Legislature(2023 - 2024)ADAMS 519
03/23/2023 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation: Spring Revenue Forecast | |
| Presentation: Willow Project Update and Fiscal Analysis | |
| HB39 || HB41 | |
| Public Testimony: off Nets | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 39 | TELECONFERENCED | |
| += | HB 41 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 39
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making reappropriations; making
supplemental appropriations; making appropriations
under art. IX, sec. 17(c), Constitution of the State
of Alaska, from the constitutional budget reserve
fund; and providing for an effective date."
HOUSE BILL NO. 41
"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."
3:07:35 PM
Co-Chair Johnson reviewed the public testimony protocol.
^PUBLIC TESTIMONY: OFF NETS
3:08:22 PM
ANNA GRACE JEFFRIES, PRIMARY PREVENTION COORDINATOR,
ADVOCATES FOR VICTIMS OF VIOLENCE, VALDEZ (via
teleconference), thanked the committee for including
increased funding for prevention work. She stated there
were strategies to prevent violence. The organization had
introduced evidence-based curriculum such as the Girls on
the Run program and hoped to have the Let Me Run program
for boys in the coming summer. She shared that the previous
month, the organization invited the Alaska Network on
Domestic Violence and Sexual Assault to assist in a
presentation at the Valdez High School on Bree's Law and
Erin's Law. She discussed the benefits of the presentation.
The organization helped provide direction and strategies
for the community to come together and to prevent crime and
change community norms so that violence against women, men,
and children would no longer be tolerated.
3:10:26 PM
MOIRA GALLAGHER, SELF, ANCHORAGE (via teleconference),
called in support of adding $15 million to the childcare
grant program to increase wages for childcare providers.
She is a mother of two young children. Her younger son had
been on 10 daycare waiting lists for longer than his life
due to a lack of daycare in Anchorage. She elaborated that
her son could not get into a daycare due to a lack of
facilities and caregivers at open facilities. She relayed
that many daycares had closed due to a lack of staff. She
emphasized that caregivers needed to keep up with inflation
and be competitive because it was necessary to keep
talented workers in the childcare field. She shared that
she and her husband were now spending more than $5,000 on a
nanny. She shared it was almost her husband's entire net
monthly income after taxes. She underscored that the
workforce shortage was real, and people were leaving their
jobs because they could not find childcare. She shared that
her family was privileged to have the ability to afford a
nanny, but just barely. She urged the committee to add the
funds. She spoke about the benefits of the additional
funding.
3:12:50 PM
TIFFANY MILLS, EXECUTIVE DIRECTOR, HELPING OURSELVES
PREVENT EMERGENCIES (HOPE), PRINCE OF WALES (via
teleconference), spoke in support of funding for domestic
violence prevention and services. She shared information
about the advocacy work HOPE provided to victims of sexual
assault and domestic violence. She was supportive of the
Council on Domestic Violence and Sexual Assault (CDVSA)
victim services budget. She thanked Representative Ortiz
for his support of victims' services on Prince of Wales.
She relayed that the organization had not closed during the
COVID-19 pandemic and the numbers of individuals seeking
help increased each year. She detailed that in 2022, the
organization provided services for around 130 adults, which
was double the number assisted in 2018. Additionally, the
organization had fewer staff in 2022. She relayed that
without the one-time increment funding of $6.5 million in
the CDVSA budget, there would be a shortage from the 2022
funding. The organization was appreciative that the budget
allowed victim services providers to receive consistent
funding as in previous years; however, the costs facing
rural Alaska were higher and were continuing to increase.
She cited examples of the cost of goods in rural Alaska.
The agency was also facing staffing shortages because it
had just begun offering health insurance to full-time
employees to compete with other employers on the island and
it was being very conservative about its hiring practices.
She shared that when the organization got insurance in
2022, it cost $4,000 per month. She stated that HOPE did
not want to be priced out of the market and have to cut the
benefit for employees; however, premiums had increased $400
per month in the current year. She hoped the committee
could find more available funding to support victims'
services.
3:15:07 PM
JENA CRAFTON, SELF, EAGLE RIVER (via teleconference),
shared that she had been out of work for six years. She
spoke in support of reducing the waitlist for people to get
services for improved quality of life. Her dad was helping
her to try to get a job by driving her. She shared that she
was learning how to drive.
