HOUSE FINANCE COMMITTEE March 19, 2007 4:06 P.M. CALL TO ORDER Co-Chair Chenault called the House Finance Committee meeting to order at 4:06:20 PM. MEMBERS PRESENT Representative Mike Chenault, Co-Chair Representative Kevin Meyer, Co-Chair Representative Bill Stoltze, Vice-Chair Representative Harry Crawford Representative Les Gara Representative Mike Hawker Representative Reggie Joule Representative Mike Kelly Representative Mary Nelson Representative Bill Thomas Jr. MEMBERS ABSENT Representative Richard Foster ALSO PRESENT Representative Beth Kerttula; Representative Sharon Cissna PRESENT VIA TELECONFERENCE ANCHORAGE: John Stripe, Access Alaska, Inc.; Vern Bussing, Corporations; Gwen Lee, Parent, IRC; Kristen Yearsley, STAR; Nicole Thibodeau, Covenant House; Karen Rogina, CEO, Alaska Hospitality Alliance; Susan Bomalaski, Executive Director, Catholic Social Services; Jesalyn Stanton, Salvation Army; John Kreilkamp, Cruise West; Anne Dennis-Choi, Salvation Army; Janet Mitson, Municipality of Anchorage, Mayor's Office; Pat Luby, Advocacy Director, Alaska Association of Retired Persons (AARP), Anchorage; Suzi Pearson, AWAIC; Karla Jutzi, Alaska Center for the Blind & Visually Impaired; Charlie Hall, Anchorage Pioneer Home; Deanne Harms, Anchorage Pioneer Home; John Donahue, Anchorage Pioneer Home; Bonnie McGrew; Jim Gottstein, President, SOTERIA-Alaska; Aaron Wolf, M.D., Medical Assistant, SOTERIA-Alaska; Faith Myers; Susan Faith, Salvation Army ; Joe Mathis, Montana Creek Campground; Mary Elizabeth Rider, NASW; Tammy Griffin, AH&CA & The Hotel Group; Craig Pester, AKHLA; Katy Parrish; Brian Saylor, Health and Human Services; Anna Attla; Pam Vandern Burg, Kid Corp & Head Start Program, Parent; Janel Kosten, Nurse, Salvation Army Clitheroe Center; Rowena Brown, Head Start; Ruth Rosewarne, President, Anchorage Tourism Industry GENERAL SUBJECT(S): The following overview was taken in log note format. Handouts will be on file with the House Finance Committee through the 25th Legislative Session, contact 465-6814. After the 25th Legislative Session they will be available through the Legislative Library at 465-3808.   HOUSE BILL NO. 95 An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska; and providing for an effective date. HOUSE BILL NO. 96 An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date. TIME SPEAKER DISCUSSION  4:07:04 PM Co-Chair Brought the House Finance Committee Chenault meeting to order to take public testimony from Anchorage on HB 95 & HB 96.  ANCHORAGE  4:07:41 PM JOHN STRIPE, Testified in support of Independent BOARD MEMBER, Living Grants. He pointed out that ACCESS ALASKA, funding has been "flat" for the past ANCHORAGE ten years. Over the past three years, Access has served 112% of the population. He requested a 94% increase for the hearing impaired population.  4:13:03 PM VERN BUSSING, Worried about the raise of health and ANCHORAGE workmen's compensation costs to small business people. He encouraged speed in assisting that population.  4:15:09 PM GWEN LEE, Noted concern for those living in the PARENT, MEMBER State with developmental disabilities. OF ANCHORAGE She commented that infant learning is a RESOURCE critical component in that budget. She CENTER (ARC), worried about a rate freeze in  ANCHORAGE providing services in those communities & pointed out that the Anchorage caucus had indicated concern with loosing those services. There is no methodology when setting rates for such services. She pointed out the difficultly in recruiting and training staff in those fields & urged that the rate freeze be eliminated, with instead a grant increase of 8%.  