02/04/2008 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| SJR11 | |
| SB231 | |
| SB233 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SJR 11 | TELECONFERENCED | |
| += | SB 231 | TELECONFERENCED | |
| += | SB 233 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE
February 4, 2008
1:33 p.m.
MEMBERS PRESENT
Senator Bettye Davis, Chair
Senator Joe Thomas, Vice Chair
Senator John Cowdery, via teleconference
Senator Fred Dyson
MEMBERS ABSENT
Senator Kim Elton
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 11
Supporting federal funding for veterans' health care and urging
the United States Congress to ensure adequate funding for
veterans' health care.
MOVED SJR 11 OUT OF COMMITTEE
SENATE BILL NO. 231
"An Act relating to the Alaska housing trust fund and to the
Alaska Council on the Homeless; and providing for an effective
date."
MOVED CSSB 231(HES) OUT OF COMMITTEE
SENATE BILL NO. 233
"An Act relating to the teachers' and nurses' housing loan
program in the Alaska Housing Finance Corporation; and providing
for an effective date."
MOVED SB 233 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SJR 11
SHORT TITLE: SUPPORTING U.S. VETERANS' HEALTH CARE
SPONSOR(S): SENATOR(S) WIELECHOWSKI
05/09/07 (S) READ THE FIRST TIME - REFERRALS
05/09/07 (S) HES
02/04/08 (S) HES AT 1:30 PM BUTROVICH 205
BILL: SB 231
SHORT TITLE: LOW-INCOME HOUSING; HOMELESSNESS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/18/08 (S) READ THE FIRST TIME - REFERRALS
01/18/08 (S) HES, FIN
01/28/08 (S) HES AT 1:30 PM BUTROVICH 205
01/28/08 (S) Heard & Held
01/28/08 (S) MINUTE (HES)
02/04/08 (S) HES AT 1:30 PM BUTROVICH 205
BILL: SB 233
SHORT TITLE: TEACHERS/HEALTH CARE PROFESS HOUSING LOAN
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
01/18/08 (S) READ THE FIRST TIME - REFERRALS
01/18/08 (S) HES, FIN
01/28/08 (S) HES AT 1:30 PM BUTROVICH 205
01/28/08 (S) Heard & Held
01/28/08 (S) MINUTE (HES)
02/04/08 (S) HES AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
RIC DAVIDGE, President
Vietnam Veterans of America (VVA)
Anchorage, AK
POSITION STATEMENT: Supported SJR 11.
JOHN YOUMANS
Alaska Veterans Business Alliance
Anchorage, AK
POSITION STATEMENT: Supported SJR 11.
WILLIAM GOSSWEILER
Vietnam Veterans of America
Eagle River, AK
POSITION STATEMENT: Supported SJR 11.
JOHN NEWMAN, Regional Director
Pacific Northwest VVA
Seattle, WA
POSITION STATEMENT: Supported SJR 11.
DIANE SLATER, Vietnam-era Veteran
Juneau, AK
POSITION STATEMENT: Supported SJR 11.
DON BURRELL
Staff to Senator Davis
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Presented the changes for SB 231.
BRYAN BUTCHER, Public Affairs Director
Alaska Housing Finance Corporation (AHFC)
Anchorage, AK
POSITION STATEMENT: Answered questions about SB 231 and SB 233.
JEFF JESSE, CEO
Alaska Mental Health Trust Authority
Anchorage, AK
POSITION STATEMENT: Answered questions about SB 231.
DAN FAUSKE, CEO
Alaska Housing Finance Corporation (AHFC)
Anchorage, AK
POSITION STATEMENT: Answered questions about SB 233.
MELISSA STONE, Director
Behavioral Health
Department of Health and Social Services
Anchorage, AK
POSITION STATEMENT: Supported SB 233.
ACTION NARRATIVE
CHAIR BETTYE DAVIS called the Senate Health, Education and
Social Services Standing Committee meeting to order at 1:33:03
PM. Present at the call to order were Senators John Cowdery via
teleconference, Joe Thomas and Bettye Davis. Senator Fred Dyson
arrived later.
SJR 11-SUPPORTING U.S. VETERANS' HEALTH CARE
CHAIR DAVIS announced consideration of SJR 11.
SENATOR WIELECHOWSKI presented an overview of SJR 11. He said
it's a critical resolution that urges the US Congress to insure
adequate funding for veterans' health care. Other states have
enacted a similar type of resolution. The US Department of
Veterans' Affairs provides a wide range of specialized medical
care to meet the unique needs of veterans including treatment
for spinal cord injuries, blindness, traumatic brain injury,
post traumatic stress disorder, amputation injuries, mental
health and substance abuse, and conditions requiring long-term
care. In addition, the department trains health care personnel,
conducts medical research, and serves as backup to the US
Department of Defense.
