Legislature(2013 - 2014)SENATE FINANCE 532
03/20/2014 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB266 || HB267 | |
| Public Testimony: Bethel | |
| Public Testimony: Nome | |
| Public Testimony: Juneau | |
| Public Testimony: Craig | |
| Public Testimony: Bethel | |
| Public Testimony: Nome | |
| Public Testimony: Barrow | |
| Public Testimony: Bethel | |
| Public Testimony: Wrangell | |
| Public Testimony: Petersburg | |
| Public Testimony: Ketchikan | |
| Public Testimony: Sitka | |
| Public Testimony: Craig | |
| Public Testimony: Sitka | |
| Public Testimony: Cordova | |
| Public Testimony: Valdez | |
| Public Testimony: Cordova | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 266 | TELECONFERENCED | |
| += | HB 267 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 266(FIN)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, and making
reappropriations; and providing for an effective
date."
CS FOR HOUSE BILL NO. 267(FIN)
"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."
9:06:44 AM
Co-Chair Kelly related that he had a bill in the House
Finance Committee, but that he wanted to get the public
testimony started. He related that he would return to the
committee after his bill was heard. He noted that Senator
Bishop would be a little late to the meeting and observed
that Senator Hoffman had a flight to catch as well.
Senator Hoffman stated that his flight was delayed and that
he would be present in committee until a little after 10
a.m.
Co-Chair Kelly noted for the record that Senator Hoffman
had to leave but would make efforts to hear or read the
public testimony.
^PUBLIC TESTIMONY: BETHEL
9:07:51 AM
RAY WATSON, BEHAVIORAL HEALTH PHILLIPS AYAGNIRVIK TREATMENT
CENTER TREATMENT CENTER, BETHEL (via teleconference),
testified in support of funding for substance abuse
treatment programs. He appreciated the support of the
committee.
9:09:07 AM
RICK ROBB, DIRECTOR, RESIDENTIAL SERVICES, YUKON-KUSKOKWIM
HEALTH CORPORATION (YKHC), BETHEL (via teleconference),
spoke in support of funding for residential substance abuse
treatment and behavioral health treatment programs. He
understood that money was tight, but noted that there was a
great need for services in the Bethel area, as well as
elsewhere in the state. He relayed that state grants were
very important to YKHC and spoke of its recent loss of
federal money; additionally, when YKHC's federal funding
was cut, it became more reliant on state budgets. He
pointed out that a lot of people seeking substance abuse
treatment services did not have the means to pay for it and
offered that ultimately, if people did not get treatment,
the state had to pay one way or another; the state would
either help pay for treatment for substance abuse services,
substance dependence, residential services, or mental
health services or it would pay for the negative outcomes
of its people. He elaborated that negative outcomes
included police, ambulances, jails, court costs, as well as
the human loss of broken lives and broken families.
^PUBLIC TESTIMONY: NOME
9:11:40 AM
CHRIS BOLTON, CHIEF OPERATING OFFICER, NORTON SOUND HEALTH
CORPORATION (NSHC), NOME (via teleconference), thanked the
committee for restoring funding for residential substance
abuse treatment programs and behavioral health treatment.
Additionally, he testified in favor of full funding for the
SHARP loan repayment program. He offered that the $2
million in funding for residential substance abuse and
behavioral health treatment programs was vital for helping
the state's most vulnerable populations, particularly in
rural areas; any cuts to current funding levels would
jeopardize the ability of Alaska to recover from being the
state with the highest rates of substance abuse, suicide,
and domestic violence in the nation. He spoke to the cut in
funding for the SHARP program and related that NSCH had 3
providers that had specifically come to Nome because of
that program; furthermore, cutting this funding would be
devastating to Norton Sound. He stated that Norton Sound
was already short 3 providers outside of the previously
mentioned 3 and that if the funding was cut, it would lose
3 more.
Co-Chair Meyer observed that Senator Bishop had joined the
committee in progress.
9:14:09 AM
GAY SHEFFIELD, UAF MARINE ADVISORY SAFETY COMMITTEE, NOME
(via teleconference), Vocalized support for the Alaska
Marine Safety Education Association (AMSEA). She related
that the AMSEA network delivered safety training that was
cost effective and maintained high hands-on safety
standards; furthermore, the program was used as a model
nationally and internationally. She relayed that AMSEA was
a safety program that was aimed at protecting families in
their non-commercial and commercial water-based activities
and pointed out that the program provided an essential
marine-safety service to boaters across the state. She
observed that the program was not funded from the General
Fund, but was instead funded from Alaska's boat
registration receipts. She thought that cutting the program
or transferring it to the capital budget would jeopardize
its existence and would result in another effort having to
be recreated at greater expense. She discussed how the loss
of marine safety training would result in a less safe
environment for boaters across the state. She concluded
that access to safety training was essential. She pointed
out that AMSEA had a strong track record and was a good use
of state funds.
^PUBLIC TESTIMONY: JUNEAU
9:16:38 AM
KATHIE WASSERMAN, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL
LEAGUE (AML), JUNEAU, spoke in support of the 22 percent
cap for the Public Employees' Retirement System (PERS) rate
and the governor's proposal of a $3 billion infusion to
PERS and the Teachers' Retirement System (TRS).