3:17:32 PM
CARRI CRATER, SELF, ANCHORAGE (via teleconference),
supported the addition of $15 million to the childcare
budget. She shared that her childcare expenses increased 40
percent since COVID. She shared that her family had spent
over $40,000 on childcare the past year. She highlighted
the difficulty of finding quality childcare. She thought
the situation was a real problem for the workforce. She
noted that childcare providers were shutting down. She
spoke to the importance of increasing funding for childcare
providers to enable increased staff wages and
accessibility.
3:19:19 PM
MARIA LEGEND, SELF, ANCHORAGE (via teleconference), shared
that her son was diagnosed with schizophrenia in 2015. She
elaborated that her son had been in and out of psychiatric
hospitals and jail. She provided details. She believed that
if she and her son had enough help, guidance, and
educational resources they would not have been faced with
many unnecessary issues. Her son wanted to get his GED, but
he was still in need of continuous care, IDD, housing
healthcare directives, and guardianship papers. She shared
that she was a recovering alcoholic and had dealt with
grief and depression in the past. She advocated on behalf
of Alaska Native people who were struggling with resources
and education to overcome the burdens of mental and
behavioral health issues. She asked for increased funding
for the Division of Behavioral Health crisis now continuum
of care grants, peer support, homelessness assistance,
behavioral health treatment recovery grants, IDD waitlist
reduction, and disability services grants.
3:22:28 PM
TOM CRAFTON, SELF, EAGLE RIVER (via teleconference), shared
that he was representing his daughter Jenna Crafton and 700
others who were currently on the developmental disability
waitlist for receiving a Medicaid waiver to enable them to
have meaningful lives. He had been helping his daughter for
25 years and seeing she had a meaningful life. He stated
that he would not be here forever, and he did not know how
she would survive later in life without support. He was a
highly trained behavioral clinician, but he could not work
in his field and help others while his daughter suffered
without the services she was entitled to receive. He
highlighted the workforce shortage. He stated his daughter
was quite able to work (she had called in to testify
previously) and wanted to provide for herself. He asked how
many other people were home taking care of their loved
ones. His mom was now living in his home. He noted that
more people were taken out of the workforce with the senior
population as well. He stated it was time to eradicate the
waitlist. His daughter wanted transportation to and from a
good job. He appreciated all of the hard work legislators
were doing.
3:24:46 PM
AMANDA FAULKNER, ALASKA ASSOCIATION ON DEVELOPMENTAL
DISABILITIES, KENAI (via teleconference), advocated for an
additional Medicaid increment of $15 million UGF to
stabilize home and community-based services while the state
worked to address flaws in the rebasing system. The funding
would be matched by an additional $15 million in federal
funding (a 10 percent increase in Medicaid rates). The
increment would provide bridge funding to prevent system
collapse during the process of addressing flaws in the rate
methodology system. She clarified the request was separate
from the $647,000 increment as requested to fund the
infrastructure needed to start implementation of the
waitlist elimination plan. She elaborated that rates were
implemented in 2011 and should have been reestablished at
least every four years using provider data collection. She
reported that rates had not been reestablished in 2014 and
2018 despite regulatory requirements. She stated that the
significant lack in responding to increased cost had been
exacerbated by the pandemic and reduced services and
workforce shortage. She detailed that some providers had
gone out of business and other organizations had calculated
a path to closure within one to three years. She elaborated
that system capacity did not currently exist with smaller
providers; therefore, the delivery of care would default to
larger institutional settings at a much higher cost to the
state, including out of state placements. She remarked that
the state's plan would fail if the provider system was weak
to the point of not being able to support people with a
wide variety of disabilities.
3:27:25 PM
JON ERICKSON, CITY MANAGER, YAKUTAT (via teleconference),
thanked the legislature for the community assistance
recapitalization and an increase in the Base Student
Allocation (BSA). He stated the community did not have a
ferry for the summer because of the Kennicott [the Alaska
Marine Highway System (AMHS) announced it did not have
sufficient crew to run the Kennicott ferry in the summer of
2023]. Additionally, the community was always short on
childcare. He reiterated his thanks to the committee.