Unfortunately this agency has been consistently underfunded. The
US Government Accountability Office report in 2005 highlighted
the lack of resources and staffing available to the Veterans
Administration for processing an increasing backlog of veterans'
claims. Funding for the department lags behind both medical
inflation and the increased demand for services. For example,
the enrollment for veterans' health care increased 134 percent
between fiscal years 1996 and 2004, but funding only increased
34 percent during the same period when adjusted to 1996 dollars.
Former Secretary of Veterans Affairs, Anthony Principi, has
publicly stated that the Department of Veterans Affairs has been
struggling to provide health care to the rapidly rising number
of veterans who need it.
This resolution expresses the profound gratitude of the Alaska
State Legislature for the sacrifices made by veterans who suffer
from medical or mental problems resulting from injuries
sustained while serving in the United States Armed Forces. More
importantly it urges the United States Congress to ensure
adequate funding for veterans' health care.
1:36:06 PM
RIC DAVIDGE, President, Vietnam Veterans of America (VVA),
Anchorage, AK, said he was accompanied in his testimony by a
panel from other veterans' organizations. This is the only bill
of all 307 veterans' bills currently before Congress that all 9
national organizations are behind. They have seen funding levels
for services to disabled veterans passed over for the last 20
years. The Veterans' Administration (VA) budget is currently
part of the Department of Defense (DOD) construction budget. In
a bill currently before the US House, HR 2514, the VA budget
would stand on its own. This bill would move veterans' health
care funding to a formula base that would be determined by how
many are enrolled in the VA for services and how many are
eligible. Any disabled veteran with a service-connected
disability is eligible and retired veterans have services as
well. One of the concerns expressed is that this would make
veterans health care another welfare program. This is the only
health care program in the US that is based on earned benefits,
service and sacrifice. The legislation has had two hearings in
the US House. Mr. Davidge said that VVA is in the forefront of
the effort to organize states to submit a resolution of support.
1:39:57 PM
MR. DAVIDGE said it wouldn't cost the state anything and that
the return on this investment is in the hundreds of millions of
dollars. Veterans generate over $1 billion annually in revenue
to the state of Alaska. This does not include active duty
military or contracting by the DOD. According to the 2000
census, there are 75,400 veterans in the state. The VVA thinks
the number is now about 80,000 veterans.
1:42:10 PM
SENATOR DYSON joined the meeting.
SENATOR THOMAS said he finds it very objectionable that the US
government is not meeting the needs of these troops. He asked if
veterans' insurance is considered primary.
MR. DAVIDGE said that veterans, per se, do not have veterans'
insurance. If they are retired, they have health care through a
third party carrier. Most veterans do not access health care
through the VA but through their own employer or they purchase
health care on their own. He said that although he himself is 50
percent disabled and eligible for services with the VA, he
doesn't use it because he can afford to buy his own insurance.
In Alaska, the VA serves less than 20 percent of veterans
although 40 percent are probably eligible. He said that old
veterans are sort of the forgotten population and that new
veterans are the focus. One of the areas that is underfunded is
post traumatic stress disorder (PTSD) programs, especially for
Vietnam veterans who had a very high incidence of PTSD because,
he thinks, communities did not welcome them when they returned.
1:46:25 PM
SENATOR THOMAS said he would appreciate more information about
this to share with his colleagues.
JOHN YOUMANS, Alaska Veterans Business Alliance, Anchorage, AK,
expressed support of SJR 11.
CHAIR DAVIS asked who the sponsor of the bill in Congress is.
MR. DAVIDGE said it is Congressman Hare. He said they have been
trying to get a senate companion bill. He said they are pleased
with the content of the bill, but there are some technical
amendments needed to ensure appropriate congressional oversight.
He said he would forward the new version when it is complete.
1:47:53 PM
WILLIAM GOSSWEILER, Vietnam Veterans of America, Anchorage, AK,
said he's supportive of this resolution and said it is one of
the strongest measures that his organization has been fighting
for. He said they are very passionate about protecting all
veterans, not just of his era, but the ones coming back from
Iraq as well.
MR. DAVIDGE listed the names of the veteran's organizations that
support the bill: the American Legion, American Veterans,
Blinded Veterans Association, Disabled American Veterans, Jewish
War Veterans of the US, Military Order of the Purple Heart,
Paralyzed Veterans of America, Veterans of Foreign Wars, as well
as VVA.
