Legislature(2017 - 2018)HOUSE FINANCE 519
03/04/2017 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB57 || HB59 | |
| Public Testimony: Bethel, Cordova, Kotzebue, Nome, Valdez, Wrangell | |
| Public Testimony: Off-nets | |
| Public Testimony: Juneau | |
| Public Testimony: Overflow | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 57 | TELECONFERENCED | |
| += | HB 59 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 57
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; repealing appropriations; making
supplemental appropriations and reappropriations, and
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. 59
"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."
9:01:00 AM
Co-Chair Seaton indicated that testifiers would be limited
to 2 minutes.
^PUBLIC TESTIMONY: BETHEL, CORDOVA, KOTZEBUE, NOME, VALDEZ,
WRANGELL
9:01:42 AM
JEFF JABUSCH, CITY MANAGER, CITY AND BOROUGH OF WRANGELL,
WRANGELL (via teleconference), opposed the reduction of the
school bond debt reimbursement by roughly 50 percent. He
understood the fiscal crisis the state was facing and the
need to make cuts where they made sense. He had previously
worked as the finance director for the city for 36 years
and understood the ups and downs the state had faced. He
shared that Wrangell had seen a reduction in revenues from
the state over the past several years. He spoke to the
burden the state continued to pass on to the
municipalities. He detailed Wrangell already had the
highest sales tax in the state at 7 percent and a 12.75
mill rate. He provided details about the city's senior tax
exemption. The city was limited in the way it could raise
taxes without unfairly taxing only a portion of its
population. He opined that it did not make sense to raise
taxes at the state and local levels to maintain services,
while continuing to distribute a Permanent Fund Dividend
(PFD). He supported using the Permanent Fund earnings to
fund government prior to continuing to shift the burden to
local governments.
Co-Chair Seaton pointed out that the Wrangell debt loss
would be approximately $96,000 under the bill.
Alternatively, if there was a 5 percent Base Student
Allocation (BSA) reduction it would lose $197,000. He asked
testifiers to vocalize if they had a preference over the
bond debt reimbursement or a BSA reduction.
9:05:10 AM
Representative Ortiz was interested in knowing which
reduction was preferred over another. He thanked Mr.
Jabusch for his work serving the community of Wrangell.
9:05:55 AM
BRIAN MERRITT, SELF, WRANGELL (via teleconference), spoke
in support of the Alaska Marine Highway System (AMHS),
which served as a lifeline to residents in Southeast. The
ferry system was needed for seafood, tourism, local
transportation, sports travel, and other. He did not want
to see AMHS negatively impacted in any way. He agreed that
the PFD was icing on the cake. He thought PFDs should not
be reduced for handicapped individuals, seniors, and the
impoverished. He believed the money could be better spent
on services. He supported public education. He asked
members to think of the entire state when making decisions.
9:08:11 AM
BOB METCALF, UAF-NORTHWEST CAMPUS, NOME (via
teleconference), urged members to fully fund K-12
education. He indicated that the Nome region had no
educational silos. He supported funding for the Technical
Vocational Education Program (TVEP) and Northwestern Alaska
Career and Technical Center (NACTEC). He spoke to the
importance and impact of the program. He agreed that the
cost of living and doing business was higher in rural
Alaska, but he disagreed with claims that rural campuses
were expensive. He spoke to cuts in state funding. He
reported other facts about the rural campus in Nome. He
concluded that equal opportunity education was necessary.
9:10:48 AM
DOUG WALRATH, NACTEC, NOME (via teleconference), supported
HB 57. He stated it was evident it was not possible to cut
the state's way to prosperity. He shared that a 30 percent
operational cut to the program had been made over the past
couple of years. He spoke to the loss of a certified
teacher position and a subsequent decline in enrollment. He
detailed that prior to vocational training programs,
graduation rates had been in the 30 percent range. He
emphasized that graduation rates were presently 40 percent
higher than they had been 10 to 15 years back. He also
urged members to support pre-K through college education.
He spoke in favor of funds for the Nome Youth Facility. He
favored a comprehensive budget plan and the use of
Permanent Fund earnings and/or a state tax until a time
when new natural resources could sustain the state once
again.
Co-Chair Seaton indicated Representative Pruitt had joined
the meeting.