Additionally, AML was in support of restoring the $10
million in revenue sharing. She pointed out that the $3
billion infusion would help keep municipalities and the
state on a more consistent, affordable, and budget-friendly
plan. She stated that she, the mayors, and the leadership
of AML were willing to sit down and talk with the committee
at any time; AML did realize that with lean times coming,
the way to address additional funding was to either raise
taxes or decrease services. She relayed that decreasing
services was a problem for AML because layoffs would result
in increased costs for termination studies.
Vice-Chair Fairclough stated that Alaska was looking at
drawing $2 billion from its savings account. She noted that
the state's savings account was formed in order to
transition Alaska when a rainy day came and inquired if
there were reserves inside of local municipalities that
municipalities would be willing to use to match and help
pay down the pension liability. Ms. Wasserman replied that
some of the larger municipalities did have some rainy day
funds, but that she had no idea what those amounts were;
the smaller communities did not have such funds. She
relayed that as a rule, the smaller municipalities used all
their money for energy and payroll. She related that she
could not provide a complete answer.
9:19:48 AM
Vice-Chair Fairclough pointed out that the state was
experiencing what it hoped was a short-term downfall in
revenue and that it had an optimistic look to Alaska's
future; however, it would take time for the optimism to
reach fruition. She believed that the Governmental
Accounting Standards Board's (GASB) Rules 67 and 68 would
require the state to allocate the pension liability out to
all of the municipalities; she understood that bond ratings
for municipalities would be at risk at that point. She
believed that it was mandated that the reporting would
start in 2016 and requested a confirmation. Ms. Wasserman
believed that it kicked in in 2015 and that the first
reporting would be in 2016.
Vice-Chair Fairclough noted that the State of Alaska would
be faced with a $12 billion pension liability that other
cities and employers across the state would have
responsibility for and wondered if Ms. Wasserman could
discuss with AML whether there was any other money to help
offset what would be allocated to municipalities in 2015.
She noted that the state needed help and pointed out that
from the committee's perspective, it wanted to be able to
provide basic services such as education and health. She
noted that the state and the municipalities were in the
current situation together and further inquired if AML had
any tolerance for helping pay down the debt along with the
state. Ms. Wasserman replied that AML was always willing to
sit down and talk to the committee; furthermore, AML had
made some new appointments in the current week and would be
sending representatives to the legislature over the next 4
weeks. She requested that the committee provide her with a
list of who it wanted to talk to from the communities and
pointed out that each community was different.
9:22:30 AM
Vice-Chair Fairclough was not looking for appointments from
people and pointed out that the committee knew the
positions of the communities as well as the struggles they
faced; however, she was wondering if AML as a group could
come up with a policy that would help the state pay down
its pension liability. She discussed the positions that AML
had testified for, but noted that if Alaska was having to
draw $2 billion from its savings, the state and communities
needed to find ways to work together to make the reduction
as painless as possible. She inquired how the cities could
help and noted that the state could not do it all. Ms.
Wasserman replied that Vice-Chair Fairclough brought up
some good points and that AML had discussed the issue. She
admitted that she might be a bit biased regarding the
things that municipalities wanted, but relayed that AML had
suggested that municipalities would have to prioritize
their capital projects. She continued that AML believed
that through the governor's proposal, communities would be
paying more because the amortization would put a much
larger financial draw on them in the out-years.
9:25:20 AM
Co-Chair Meyer noted that a lot of things that Vice-Chair
Fairclough was referencing had come about in 2007 and 2008
when the state had a lot of money due to higher oil
production and prices. He pointed out that oil was the
state's source of revenue and that the legislature had
spent a lot of time the previous year adjusting the oil tax
in order to try to raise production so that it could get
more revenue, get back to revenue sharing, keep PERS at 22
percent, and get more money for education. He pointed out
that the City of Anchorage had come out very strongly in
support of the oil tax reform and inquired if AML had taken
a position on the issue. Ms. Wasserman replied that AML had
discussed the issue, but that much like the Senate and the
House, it had communities going every direction. She stated
AML felt that it was unwise to support something that only
51 percent of its members supported and that it would lose
members if it did so. Secondly, she did not have access to
all of the oil experts that the legislature did and that it
would probably take all of her time to even take a
knowledgeable position on the issue. She offered that AML
would be forced to take a political position instead of a
knowledgeable one, which she did not think helped anyone.
Co-Chair Meyer stated it would be good if AML could be part
of the solution in trying to figure out how to help the
municipalities instead of simply requesting things and
pointed out that the committee was open to solutions;
however, the only solution currently was higher oil
production and possibly the gas pipeline in 10 years. Ms.
Wasserman stated that each time AML met, she always made
sure that either Dan Fauske or someone from the state was
present to discuss each one of the pipeline issues so that
the municipalities could take a stand. She stated that
there was always a forum at AML's large session and that
every February it had many people present; she related that
Mike Pawlowski and Dan Fauske had been present in February.
