Legislature(2003 - 2004)
04/03/2003 03:35 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 117-ELIMINATING LONGEVITY BONUS PROGRAM
CHAIR GARY STEVENS announced this was the second hearing for SB
117 and he would take testimony for one hour. He asked
individuals who spoke during the previous hearing to allow
others the opportunity to express their views. He said he would
rotate testimony among the different sites.
LORILYN SWANSON, the manager of Fireweed Place in Juneau,
opposed SB 117 and read the following into the record:
Last week I presented written testimony to you but had
to leave prior to testifying.
My one suggestion to you in that testimony was that
you consider contacting the Longevity Office for
addresses of constituents in your district so that you
could contact them first hand and get an overall sense
of how important this monthly income is to them. This
went along with the fact that the Governor's office is
stating and still is that they are hearing more on the
pull-tab legislation and very little from seniors on
the longevity bonus issue. I hope that you have been
able to contact some of your constituents prior to
making a decision to pass this bill out of your
committee today.
This past week seniors receiving the longevity bonus
received a letter from the Governor on the safety net
programs. This letter offended many. They felt that
they were being told to apply for welfare. Much has
been said about the so-called safety nets that the
state has in place for seniors. Much has not been said
about the fact that any senior cannot make over $914
up to $1,025.01 and special income groups $1,656 or
they will not qualify for these safety nets. These
safety nets are not going to help most seniors now
receiving the longevity bonus as their income will not
fall to this poverty level but it will be close.
The permanent fund is also at question this year. Yes
this would affect all Alaskans but especially a major
loss to low income seniors should they also lose the
longevity bonus.
This program was an incentive to seniors in order to
allow them to stay in Alaska. We need the seniors in
Alaska. Listen to your constituents. Listen to the
seniors. There is sense of panic from those who
currently show the bonus as 20 to 30 percent of their
income. You have and will hear more testimony on how
the bonus is used for necessities such as rent, fuel,
electricity, and prescriptions. It is true.
Sooner or later someone is going to have to step up to
the plate and show seniors that he or she is willing
to make a stand for them, let it be you, do not pass
SB 117 out of your committee today.
SENATOR JOHN COWDERY questioned whether she would favor placing
a question on the Permanent Fund Dividend application asking the
applicant to contribute part of his or her dividend to seniors
to continue the longevity bonus program.
MS. SWANSON thought that would be a good idea. She didn't think
cutting the program completely on July 1 was fair.
DORIS PECK from Juneau spoke for those who are 75 and older to
oppose SB 117. Many of these people are struggling with their
own budgets. Few are able to move into the work force and none
that she interviewed want to step into the welfare safety net.
She said, "Please don't jerk the rug from beneath the elders.
They live on budgets too."
DORIS ROBBINS from Juneau represented the Retired Public
Employees of Alaska. She does not receive the bonus, but
believes the state should keep its promise to seniors. The
program is phasing itself out with the youngest recipient at 72
years old. Seniors are important to Alaska's economy because
they keep most of their money circulating within the state. They
are carriers of our Alaska heritage and serve as good role
models. She said she would be willing to donate from her
permanent fund to keep the bonus program alive.
MAXINE DERR from Anchorage opposed SB 117. She is thankful for
the program because she has no pension even though she worked
for many years. She favored a means based test.
PATRICIA BARBER has lived in Alaska for more than 40 years and
her husband is a third generation Alaskan. She wanted to rebut
the comments made by the Administration stating that the program
is inequitable. She doesn't receive the bonus but that is no
reason to cut it for others; life isn't always equitable. The
Administration's logic is personally offensive and others in her
same situation have similar feelings.
"Our seniors are visible and in some communities, vital... It's
a win-win situation. The seniors who now receive the bonus
should continue to do so. Period, end of subject."
J.R. HANK LANGMAN has lived in Alaska since 1949 and his wife
has been an Alaskan since 1944. He asked, "How can you believe
that you can remove from the economy of Alaska, $47 million and
not hurt the economy?" The safety net programs couldn't possibly
cushion the small communities across the state against this loss
of revenue.
JOHN WEBSTER from Palmer is a 40 year resident of Alaska. He
spent His career working for the U.S. Postal Service in
Anchorage. He is distraught at the termination of the longevity
bonus because it reduces his income 9 percent. He pointed out
longevity dollars turn over many times creating jobs for others.
He closed saying," Take my longevity and make an instant
Democrat out of me."
ERNIE LINE from Wasilla opposed SB 117. He has been in Alaska
since 1945 when Forth Avenue was the only paved road in town. He
has recently suffered a number of illnesses and physical
setbacks and the longevity bonus helps make ends meet.
He questioned why there is so much antipathy to an income tax.