9:13:22 AM
PETER HOEPFNER, BOARD MEMBER, CORDOVA SCHOOL DISTRICT,
CORDOVA (via teleconference), urged support for public
education. He detailed that the amount of savings further
cuts to education would bring would not compensate for the
damage done to the education of Alaska's children. He
discussed that the BSA had increased 10 percent, much less
than inflation. He spoke to significant increases in
healthcare costs that had impacted the school district. He
opposed the reduction of the funding for the school bond
debt reimbursement. The Cordova School District was looking
at reduced funding from the city due to a series of
deficits. He spoke about costs being shifted to Cordova. He
stressed the need to preserve education funding. He
underscored the need for an educated population.
9:15:21 AM
BARB JEWELL, CHAIR, CORDOVA SCHOOL BOARD, CORDOVA (via
teleconference), supported comments made by her colleague
Mr. Hoepfner. She reported that Cordova had funded to the
cap each year - it had always put money into the school
district because investing in education was an investment
in the community and state. Due to the proposed state cuts,
it was the first year the city would have to decrease the
funding - it was looking at a loss of $400,000 in funding
from the city. She was opposed the reduction in the school
bond debt reimbursement and municipal revenue sharing. She
urged the committee to remember the return on investment
provided by education. She provided statistics related to
the investment in education. She urged full funding for
education.
9:17:01 AM
DAVID OTNESS, SELF, CORDOVA (via teleconference), opposed
using the Permanent Fund to fund government. He believed it
would disproportionately harm numerous Alaskans. He stated
that Institute of Social and Economic Research (ISER) had
reported the use of the Permanent Fund would further drive
the recession. He discussed that 64 percent of Alaskans
polled wanted changes in the oil tax credit system. He
questioned whether the state had done enough with the
consolidation of school districts, considering the sale of
the Alaska Rail Road, or consolidation of the University
system. He believed there were ways to get out of the
deficit. He stated it was not the end of the world if a
solution was not determined given reserve money. He thought
the problem could be addressed gradually over a period of
several years.
9:19:13 AM
YOSELYN GHEEN, VALDEZ IMAGINATION LIBRARY, VALDEZ (via
teleconference), spoke of the benefits of Best Beginnings
and the results of the program. She thought it was so
important to fund early childhood education. She had grown
up in Bethel and had seen the results of not having
opportunities for children. She asked the committee to
consider continued funding for the program. She thanked the
committee.
Co-Chair Seaton relayed that the committee would break
until additional testifiers became available.
9:21:57 AM
AT EASE
9:46:19 AM
RECONVENED
CLEMENT RICHARDS, MAYOR, NORTHWEST ARCTIC BOROUGH, KOTZEBUE
(via teleconference), opposed the reduction in the payment
to the opposed the reduction to the school bond debt
service. He spoke of the devastating affects the reduction
would have on the borough and the communities it served. He
relayed that the $1.9 million state contribution to school
bond debt reimbursement and the $1.2 million local
contribution to the school district was a significant
portion of the borough's budget.
9:49:18 AM
Co-Chair Foster commented that Nome had taxing authority,
but none of the surrounding villages did. He assumed
Kotzebue had taxing authority and that none of the
surrounding villages did. He thought the burden may fall on
Kotzebue if that were the case.
Mr. Richards agreed. He shared that the borough was
currently in litigation over its right to have a severance
tax. He provided detail. He specified that most of the ten
other villages had restricted property where property tax
could not be raised. He stressed that the situation would
be a substantial unfair burden on Kotzebue. He could not
imagine placing any additional challenges on the borough's
administration in determining how to meet the needs of the
communities. He relayed that currently two communities were
in the process of closing their doors because the revenue
sharing was inadequate to maintain or support them
throughout the year. He shared that the borough was
struggling to help the two communities remain open. He
opposed the proposed bond debt reimbursement reduction.
9:51:43 AM
Vice-Chair Gara was concerned with Mr. Richards' testimony.
He spoke about the reduction in revenue sharing. He asked
surmised losing a Base Student Allocation (BSA) increase
would also negatively impact the borough. He asked for
examples of how the reductions would be devastating to the
region.
Mr. Richards responded that the borough's school bond debt
reimbursement was currently $1.9 million and the local
school contribution was $2.1 million. Without the funds the
borough would only have $2.9 million to operate. The
borough had huge obligations to its communities including
plowing snow, road maintenance, public safety, emergency
service, water and sewer, elder services, and other.