Senator Dunleavy observed that the state was good at
appropriating money in the good times and that it
appropriated less in the lean times; at the same time, the
state had helped develop the system that the municipalities
and school districts had to live under. He noted a movement
to "flip the deal" with the PERS study, which would help
the cities. He thought that there needed to be more asked
of the political subdivisions of the state, as well as the
municipalities regarding what things could be changed in
statute, which were costing them money that the state no
longer funded; he thought that if the state began that
process, it would get more people pointing out statutes
that needed to be changed and that it would alleviate the
need for certain areas of funding. He thought that the
state needed to start asking the school districts, cities,
municipalities, and other governmental subdivisions to take
a look at the statutes and regulations in order to
determine what the state could do to reduce the regulatory
burden that they had deal with if the state would not have
the funds to pass their way.
Co-Chair Meyer noted that the committee needed to return to
public testimony. Ms. Wassermann thanked the committee and
stated that it was not her intent in giving testimony to
argue.
^PUBLIC TESTIMONY: CRAIG
9:30:22 AM
PATRICIA BALLARD, SELF, CRAIG (via teleconference),
testified in favor of full funding for the SHARP loan
repayment program. She related that she and her family were
directly impacted by the funding of the SHARP plan and
stated that 3 years prior, her family was able to fulfill
her husband's dream of practicing medicine in a rural
community. She stated that her career had previously offset
the high cost of student loans and had provided for a
retirement and education; her family knew that this support
would end if they moved to a rural location. She related
that when her family had been considering the high cost of
living in Rural Alaska and the student loan debts from
medical school, the SHARP program and its available funds
had tipped the scales and made the dream possible. She
pointed out that although the SHARP funding had not
replaced her income, it had provided critical relief from
student loan burdens; furthermore, the continuity of the
program was paramount to her family's ability to remain
rural. She discussed the high level of medical care that
her husband and his team members had been able offer to the
community as a result of the SHARP funds. She concluded
that the SHARP funds helped families that took a financial
loss from choosing to live in a rural community. She spoke
of the benefits of continuity of medical care in rural
areas and related that without the SHARP funds, underserved
areas would continue to lack the medical care that they
deserved and that those areas would not be able to attract
and retain qualified medical professionals.
^PUBLIC TESTIMONY: BETHEL
9:34:00 AM
DR. ALLEN FREUDENTHAL, PHYSICIAN, BETHEL FAMILY CLINIC,
BETHEL (via teleconference), testified in favor of full
funding for the SHARP loan repayment program. He discussed
his history working at Bethel Family Clinic over the last 7
years and offered that during that time, all of the
clinic's mid-level providers had come to Bethel as a result
of the SHARP program; he opined that without the program,
the clinic would have had much difficulty attracting
providers. He agreed that without the SHARP program, a lot
of entities would have either a lack of providers or would
have to close down entirely. He stated that one of the big
draws of the SHARP program was that it helped with the
burden of the high costs in Rural Alaska and enabled people
to sample life in the state; furthermore, it was a lot
easier to move to rural areas if someone was helping with
your student loans. He stated that the program attracted
and retained providers in rural areas in Alaska that
otherwise would not have come there and offered that it was
especially important to mid-level practitioners, nurses,
and pharmacists.
9:37:21 AM
Senator Olson inquired how many people participated in the
SHARP program in the Bethel area. Mr. Freudenthal replied
that he was unsure of the exact numbers, but that during
his 7 years at Bethel Family Clinic, all of its mid-level
providers had been in the program; he thought that this
represented 8 providers during that time period.
^PUBLIC TESTIMONY: NOME
9:38:49 AM
THOMAS MORAN, CITY CLERK, CITY OF NOME, NOME (via
teleconference), spoke in support of the restoration of $10
million in revenue sharing and the governor's proposed $3
billion cash infusion into PERS. He related that Nome was
the largest municipality in the area with 3700 people and
an $11 million budget; raising its unfunded liability from
22 percent to 24 percent would be a major hit. He offered
that the loss of revenue sharing would not affect some of
the major municipalities' budgets the same way that it
would affect the rural areas.
^PUBLIC TESTIMONY: BARROW
9:40:05 AM
PEARL BROWER, PRESIDENT, ILIASAGVIK COLLEGE (via
teleconference), spoke in support of reinstating the
original $600,000 in funding for Iliasagvik College and its
workforce development program; additionally, she supported
including the college in Alaska Technical Vocational
Education Program (TVEP) legislation and the allocation of
funding for the college to that program instead of the
DCCED budget. She stated that the funding for the workforce
development program was the only funding that the college
currently received from the state and relayed that it was
disappointing to see cuts to programs that made big
differences in the lives of Alaskan residents, particularly
among the rural populations. She stated that the college's
funding was first provided in FY12 and that $600,000 had
been received for 2 years; the funding had helped expand
services to more Alaskan residents in more communities
across the state. She relayed that in the current year, the
college's funding had been cut to $400,000, but that its
outreach now spanned from Barrow to Metlakatla; another
$100,000 cut would represent a 50 percent loss in 2 years
and would not allow the college to continue its current
services without incurring losses in other programs. She
discussed the large scope of the college's almost 250
workforce development courses that had an enrollment of
almost 1900 rural residents; furthermore, those courses had
a completion rate of 99 percent.
