02/20/2007 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing, Commissioner, Department of Administration | |
| Confirmation Hearing, Commissioner, Department of Corrections | |
| Confirmation Hearing, Commissioner, Department of Public Safety | |
| SB75 | |
| SB43 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 75 | TELECONFERENCED | |
| *+ | SB 43 | TELECONFERENCED | |
| + | HB 21 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
February 20, 2007
9:04 a.m.
MEMBERS PRESENT
Senator Lesil McGuire, Chair
Senator Gary Stevens, Vice Chair
Senator Hollis French
Senator Lyda Green
MEMBERS ABSENT
Senator Con Bunde
COMMITTEE CALENDAR
Confirmation of Governor Appointees
Commissioner, Department of Administration
Annette Kreitzer
Commissioner, Department of Corrections
Joe Schmidt
Commissioner, Department of Public Safety
Walt Monegan
CONFIRMATIONS ADVANCED
SENATE BILL NO. 75
"An Act extending the Council on Domestic Violence and Sexual
Assault; and providing for an effective date."
MOVED CSSB 75(STA) OUT OF COMMITTEE
SENATE BILL NO. 43
"An Act relating to contributions from permanent fund dividends
to community foundations, to certain educational organizations,
and to certain other charitable organizations that provide a
positive youth development program, workforce development, aid
to the arts, or aid and services to the elderly, low-income
individuals, individuals in emergency situations, disabled
individuals, or individuals with mental illness; and providing
for an effective date."
HEARD AND HELD
CS FOR HOUSE BILL NO. 21(STA)
"An Act relating to the state flag; and relating to the proper
retirement of an official state flag."
SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 75
SHORT TITLE: EXTENDING COUNCIL ON DOMESTIC VIOLENCE
SPONSOR(S): SENATOR(S) ELTON
02/07/07 (S) READ THE FIRST TIME - REFERRALS
02/07/07 (S) STA, FIN
02/20/07 (S) STA AT 9:00 AM BELTZ 211
BILL: SB 43
SHORT TITLE: CONTRIBUTIONS FROM PERM. FUND DIVIDENDS
SPONSOR(S): SENATOR(S) THERRIAULT
01/16/07 (S) PREFILE RELEASED 1/5/07
01/16/07 (S) READ THE FIRST TIME - REFERRALS
01/16/07 (S) STA, FIN
02/20/07 (S) STA AT 9:00 AM BELTZ 211
WITNESS REGISTER
Annette KREITZER, Commissioner Designee
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Spoke to her confirmation.
JOE SCHMIDT, Commissioner Designee
Department of Corrections
Juneau, Alaska
POSITION STATEMENT: Spoke to his confirmation.
WALT MONEGAN, Commissioner Designee
Department of Public Safety
Anchorage, Alaska
POSITION STATEMENT: Spoke to his confirmation and in favor of SB
75.
SENATOR KIM ELTON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 75 as sponsor.
CHRIS ASHENBRENNER, Interim Program Administrator
Council on Domestic Violence and Sexual Assault
Juneau, Alaska
POSITION STATEMENT: Spoke in support of SB 75.
SENATOR GENE THERRIAULT
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 43 as sponsor.
HEATHER BRAKES, staff
to Senator Therriault
Alaska Capitol Building
Juneau, Alaska
POSITION STATEMENT: Answered a question regarding SB 43.
MICHELLE BROWN, President and CEO
United Way of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Spoke in favor of SB 43.
SAMMYE POKRYFKI, Program Officer
Rasmuson Foundation
Anchorage, Alaska
POSITION STATEMENT: Spoke in favor of SB 43.
ACTION NARRATIVE
CHAIR LESIL MCGUIRE called the Senate State Affairs Standing
Committee meeting to order at 9:04:43 AM. Senators McGuire,
French, Stevens, and Green were present at the call to order.
CHAIR MCGUIRE announced that the first order of business would
be the confirmation hearings for the commissioners of the
Department of Administration (DOA), Department of Corrections
(DOC), and Department of Public Safety (DPS).