Additionally the Village Public Safety Officer (VPSO)
program was struggling. He provided further detail. He
spoke about the need for heating assistance. The borough
would have to absorb an additional $700,000 out of its $2.9
million in operating funds.
9:54:42 AM
SUE STEINACHER, SELF, NOME (via teleconference), relayed
that things in Nome were getting desperate in the region.
She thought it was embarrassing an income tax had not been
implemented as the state was facing a fiscal crisis. She
thought an income tax was more equitable than the cut to
people's PFD. She did not want to see further of the PFD.
She provided some information about the effects of the
budget on the area. She reiterated her support for an
income tax before doing things that continued to erode
rural Alaska's ability to support itself. She shared that
the community's emergency shelter that used to serve 12
people at night was now serving over 30 people per night.
She added Nome was a community of 3,800 people with over 50
families on the waitlist to get into the 33 units of low
income housing supported by the Alaska Housing Finance
Corporation (AHFC).
9:58:12 AM
Co-Chair Foster thanked Ms. Steinacher and indicated that
the committee would be looking at the prospect of an income
tax in the form of a bill. He thanked her for her service
having to do with low-income housing.
Ms. Steinacher added that any discussion of a sales tax was
unthinkable in her mind. She stated rural Alaska was
already paying 2 to 4 times the cost for goods in rural
Alaska. The cost hurt low income families the most. She
reiterated her support for an income tax.
Co-Chair Seaton indicated that the committee would begin
hearing testimony form the off-net sites.
^PUBLIC TESTIMONY: OFF-NETS
9:59:41 AM
KELLY RETNOW, SELF, PALMER (via teleconference), spoke
about HB 115 and advocated for separating use of the
Permanent Fund and implementing an income tax into two
bills. He remarked that when it was no longer economically
feasible to support a hockey team it was closed down. He
furthered that some rural locations in Alaska were no
longer economically feasible. He thought it was worth
looking into. He understood it would be difficult, but he
thought it may not be cost-effective to remain in some
areas. He supported home schooling kids. He believed the
education system wasted substantial money. He thought it
had been a big mistake to close a North Slope refinery in
recent years. He thought the legislature should use up the
Constitutional Budget Reserve (CBR). He suggested the
legislature making a promise to repay the Permanent Fund if
money was used. He stated the new president was more
economically orientated than environmentally orientated;
therefore he believed the state's economy would turn
around.
10:03:46 AM
MIKE COONS, SELF, PALMER (via teleconference), stated the
budget process had been the least transparent he had seen.
He believed there had been underhanded actions by the
Majority. He stated the most recent bill version showed a
cost of $6.6 billion. He opined that all of the hard work
from the past four years had been wiped clean. He opposed
the use of the PFD, taxes, and changing oil and gas tax
credits. He blamed the Democrats. He opposed the increase
of government.
10:06:17 AM
CLAY KOPLIN, MAYOR, CITY OF CORDOVA, ANCHORAGE (via
teleconference), opposed the reduction to the school bond
debt reimbursement. He shared that the fish tax had
plummeted in the current year due to the worst pink salmon
run in three decades. Additionally, the federal government
had stopped providing timber receipts. The City of Cordova
had looked at reductions and other measures to help with
its budget. The city was not able to fund its schools at
the maximum allowable cap for the first time in many years.
He emphasized that cutting the bond reimbursement impacted
local funding for school classrooms. The city supported the
legislature's efforts to find new state revenues, but he
implored the committee to avoid handing down the cost of
the state's commitments to match the bonds for school
construction.
10:09:13 AM
MICHELLE MATTHEW, CITY OF QUINHAGAK, QUINHAGAK (via
teleconference), opposed shifting costs to the
municipalities. She believed a fiscal solution should make
the entire state including municipalities, residents,
businesses, and nonprofits whole again. The city supported
a fiscal plan and was not in favor of continued cuts to
resolve the deficit. The city did not feel comfortable with
increasing taxes and shifting costs. She urged members to
solve the budget crisis equitably. She thanked the
committee for its time.
10:10:16 AM
JEANNE KITAYAMA, SELF, HAINES (via teleconference),
appreciated the funding for early childhood education. She
discussed that quality economic returns came from quality
investments in early childhood education. She opposed the
reduction to the school bond debt reimbursement. She
thought the burden was being shifted to the municipalities.