He said, "Don't pick on the seniors, we're not really as bad as
some people make us out to be."
LOUISE HARRIS, President of Palmer Senior Center, is 89 years
old. The bonus checks are spent in Alaska and provide economic
stimulus to communities. In addition, the program probably costs
the state less than public assistance and certainly it has a
different meaning for older Alaskans. People in their 70s, 80s
and 90s shouldn't be expected to reenter the workforce to
replace the bonus checks.
NANCY MENDENHALL from Fairbanks opposed SB 117. The program has
been successful in encouraging retirees to remain in Alaska.
Seniors invest considerable time, money and resources to make
their communities better places to live. She asked whether data
was available to show the contributions made by seniors and
whether they wouldn't more than offset the longevity bonus
program.
JOHN BOULETTE from North Pole opposed SB 117. He has lived in
Alaska for 39 year, is 72 years old and gets the smallest bonus.
It helps pay for his utilities and prescription drugs. He has
spent the last 18 years volunteering in his community and he
remembers when there were few volunteers because no one could
afford to live in Alaska when they weren't working.
NIILO KOPONEN opposed SB 117. He is a former member of the
Legislature and has lived in Alaska since 1952. He remembers
when the program was instituted during the Hammond
Administration. The phase-out was written as a contractual
agreement with the people who were then receiving the bonus.
Eliminating the program would break this contract, it would
adversely impact small communities and it would impact families
of seniors.
GENENEIVA DEE DEE PEARSON from Kodiak opposed SB 117. She does
not receive the bonus but still doesn't want to see the program
cut. She wondered whether the Governor and legislators weren't
counting on seniors being around for the next election. An
income tax would be fair.
EVAN CUNDIFF opposed SB117. He and his wife have lived in Homer
for 45 years and they plan to die in Alaska. He believes
eliminating the longevity bonus program is a travesty. The
letter from the Governor stated that no one should be paid the
bonus since more Alaskans over 65 don't receive the bonus than
do elicited the suggestion to take everyone off the state
payroll and start over again. This would include all state
employees as well as all state legislators. He closed saying,
"If we must conserve, let's put a little compassion in our
conservatism."
EARL GLANVILLE from Anchor Point opposed SB 117. He moved to
Alaska in 1943. Because there has been such a rapid growth in
state government, he asked that the Governor eliminate all state
employees that do nothing more than hold down a chair and
shuffle papers.
VI JERREL from Homer opposed SB 117. Although she doesn't
receive a bonus check, she feels it is necessary to protect
those seniors who do get a check. There has been lots of good
testimony given in defense of the program. There is a public
perception that the salaries for the Governor and many of his
top administrators could be reduced and added to the bonus
program. "If Governor Murkowski had campaigned on his request to
eliminate the longevity bonus program, Fran Ulmer would be
governor today."
ED ZASTROW from Ketchikan has lived in Alaska for 45 years. He
spoke on behalf of 30 seniors from the Ketchikan Senior Center
whose signatures were faxed to the Chair as an expression of
opposition to SB 117.
He is also the president of the local AARP chapter and all those
members are opposed to the bill. Representative Williams and
Senator Taylor spent over two hours in a pre legislative hearing
and are aware of the opposition.
GUY TOWNSEND from Ketchikan opposed SB 117. He arrived in
Ketchikan in 1936 He wondered if this is the start of longevity
recipients leaving Alaska.
LENORE JONES from Kenai opposed SB 117. When she read the
Governor's letter that stated the bonus program was inequitable
she was amazed that the Governor thought the Legislature could
pass laws to make everyone equal. Seniors currently receiving
the bonus have already paid their dues to the state.
VIVIAN SWANSON from Kenai opposed SB 117. She is the president
of the local AARP chapter and they believe those receiving the
bonus depend on it as part of their monthly budget.
MONTY RICHARDSON from Seward opposed SB 117. He and his wife
receive the bonus and its elimination combined with new user
fees will considerably impact their economic status. Although
they won't be lined up at the welfare office, there are many
Alaskan seniors who are barely scrimping by on incomes close to
the poverty level. The children of these low-income seniors will
suffer and do without if the bonus program is eliminated. He
agreed with Mike Doogan; those not receiving the bonus have but
one leg while those currently receiving it have two legs. The
Governor's proposal is to see that everyone has just one leg.
ROBERT MONTEGUE spoke on behalf of the residents of the
Anchorage Pioneer home to oppose SB 117. Many of the residents
have sent public opinion messages to legislators and a letter to
the Governor as well.
TOM DAVIS, the director of the Chugiak Senior Center, testified
for the seniors at the center in opposition to SB 117. They
asked that the bill be thrown out as frivolous legislation. Many
of the Governor's safety net programs can't really be supported
as a safety net and the Governor's proposed budget recognizes
that.