CHAIR DAVIS said that the VA has a great medical network and
delivery system and suggested it would be wise to consider it
when putting together like systems for the state.
1:51:12 PM
JOHN NEWMAN, Regional Director, Pacific Northwest VVA, Seattle,
WA, said that every veteran contracts to serve just as the US
contracts to take care of their medical coverage. He also
pointed out that mental health care is still health care.
1:52:52 PM
DIANE SLATER, Vietnam-era Veteran, Juneau, AK, said she was
formerly with the Alaska and Washington National Guard and
strongly supports this bill.
SENATOR COWDERY said he supports the resolution.
CHAIR DAVIS said she would like to move SJR 11 out of committee
and asked for a motion.
1:54:24 PM
SENATOR DYSON moved SJR 11 from committee with individual
recommendations and attached fiscal note(s). There being no
objection, the motion carried.
SB 231-LOW-INCOME HOUSING; HOMELESSNESS
1:55:34 PM
CHAIR DAVIS announced consideration of SB 231.
DON BURRELL, Staff, Senator Davis, Alaska State Capitol, Juneau,
AK, presented the changes for SB 231: per request of Senator
Elton, words were added to state that at least one member of the
Housing Trust Fund is a consumer of affordable housing. The two-
year term was changed to a three-year term; and on page 4, line
22, after "reducing homelessness", "improve employment and
vocational training opportunities for the homeless" was added.
BRYAN BUTCHER, Public Affairs Director, Alaska Housing Finance
Corporation (AHFC), Anchorage, AK, said AHFC was fine with the
changes.
1:58:18 PM
SENATOR DYSON moved to adopt the proposed committee substitute
(CS) to SB 231, labeled 25-GS2006, Cook, Version C, as the
working document of the committee. There being no objection,
the motion carried.
He asked how the agency could make loans at less than commercial
terms to people who would not normally qualify for a commercial
housing loan without exposing them to financial liabilities.
Mr. BUTCHER replied that the primary intent of the housing trust
is to aid the homeless in finding available housing, but not
providing mortgages, although the hope is that they would get to
that point in the future.
SENATOR DYSON asked Mr. Butcher to confirm that this bill is not
aimed at getting homeless people into ownership positions.
MR. BUTCHER replied that is correct.
SENATOR DYSON asked if the bill expands the capacity of public
housing.
2:02:08 PM
MR. BUTCHER replied that there are 3,000 to 4,000 people on the
waiting list for public housing. There's a shortage of units and
many are falling apart. This bill would make sure the available
units remain at the current level of availability as well as
expanding the current options.
JEFF JESSE, CEO, Alaska Mental Health Trust Authority,
Anchorage, AK, said his agency is designed to connect supportive
social services with housing. People are homeless for many
reasons, from substance abuse and domestic violence to mental
health issues. The Council on Homelessness has found that
without support services like case management, counseling, and
crisis intervention, even if they get into housing they are
unable to maintain it. The trust is just trying to keep them
stable in the community.
SENATOR DYSON asked if the bill has a fiscal note.
MR. BUTCHER said there is a zero fiscal note in terms of
administration. The program would be administered by AHFC. There
is also a $10 million request in the Governor's capitol budget
in four equal parts: $2.5 million from the AHFC dividend; $2.5
million from the state general fund; $2.5 million from mental
health receipts, and 2.5 million from other receipts such as the
Rasmuson Foundation and other private organizations.
SENATOR DYSON asked if the $10 million would be used for
building additional housing.
MR. JESSE replied that the housing trust would be flexible. A
project might have some capital money to buy down the overall
cost of the project so it would be able to accommodate people at
a lower income. It might also have a commitment of five to ten
years of social service funding. It's important that this amount
be committed up front so that if the housing trust is not funded
in the future, those social service projects can continue for
the next five or ten years. AHFC has agreed to develop project-
based vouchers to help with rental assistance. The housing trust
won't be a major funder of any particular project. It will take
existing resources and help focus them on the homeless as
opposed to what happens now with many of those resources going
to people with higher incomes.
SENATOR DYSON asked it that means that the $10 million will be
for facilitators that bring people and housing together rather
than building new housing.
MR. JESSE gave the example of a developer renovating 60 units in
Fairbanks. The developer had not been thinking of having any
units focused on the homeless. When he learned about the housing
trust and the ability to get some capital money and a social
service partner that would provide support services for homeless
people, he expressed interest in integrating them into mixed
income projects. Mr. Jesse said the trust doesn't want large
projects focused just on the homeless. It wants to integrate
them into mixed income projects. He thinks many different
strategies will come forward once there's a resource to access.
