile.                                                                                          
                                                                                                                                
There being no further testimony on SB 127, CHAIRMAN MILLER asked                                                               
Mr. Lynch and Ms. Ringstad to contact the ASLC and Senator Wilken                                                               
to discuss the concerns expressed today.                                                                                        
                                                                                                                                
Number 2199                                                                                                                     
                                                                                                                                
CHAIRMAN MILLER announced the committee would hear a presentation                                                               
by Walter Majoros, Caren Robinson, and Karl Brimner on the                                                                      
December, 1999 report on mental health issues by the Surgeon                                                                    
General.                                                                                                                        
                                                                                                                                
WALTER MAJOROS, Executive Director of the Alaska Mental Health                                                                  
Board (AMHB), introduced Caren Robinson, Chair of the AMHTA, and                                                                
Karl Brimner, Director of the Division of Mental Health and                                                                     
Developmental Disabilities (DMHDD) in the Department of Health and                                                              
Social Services.  Mr. Majoros distributed copies of the U.S.                                                                    
Surgeon General's Report on Mental Health, published in December of                                                             
1999.                                                                                                                           
                                                                                                                                
CAREN ROBINSON stated that the AMHTA, the AMHB, the DMHDD, the                                                                  
Building Bridges Campaign, and the Alaska State Hospital and                                                                    
Nursing Home Association are sponsoring today's presentation.  All                                                              
of those organizations have endorsed the Surgeon General's report                                                               
and are using it to guide future policies and program development                                                               
and advocacy efforts.                                                                                                           
                                                                                                                                
MS. ROBINSON referred to page 3 and pointed out the significance of                                                             
this report is that very few surgeon generals have published                                                                    
reports, and this is the only report ever written on mental health                                                              
issues.  The Surgeon General considers this report to be of the                                                                 
same level of importance as the Surgeon General's report on                                                                     
smoking.                                                                                                                        
                                                                                                                                
MS. ROBINSON explained the partnerships involved in the creation of                                                             
the report included SAMHSA, the major federal funding and oversight                                                             
agency for mental health and substance abuse, and NIMH, the leading                                                             
federal research agency on mental health and mental illnesses.  The                                                             
planning board included hundreds of consumers, providers and other                                                              
stakeholders who collaborated to write the report.                                                                              
                                                                                                                                
MS. ROBINSON remarked that the importance of the report is that it                                                              
helps agencies answer key questions about mental health and mental                                                              
illness.  The report reviewed four main areas.  First, it evaluated                                                             
the national response to mental health - how the U.S.fares in                                                                   
addressing mental illness.  Second, it identified barriers to                                                                   
addressing mental illness - the issues that are preventing a more                                                               
positive response to mental illness.  Third, it helped guide future                                                             
policy and development by reviewing how services are organized and                                                              
provided.  Fourth, it called for action to reduce mental health                                                                 
problems in the nation.                                                                                                         
                                                                                                                                
MS. ROBINSON said a main point in the report is the importance of                                                               
treating mental health as a public health issue.  This means                                                                    
recognizing that mental health is fundamental to overall health and                                                             
that mental health disorders are real health conditions.  Mental                                                                
health disorders have an immense impact on a person's health and                                                                
can be extremely disabling.  Also, there is a growing recognition                                                               
of mental illness as a brain disorder that can be effectively                                                                   
treated like any other health condition.  In addition, mental                                                                   
health and physical health are inseparable and impact each other.                                                               
                                                                                                                                
Number 2060                                                                                                                     
                                                                                                                                
MR. MAJOROS discussed the continuum of mental health and illness.                                                               
The report views mental health and mental illness as points on a                                                                
continuum.  In this light, the continuum applies to everyone.                                                                   
First, it is important to look at what is meant by the terms                                                                    
"mental health, mental health problems, and mental illness."                                                                    
Mental health is described as positive mental functioning that                                                                  
results in productivity, positive relationships, and the ability to                                                             
adapt.  Mental health problems are defined as situational or                                                                    
developmental conditions that cause short term distress and                                                                     
impaired functioning a condition that everyone experiences.  Mental                                                             
illness involves alterations in thinking, mood, or behavior which                                                               
lead to more severe, longer-term distress and impaired functioning.                                                             
                                                                                                                                