^Confirmation Hearing, Commissioner, Department of
Administration
9:05:18 AM
ANNETTE KREITZER, Commissioner Designee, Department of
Administration, said she was the Chief of Staff for former
Lieutenant Governor Loren Lehman where she provided policy
advice to the Division of Elections. She also worked as a
committee aide for Loren Lehman when he was senator with the
following committees: Special Committee on Oil and Gas,
Resources, Labor and Commerce, and Finance. She said she never
wanted to work in government, but intended to be a journalist.
9:06:28 AM
CHAIR MCGUIRE expressed her appreciation of dedicating her life
to public service.
SENATOR GREEN said she is appreciative of all the attributes Ms.
Kreitzer brings to the job.
SENATOR STEVENS asked if she plans any departmental changes.
COMMISSIONER KREITZER said she is getting her feet on the
ground. She won't change anything just for the sake of change.
She has been asked to look at the state travel office, so she
has been giving that time and consideration. She will also focus
on the unfunded liability of PERS and TRS.
9:08:01 AM
CHAIR MCGUIRE said that Local 71 representatives came into her
office and expressed concern about statute AK39.90.020. In March
of 2005 the Department of Law (DOL) issued an opinion on the
ruling that family members cannot be in supervisory roles and
extended it to include family members working alongside one
another. In the rural communities it is difficult to put a work
crew together. Not allowing brothers and sisters, for example,
to work together is an artificial barrier, she stated.
9:09:43 AM
COMMISSIONER KREITZER said Senator French has also raised this
issue. She said she will see how many departments the ruling
affects. She spent seven years in Cold Bay and understands the
limited opportunities for employment in small communities.
9:10:32 AM
SENATOR FRENCH said Commissioner Kreitzer has a reputation of
being a hard worker, but asked about her ability to supervise
1000 employees and her management style.
COMMISSIONER KREITZER said she has supervised 10 people in the
past. She has read many books on how to throw a wrench into
management style, and now she finds herself in management. She
said it is important to believe and trust in her staff. Her
style is to get people into the department that she trusts and
who support the people in the department. "And that's the
biggest challenge for me right now, moving from a small staff
where I was able to do that pretty effectively, to a much larger
department and figure out how to get the culture that I bring,
to all levels of the department."
9:12:24 AM
SENATOR FRENCH asked what her biggest challenge will be.
COMMISSIONER KREITZER said the department needs to get a handle
on Enterprise Technology Services and all the IT projects that
are going on, "and maybe pull back a little bit."
SENATOR FRENCH asked if political views will play any role in
hiring or promoting staff.
COMMISSIONER KREITZER said when an administration comes in, it
brings a certain philosophy, "and to the extent that there are
folks who not only disagree with that philosophy, but would do
everything to subvert that philosophy, I would have to say yes."
She said that goes beyond political boundaries because in the
private sector someone who disagrees with the company president,
"you would probably have the same reaction."
SENATOR FRENCH asked the level of the employee and the spectrum
of activity. He said he could see her not hiring someone who is
actively campaigning against her or her boss, but someone who
writes a $100 check to a candidate with different views from the
administration would fall outside the realm of job performance.
9:14:56 AM
COMMISSIONER KREITZER said she agrees, and she is referring to
sensitive jobs that are involved in policy direction.
^Confirmation Hearing, Commissioner, Department of Corrections
COMMISSIONER SCHMIDT, Commissioner Designee, Department of
Corrections (DOC), said he was an apprentice airplane mechanic
and a mover in 1987, and then he took a job as a security
officer at a halfway house and was happy he could make his truck
payments. He went to Seward in 1988. He said he was promoted to
superintendent and in charge of the "Anchorage Complex." He said
he then went to Pt. McKenzie and loved that, which was "a little
closer to home than I thought it was going to be." There was a
great deal of work to do there and that is when he started to
think about doing more. He said it is an exciting time; "we're
talking about reigniting some regional expansion talks with our
facilities and of course the new facility out in the valley-
we've got that moving along real good." He said he is happy to
be part of what is going on with the department.
9:17:19 AM
CHAIR MCGUIRE said she enjoyed hearing his vision in a recent
meeting, and she looks forward to seeing the results.
SENATOR STEVENS said he was impressed with the skill-building
program in the prisons.
COMMISSIONER SCHMIDT said recidivism is a community problem but
DOC has a piece of it, "and we should be responsible…to try to
stop people from coming back to jail-giving them a tool bag."