3:28:41 PM
KATHLEEN FITZGERALD, SELF, SOLDOTNA (via teleconference),
shared that her 40-year-old daughter was autistic,
nonverbal, and required full personal care support and
close supervision. Her daughter had a loving and caring
heart and a beautiful smile. She shared things her daughter
loved to do including hiking, being in the woods, going for
drives with her dad, and going to Home Depot. She and her
husband were in their 70s and had had worked hard to
prepare for when they pass; however, many of the
developmental disability agencies were facing challenges
attracting staff to care for disabled individuals. She
urged the committee to include an additional $15 million to
stabilize agencies. She highlighted the anxiety she and her
husband had over their daughter's future. She referenced
hard work related to the Harborview Developmental Center in
order to provide community support for children, which
allowed for family and community input at a much more
reasonable cost. She thanked the committee.
3:31:05 PM
JOHN SOLOMON, CEO, ALASKA BEHAVIORAL HEALTH ASSOCIATION,
KOTZEBUE (via teleconference), supported funding the
recommendations made by the Alaska Mental Health Trust
Authority (AMHTA). He provided details about the work
performed by the Alaska Behavioral Health Association. He
shared that he had started as a therapist flying into
remote villages and saw how difficult it could be to
deliver care, but he had also seen how much care changed a
community and saved money by treating people when they
needed it before it was too late. He stressed that
something needed to be done. He supported taking care of
the most vulnerable Alaskans by funding a behavioral health
system. He spoke in support of funding the behavioral
health system, which would avoid throwing good money after
bad. He stressed when cuts were made, the state paid more.
Additionally, when flat funding was provided, the state
paid more. He thanked the committee.
Representative Josephson remarked that the organization
represented groups that did not necessarily qualify for
1115 waivers. He noted there had been some backfilling with
COVID funding of behavioral health grants. He asked how Mr.
Solomon viewed the governor's budget in terms of grants
outside the 1115 waiver and continuing need.
Mr. Solomon replied that grants allowed for the building of
capacity to stand up services. He stated that when there
was no ability to start services, the state kept losing
providers and care. There was an opportunity to provide
startup funds to get providers going. He noted that COVID
funding had provided some of the opportunity, but the funds
had not been sufficient to stand up the 1115 services.
3:35:14 PM
AT EASE
3:36:06 PM
RECONVENED
TOM MORPHET, SELF, HAINES (via teleconference), testified
in support of increased funding for Alaskans with
disabilities and families struggling with childcare. He
shared that he ran for legislative office in 2018 and all
young families wanted to talk about was childcare. He was
also concerned about people dying in state prisons, the
lack of funding for the Alaska Marine Highway System
(AMHS), and inadequate funding for public schools. He
wanted to be taxed. He stressed that the state had $80
billion in the bank and "we are acting like paupers." He
found it very frustrating. He asked for the implementation
of an income tax. He underscored the need to act like
Alaskans and have courage to do what was right.
3:38:27 PM
DAWN WALDAL-ANDERSON, MAYOR, WHALE PASS, PRINCE OF WALES
(via teleconference), testified in support of the
recapitalization of the community assistance program
funding. She shared that Whale Pass was Alaska's newest
city and it had incorporated just over five years ago. The
funding from the community assistance fund accounted for
almost 75 percent of the community's budget. The
community's city clerk was its only employee. The community
was working hard to build up its infrastructure to become a
self-supporting and independent city. She reported that if
community assistance funding was not recapitalized, it
would put the community in a very uncomfortable situation.
She thanked the committee.
3:39:58 PM
JOHN SONIN, CIVILIZED HUMANITY, DOUGLAS (via
teleconference), thought it sounded like the other
departments could use the pay increase that had just been
given to the legislature and executive branch. He could not
believe what the basics cost. He stated the funding
designated for a pay raise would be better used on
education. He asked if the state could not spend $600 to
$1000 more on students but it could spend a substantial sum
on the executive branch. He thought that there needed to be
some sense in the budgeting process. He thanked the
committee.
3:42:13 PM
EMILY CARROLL, SELF, ANCHORAGE (via teleconference), shared
that she is a pastor. She loved her work but thought about
quitting because of the difficulty finding childcare. She
elaborated that the provider she had found was closing
because other opportunities provided more money. She had
called every place in town and could not find childcare
because so many childcare workers did not get paid enough.