9:42:27 AM
KATHY LEARY, ILIASAGVIK COLLEGE, BARROW (via
teleconference), testified in support of maintaining full
funding for Iliasagvik College. She pointed out that the
college did a lot of cost sharing with its partners and
worked with industry, corporations, the North Slope
Borough, and other private trainers. She stated that the
college usually had funding coming in from different
sources when it conducted large trainings and opined that
some of the partnerships would dwindle if it lost its
ability to help fund some of the classes. She stated that
many of the trainings that the college conducted assisted
people who were served with regulatory requirements and
certifications. She stated that she had just received a
call from Unalaska where there were 20 people in the
fishery and maritime industry who needed specific trainings
for industry and new regulatory requirements; Unalaska had
heard of the college's success with its onsite trainings
and wanted to partner with it for training. She discussed
maritime licensing, cold-water safety, and guide training
related to tourism that the college was assisting with in
Kaktovik.
9:45:25 AM
BEN GLOVER, ILIASAGVIK COLLEGE, BARROW (via
teleconference), spoke in support of maintaining funding
for the Iliasagvik College. He pointed out that there were
roughly 10,000 jobs on the North Slope that contributed
about 9 percent of the private wages in Alaska; however,
many of these jobs were held by non-residents. He related
that Iliasagvik College believed that its role was to place
people into North Slope jobs and to support local hires in
every way possible. He stated that the college placed
almost 2000 students into trainings, which were requested
by employers that had either led directly to people being
hired, had contributed to their ability to stay hired, or
that had been needed for promotions. He provided examples
of the number of licenses, certifications, trainings,
classes, renewals, and credentials that the college had
provided over the last 12 months using state funding for
the workforce development programs. He also discussed the
other trainings and classes that the college provided that
were not directly related to workforce development funding
and relayed that it used the funds to promote local hires
and keep jobs and dollars within Alaska.
9:48:54 AM
JULIE SERSTAD, RURAL DIRECTOR, ALASKA NURSES ASSOCIATION,
BARROW (via teleconference), spoke in support of restoring
the $360,000 in funding for the chlamydia testing program.
She stated that Alaska had the number 1 rate of chlamydia
infection in the nation and that the rate of infection was
growing.
^PUBLIC TESTIMONY: BETHEL
9:50:16 AM
MARK SPRINGER, MEMBER, BETHEL CITY COUNCIL, CITY OF BETHEL,
BETHEL (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing and the
governor's proposed $3 billion cash infusion into PERS. He
stated that his district was one of the bigger ones in the
Alaska Municipal League and that most of the subdivisions
within it were in the unincorporated borough in Alaska;
therefore, the legislature was its borough assembly. He
thought that the infusion into the PERS pension fund would
stabilize costs into the future until the debt was paid
off. He related that most of the communities in Rural
Alaska relied on locally generated sales tax and municipal
assistance for revenue. He stated that the small cities in
his district had cities offices that were busy from the
time they opened until the time that they closed and that
the citizens in small communities depended on the city
offices for a wide variety of services. He furthered that
the small cities were an important political infrastructure
for Alaska and that they were political subdivisions in the
unincorporated borough that, to a great extent, carried out
policies across the state that the legislature set.
9:52:50 AM
Co-Chair Meyer discussed the following week's agenda.
^PUBLIC TESTIMONY: WRANGELL
9:53:46 AM
JEFF JABUSCH, BOROUGH MANAGER, CITY AND BOROUGH OF WRANGELL
(via teleconference), spoke in support of restoring the $10
million in funding for revenue sharing and also supported
the governor's proposed $3 billion cash infusion for PERS.
He stated that a lot of the smaller communities in Alaska
depended on revenue sharing and that the funding greatly
affected the central services in those communities. He
pointed out that other than taxes, the smaller communities
had a limited opportunity to raise funds. He reported that
Wrangell currently had a 7 percent sales tax and a 12.75
percent mill rate for property tax and thought that the
community was paying its share. He stated that Wrangell had
become a depressed area over the years as a result of the
declining timber business, which used to be the area's
mainstay. He pointed out that the loss of revenue sharing
funding would greatly hurt the community of Wrangell. He
spoke to the $3 billion cash infusion and related that
Wrangell would rather be at a 22 percent cap for a longer
period of time than be at 24 percent or some higher number.
He understood the need to balance to the budget, but
pointed out that a lot of the decisions that were made
affected the local level where the citizens of the state
were served.
^PUBLIC TESTIMONY: PETERSBURG
9:56:31 AM
STEPHEN GIESBRECHT, PETERSBURG BOROUGH, PETERSBURG (via
teleconference), requested the restoration of $10 million
in revenue sharing and supported the governor's $3 billion
infusion into PERS. He stated that revenue sharing was
important to local communities and that they relied on it,
as a well a predictable PERS contribution to allow for the
planning of the future and to provide essential services.