Pt. McKenzie is establishing a welding program and corrections
will teach farming and meat cutting. The best time to influence
people is during incarceration because they aren't drinking or
doing drugs. "If anybody can get their attention, we can." There
is a committee evaluating current programs and will recommend a
statewide program. Substance use is huge; one study showed that
92 percent of prisoners were substance abusers when arrested.
9:19:20 AM
SENATOR STEVENS said he remembers creating the new campus in
Kodiak in the 1970s, and the furniture was manufactured in
Seward and is still being used.
SENATOR GREEN said she has been very supportive and involved in
the new prison and asked for an update.
COMMISSIONER SCHMIDT said he is talking with the utilities now.
The design is a campus concept with a central building and
separate housing units. It gives the prisoner more
responsibility of going to food and laundry services. It models
the real world, he stated, and there will be staffing and
construction efficiencies. It is cheaper to build smaller
buildings, he said, but he doesn't know how much cheaper. Water
is currently being drilled for. Groundwork will begin this
summer and foundation work will begin next summer, he stated.
CHAIR MCGUIRE suggested giving a tour to the committee.
9:22:11 AM
SENATOR FRENCH said Commissioner Schmidt seems to be well-liked
and well-respected in his field. He expressed concern with a
report on recidivism and Alaska's low success rate. The crucial
period of time seems to be the first 12 months out of jail, and
Senator French asked if there is a sufficient number of
probation officers to guide them.
9:23:21 AM
COMMISSIONER SCHMIDT said he can't say there are enough
probation officers until there is no recidivism. He said DOC is
always advocating for more, and the electronic monitoring bill
will take up some resources, but it is a good step in the right
direction. Giving the prisoners tools while they are
incarcerated is part of it, but a calculated re-entry is equally
important, if not more important. The probation officer is
important because the more supervision and guidance they are
given, the better. The model should be helping them succeed, but
not to the detriment of public safety.
COMMISSIONER SCHMIDT said that one of the recidivism numbers
might be a false positive because a probation officer might
violate an offender, particularly one that is mentally ill. A
probation officer sees "a pattern developing and we know it's
going to go bad at the end of the day, so we bring them back to
jail, get them stabilized, get their medication, fix up whatever
it might be that they need, and put them back." He noted there
is no way to do that without going through the court. So they
return to jail, "but really, it was a preemptive move." He
suggested adding the tool he called "shock incarceration" of
bringing someone back into jail to straighten them out and give
them another shot at successfully re-entering.
SENATOR FRENCH asked if there are offices around the state are
doing better than others, and he asked him to compare them to
see what is working.
9:26:09 AM
CHAIR MCGUIRE said she is greatly concerned about prisoners with
mental health issues. The state decided to de-institutionalize
people with mental health problems and use a community-based
model. Cutting funding to these entities directly corresponds
with increased incarcerations. She asked what Commissioner
Schmidt is doing to address it. She noted that there is a great
deal of evidence that if the underlying disease is taken care
of, then people can stop their criminal behavior.
9:27:35 AM
COMMISSIONER SCHMIDT said there is no excuse for committing a
crime, but a mentally ill person may be able to change with
counseling or medication. There are 33,000 bookings each year,
and more than 13,000 have mental illness issues. He said 40
percent of the inmates suffer from mental illness including
brain injury, mental retardation, and developmental disability.
He said 18 percent have a serious chronic illness like bi-polar
or schizophrenia. His mental health staff sees 100 new patients
each month. In the 1950s there were 560,000 hospitalized
nationwide, in the 1980s it dropped to 130,000, and in 2002 it
was 61,000. "Where did they go? I know where they went." He said
he can't answer the question of whether they should be in a
hospital or in a prison. But as the commissioner of corrections,
they are in his hands so he hires mental health staff and
supports the mental health units. When a prisoner is seriously
assaultive, that person will go into a maximum security unit to
keep everyone safe. The mental health units can be far more
dangerous because it is difficult to see the behavior coming on.
The units are effective. He said he doesn't know how to fix
recidivism, but he will try some things that have worked in the
past. Listening to the community is important, he said.