She asked that members find fair solutions to the state's
fiscal problems.
Co-Chair Seaton reported that the committee would take a
break until additional testifiers signed up.
10:11:48 AM
AT EASE
10:30:57 AM
RECONVENED
PAGE O'CONNELL, SELF, DILLINGHAM (via teleconference),
asked the committee to consider increasing funds to
maintain community based services for behavioral health.
She shared that she had been a resident of Bristol Bay for
19 years and worked in the behavioral health field. She
detailed that Alaskans with disabilities were more likely
to live meaningful and productive lives with appropriate
treatment and support that could help them remain stable
and stay out of expensive emergency and institutional care.
She communicated it was difficult to see people with
behavioral health disabilities end up in jail due to a lack
of community support. She supported a fiscal plan that
supported a diverse source of revenues. She would be
willing to pay a personal income tax. She shared a quote
from Senator Paul Wellstone: "We all do better, when we all
do better."
Co-Chair Seaton asked Ms. O'Connell if she was specifically
speaking to the proposed reduction in the number of hours
[per week] in the waiver program.
Ms. O'Connell answered that the waiver reduction would
definitely impact her clients and many people in the
region. She clarified she was in support of all community
services. She detailed that the clients she served were
piecing everything they could together for support,
including transportation for the local senior center,
meals, supported housing, and mental health services.
10:35:23 AM
LOIS REPNOW, SELF, PALMER (via teleconference), encouraged
additional cuts to the budget. She opposed using the
Permanent Fund and an income tax. She believed the state
needed to live within its means. She provided detail about
a tourist lodge that had burned down many years earlier
that had never been rebuilt. She thought the state needed
to look closely at what it was willing to spend money on to
rebuild. She opposed the previous cut to the PFD. She
encouraged placing a cap on the PF. She supported Senator
Dunleavy's legislation and wanted to see a vote put forth
to the people.
10:37:30 AM
MARY STACKHOUSE, SELF, WASILLA (via teleconference), spoke
in support of HB 126 regarding insurance for the state
defense force. She provided detail. She emphasized that the
individuals were volunteers and were first responders to
disasters. She supported insurance coverage for the
individuals in the event of injury.
Co-Chair Seaton indicated that there were two areas
pertaining to the state defense force - one would expand
the program and establish a new base in a different area.
He asked for verification Ms. Stackhouse was speaking only
to insurance for the existing force.
Ms. Stackhouse replied she was speaking primarily to
insurance for the existing force; however, if there were
members located in village areas they could be first
responders more quickly. Expanding the defense force would
make it would make response much easier.
10:40:14 AM
AMY TITUS, CITY OF WHITE MOUNTAIN, WHITE MOUNTAIN (via
teleconference), opposed shifting costs to municipal
governments. She urged the legislature to adopt a fiscal
plan. She relayed that rural governments did not have the
money to pay for state offset costs. She detailed that the
proposed amendments were temporary fixes to a long-term
problem that needed to be addressed at present. She asked
the committee to find another solution that did not involve
shifting costs to municipal governments. She thanked the
committee.
10:41:33 AM
EVELYN VERHAGEN, SELF, NENANA (via teleconference), opposed
dipping into the earnings reserve account. She talked about
the fact that her family depended upon the PFDs. She
recommended that the legislators fully examine budget
needs. She thought the legislators need to consider needs
versus wants. She proposed spending more in times of a
financial surplus, but she thought in the current
circumstances the budget needs needed to be reevaluated.
She talked about the high costs of living in Alaska.
10:45:07 AM
AMIE VERHAGEN, SELF, NENANA (via teleconference), opposed
using the earnings reserve account and opposed a state
income tax. She did not feel the legislature had made an
earnest attempt to reduce the state's budget. She supported
additional cuts. She advised a responsible 5 percent to the
Base Student Allocation (BSA). She thought it was better to
cut the BSA rather than reduce the school bond
reimbursement. She encouraged having everyone share the
burden. If the state did not practice disciple at present
it would be more difficult later. She spoke of working hard
every day in her family. She relayed that the PFD brought
her family above the poverty line.
10:50:09 AM
DR. ROGER HOLL, SELF, STERLING (via teleconference),
addressed HB 126 related to the workers' compensation for
unpaid training for the Alaska State Defense Force. He
shared that he had previously been part of the force. He
provided information about the force.