MR. MAJOROS said it is important to note that different points on                                                               
the continuum call for different interventions that move from                                                                   
prevention and informal supports to comprehensive and long term                                                                 
treatments and supports.  In addition, it is important to note that                                                             
conditions become more disabling as one moves up the continuum.                                                                 
Finally, the cost of services increases as one moves up the                                                                     
continuum.                                                                                                                      
                                                                                                                                
MR. MAJOROS referred to a corrected chart on page 7 that presents                                                               
the percent of disease burden of disabling diseases.  Mental                                                                    
illnesses account for 15.4 percent of the overall years of life                                                                 
lost to major illnesses in our country.  The disease burden of                                                                  
mental illness is second only to heart disease and is greater than                                                              
all forms of cancer added together.                                                                                             
                                                                                                                                
SENATOR ELTON asked for further explanation of the percent of                                                                   
disease burden.                                                                                                                 
                                                                                                                                
MR. MAJOROS explained that if all years of lost life from all                                                                   
diseases for everyone in the country were totalled, 15.4 percent of                                                             
those years would be attributable to mental illnesses.                                                                          
                                                                                                                                
Number 1866                                                                                                                     
                                                                                                                                
MR. BRIMNER informed committee members of the following facts about                                                             
mental illness.  Up to half of all visits to primary care                                                                       
physicians are due to conditions caused or exacerbated by mental                                                                
health problems.  Approximately 15 percent of all adults with a                                                                 
mental disorder have a co-occurring substance abuse disorder.  As                                                               
many as half of people with serious mental illnesses develop                                                                    
alcohol or drug abuse problems, at some point in their lives. A                                                                 
third fact is that one in five children has a diagnosable emotional                                                             
disorder.  Many problems associated with emotional disturbances in                                                              
children are best addressed with a systems approach in which                                                                    
multiple service sectors work together in an organized and                                                                      
collaborative way.  The incidence of suicide among 15 to 24 year                                                                
olds has tripled since 1960.  This statistic underscores the                                                                    
importance of positive, comprehensive interventions with troubled                                                               
youth.  Last, nearly half of those with severe mental illnesses do                                                              
not seek treatment.                                                                                                             
                                                                                                                                
MR. BRIMNER stated that mental health treatment works.  Tremendous                                                              
gains have been made in brain research to better understand the                                                                 
role of the brain regarding health and illness.  New medications                                                                
are more powerful with fewer side effects.  Getting help is the                                                                 
key.  It is tragic that nearly half of the people with severe                                                                   
mental illnesses do not seek treatment, especially given the fact                                                               
that treatment is so effective today.                                                                                           
                                                                                                                                
MS. ROBINSON stated there are three major barriers to mental                                                                    
health, the first being stigma.  A tremendous fear, negative                                                                    
stereotyping and outright discrimination occurs daily for people                                                                
with mental illness.  This stigma prevents people with mental                                                                   
illness from seeking help.  The needs of mental health consumers                                                                
vary across such factors as age, gender, race and culture.  All                                                                 
factors need to be acknowledged when identifying the specific needs                                                             
of each consumer.  For example, the elderly population in the                                                                   
United States and Alaska is increasing dramatically.  Alzheimers                                                                
Disease and related dementia, depression and high suicide risk are                                                              
a few of the important issues to be addressed in regard to the                                                                  
elderly.  Financial challenges are another barrier to mental                                                                    
health.  The organization and financing of mental health services                                                               
has been a significant barrier to many consumers.  Managed care has                                                             
often been used to cut costs and reduce access and services to                                                                  
people with mental illness.  90 percent of all policies provide                                                                 
less coverage for mental illness than they do for physical illness.                                                             
                                                                                                                                
MS. ROBINSON pointed out the Surgeon General has issued a call to                                                               
action to address these challenges.  Our nation needs to continue                                                               
to build the science base to further advances made in brain                                                                     
chemistry knowledge.  Second, the nation needs to have zero                                                                     
tolerance for stigma and to dispell the myths that contribute to                                                                
that stereotype.  It needs to improve public awareness of effective                                                             
treatment, to ensure an adequate supply of mental health services                                                               
and providers and to reduce financial barriers to treatment.                                                                    
Services are often unavailable when and where people need them.  We                                                             
need to ensure state-of-the-art treatments.  To be effecive,                                                                    
diagnosis and treatment must be tailored to the characteristics                                                                 
that shape a person's identify.  People need to know where to turn                                                              
for help.  Increased parody in private insurance in mental and                                                                  
physical health is one way to reduce that barrier.                                                                              
                                                                                                                                