9:30:59 AM
CHAIR MCGUIRE said she applauds his answer and the knowledge of
who is coming into the prisons and coming out. Alaska's
framework includes rehabilitation, and a 60 percent recidivism
rate shows that the state is failing. If underlying problems can
be cured, it is better for everyone, she stated.
^Confirmation Hearing, Commissioner, Department of Public Safety
WALT MONEGAN, Commissioner Designee, Department of Public Safety
(DPS), said in 33 years of working in the Anchorage Police
Department, he found that he loves the challenge of police work
and the people he works with. He said he spent much of his youth
in the Bush, and it is a part of Alaska that sometimes gets
overlooked. He said he wants to enhance the safety of all
Alaskans. The DPS is much more than troopers or airplanes; it is
also public transportation, education, and working with the
communities. If DPS does its job well, it will ease up on
Commissioner Schmidt's workload.
9:34:04 AM
SENATOR STEVENS said the issues in rural Alaska are enormous. He
spoke of the VPSO [Village Public Safety Officer] program and
family members arresting each other.
COMMISSIONER MONEGAN said the VPSO program was a great concept,
but it has not been nurtured. He wants it formalized with set
expectations. It needs to be part of an overall effort and not
be an island in a small community with no other support. The
best way to do that is to work with the Alaska Police Standards
Council to create tiers of peace officers. Then standards could
be set for hiring and training so that anyone entering a tier
could know what must be done to rise to the next tier.
9:36:28 AM
SENATOR FRENCH asked about the tier program because it sounds
innovative and like a big step forward.
COMMISSIONER MONEGAN said currently there are village police
officers, tribal police officers, village public safety
officers, troopers, and municipal police officers. Village and
tribal police are often selected by the community and then given
minimal training and equipment and sent out to police their
communities. They might not otherwise qualify to be police
officers because of their background, but they are still willing
to serve. The next level, the VPSO, requires background checks
and more extensive training. The third level would be the Alaska
State Troopers or the municipal police officer. He would like to
put them into a tier system. The village and tribal police would
be tier one with a certain set of standards. Tier two would be
the VPSO, and tier three would be the troopers and municipal
police officers. If it all runs through the Alaska Police
Standards Council, each level would be documented, "so that any
individual in any one of the tiers, if they decide to advance,
they can build upon their former training…and feel that they are
part of something larger than themselves and move towards
enhancing public safety throughout the state."
9:39:33 AM
SENATOR GREEN noted that funding varies for the different levels
of officers, and she asked if that will change.
COMMISSIONER MONEGAN said no, he would envision a formal
structure, and any community that wants to develop a law
enforcement presence can select which level is appropriate.
CHAIR MCGUIRE encouraged Commissioner Monegan to train and
recruit young Alaskans. There are not enough probation officers
or other public safety people. She noted that the state crime
lab is a big passion of hers, and she said the lab should be up
and working at the level of other states. A coroner was added
two years ago because one coroner cannot be in two places at
once. She asked for assurance that the crime lab would stay.
9:41:32 AM
COMMISSIONER MONEGAN said helping Alaskans get into public
safety careers is important, and it is difficult to find
qualified people throughout the nation. He said the people at
the crime lab are wonderful and dedicated, and they work under
pressure, and he will give them the encouragement they deserve.
CHAIR MCGUIRE moved to forward the names of Annette Kreitzer,
Joe Schmidt, and Walt Monegan to a joint session for
consideration. Hearing no objections, it was so ordered.
SB 75-EXTENDING COUNCIL ON DOMESTIC VIOLENCE
9:43:34 AM
CHAIR McGUIRE announced the consideration of SB 75.
SENATOR KIM ELTON, Alaska State Legislature, sponsor of SB 75,
said the bill extends the Council on Domestic Violence and
Sexual Assault, which is due to expire in June. Between 2000 and
2004 there were over 32,000 incidents of domestic violence and
sexual assault reported across Alaska. Extending the council
will provide continued program planning and coordination of
victim services. He noted that Legislative Budget and Audit
supports the extension, and it has been endorsed by the Network
on Domestic Violence and Sexual Assault, Juneau Police
Department, Standing Together Against Rape, Sitkans against
Family Violence, Abused Women, Women's Aid in Crises, Kenai
LeeShore Center, Tundra Women's Clinic, Unalaskans against
Sexual Assault and Family Violence, and the Alaska Women's
Lobby.