Co-Chair Seaton interjected and asked Mr. Holl if he was
asking for the budgetary increase to expand the defense
force. He relayed that a separate bill would be heard at a
later date.
Mr. Holl responded that workers' compensation had an
economic component and the force had always been told there
would be an increased cost for workers' compensation for
training rather than state active duty.
Co-Chair Seaton asked if Mr. Holl wanted to comment on
expanding the defense force increment in the budget.
Mr. Holl responded that he believed the workers'
compensation was a part of that increment. He relayed that
the investment would protect the state from large liability
claims for injuries or death. He provided further detail.
He spoke about an entire budget being wiped out because of
someone twisting their ankle.
10:53:25 AM
JOHN MOOSEY, BOROUGH MANAGER, MAT-SU BOROUGH, PALMER, spoke
in opposition to the reduction to the school bond debt
reimbursement program. He relayed the proposed reduction
would cut state bond debt reimbursement for prior year
capital improvement bonds by 41.8 percent, which would
result in a dramatic cost change to Mat-Su in the amount of
$9.5 million. He shared that the district's school
population had grown by 4 percent in the last year. He
detailed that residents had been asked to vote on a school
bonding proposal in 2011. The state had reneged on its
promise when the governor had vetoed a portion of the
amount. He stressed that the reduction would fall unequally
on Mat-Su. He relayed that almost every resident would have
to pay close to $100 annually to offset the unexpected
cost. He asked members to reconsider the cut.
10:55:30 AM
Co-Chair Seaton remarked that a 5 percent cut to the BSA
would be a $9.85 million cut to Mat-Su. He presumed Mr.
Moosey would oppose that cut as well.
Mr. Moosey replied in the affirmative. He spoke to the
importance of developing a plan so the communities could
plan for reductions. He relayed that four years back the
legislature had communicated its plan to cut revenue
sharing over a period of time, which had allowed the
borough to plan. He elaborated on the situation. He
believed that when residents voted on an issue and the
state then took the money away constituted a break in
trust. He thanked members for its time.
Co-Chair Seaton indicated that no one else was online to
testify. He recessed the meeting until 1:00 p.m.
10:57:59 AM
AT EASE
1:02:51 PM
RECONVENNED
^PUBLIC TESTIMONY: JUNEAU
1:03:25 PM
MARK MILLER, SUPERINTENDENT, JUNEAU SCHOOL DISTRICT,
JUNEAU, brought a stuffed gorilla to the testifier table.
He often referred to the Anchorage School District as the
400 pound gorilla because it educated half the students in
the state. He stated that shifting the bond debt for the
Anchorage School District would negatively impact the
education of half the students in the state because of the
financing structure. He explained that the state did not
provide sufficient funds to educate students in Juneau. He
shared the district had a 100 percent graduation rate for
special education and Alaska Native students in the current
year. He detailed that shifting the debt to the city meant
that either cuts would have to be made or property taxes
would be increased. He stated that shifting the tax burden,
making cuts, moving the PFD, would not change the issue. He
believed everyone in Alaska had to know that at some point
people would have to pay sales, income, and property tax.
Co-Chair Seaton recognized Senator Dennis Egan and
Representative Justin Parish in the room.
1:06:20 PM
KEN WEBER, FORMER SCHOOL TEACHER, JUNEAU, spoke in support
of early child education. He emphasized that the more
children were invested in, the less they would cost later.
He continued that the more education children were provided
meant they would be productive members of society. He
thanked the committee for its time.
1:07:19 PM
JOHN BENNETT, ALASKA CENTER FOR RESOURCE FAMILIES, JUNEAU,
thanked the committee for its work to maintain support for
early childhood education and services. The center provided
support to the Office of Children's Services and he
provided training to foster parents. He spoke to how early
childhood experiences impacted a child's life. He discussed
how adverse experiences impacted children - the results
were dramatic and led to high costs for society (including
drug problems and other). The best way to offset the
experiences were to provide programs and support to
children.
1:09:41 PM
BOB SYLVESTER, SELF, JUNEAU, spoke in support of the
budget. He believed the committee's efforts to spread the
pain was a good idea. He had supported an income tax in the
past and he believed it was time to bring the income tax
back. He stated that being fair was the key. He testified
in favor of education and asked the committee to be as
generous as possible.