The state was lacking workers and many moms or dads were
having to stay home with their kids because they could not
find affordable childcare. She encouraged the committee to
add $15 million for childcare grant wages.
3:44:03 PM
SUE LIBENSON, SELF, HAINES (via teleconference), supported
funding for AMHS. She stressed that the situation was
critical. She shared that teachers were leaving and people
were quitting because people could not come and go from the
community. She received calls from people expressing
incredulity that they were unable to make a reservation.
She highlighted the once-in-a-generation federal funding
that required a state match. She remarked that the state
needed to step up and provide a full match in order to
qualify for over $100 million in federal funds. She stated
the situation impacted the military deployed up north,
school teams, a lack of medical services. She emphasized
that Haines was losing valued members of the community due
to lack of ferry service.
3:46:27 PM
ERIC GURLEY, EXECUTIVE DIRECTOR, ACCESS ALASKA INC.,
ANCHORAGE (via teleconference), supported funding for
independent living centers. He shared that Access Alaska
was one of the state's four centers for independent living
in Fairbanks, Anchorage, Fairbanks, Mat-Su, Southwest
Alaska, and other locations. The organization's efforts
assisted individuals and families to improve their
independence and enabled Alaskans with disabilities to
remain in their own homes and communities. He noted that
one of the largest programs provided consumer directed
personal care services to qualifying Alaskans. The
workforce shortage created significant challenges with
filling the need. He elaborated that Alaska's service
providers continued to struggle with filling vacancies. He
thanked the committee for its support for senior and
disability services community based grants. He requested
the addition of an increment to support participant
directed care. The model placed employment and budget
authority in the hands of those who need and receive
services. He stated that the ability to hire a friend or
family member to provide needed support was the next step
of meeting the needs of Alaskans. He asked the committee to
support an increment to initiate a program for Alaska to
begin the effort. He thanked the committee.
Representative Cronk thanked Mr. Gurley for calling in.
Co-Chair Johnson relayed there were no additional
testifiers currently in the room or online. She recessed
the meeting until 4:10 p.m.
3:48:57 PM
RECESSED
4:14:09 PM
RECONVENED
Co-Chair Johnson noted there were no additional testifiers
online. She recessed the meeting until 4:30 p.m.
4:14:09 PM
RECESSED
4:30:53 PM
RECONVENED
RICK NELSON, SELF, ANCHORAGE (via teleconference),
testified in support of funding for people with
disabilities and their services. He referenced a lack in
workforce due to the rate caretakers were paid. He
testified in support of increased wages for caretakers. He
shared that the rate for home and community-based services
had not increased in the past 12 years. The 10 percent rate
increase in the past year had not helped anyone. He stated
an increase of at least 13 percent was needed for
individuals to earn a living wage. He stated that without
the increase, the agencies would die. He urged the
committee to pass the budget with the increment.
Representative Galvin thanked Mr. Nelson for calling in and
for his leadership. She was grateful for his work.
Co-Chair Johnson noted there were no additional testifiers.
HB 39 was HEARD and HELD in committee for further
consideration.
HB 41 was HEARD and HELD in committee for further
consideration.
Co-Chair Johnson reviewed the schedule for the following
meeting.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HFIN DNR Willow Update 2023 03 23.pdf |
HFIN 3/23/2023 1:30:00 PM |
|
| HFIN DOR Willow Fiscal Analysis 03.23.23.pdf |
HFIN 3/23/2023 1:30:00 PM |
|
| HFIN Spring 2023 Revenue Forecast Presentation 2023.03.22.pdf |
HFIN 3/23/2023 1:30:00 PM |
|
| DOR Response to HFIN Willow Analysis 03.23.23 041123.pdf |
HFIN 3/23/2023 1:30:00 PM |
|
| DOR Response HFIN Willow Project Fiscal Analysis 2023.04.10 Update.pdf |
HFIN 3/23/2023 1:30:00 PM |
|
| HB 39 - HB 41 Op MH Budget Public Testimony Rec'd by 032324.pdf |
HFIN 3/23/2023 1:30:00 PM |
HB 39 HB 41 |