9:45:34 AM
SENATOR GREEN said there have been many conversations about the
network and the council including "a certain amount of
questions." She said the extension is too long, and she has
talked to people about having study groups gather information.
There is some concern, she said. She asked to extend the council
to 2011 instead of 2014.
SENATOR ELTON said he has been part of those conversations, and
he agrees that there needs to more. He said that everybody sees
the need for the council and a need to continue discussions on
how the council does business and who sits on the council. He
advocates a rural designee, for example. The conversations can
be done within the context of the extension, he stated. Alaska's
House of Representatives bill extends the council to 2011. He
doesn't have a strong opinion on the time period.
SENATOR GREEN said the task force to be formed would begin its
work immediately. It would have a plan in place regarding "where
the people come from and who's contributing to it and what is
the role of whom, so there is a little more assurance that
everyone is in agreement."
She moved Amendment 1:
Page 1, line 6:
Delete "2014"
Insert "2011"
Hearing no objections, Amendment 1 passed.
CHAIR MCGUIRE said she has visited the Alaska Women's Resource
Center in Anchorage, and she said, "In our community, Covenant
House, certainly for young women, is a place that will often be
a refuge for those who are seeking help in a domestic violence
situation at a young age. Stepping Stones-to get in you've got
to have been in a domestic violence situation and have a child.
Then you have AWAKE, and so forth." She asked how this agency
helps bring those groups together and facilitates help.
SENATOR ELTON said the council works with federal and state
money and the process is semi-protected from decisions that are
made by elected officials. The decisions are made by
professionals. The council has members from the executive branch
and from service providers. He said others can answer the
question about delivery of services to the other groups.
9:51:27 AM
CHRIS ASHENBRENNER, Interim Program Administrator, Council on
Domestic Violence and Sexual Assault, said the council uses
communication to coordinate the multiple services and agencies.
The council funds the 20 victim service agencies around the
state with a two-year funding cycle. The council funds training
and participates with its sister agency-the Network on Domestic
Violence and Sexual Assault, which is the advocacy agency for
many of the victim service programs as well as other programs
that may not be members of the network. She said the council
coordinates trainings and venues for discussions on domestic
violence and sexual assault.
CHAIR MCGUIRE asked about administrative overhead. When she goes
onsite, it is always a tough day seeing people in a tough life,
and the resources are never enough. She noted that people in
Stepping Stones are trying to get back on their feet, get a job,
and get their children in day care.
MS. ASHENBRENNER said overhead is about ten percent, which
includes the council administrative offices that do auditing and
the council itself, which has quarterly meetings. She said 76
percent of the funding goes directly to victim service programs.
9:54:58 AM
MS. ASHENBRENNER said she would be happy to participate in a
report. She urged movement of the bill so the council can do its
work instead of figuring out how to dismantle.
9:55:45 AM
WALT MONEGAN, Commissioner Designee, Alaska Department of Public
Safety, said police officers responding to domestic violence or
sexual assault only work on a problem to a certain point, and
that is not enough. Organizations such as the Council on
Domestic Violence and Sexual Assault are necessary to help
people "get the rest of the way." He strongly supports the bill.
9:57:43 AM
SENATOR FRENCH moved SB 75, as amended, from committee with
individual recommendations and attached fiscal note(s). There
being no objection, CSSB 75(STA) passed from committee.
SB 43-CONTRIBUTIONS FROM PERM. FUND DIVIDENDS
9:58:10 AM
CHAIR MCGUIRE announced the consideration of SB 43.
SENATOR GENE THERRIAULT, Alaska State Legislature, said SB 43
will encourage Alaskans to give more to charity. The Rasmuson
Foundation offered to underwrite the expense of operating the
system by which Alaskans can donate a portion of their permanent
fund dividend to qualified organizations. The foundation will
cover the expenses for three years, and the fiscal note is the
estimation of the cost of running the program. The ultimate goal
is to increase private philanthropy in Alaska. Alaskans who earn
$100,000 or more rank 49th or 50th in the nation in terms of
giving. Alaskans with lower income give more than those with
middle or high income. Senator Therriault believes that SB 43
will help encourage those Alaskans to give more by making
contributing easier. There is a zero fiscal note, so for the
first three years, 100 percent of the donations will go to the
charities. The Rasmuson Foundation would be an agent to operate
the program. Participating charities would need to meet the
criteria set out in the bill. The donation would be noted on the
electronic application for the dividend. There would be a drop
down menu for who to give to and how much. The gift could be
made to a general category or to a specific group.