1:11:23 PM
JOY LYON, ASSOCIATION FOR THE EDUCATION OF YOUNG CHILDREN,
JUNEAU, thanked the committee for its work on behalf of the
state. She appreciated the committee's work on a long-term
fiscal solution that included new revenues. She supported
an income tax. She thanked the committee for maintaining
funding for early childhood education including Parents as
Teachers, Best Beginnings, and other. She invited members
to attend a film showing on the following Wednesday related
to an early childhood experience study.
1:13:13 PM
MAUREEN HALL, SELF, JUNEAU, testified in support of
healthcare and education. She worked as a school nurse. She
shared that she had over 1,000 students in her caseload.
She stressed that it was not the time to be cutting
education during given the current opioid epidemic facing
the state. The high schools no longer had alcohol or drug
counselors due to budget cuts. She was a mother of four and
grandmother of six. Two of her children had been educated
in the University of Alaska system, which she supported
maintaining the budget for. She testified in favor of an
income tax. She thought it was time for everyone to
participate.
1:15:33 PM
RORIE WATT, CITY MANAGER, CITY AND BOROUGH OF JUNEAU,
JUNEAU, thanked the committee for its work. He spoke in
opposition to the cut to school construction bond debt. He
emphasized that shifting the cost to the municipalities
would negatively impact the state. He stated that community
leaders had earned the trust of their citizens. He
explained that citizens had paid statewide to local
governments $1.3 billion in taxes in 2015. He elaborated
that the citizens had reelected most of the politicians
because they liked the services they received. He supported
a broad-based tax. He was heartened by Co-Chair Foster and
Co-Chair Seaton's recent letter to the editor about the
type of Alaska they wanted to live in.
1:17:44 PM
ERIN WALKER-TOLLES, EXECUTIVE DIRECTOR, CATHOLIC COMMUNITY
SERVICE, JUNEAU, shared that the board of directors had
passed a resolution to encourage the legislature to
implement a sustainable budget and to use Permanent Fund
earnings. She provided information about the service that
served 11 communities in Southeast Alaska. She did not
support cuts to municipalities. She spoke in favor of Meals
on Wheels, transit programs, and other that supported
seniors and disabled individuals. She asked the committee
to consider doing what it could.
1:19:52 PM
MARY RIGGEN, KIDS AND SELF, JUNEAU, thanked the committee
for its time. She believed the state's responsibility to
protect its most vulnerable citizens did not go away during
a budget deficit. She testified in support of Office of
Children's Services staffing. She did not believe a single
person in the room could last in an OCS caseworker position
for more than one year. She urged the committee to do what
it could to shore up the agency's budget. She clarified she
had never worked for the agency and had no reason to gain
from testifying in support of the agency. She emphasized
the importance of the issue and asked the committee to
remember it was about Alaska's children.
1:22:05 PM
WILL KRONICK, SELF, JUNEAU, shared he had been a pre-school
teacher and currently worked for a social work program
working to reunite families with children in foster care.
The families he worked with depended on services from the
government and a functional budget. He asked the committee
to implement a tax.
BRIAN HOLST, EXECUTIVE DIRECTOR, JUNEAU ECONOMIC
DEVELOPMENT COUNCIL, AND PRESIDENT, JUNEAU BOARD OF
EDUCATION, JUNEAU, testified that cuts to state government
had been substantial and were sufficient. He stated that
education is an investment in economic development and he
asked the legislature to avoid pushing the tax burden onto
local government. He shared that since 2011, over 100
positions had been cut in Juneau schools. He communicated
that the state Chamber of Commerce had urged the governor
and legislature to reduce spending to $4.5 billion
unrestricted general fund - he believed the budget was
either there or close to that number. He remarked that the
legislature had done what was needed and it had shrunk
government substantially. He stressed that the cuts had
hurt the education system and the economy. He asked the
legislature to find ways to maintain services. He
underscored a strong education system was critical to the
state's economic future. He emphasized that nothing
attracted business better than a talented workforce. He was
concerned about the proposed cut to the state's share of
school bond reimbursements.