SIDE B
4:25 pm
ROBERT THIBODEAU from Juneau spoke as a member of the Juneau
Commission on Aging in opposition to SB 117. He read the
conclusions the McDowell Group reached regarding the economic
impact of seniors.
Alaska seniors are one of the largest single sources
of money flowing into the state. Senior retirement
income and medical payments have a significant
beneficial effect on the state economy. At the same
time, more than half of Alaska seniors live
precariously on the edge of solvency. For some,
financial considerations may determine whether they
continue to reside in the state. For many others, a
combination of financial benefits available from state
and municipal governments is critical to their well-
being.
He said his parents came here in 1922 and they left in 1953
because seniors did not retire in Alaska. In 1988 just two
percent of the senior population was in Alaska.
Seniors contribute a great deal to Alaska and if the state is
interested in supporting the tourist industry and the fishing
industry it should also support the senior citizen industry.
CHAIR GARY STEVENS said he would read the names of everyone that
signed up to testify but didn't get the chance. He encouraged
anyone who wanted to object to anything that was said previously
to speak up. He read the following names:
JUNEAU: Barbara Deboff, Wallace Deboff, Ralph C. Hunt, Betty
Hunt, Maxine McCoy, George Rogers, Maurice Long, Jim Carroll,
Jean Clayton, Norma Sherwin, Alto Van Sickle, Ernestine Denny,
Ethel Ryman, Julie Morris, Rosalee Walker, Judy Wygant, Mike
Race
ANCHORAGE: John Stripe, Ron Hammett, Jesse Wooten, Ron Cowan,
Madge Anderson, Ruth Talley, David Ring, Ervin McKenzie, John
Anderson, Gordon Geiss, Ed Barber, Nella Wooten and six
observers
MAT SU: Jim Watenpaugh, Jim Fleming, Bill Church, Patricia
Fleming, Jim Sykes,
FAIRBANKS: Ed Shellinger, Glenn Hackney, Betty Hufman, Joe
Strunka, Glen Franklin, Charlotte Davis, George Taylor, Walter
Shuros, Janette Hanneman and seven observers
KODIAK: Marjorie Thera
KETCHIKAN: Don MacMillan, Ernest Smeltzer, Mabel Smeltzer,
Shirley Carlin
KENAI: Vivian Jolin, W.E. Jolin
SEWARD: Florita Richardson, Margaret Anderson
There was no one that disagreed with previous testimony on SB
117.
CHAIR GARY STEVENS stated the testimony in opposition to SB 117
was enormous. He thanked everyone for their testimony and he
appreciated the stories and pioneer experiences in Alaska. He
expressed appreciation for the service the seniors have given
and continue to give to the state and nation.
He pointed out this is the Governor's bill and the committee was
asked by both the Administration and the majority leadership to
move the bill to the Finance Committee where it will be
discussed with other fiscal items.
SENATOR COWDERY said he didn't believe there would be a do pass
in the room but he was going to make a motion to move SB 117
from committee with individual recommendations.
CHAIR GARY STEVENS asked whether there were any objections.
SENATOR GUESS objected and asked to speak to her objection. She
said:
I've actually been giving this a tremendous amount of
thought and I appreciate everyone's testimony and
thank you for recognizing what people put in.
The other day I told someone that I've never gotten
more e-mail correspondence and testimony on an issue.
I've only been here three years, but dealt with most
of the controversial issues in those three years.
Someone said, "Well they must be really organized."
and I said no, they're scared. I really do think
that's the fact. I don't honestly think the Governor
has the support and Senator Cowdery pointed out
there's not going to be a do pass on this bill. No one
more than me knows the fiscal problems of this state.
I think this is a shortsighted policy, honestly. I
think it does break a promise and I honestly think
it's just plain mean, but I don't want to impugn
everything. I don't think it was meant to be that way.
I understand the pressure to support a Governor
especially for the majority but I truly believe if
there's a time to stop a bill it's this time. There
areother bills that are more financial bills, but this
one's keeping people up at night and I think we just
need to say, "You know, we respect that you put it
forward, but it needs to stop here." I disagree with
moving it out. I don't think it's the right thing for
the committee.
SENATOR COWDERY informed members he and his wife receive the
bonus.
SENATOR GUESS informed members her mother-in-law receives the
bonus.
CHAIR GARY STEVENS informed members his mother-in-law receives
the bonus.
CHAIR GARY STEVENS called for a roll call vote on the motion to
move SB 117 to the Finance Committee. Senators Cowdery, Dyson
and Chair Gary Stevens voted yea and Senator Guess voted nay.
The motion passed and SB 117 moved from committee.
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