10:02:26 AM
SENATOR THERRIAULT said the process would be easy, and he listed
the criteria for participating charities. The Rasmuson
Foundation is very familiar with the organizations around the
state. He said he worked with the Department of Administration
to make sure the program would be easy to administer. The bill
has been written to steer contributions toward youth and
workforce development, the arts, elderly services, low income
individuals, individuals in emergency situations, disabled and
mentally ill individuals, and community foundations. Anchorage
and Kenai have community foundations, which build up trusts from
estate gifts to support community entities, he explained.
10:04:45 AM
SENATOR THERRIAULT said organizations would have to prove they
meet the criteria, including having a voluntary board of
directors who are all Alaska citizens. At least five percent of
their annual receipts must come from contributions, and if they
have a total annual budget of more $250,000, an unqualified
audit must be performed. The legislation sets up a trial program
that will sunset in 2010, and if it is successful, the
legislature can move or eliminate the sunset date.
10:06:49 AM
SENATOR GREEN asked if an elementary school would qualify.
SENATOR THERRIAULT said there has been debate about including
every school and the complexity of that.
HEATHER BRAKES, staff to Senator Therriault, said elementary
schools would not be eligible.
SENATOR FRENCH asked how Senator Therriault came up with the
charitable programs that would be included.
SENATOR THERRIAULT said he stayed away from any groups that are
in politically-sensitive areas. "So we just tried to draw the
line with organizations that we believe…have general support in
the public; did not stray into the political arena; their
function is readily understandable, identifiable; trying to
steer clear of the groups that would potentially get the effort
into trouble."
10:09:31 AM
SENATOR STEVENS said the university has a foundation, and he
asked how to give to a particular campus. He questioned whether
smaller campuses are 501C3 organizations.
SENATOR THERRIAULT said he is not sure, but any group could take
steps to create an organization to fit the criteria. He
suggested speaking with the university.
10:11:04 AM
SENATOR GREEN asked about Rasmuson Foundation's involvement.
SENATOR THERRIAULT said they have agreed to pick up the expense
of operating the program, and it is outlined on the fiscal note,
including software and reprogramming. After three years, the
foundation will step out of the program, and it will become self
supporting. A portion of the donations would then be used for
the operating expenses.
10:12:18 AM
SENATOR GREEN asked who would do that work if the Rasmuson
Foundation didn't do it.
SENATOR THERRIAULT said it could come out of the contributions
themselves. The drafters wanted to make it clear that a portion
of the giving will underwrite the administrative expense after
the three years that Rasmuson covers it.
SENATOR GREEN said she is nervous about the connection with the
Rasmuson Foundation. "As it and the Denali Commission came into
being years ago, at different times, it was sort of our
assumption, certainly mine, that there would not be a connection
between the state budget and what they did as foundations or as
a commission. And that seems to be kind of diminishing, that
clear line between it. And it kind of bothers me; and I
understand the reason, but it kind of bothers me because, would
they then be inclined, in the sunset year, to become a lobbyist
for the program to the government?" She said there needs to be a
clear line between foundations and the state budget.
10:14:42 AM
SENATOR THERRIAULT said he doesn't fully understand the concern.
The Rasmuson Foundation is just pledging money over the start-up
years to get the program up and running. He said it is not money
like the mental health trust that started a state program. There
will never be any crossover between the state treasury and the
money going to the charities, he explained.