1:25:09 PM
KATHY TRAN, THUNDER MOUNTAIN HIGH SCHOOL STUDENT, JUNEAU,
spoke in support of full funding of the Base Student
Allocation (BSA), school bond debt reimbursement, and pupil
transportation. She discussed that for the past five years
education had been flat funded, but it did not mean that
education had not suffered its fair share of cuts. She
shared that the Juneau School District had cut teachers,
staff, materials, programs, and other. She spoke to the
importance of student/teacher relationships. She did not
want her younger siblings to merely survive their
education; she wanted them to flourish. She shared that she
is a first generation Vietnamese American and she shared
her personal story through the education system. Through
the help of her teachers she had overcome difficulties with
reading and writing. She wanted to see more success
stories, which would begin with a well-developed education
system. Education was an investment in the future of
Alaska.
1:27:48 PM
DAVID PARISH, SELF, JUNEAU, testified in support of
education. He shared that his seven children had all gone
through the Juneau school system when it had been better
funded. He believed the cutbacks and increased class sizes
was not benefitting the community. He shared information
about his place in Tenakee that had a well and septic
system, while his place in Juneau did not. He supported
extending the services farther out the road. He spoke in
support of a future for fisheries. He spoke to the
community's landfill and wanted to see it stop polluting
the channel. He recalled fish stocks in the river around
the landfill years back. He supported a cleanup project to
decontaminate its water. He hoped the legislature would be
successful.
1:31:45 PM
AT EASE
1:32:38 PM
RECONVENED
ANDI STORY, JUNEAU SCHOOL BOARD, JUNEAU, urged the
legislature to continue to invest in education. The
investment really impacted the state's future. She asked
the committee to fully fund the Base Student Allocation
(BSA). She spoke to $11 million in cuts to the Juneau
School District over the past several years. She stressed
that education needed to be responsive to students and jobs
for the present. She stated the board had to make unpopular
cuts to balance the district's budget. She discussed that
100 percent of the Thunder Mountain High School senior
Native Alaskan students had graduated. She was opposed to a
cut to the school bond debt reimbursement. She stressed the
change would take away from teachers. She stressed that
school boards could not generate revenue to meet the
students' needs; they relied on the legislature and local
municipal leaders for funding. She asked the committee to
prioritize education.
1:35:28 PM
BETH RIVEST, SELF, JUNEAU, thanked the committee for its
hard work on the budget. She stressed that funding
education built tolerance and understanding. She supported
reaching all of the state's students and people through
education. She spoke from the perspective of a single
parent. She relayed the travel struggle had become
prohibitive due to cuts to the Alaska Marine Highway System
(AMHS). She wanted her children to return to Alaska after
seeing other parts of the world; if the goal was to
reinvest in Alaska, they needed to encourage people to come
back. She spoke to the Permanent Fund. She budgeted tightly
and the PFD had provided funding for her children's medical
bills and had helped to save for college. She explained the
PFD was a community owned. She thanked the committee for
working very hard.
Co-Chair Seaton noted the committee would break until 2:00
p.m. to give testifiers an opportunity to sign up.
1:40:58 PM
AT EASE
2:01:44 PM
RECONVENED
2:02:40 PM
GAVIN MARTIN, THUNDER MOUNTAIN HIGH SCHOOL STUDENT, JUNEAU,
testified in support of full funding of the Base Student
Allocation (BSA). He thanked the committee for its time. He
was the senior president at Thunder Mountain High School.
He shared that he is dyslexic, which had created tremendous
struggles within his academic career. He shared his
personal story in the education system. He discussed that
research had shown that 75 percent of youths struggling
with reading in third grade never caught up. The students
were four times more likely to drop out of high school. The
goal of public education was to allow students with optimal
education to succeed in life.
2:04:46 PM
CECELIA MILLER, SELF, JUNEAU, thanked the House for forming
a coalition. She was excited the House had a leader from
rural Alaska; she believed the perspective would be
valuable. She supported the committee's look at new revenue
sources. She spoke to concerns. She addressed the
University and relayed its funding had been seriously cut.
She detailed that one of the University's goals was to have
90 percent of its teachers being prepared in Alaska. She
believed it would not happen if the University did not have
the budget. She supported funding for K-12 education. She
spoke in support of state employees. She shared that the
pink slips passed out in the previous year had resulted in
the loss of some great employees. She spoke to furlough.
She encouraged the legislature to honor its contracts with
state employees.