MR. MAJOROS discussed four themes that have been identified that                                                                
are driving efforts in Alaska to meet the Surgeon General's call to                                                             
action.  Those themes include:  making services available locally;                                                              
providing programs to serve all ages; recognizing that consumers                                                                
hold the keys to success; and increasing service accountability.                                                                
                                                                                                                                
The Community Mental Health/API 2000 is a project that will                                                                     
downsize API by moving services into the community for mental                                                                   
health consumers.  Through this project, consumers in the Anchorage                                                             
area will have access to an array of emergency mental health                                                                    
services and for co-occurring disorders.  The AMHB, DMHDD and AMHTA                                                             
are helping to increase training and support for mental health                                                                  
services in rural communities.  The Trust is redesigning and                                                                    
enhancing itinerant mental health consultation and support services                                                             
for rural mental health providers.  The Trust will also be hosting                                                              
a conference in April to provide training, support, and networking                                                              
for rural mental health providers.  The third initiative is                                                                     
decriminalization of mental illness.  The Trust is working to                                                                   
develop programs to decriminalize the mentally ill to get them out                                                              
of the Department of Corrections (DOC) by providing more                                                                        
appropriate supports in the community.  Too many people are ending                                                              
up in jail instead of community-based programs.  A jail diversion                                                               
program has been instituted in Anchorage for mentally ill                                                                       
misdemeanants, as well as a mental health corps.  These programs                                                                
are quite successful and are helping to identify the services                                                                   
needed by mental health consumers to ensure community safety and                                                                
adequate support.                                                                                                               
                                                                                                                                
MR. MAJOROS said DHSS has initiated several children's programs to                                                              
improve mental health care in Alaska.  Second, housing with support                                                             
services to divert mentally adults from API and DOC is being                                                                    
developed.  Third, integration of mental health and substance abuse                                                             
treatment services has begun.  Many rural communities are making                                                                
changes at the local level to integrate their mental health and                                                                 
substance abuse services and, at the State level, a steering                                                                    
committee will soon be formed to support the development of more                                                                
integrated services for mental health and substance abuse.  Last,                                                               
the Long Term Care Task Force has taken a leadership role in                                                                    
improving the care system for vulnerable adults and the elderly.                                                                
                                                                                                                                
MR. BRIMNER said mental health consumers hold the key to success.                                                               
Consumer leadership and significant consumer involvement is                                                                     
becoming a way of life in planning, implementing and monitoring                                                                 
mental health services throughout Alaska.  The Trust has funded a                                                               
consumer affairs position which is a senior management position in                                                              
DHSS to increase the role of consumers in mental health policy.  A                                                              
second area of importance is recovery focus.  Standards for mental                                                              
health services build on the strengths of consumers and assist them                                                             
to successfuly live independent and productive lives.  Advances                                                                 
that have occurred through science, combined with a powerful                                                                    
consumer and advocacy movement have resulted in a major paradigm                                                                
shift.  Mental health consumers can achieve greater mental health                                                               
and have more control over their lives.                                                                                         
                                                                                                                                
MR. BRIMNER discussed increasing service accountability.  Quality                                                               
assurance monitoring, established by DMHDD in 1996, includes site                                                               
reviews by review teams, a Medicaid audit, and record reviews for                                                               
the grant program.  The Alaska Legislature implemented performance                                                              
indicators for measuring outcomes of service delivery.  The DMHDD                                                               
will continue to work with the Legislature to refine these measures                                                             
to provide useful information.  The AMHB and DMHDD are leading a                                                                
statewide effort to develop common performance measures for public-                                                             
funded mental health services.                                                                                                  
                                                                                                                                
MS. ROBINSON concluded the presentation by discussing ways the                                                                  
Legislature can help.  Adequate funding for mental health grants                                                                
and Medicaid is critical.  The assisted living bill (SB 73) is a                                                                
serious priority.  AMHTA has allocated $1 million to that program.                                                              
The mental health parity debate must be cotinued.  Many Alaskans                                                                
cannot get mental health services and they need that coverage.  She                                                             
asked that legislators schedule the parity bill for a hearing.                                                                  
                                                                                                                                
MR. MAJOROS noted that Senator Elton sponsored the parity bill.                                                                 
                                                                                                                                