He stated that when the contribution to PERS was raised,
one of the communities' few avenues for rebalancing budgets
was to reduce staff; however, staff reductions not only had
an impact on the economy, but also raised PERS termination
issues that ended up "tying our hands."
9:58:59 AM
AT EASE
10:19:16 AM
RECONVENED
^PUBLIC TESTIMONY: KETCHIKAN
10:19:56 AM
CARLEN WILLIAMS, DIRECTOR, SOUTHEAST AREA HEALTH EDUCATION
CENTER, KETCHIKAN (via teleconference), spoke in support of
the reinstatement of $652,900 for the Area Health Education
Center (AHEC) program in the University of Alaska budget.
She discussed that the program used a pipeline approach
towards health workforce development; it engaged high
school students into the possibilities of a health career
focus. She spoke about the benefits of the program
including continuing education opportunities for current
healthcare providers. The goal was to grow healthcare
providers and to keep them in Alaska. She stated that the
program was not financially extravagant; each center across
the state was minimally staffed. She relayed that
collaboration and partnerships were the organization's top
priority.
10:21:55 AM
LANETTA LUNDBERG, VICE-PRESIDENT, PEOPLE AND CULTURE,
KETCHIKAN MEDICAL CENTER, KETCHIKAN (via teleconference),
testified in favor of full funding for the SHARP loan
repayment program and the AHEC program. She read a letter
from one of the program recipients Patricia Thorton. The
letter told the personal story of a woman working as a
certified midwife in Southeast Alaska. The letter spoke
about services to rural Alaska. She related that it was
imperative that the state maintain an edge in the
recruitment and retention of outside experienced
professionals. The letter mentioned the high cost of
establishing a business in the state combined with a lack
in resources in remote areas. The SHARP program had made
all the difference in assisting her with education loans.
The program allowed her to stay in Alaska to continue
providing care. The letter urged the committee for
continued support for the program.
10:27:29 AM
Vice-Chair Fairclough notified Ms. Williams, a prior
testifier, that she could not locate a cut to the
university budget in the amount of $652,000. She wondered
if the cut was to the university's Board of Regents.
Co-Chair Kelly believed that there may have been some Board
of Regents requests that had not made it into the
governor's proposed budget. He reviewed the Board of
Regents' request and did not locate the item. He asked for
input from Ms. Williams.
Ms. Williams believed that the governor had removed the
line item out of the budget. The amount represented the
basic operating amount that would keep all five AHEC
locations running at the current "bare-bones" level. She
could locate additional information if necessary.
Vice-Chair Fairclough wondered if Ms. Williams was
referring to an unallocated $14 million cut. She had not
found the specific $652,000 increment in the Board of
Regents budget request. She asked Ms. Williams to contact
her office with more detail.
Ms. Williams replied that she would follow up with Vice-
Chair Fairclough's office.
10:29:54 AM
DAN BOCKHORST, MANAGER, KETCHIKAN GATEWAY BOROUGH,
KETCHIKAN (via teleconference), spoke in support of the
restoration of $10 million in revenue sharing. He
emphasized that the borough had suffered a revenue sharing
cut exceeding $25 million the prior year; it had amounted
to a 30 percent cut in program funds. He urged the
committee to maintain the PERS employers' contribution rate
at 22 percent. He spoke in favor of including the
governor's proposed $3 billion cash infusion into the
unfunded pension liability.
^PUBLIC TESTIMONY: SITKA
10:31:02 AM
JOHN SWEENEY III, CHIEF FINANCIAL OFFICER AND ACTIVE
ADMINISTRATOR, CITY AND BOROUGH OF SITKA, SITKA (via
teleconference), spoke in support of the restoration of $10
million in municipal revenue sharing. He urged the
committee to restore the governor's proposed $3 billion
cash infusion to the PERS unfunded liability in order to
keep the municipality payments at the current 22 percent
level. He hoped Sitka was speaking on behalf of many other
small Alaskan villages related to the issues. He spoke to
the sense of togetherness and equality experienced by
Alaskans; however, he believed a rural/urban divide was
developing. He stated that revenue sharing was a direct
translation into services that communities could provide
their citizens. The funding helped communities to maintain
a standard of living that was similar to urban areas.
10:33:30 AM
JERRY DZUGAN, ALASKA MARINE SAFETY EDUCATION ASSOCIATION,
SITKA (via teleconference), vocalized support for the
Alaska Marine Safety Education Association (AMSEA). He
asked the committee to maintain AMSEA funding at the
current level of $196,900. The program followed the state's
focus on safety, families, and job training. The program
had existed for 29 years and had a proven record of
success. Transferring the program funds to the capital
budget would result in a lack of continuity with the
multitude of businesses and schools around the state that
depended on the program's services. He believed the action
would result in the elimination of the program. He pointed
out that the program was funded with state boating
registration receipts; more than sufficient funds were
projected to be available to fund the program in the
upcoming year. He spoke about the training benefits of the
program. The program had trained over 200,000 people in the
past 29 years. He stressed that without the program
thousands of Alaskans would need to leave the state to
receive required and desired training at great cost. He
concluded that the state should be proud to give its whole-
hearted support to the program.