2:07:18 PM
GREG FITCH, FOUNDER AND EXECUTIVE DIRECTOR, MENTAL HEALTH
CONSUMER ACTION NETWORK, JUNEAU, spoke in support of
funding to bolster the mental health budget. He believed
mental health should take the forefront. He believed
investments needed to be made in new programs. He supported
ADUs and respite, which would save funding. He explained
they were basically residential centers that could be
opened in places like Sitka, Juneau, and other. He believed
it was important to take care of the state's people. He
believed "we could do better." He understood the
legislature cared about state residents. He thanked the
committee for its time.
Co-Chair Seaton relayed the committee would break for 30
minutes. There were currently no additional testifiers in
the room.
2:10:01 PM
AT EASE
2:41:49 PM
RECONVENED
ANJI GALLANOS, SELF, JUNEAU, spoke in support of education
funding. She shared that she had two sons in the Juneau
public high school system. She was encouraging and was
encouraged by the support the committee had provided
education thus far. She spoke to the value of Alaska's
education system and the importance of continuing to
support it. She wanted to contribute as a citizen and was
more than willing to pay an income and sales tax. She
wanted to ensure she was doing her part. She thanked the
committee for its time.
2:43:47 PM
JAMES GALLANOS, SELF, JUNEAU, shared information about his
background in social work and as a Juneau resident. He felt
strongly about the prioritization of health, safety, and
education. He spoke to challenges and struggles communities
experienced and the importance of strong supportive
communities and recovery environments. He spoke to the
importance of giving people the opportunity to thrive. He
supported a strong fiscal plan and seeking new revenues.
2:45:33 PM
SUSAN PHIPPS, MENTAL HEALTH CLIENT ACTION NETWORK, JUNEAU,
shared that she had come to Juneau on vacation in 1975 and
was still in Juneau. She was a survivor of mental health
and substance abuse treatment and the corrections system
(it had been 20 years since that time). She wanted to "get
on the band wagon" for giving kids everything possible. She
relayed that 400 people would be released from Juneau
Correctional Center in the coming year due to recidivism
legislation [SB 91] passed in 2016. She stressed only ten
additional beds had been allocated to Gastineau Human
Services. She relayed that consumer run programs worked
very well. She shared information about her volunteer work
for various treatment services. She urged the legislature
to continue spending funds on services for people getting
out of prison and without anything else.
^PUBLIC TESTIMONY: OVERFLOW
2:47:28 PM
MIKE SWANSON, SELF, WASILLA (via teleconference), was
greatly concerned about a budget cycle that did not align
spending with earnings. He believed the bill continued to
kick the can down the road. He did not support spending
$6.6 billion on the operating budget in FY 18. He cited
data from the Department of Revenue regarding incoming
revenue. He shared that former Governor Parnell had been
voted out partially due to deficits and he stated that
Governor Walker had doubled the deficit. He reasoned that
at the current rate the state was spending savings it had
one or two years before it would have to borrow money to
pay its bills. He spoke to numerous taxes on mines, people,
fishing, and other. He believed the only way forward was to
cut the budget to a sustainable level. He believed $2
billion should be cut from the budget. He supported cuts to
everything including education and human services. He asked
the committee to consider Gunnar Knapp's revenue analysis
[formerly with Institute of Social and Economic Research
(ISER)]. He supported cuts to oil tax credits. He did not
support handouts for government or corporate Alaska.
2:53:02 PM
Co-Chair Seaton shared that the 3:00 p.m. to 5:00 p.m. slot
had been reserved for any overflow testimony; however,
there were no additional testifiers online or present.
HB 57 was HEARD and HELD in committee for further
consideration.
HB 59 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 57 Documents in Opposition 3- 3.4.17.pdf |
HFIN 3/4/2017 9:00:00 AM |
HB 57 |
| HB 57 Documents in Support3- 3.4.17.pdf |
HFIN 3/4/2017 9:00:00 AM |
HB 57 |
| HB 57 HB 59 Public Testimony PKT.pdf |
HFIN 3/4/2017 9:00:00 AM |
HB 57 HB 59 |
| HB 57 Documents in Opposition5 3.14.17.pdf |
HFIN 3/4/2017 9:00:00 AM |
HB 57 |
| HB 57 Documents in Support5 3.14.17.pdf |
HFIN 3/4/2017 9:00:00 AM |
HB 57 |