CHAIR MCGUIRE said she understands Senator Green, but Senator
Therriault explained the distinction well. Seed money from a
foundation that puts a program into place can create a
constituency and a dependency. She said it reminds her of
federal matching funds, "for only ten percent, you, too, get all
of these things, but then once they're gone, we're left to pick
up the tab." But this is different, because the foundation just
pays the set-up costs, and general funds are not used. If the
program continues, the contributors will pay for it. By 2010,
the state can see if people are using it. She said she likes the
bill and it amazes her "that sometimes you have to motivate
humans in a direction." There is no law that keeps people from
giving some of their dividend to charity, but this will create a
reminder and encouragement. Senator Therriault has done a good
job making sure money doesn't come out of state coffers.
10:17:55 AM
SENATOR THERRIAULT said he understands that some programs need
state funds, but this program doesn't. If contributions are not
enough to pay for it, it will sunset.
10:18:49 AM
SENATOR THERRIAULT said the next year's dividend may be
$1,500.00, and he hopes Alaskans will feel generous because the
money "just accrues to them for drawing breath in the State of
Alaska for a 12-month period."
SENATOR FRENCH noted that the first few years his full donation
will go to the charity, and he asked what percentage will go to
administrative overhead after that. Alaskans could believe that
they are giving the full amount, he said.
SENATOR THERRIAULT said the major expense is the upfront
programming, and then it drops down to $91,000. So the
individual Alaskan can decide to check a box or write a check.
10:21:37 AM
CHAIR MCGUIRE said there are always overhead costs, and citizens
should know how much of their donation goes to the charity.
SENATOR FRENCH said there will be an additional layer of
overhead, and it is somewhat masked by the foundation's
participation in the first couple of years. It may turn out to
be negligible if a lot of people participate.
SENATOR THERRIAULT said that when he writes a check to a
charity, part of the money goes to the mailing expense. He noted
that people can find out what charities have low overhead.
10:23:21 AM
SENATOR GREEN asked how to declare the dividend income and if a
person's tax liability goes down.
SENATOR THERRIAULT said the income would be the same but then
there would be the charitable deduction.
MICHELLE BROWN, United Way of Anchorage, said she supports SB
43. Alaskans have a wonderful tradition of being good neighbors,
but that tradition needs to grow into a tradition of giving
dollars, which is a great way to invest money back into
communities. Government cannot do everything, she said. Much of
Alaska's quality of life comes from nonprofits and volunteers.
Many organizations care for kids and connect people with
healthcare. They ensure that people are housed and fed, so they
can pay attention to education and work. Many issues that seem
to be personal, like domestic violence, really have enormous
financial and societal implications. She said SB 43 is a way for
people to invest in the quality of their communities, and it is
very cost effective because nonprofits are efficient. Nonprofits
employ about one in ten employed Alaskans with a payroll of over
$1.1 billion, so they help Alaska's economy. She said the United
Way of Anchorage will help implement the legislation and has a
long history of managing donor-designated fundraising. She
stated that the United Way would implement the legislation as it
is written, and it could be up and running very quickly.
10:27:31 AM
SAMMYE POKRYFKI, Program Officer, Rasmuson Foundation, said SB
43 provides an easy way to make charitable donations to favorite
nonprofits. The Rasmuson Foundation is a private family
foundation funding nonprofits in every corner of the state. She
said it has offered to pay for all startup costs because Alaska
has more nonprofits per capita than any other state-one for
every 110 Alaskans. The nonprofits are famous for doing more
with less. Alaska depends on them to provide essential services,
but the demand on those services far outstrips the funding
available. The legislature and other major funders have
indicated that nonprofits must become more sustainable. One way
to do that is to augment public funding with donated charitable
dollars, she stated. Supporting nonprofits makes a lot of sense
socially and economically. In 2006, a study found that the
nonprofit sector was a major part of Alaska's economy. There are
19 public charities among the 100 largest private employers in
Alaska. They make significant expenditures in the state. Alaska
nonprofits are overly dependent on federal dollars, at almost $1
billion last year alone. A big part of becoming more sustainable
is increasing the amount of individual charitable giving, and SB
43 will help do that for an even bigger economic impact.
10:30:50 AM
CHAIR MCGUIRE said she likes the bill and hopes to move it out
on Thursday. She requested an amendment that would limit the
overhead or disclose it after the Rasmuson Foundation departs.
She said she would like to hear from the Alaska Permanent Fund,
and it is a great bill. SB 43 was held over.
The Senate State Affairs Committee adjourned at 10:32 AM.
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