10:36:23 AM
ANNETTE BECKER, EXECUTIVE DIRECTOR, YOUTH ADVOCATES OF
SITKA, SITKA (via teleconference), thanked the committee
for not cutting the substance abuse grants. She relayed
that the House had proposed cuts to substance abuse grants
totaling $2.043 million in addition to a $3.3 million cut
to the behavioral health grant and $9.4 million to
behavioral health Medicaid services. She communicated that
the state had one of the highest rates for alcoholism and
drug abuse. She relayed that the addictions were linked to
suicide, domestic violence, sexual assault, child abuse,
and other violent crime. She stressed that treating youths
and adults had saved lives; if the problems were untreated
they led to increased emergency room visits, chronic health
costs, loss of economic productivity, and increased adult
incarceration rates. She provided additional statistics
related to the dependence on alcohol and drugs. She
emphasized that the cuts would undermine the success of the
Bring the Kids Home initiative.
^PUBLIC TESTIMONY: CRAIG
10:39:01 AM
JULIE MCDONALD, SELF, CRAIG (via teleconference), testified
in favor of full funding for the SHARP loan repayment
program. She provided information about a community focused
pharmacy in Craig. She spoke about providing free blood
pressure checks at the pharmacy; the checks saved the
patient and state money. She pointed to the high cost of
living in the region. She stated that her eligibility for
the loan repayment program had allowed her to remain in
Alaska. She detailed that if a pharmacy was not available
on Prince of Wales Island the state would be required to
pay to have prescriptions flown to the island.
Additionally, there would be no access to immediate care.
^PUBLIC TESTIMONY: SITKA
10:43:12 AM
AMY ZANUZOSKI, EXECUTIVE DIRECTOR, SITKA COUNSELING, SITKA
(via teleconference), urged the committee to maintain
current funding for residential substance abuse treatment
programs. She shared that the counseling service saw an
average of 400 clients annually in outpatient and
residential programs. The residential treatment success
rate was 50 percent annually. History showed that people
needed to enter treatment more than once to be successful.
She stated that residential substance abuse treatment
helped people to develop skills to remain stable and to
contribute to the community. She spoke about a success
story of one of the program's clients.
10:44:50 AM
KERRY TOMLINSON, DEPUTY EXECUTIVE DIRECTOR, SITKA
COUNSELING, SITKA (via teleconference), urged the committee
to maintain funding for residential substance abuse
treatment programs. The program employed 40 full-time
employees. She pointed to research showing that most
addicted individuals needed at least three months in
treatment to significantly reduce or stop their drug use;
the best outcomes occurred with longer durations of
treatment. She stressed that residential treatment worked.
She provided an example related to a program client. The
program was life changing. She asked the committee to
continue to support the program.
10:46:12 AM
^PUBLIC TESTIMONY: CORDOVA
10:46:25 AM
MELISSA BROOKS, FAMILY NURSE PRACTITIONER, CORDOVA
COMMUNITY MEDICAL CENTER, CORDOVA (via teleconference),
testified in favor of full funding for the SHARP II loan
repayment program. She had been selected to receive
funding, but her service agreement had not yet been
implemented. She relayed that she was the first permanent
primary care provider living in Cordova for a number of
years. She believed having consistent providers was an
integral part of healthcare. She detailed that the loan
repayment program was part of her financial strategy to
provide stability for her family; without the funding it
would be difficult for her to justify remaining in Alaska.
She spoke to the high cost of living in Cordova. She did
not want to leave the community. She urged the committee to
consider the impact on communities.
10:48:36 AM
STEPHEN SUNDBY, EXECUTIVE DIRECTOR, SOUND ALTERNATIVES,
CORDOVA (via teleconference), spoke in support of funding
for behavioral health grants and urged the committee to
restore funding for residential substance abuse treatment
programs. He shared that the behavioral health grant
provided funds for salaries; cuts impacted personnel and in
turn they would impact the entire community. He relayed
that there were no residential treatment services in
Cordova; further cuts to residential substance abuse
treatment it made it increasingly difficult to refer
residents out for services. Additionally, he testified in
favor of full funding for the SHARP loan repayment program.
10:50:39 AM
THERESA CARTE, ADMINISTRATOR, CORDOVA COMMUNITY MEDICAL
CENTER, CORDOVA (via teleconference), testified in favor of
full funding for the SHARP II loan repayment program. She
shared that three current employees had been recommended
for SHARP II funds, but they had not yet received a service
agreement. She stated that if the program was not funded
the center could lose all three employees. The positions
were difficult to fill; the nurse practitioner role had
been vacant for over seven years. She stated that filling
the positions with traveling employees negatively impacted
continuity of care.
10:51:53 AM
RONA HABERMAN, SOCIAL WORKER, SOUND ALTERNATIVES, CORDOVA
(via teleconference), testified in favor of full funding
for the SHARP loan repayment program. She had been selected
to receive funding, but her service agreement had not yet
been implemented. The loan repayment program was a key
factor in her decision to accept her current position in
Cordova.