MS. ROBINSON continued.  Basic support services must be funded.                                                                 
Individuals with severe mental illnesses struggle daily to function                                                             
safely in the community.   Support to cover basic needs are                                                                     
critical to their survival.  Last, legislators need to take a                                                                   
leadership role in addressing mental health issues in their                                                                     
communities.  She thanked committee members for providing the                                                                   
opportunity for the group to present the findings of the Surgeon                                                                
General's Report.                                                                                                               
                                                                                                                                
Number 1086                                                                                                                     
                                                                                                                                
SENATOR WILKEN asked Mr. Majoros what is happening nationwide and                                                               
with states in regard to the mental health parity issue.                                                                        
                                                                                                                                
MR. MAJOROS said the federal Mental Health Parity Act of 1996 was                                                               
a major development.  That Act requires that annual and lifetime                                                                
limits in policies must be the same for physical and mental health,                                                             
but it only applies to employers of 50 or more employees who offer                                                              
mental health coverage.  Several states have built upon that                                                                    
platform and have added coverage.  Parity is not a black and white                                                              
issue - it is a continuum from very limited parity to comprehensive                                                             
parity.  Comprehensive parity means what is provided for physical                                                               
health must be provided for mental health.  27 states have passed                                                               
some version of mental health parity legislation.  AMHTA                                                                        
understands that progress will be incremental but it must keep the                                                              
goal as total parity.                                                                                                           
                                                                                                                                
SENATOR WILKEN asked if Mr. Majoros could name one or two states                                                                
that have gone far enough down the road to develop dependable data.                                                             
                                                                                                                                
MR. MAJOROS replied that Vermont has built into its state law an                                                                
analysis of the implementation of parity.  The Vermont Division of                                                              
Insurance has issued some reports on financial and other impacts of                                                             
the parity bill.                                                                                                                
                                                                                                                                
SENATOR WILKEN questioned the chart on page 8 of the report.  He                                                                
noted the percents of disease burden total 63 percent and                                                                       
questioned what the remaining 37 percent is attributable to.                                                                    
                                                                                                                                
MR. MAJOROS did not know the other illnesses that compose the                                                                   
remaining percentage but offered to get that information for                                                                    
Senator Wilken.                                                                                                                 
                                                                                                                                
SENATOR WILKEN maintained that the chart makes a bold statement                                                                 
therefore, if the Legislature is going to use it, it should be                                                                  
verified.                                                                                                                       
                                                                                                                                
MR. MAJOROS agreed.                                                                                                             
                                                                                                                                
NUMBER 880                                                                                                                      
                                                                                                                                
SENATOR WILKEN said one concern many people have is that no                                                                     
programs exist for youth who transition out of prison environments.                                                             
He asked how the State can get to decriminalization and still                                                                   
provide those services that are necessary to that population.                                                                   
                                                                                                                                
MR. MAJOROS noted that the country underwent a major de-                                                                        
institutionalization from the 1960's through the 1980's.  The                                                                   
thought was that people with mental health illnesses would be                                                                   
placed in community based settings but, in fact, those people were                                                              
"trans-institutionalized" into state and federal correctional                                                                   
facilities because there were not enough community services.  He                                                                
thought the State needs to provide medication management for people                                                             
in criminal institutions because they deserve humane care, but he                                                               
also believes many people are in prisons because of the lack of                                                                 
community services.                                                                                                             
                                                                                                                                
MS. ROBINSON added that is a problem in Fairbanks where many people                                                             
with mental illnesses are waiting to go to API.  AMHTA is focussing                                                             
on Anchorage so that API can be downsized and other doors can be                                                                
opened for people who need an intensive hospital setting.  In                                                                   
addition, AMHTA funded the women's mental health unit in DOC.                                                                   
AMHTA has learned, however, that once those women are ready to                                                                  
leave the correctional institution, they have no support services                                                               
and end up back in prison.  They need to be transitioned to                                                                     
supportive community settings.                                                                                                  
                                                                                                                                
MR. BRIMNER commented that once DMHDD analyzed why some people were                                                             
going to jail with regularity was because they were pending                                                                     
hospitalization or transportation to API.  DMHDD instituted some                                                                
services in that area that have eliminated the transportation wait.                                                             
DMHDD is finding that there are large gaps in services for that                                                                 
population and is attempting to address those.                                                                                  
                                                                                                                                
MS. ROBINSON informed committee members that AMHTA provides small                                                               
community grants for a variety of projects and programs to promote                                                              
mental health.                                                                                                                  
                                                                                                                                
There being no further business to come before the committee,                                                                   
CHAIRMAN MILLER adjourned the meeting at 3:02 p.m.                                                                              

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