SENATOR COWDERY asked if there would be a sunset date.
2:07:19 PM
CHAIR DAVIS said there is not. She added that she didn't see the
need for one since it is a much needed service.
SENATOR THOMAS said that he was supportive of the bill but he
did not know what the provision on page 2, line 7, number 1
meant where it says: to participate in the development of
buildings or units that by their use address the purpose of the
fund, which is to create housing but that by their operation
appear non-residential in nature.
MR. JESSE replied by referring to an article about safe harbor
and a motel in Anchorage specifically focused on the homeless.
Normally that's not considered residential for purposes of AHFC.
AHFC cannot invest in a motel. And yet it's a critical strategy
to getting the homeless off the street, getting them stabilized
and then moving them into long-term housing. A motel doesn't
look residential, but it is an important strategy in dealing
with homelessness.
SENATOR THOMAS said he's concerned about hearing from his
constituents that their taxes are going to support reduced cost
housing for people with drug and alcohol problems while they
themselves are often required to be tested for drugs at their
place of employment.
2:11:12 PM
MR. JESSE said that's the point of bringing in support services.
The trust doesn't want to enable people to continue an addictive
lifestyle. He said that taxpayers actually pay those costs now,
for example, in emergency rooms and criminal justice systems.
Homelessness costs the state either way.
SENATOR THOMAS said he would like to see documentation of the
success of these kinds of programs and their overall costs.
CHAIR DAVIS said she would provide this information but reminds
the committee that everyone that's homeless does not fall into
these categories. There are families that are homeless with
young children.
2:15:12 PM
SENATOR THOMAS moved the CS for SB 231, labeled 25-GS2006, Cook,
Version C, from committee with individual recommendations and
accompanying fiscal note(s). There being no objection, CSSB
231(HES) passed from committee.
SB 233-TEACHERS/HEALTH CARE PROFESS HOUSING LOAN
2:16:42 PM
CHAIR DAVIS announced consideration of SB 233. She said she did
not bring a committee substitute because there were no
recommendations for changes.
BRYAN BUTCHER, Public Affairs Director, Alaska Housing Finance
Corporation, Anchorage, AK, said that SB 233 does two things.
Five years ago a program was established at AHFC to allow
teachers and registered nurses to purchase a home without a down
payment. Communities were having difficulty recruiting and
retaining teachers and nurses and one of the biggest hurdles for
home ownership for young teachers and nurses was coming up with
money for a down payment. A sunset date was established which
expires July 2008. The program has been quite successful; 373
teachers and nurses have taken out mortgages in 34 different
communities across the state at no additional cost to AHFC or
the state. Of the 373, there has only been one foreclosure. AHFC
would like to remove the sunset date and make it a permanent
program as well as to expand it beyond nurses to include all
health care professionals.
2:19:21 PM
SENATOR DYSON asked where the homes are.
MR. BUTCHER referred to a list of all the communities since the
inception of the program. 'E' designates teacher loans and 'H'
designates nurses. There have been 100 loans for teachers and 77
loans for nurses in Anchorage. The majority of the loans take
place in urban Alaska although there were some in rural Alaska.
The program is a partner to the rural teacher and nurse loan
program funded through the capital budget.
SENATOR DYSON said he didn't know the program would be used on
the road network. He said these are good paying professions and
wondered why a nurse would need a loan in order to get a house.
MR. BUTCHER said that when the program started they had talked
to people who said they wouldn't have been able to get a
mortgage because they were just out of school and had
outstanding student loans. The starting salary for teachers
isn't a lot. The normal amount of mortgage insurance requires a
20 percent down payment, but on these loans the requirement is
30 percent in order to cover the corporation in case there are
defaults.
SENATOR DYSON said this makes the jobs more attractive and it's
different than what he anticipated. Housing for professionals in
very rural areas off the road system is a huge crisis. He said
he's disappointed there isn't more for them. He also asked if
there's a similar program for housing for public safety officers
slated for the future.
MR. BUTCHER said the agency is open to expanding the program to
public safety officers in the future but it plans to move
slowly. He said that because these are unique programs, they are
seen by the rating credit agencies as non-conforming loans.
Since the loans don't fit into the normal categories, they are
weighed more heavily when looking at the credit rating of the
recipients. The agency has created a history over five years to
show the success of the program.
He said that although the program requires a zero down payment,
it does not provide a reduced interest rate. It's not costing
AHFC or the state anything. He said he agreed with the concerns
about rural Alaska housing and said the specifically rural
program from the capital budget is working well.
DAN FAUSKE, CEO, Alaska Housing Finance Corporation (AHFC),
Anchorage, AK, said there are 221 units in the rural component.