[Note: Due to technical difficulties the various
Legislative Information Offices were dropped from the
teleconference. An "at ease" was taken to allow the
locations to reconnect to the meeting.]
10:53:04 AM
AT EASE
11:06:02 AM
RECONVENED
11:06:29 AM
Ms. Haberman continued her testimony. Her intention was to
remain in her current position at least until she paid off
her student loan. She spoke to previous high turnover rates
in her social work position. She hoped to be part of a
stable provider base in the community. She relayed that if
funding for the program was cut it would compromise her
ability to remain long-term in Cordova.
11:07:18 AM
SUSANNA PETRIE, CORDOVA COMMUNITY MEDICAL CENTER, CORDOVA
(via teleconference), testified in favor of full funding
for the SHARP loan repayment program. She shared
information about working through school as a single
mother. She had moved to Alaska with the purpose of
utilizing her recently acquired degree. She spoke to the
high cost of education, relocation, and of living in
Alaska. She had left a higher paying job in California to
practice in Alaska with the understanding that the loan
repayment program was a viable option. She communicated
that she would be forced to return to the Lower 48 if the
program was not funded.
11:08:41 AM
ALEXIS COOPER, EXECUTIVE DIRECTOR, CORDOVA DISTRICT
FISHERMAN UNITED, CORDOVA (via teleconference), vocalized
support for maintaining the funding levels for the Alaska
Marine Safety Education Association (AMSEA) at current
levels of $196,000 to prevent the eventual elimination of
the program. She shared that the commercial fleet ported
out of Cordova, Valdez, and Whittier to access fishing
grounds in the Gulf of Alaska, the Copper River, and Prince
William Sound. The fleet depended on access to local
training currently provided by AMSEA. She stressed that the
program provided essential lifesaving safety training to
all participants in the commercial fisheries. She spoke to
her valuable personal training experience in the program.
11:10:44 AM
AT EASE
11:10:57 AM
RECONVENED
^PUBLIC TESTIMONY: VALDEZ
11:11:18 AM
BARBARA BIGELOW, CHIEF EXECUTIVE OFFICER, PROVIDENCE VALDEZ
MEDICAL CENTER, VALDEZ (via teleconference), testified in
favor of full funding for the SHARP loan repayment program.
She spoke on behalf of colleagues at the medical center.
She stressed that recruitment of professionals in rural
Alaska was difficult. She discussed that recruitment
packages and retention were linked to medical loan
repayments for professionals. She stated that most
importantly the benefit of the loan repayment program went
to patients receiving care. She relayed that Alaskans
deserved access to high-quality care provided by nurses,
physical therapists, and physicians. She emphasized that
the cut to the program was devastating to rural hospitals
and professionals. She urged the committee restore funds
and to honor the existing commitments provided under the
program.
11:13:42 AM
JEREMY O'NEILL, DIRECTOR OF FINANCE, PROVIDENCE VALDEZ
MEDICAL CENTER, VALDEZ (via teleconference), testified in
favor of full funding for the SHARP loan repayment program.
He shared that it had been a long practice for rural
providers to pay intermittent healthcare professionals at a
very high cost. The professionals were not necessarily
invested in Alaskan communities. He discussed the tragic
reality that a healthcare professional may not be present
in a community to treat a patient more than once. He
relayed that when traveling providers were not available it
became necessary for the center to outsource care at an
extreme cost to community members. Many professionals who
were able to move to rural Alaska due to the SHARP program
became a part of the community.
11:16:36 AM
MACKENZIE JONES, SELF, VALDEZ (TESTIMONY READ BY BARBARA
BIGELOW) (via teleconference), :
I moved to Valdez in 2009 and signed a two-year
contract with the intention of having my Alaskan
adventure and then returning home. In 2010 I became
aware of the SHARP program moving through the
legislature. The possibility of this program becoming
a reality motivated me to remain in my current
position. I was approved for funding in July 2013 at a
three-year service contract. This is a huge motivating
factor in my decision to stay and make Valdez my home.
Currently young people from Alaska must go out of
state for physical therapy education and many do not
return. Continued SHARP funding will help recruit and
retain medical professionals to serve to ensure access
to quality services for the citizens of Alaska. Few
programs exist for physical therapist loan repayment
and the SHARP II program will make the State of Alaska
highly competitive. Thank you for your time.
11:17:57 AM
BARBARA BRYSON, VALDEZ IMAGINATION LIBRARY, VALDEZ (via
teleconference), spoke in support of funding for the
Imagination Library and Best Beginnings. She thanked the
committee for supporting Best Beginnings. She stated that
without Best Beginning's guidance, training, and annual
financial matching support the community's local
Imagination Library would not be as successful. She shared
that the library was in its second year of serving pre-
school aged children; over 65 percent of the community's
pre-school aged children were enrolled. University of
Alaska Anchorage research showed that children
participating in the program for a minimum of one year were
more enthusiastic about reading, were read to more often,
and were perceived by parents to be better prepared for
Kindergarten. She read quotes from parents and students
about the importance of the program. The program had maxed
out on state funding. Increasing funding by $150,000 would
enable the program to reach 50 percent of the state's pre-
school aged children.