4:20:00 PM KRISTEN Spoke in support for further & YEARSLEY, increased funding for those who have STAR, experienced sexual assault, domestic ANCHORAGE violence and rape. She pointed out the mental health needs associated for those victims. It would be more cost effective for the State to address crisis intervention.  4:24:37 PM NICOLE Voiced support and appreciation for THIBODEAU, restoration of the human services DIRECTOR, matching grants.  COVENANT HOUSE, ANCHORAGE 4:26:38 PM KAREN ROGINA, Testified in support for greater CEO, ALASKA funding for Alaska Tourism marketing. HOSPITALITY She stressed how much the industry ALLIANCE, contributes to the State's economy.  ANCHORAGE 4:29:27 PM SUSAN Voiced appreciation for continued BOMALASKI, funding of the community block grants & EXECUTIVE urged that funding continue at an DIRECTOR, increased level.  CATHOLIC SOCIAL SERVICES, ANCHORAGE 4:31:05 PM JESALYN Voiced support for the Keep the Elders STANTON, THE at Home initiative and testified in SALVATION support for all Adult Day Services. ARMY, Such services are about keeping ANCHORAGE families together and helping eliminate stress for those families.  4:34:52 PM JOHN Asked that the Legislature consider the KREILKAMP, cruise industry as a partner in the CRUISE WEST, tourism industry. He noted, this past ANCHORAGE year, the tourism industry contributed $49 million dollars into the State coffers. He highlighted the many communities serviced by the Industry. He urged that the statewide tourism marketing program be fully funded.  4:37:14 PM ANNE DENNIS-Voiced support for sufficient funding  CHOI, THE for statewide behavioral grant SALVATION programs. She mentioned the high rate ARMY, of alcohol dependence in the State of ANCHORAGE Alaska and that alcohol abuse impacts the Alaskan economy in many expensive ways. That grant funding is critical.  4:40:09 PM JANET MITSON, She urged funding for municipal revenue MUNICIPALITY sharing for MOA. Ms. Mitson added OF ANCHORAGE concern about receiving support for the (MOA), Alaska Public Employee Retirement DIRECTOR OF System (PERS) and the Teacher's MANAGEMENT & Retirement System (TRS) costs. BUDGET, Ms. Mitson indicated support for full MAYOR'S funding of costs for the MOA traffic OFFICE, streetlight signals. The State's share ANCHORAGE of those costs show up as a separate appropriation within the Department of Transportation & Public Facilities. The true costs are established under auditing costs for the City of Anchorage and as a result, MOA taxpayers subsidize costs. She mentioned support for full funding property tax for seniors and those with disabilities.  4:46:05 PM PAT LUBY, Testified in support of continued ADVOCACY funding for the Longevity Bonus Program DIRECTOR, as needs based. He noted support also ALASKA for the Senior Care program. The ASSOCIATION OF concern is the amount proposed funding RETIRED to cover health care costs. He added PERSONS support for Keeping the Elders at Home (AARP), Initiative & all the services for ANCHORAGE keeping seniors at home.  4:48:11 PM SUZI PEARSON, Voiced appreciation for the support for DEPUTY women experiencing domestic violence DIRECTOR, through the State Department funding. AWAIC, She pointed out the decrease to the ANCHORAGE AWAIC shelter's funding and the costs associated with health insurance, amounting to 11.25% of their budget. The agency is supported through the State and private funding.  4:50:33 PM KARLA JUTZI, Voiced support for greater funding for EXECUTIVE those that are visually impaired. She DIRECTOR, pointed out that the increase of ALASKA CENTER diabetes is the leading cause of blind FOR THE BLIND and hearing disorders statewide.  & VISUALLY IMPAIRED, ANCHORAGE 4:53:02 PM CHARLIE HALL, Testified in support for full funding ANCHORAGE for the Alaska Pioneer Homes. He said  PIONEER HOME, that he really appreciates being able ANCHORAGE to live in the Pioneer Home in Anchorage.  4:54:02 PM DEANNE HARMS, Voiced support for full funding for the ANCHORAGE Alaska Pioneer Homes, indicating that PIONEER she likes living in that environment. She was grateful to be at the Anchorage Pioneer Home. She said the staff was very caring. She worried about the elevators and other equipment in the 30 year old building.  4:56:04 PM JOHN DONAHUE, Testified in support for full funding ANCHORAGE for the Alaska Pioneer Homes. He said PIONEER HOME, that he really appreciates being able ANCHORAGE to live in the Pioneer Home in Anchorage. He noted that the CNA staff has "dwindled" lately. The overall staff is remarkable.  4:58:03 PM BONNIE MCGREW, Noted support for the assisted living ANCHORAGE homes. She testified in support of Independent Living Grants.  5:00:45 PM JIM GOTTSTEIN, Requested that the increment be added PRESIDENT, back to fund SOTERIA-Alaska, mental SOTERIA-health patients statewide.  ALASKA, ANCHORAGE 5:03:17 PM ARON WOLF, Spoke in support of funding for mental M.D., MEDICAL health programs.  ASSISTANT, SOTERIA- ALASKA, ANCHORAGE 5:05:25 PM FAITH MYERS, Spoke in support of funding for mental SELF, health programs.  ANCHORAGE 5:07:32 PM SUSAN FAITH, Testified in support of funding for SALVATION Senior Community Grants and the Keep ARMY, the Seniors at Home Initiative.  ANCHORAGE 5:10:06 PM JOE MATHIS, Voiced support for tourism marketing MONTANA CREEK funding.  CAMPGROUND, ANCHORAGE 5:13:00 PM MARY ELIZABETH Spoke in support of funding for mental RIDER, SELF, health programs, especially for youth. NASW, ALASKA Recommended full funding for senior care programs.  5:18:03 PM TAMMY GRIFFIN, Voiced support for tourism funding and AH&CA & THE the Truth in Marketing for the State HOTEL GROUP, program.  ANCHORAGE 5:20:36 PM KATY PARRISH, Noted support for full funding for  SELF, children with disabilities. She urged ANCHORAGE early intervention services. She pointed out that on the federal level, there has been a 6% decrease to Special Education funding. Alaska is vulnerable to providing services to those individuals.  5:23:25 PM BRIAN SAYLOR, Indicated support for the human CHAIRMAN, services component & block grant HEALTH & HUMAN funding. These are the most vulnerable SERVICES Alaskans and they need that funding. COMMISSION, The need greatly exceeds the resources MOA, ANCHORAGE available.  5:25:21 PM ANNA ATTLA, Spoke in support for funding Infant ANCHORAGE Learning.  5:26:08 PM PAM VANDERN- Indicated the need for increased BURG, KID CORP funding for the Head Start Program. & HEAD START The goal is to service lower income PROGRAM, families first. Head Start has been PARENT, flat funded for the past 10 years. ANCHORAGE There are always wait lists for the program.  5:29:46 PM JANEL KOSTEN, Testified in support of funding for NURSE, alcohol treatment programs & detox SALVATION ARMY centers.  CLITHEROE CENTER, ANCHORAGE 5:31:15 PM ROWENA BROWN, Voiced support for greater & continued HEAD START, funding for the Head Start Program. ANCHORAGE Head Start has been flat funded for the past ten years. There are many children on the Head Start wait lists.  5:33:39 PM RUTH Testified in support of greater funding ROSEWARNE, for Alaska Tourism. She said it was PRESIDENT, "shameful" that Alaskans lack education ANCHORAGE about their own State. She stressed TOURISM the importance of the Industry.  INDUSTRY, ANCHORAGE 5:36:08 PM Co-Chair ADJOURNMENT Chenault The meeting was adjourned at 5:36 PM.  #