That program has leveraged $30 million into $50 million in
assets. He said that in most cases in the rural areas with
itinerant or transient teachers, there hasn't been that much
demand for home ownership. He said the agency supported a loan
in Bethel and financed a 22-unit facility for state troopers
which helped with recruitment and retainment. He said the
program is not generally viewed as a job enticement. He said
that with accelerating housing costs in Anchorage, it is
difficult for young professionals starting out to buy a home.
2:27:37 PM
SENATOR COWDERY asked if the program could be expanded to help
construction and labor workers.
MR. FAUSKE said he had not heard that request before.
SENATOR DYSON suggested that Senator Cowdery was asking if the
construction of the facilities had been used as a training tool
for apprentices in order to create work opportunities as well as
housing.
SENATOR COWDERY said that was partly what he meant but he was
also asking if housing for these low-income workers was being
considered.
MR. BUTCHER replied that the agency has been hesitant to expand
the program because that would raise costs and could risk their
credit rating.
MR. FAUSKE said there is an absolute priority on these projects
for local hire at the village level. Training raises costs but
they have been trying to include it.
2:31:05 PM
SENATOR DYSON referred to the 22 units for state troopers built
in Bethel and asked if this could be done in other villages in
order to address the need for good housing for public safety
officers and the transient nature of some of those assignments.
MR. FAUSKE replied that the agency always encourages builders to
talk to public safety people and others to determine if they
might need to build a six-plex instead of a four-plex. This
could also bring another viable source of income into the
project.
SENATOR DYSON asked if the idea to extend the housing option to
others would be affected by the legislation before the
committee.
MR. FAUSKE replied that the rural program would be coming to the
committee through the capital budget and said he would arrange
for Senator Dyson to get that information.
SENATOR DYSON said that he didn't want to find out that rural
needs for housing are cut short because too much money has gone
to programs on the road network.
MR.FAUSKE said he'd like to emphasize that these are loans and
gave the example of a building that might cost $1 million but
based on the salaries of the community, $700,000 was all they
could afford. The agency writes a check for a loan of $300,000,
and when the school foundation funding formula is passed, his
agency is then able to tap into that resource in the form of
salaries and get the best bang for the state dollar. The process
also creates private ownership, local support and eliminates the
need for the agency to have a direct relationship with the
contractors.
2:36:34 PM
SENATOR THOMAS said he had looked at these types of loans as
incentives for people living and doing service in remote areas
and said he was concerned about the urban programs and the
higher incomes of those targeted. He said there was discussion
at an earlier meeting of setting income limits and he would like
to see that explored. The only justification he sees for the
program is to encourage people into those occupations which are
needed especially in rural areas. It appears now that people in
a particular occupation are being favored and it's not
necessarily based on need.
MR. FAUSKE said five years ago there had been an attempt to
address the issue of recruiting and retaining teachers and
health professionals. There was an attempt at that time to add
on more professions, but it was decided that a test run was in
order first. This was the reason for the sunset provision. He
said the loan is not attractive to those with higher incomes.
The largest problem teachers and health care providers have is
the affordability of the down payment. People can't afford to
live where they work. For someone starting out at $38,000 per
year, the average cost of a new home in Anchorage at $329,000 is
not an option.
2:41:13 PM
SENATOR COWDERY asked what the salary range is for people who
qualify for the program.
MR. BUTCHER replied that people that benefit the most from the
program are people who don't have the down payment and people
who are looking for investment opportunities. This program
requires owner occupation so it cannot be used for investment
properties.
MR. FAUSKE said it's not cost effective for someone who makes
$200,000 or even $100,000 per year because they can shop around
for a lower interest rate and with enough for a down payment,
would not have to pay mortgage insurance. He said he would get
more detailed information on salaries for the committee.
2:45:38 PM
MELISSA STONE, Director, Behavioral Health, Department of Health
and Social Services, Anchorage, AK, said she supported SB 233.
She said her department has 29 percent of all estimated
vacancies in the state in the health care profession. For
behavioral health, that translates to 22 percent vacancies in
the rural area and 9.3 percent vacancies in the urban area.
CHAIR DAVIS said that including an income limitation provision
was discussed at the last meeting, but that her office did not
receive any recommendations to prepare a CS.
SENATOR THOMAS said he was satisfied that the bill appear to be
self limiting.
SENATOR COWDERY moved to report SB 233 from committee with
individual recommendations and attached fiscal note(s). There
being no objection, the motion carried. There being no further
business before the committee, CHAIR DAVIS adjourned the meeting
at 2:51:48 PM.
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