11:21:41 AM
KATHLEEN TODD, PHYSICIAN, VALDEZ MEDICAL CLINIC, VALDEZ
(via teleconference), testified in favor of full funding
for the SHARP loan repayment program. She communicated that
doctors willing and able to provide primary care in Alaska
were in short supply. She spoke to the competitive market;
the clinic was competing against large organizations that
could subsidize primary care from their other operations.
Additionally, Alaska was competing with other states that
had extensive loan repayment programs. The clinic did not
cherry-pick patients who could pay for services. She asked
the committee to increase funds for the SHARP program to
include more rural communities and higher rates of state
support. She asked the committee to think about programs as
infrastructure; the payback from voluntary Pre-K programs
would result in less remedial education and would save the
state money in the long-term. She stated that the programs
would also result in fewer prisons. She urged support for
mental health treatment. She cautioned the committee to be
careful with tax credit programs; the credits may favor
certain communities and causes.
11:24:16 AM
SHANNON MAHONY IRISH, REHABILITATION DIRECTOR, PROVIDENCE
VALDEZ MEDICAL CENTER, VALDEZ (via teleconference),
testified in favor of full funding for the SHARP loan
repayment program. She stressed that recruitment of
professionals in rural areas was extremely difficult; it
had taken the center three years to fill the most recent
physical therapist position. She highlighted the importance
of hiring professionals who became part of the community.
She communicated that some of the greatest losers were the
center's patients when they were faced with leaving the
community for professional services.
Co-Chair Kelly noted that a Senate budget subcommittee had
recommended restoring full funds for the SHARP program. He
remarked on the professional nature of the testimony in
support of the program.
^PUBLIC TESTIMONY: CORDOVA
11:26:53 AM
RANDY ROBERSTON, CITY MANAGER, CORDOVA (via
teleconference), testified in favor of full funding for the
SHARP loan repayment program. He spoke to the importance of
continuity of care in the health industry. He observed that
without the loan repayment program it would be difficult to
retain qualified healthcare professionals in the community.
He spoke in support of the restoration of $10 million in
revenue sharing. He discussed that the revenue sharing had
a $300,000 impact on the city budget; funding cuts would
result in four to five man years the city would not have
the ability to pay. He emphasized that the city could not
provide its citizens with predictability with a $300,000
budget cut. He asked the committee to think about the
consequences on communities.
11:29:34 AM
Vice-Chair Fairclough asked for verification that Mr.
Robertson was in support of restoring $10 million to
revenue sharing. Mr. Robertson replied in the affirmative.
Vice-Chair Fairclough wondered if Mr. Robertson had
referred to raising the PERS/TRS contribution from 22
percent to 24 percent. Mr. Robertson responded in the
affirmative. He elaborated that the increase would raise
the city contribution by approximately $115,000 per year;
the 20 or 21 year payback period exceeded $2 million. He
did not know where the community would locate another
$115,000 coupled with a decrease in revenue sharing. He
explained that the combined figures would result in a
$300,000 cut to the city's budget.
Vice-Chair Fairclough inquired if Mr. Robertson had
included a specific figure for PERS. She asked for
verification that the $300,000 included the decrease in
revenue sharing and an increased contribution to PERS. Mr.
Robertson replied in the affirmative. He specified that the
city's revenue sharing from the prior year was $205,000. If
the figure was added to the out-of-pocket that would incur
if the same personnel staffing rate was maintained the hit
to taxpayers would equal $115,000 related to PERS.
Collectively the cost would be $320,000.
Vice-Chair Fairclough asked about the revenue sharing
component of Mr. Robertson's calculation. Mr. Roberston
explained that the prior year the city had received
$205,000 in revenue sharing. He believed revenue sharing
had been consistently reduced over time. He asked for
predictability in the budget process.
Vice-Chair Fairclough replied that the revenue sharing
figure had not been reduced. She asked what the City of
Cordova currently contributed to PERS. Mr. Robertson
replied that he did not have the specific figure on hand.
CSHB 266(FIN) was HEARD and HELD in committee for further
consideration.
CSHB 267(FIN) was HEARD and HELD in committee for further
consideration.
Co-Chair Kelly discussed the agenda for the following
meeting.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB266 work draft version G.pdf |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |
| HB267 work draft version Y.pdf |
SFIN 3/20/2014 9:00:00 AM |
HB 267 |
| HB266 Substance Abuse Treatment - Eisenberg.msg |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |
| HB266 Support for the Chlamydia Campaign - Planned Parenthood Northwest.msg |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |
| HB266 AMSEA Funding Support - Knight.msg |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |
| HB266 AMSEA Testimony - Nichols.msg |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |
| HB266 Best Beginnings Testimony - Martin.pdf |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |
| HB266 Imagination Library - Sandgren.msg |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |
| HB266 O.W.L. Program and Live Homework Help -Dunbar.msg |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |
| HB266 Testimony - Martin.msg |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |
| HB266 Testimony - Romberg.msg |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |
| HB266 Substance Abuse Treatment -Majoros.msg |
SFIN 3/20/2014 9:00:00 AM |
HB 266 |