Legislature(1997 - 1998)
04/23/1998 08:50 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
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SENATE BILL NO. 230
"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."
Senator Pearce convened the meeting and advised that the
committee would continue the Department of Transportation
and Public Facilities budget closeout.
Senator Torgerson said the subcommittee for Department of
Transportation and Public Facilities was comprised of
himself as chair, Senators Taylor and Hoffman. He
explained included in the budget close-out was the
elimination of the Assistant Commissioner in the Southeast
Region Engineering component, the elimination of the
Project Coordinator in Seattle, the elimination of Naval
Architect, reduction in advertising and reservations,
marketing funds increase of $67,000, reduce personal
services in the marine vessel component show operations by
$31,000, reduce the longshoring component back to FY 98
levels, food supply to FY '98 levels, and take off the lay
up costs in Bellingham, which was taken out last year. The
department was advised to lay up in Alaska. This would
bring the total closeout of the department somewhere around
$900,000 under the target. He noted they did not get to
the reduction for the one-time items taken out of the
Northern and Central Regions and so there was an
approximate $128,000 amendment to reduce this. There was
also an amendment needed for the front section.
Senator Torgerson MOVED the balance of the Department of
Transportation and Public Facilities closeout budget report
be incorporated into the working document of SB 229 and SB
230. Senator Adams OBJECTED. He said he would like a
response by the department regarding the presentation made
by Senator Torgerson.
NANCY SLAGLE, Director, Division of Administrative
Services, Department of Transportation and Public
Facilities was invited to join the committee. She said a
response to the reductions by the subcommittee had been
provided in a memo dated 17 April 1998. The reduction
would eliminate an Assistant Commissioner position, which
was in the process of being re-classified to a Director.
This was an oversight position for construction,
maintenance and operations in the Southeast Region. It was
similar in ranking as to what is in the other two regions
and would definitely have an impact in the department's
ability to provide oversight. The other reductions were in
the Marine Highway System, most of which were results of
the department moving monies within the system to
accommodate some increased needs or to reflect what the
budgetary needs actually were.
KURT PARKAN, Deputy Commissioner, Department of
Transportation and Public Facilities was invited to join
the committee. He said the department was preparing an
impact statement on the remaining reductions and it would
be available in a short while for the committee.
Senator Adams advised Co-chair Pearce that he maintained
his objection as he had not had ample time to review the
financial statement and impact statement.
Co-chair Pearce asked for a roll call vote, noting the
objection of Senator Adams. By a roll call vote of 6 yeas
(Pearce, Sharp, Donley, Torgerson, Parnell, Phillips) and 1
nay (Adams) the remainder of the Department of
Transportation and Public Facilities subcommittee budget
was adopted into the budget document.
(Senator Pearce introduced guest page, Charnella Jones, 5th
grade, from Auke Bay Elementary School. Charnella was
invited as a guest page to the Senate Floor session
following the Senate Finance Committee meeting.)
(A brief at ease followed from approximately 8:57 a.m.
until 9:05 a.m.)
Co-chair Pearce reconvened the Senate Finance Committee and
noted all members were present. She explained the schedule
for public testimony on the budget.
ELLEN NORTHRUP, Executive Director, Glory Hole, Juneau,
Alaska was invited to join the committee. She explained
that she represented the poor of Juneau in dealing with
thousands of individuals way below the poverty line on a
daily basis. She has eight years experience in her present
position and previously twenty years experience dealing
with poor and dysfunctional prisoners. She agreed that
some of the budget cuts have been good, but others not so
good. Ms. Northrup explained that at least one-third of
her clientele are mentally ill or so dysfunctional they
cannot participate in any "normal" life. Specifically she
noted during the past year she had four guests at the Glory
Hole with severe medical emergencies, which were not
abortion-related. She also spoke on behalf of Dan Austin,
Director, St. Vincent de Paul. Presently in the family
shelter at St. Vincent's they are caring for a severely
diabetic client. If they could not be cared for at St.
Vincent's she did not know what would happen to this woman.
She asked the committee to consider carefully before making
any medical program related cuts.
Senator Phillips asked what program specifically did Ms.
Northrup testify to. Co-chair Pearce clarified that it was
general medical relief program. Ms. Northrup said this was
the only program to help out the poor. Natives could go to
SEARHC but others were just out of luck. All lives are
worth saving.
WALTER MAJOROS, Executive Director, Alaska Mental Health
Board, Department of Health and Social Services was invited
to join the committee. He said his testimony was also to
the general relief medical program and urged the committee
to reinstate the necessary funding. He explained the
impact on mental health beneficiaries. He said this
funding was targeted specifically for the most medically
needy individuals, the poorest and sickest Alaskans, who
have no other health care options besides uncompensated
care. There are stringent criteria for eligibility,
including having no more than $300/month income and less
than $500 in personal resources, nor can the individual be
Medicaid eligible. Services provided under this program
are primarily emergency medical services, medication and
medical supplies for chronic or terminal conditions. One
important area for mental health beneficiaries he
identified was that the program had interim coverage for
those disabled that were applying for SSI disability. This
eligibility and appeal process could go on for perhaps two
years. There was no other alternative for these
individuals during the interim period. However, when the
individual was covered under the federal program it was
retroactive and there was a recoupment of the funds. It
was also important for mental health patients to have their
medications covered and any other medical emergencies that
may arise. He did not feel that individuals should have to
make a choice to use their $280/month to decide whether to
purchase medications or food and urged the committee to
fund the general medical relief. Otherwise more mentally
ill individuals and mental health beneficiaries will end up
either at Alaska Psychiatric Institute or in prison as a
direct result of not having basic coverage. Some chronic
conditions may become acute, therefore requiring more
emergency care at hospitals. The final drastic result of
not having basic coverage for acute and chronic illness
available is that some individuals may die.
Senator Parnell asked if there was other funding available
for mental health patients not qualifying for Medicaid?
Mr. Majoros said Mental Health could possibly meet their
counselling needs but most programs could not meet the
medical needs. He further noted that many mental health
patients had serious fragile medical conditions.
There being no further testimony to be taken locally, Co-
chair Pearce introduced teleconference testimony.
ROSE HEYANO testified via teleconference from DILLINGHAM.
She supported the Dillingham Senior Housing Project listed
within SB 231. Ms. Heyano indicated that her family felt
that had there been closer residential facilities her
mother could have lasted longer at home rather than being
sent to the Mary Conrad Center. The family had cared for
their mother at home as long as possible and the decision
to transfer her to an Anchorage home had been a very
difficult decision for them to make. At the same time her
mother was transferred to the Anchorage facility so were
four other individuals from her community. She felt it was
more important to keep elders close to home with families.
This would make their golden years more valuable to them.
She felt more facilities should be available in the rural
areas.
TERRY HOEFFERLY, Chief of Operations for Bristol Bay Native
Association testified via teleconference from DILLINGHAM.
He spoke on behalf of the Dillingham Senior Services
Project. He felt the cost to the State was greater when
individuals were transferred to nursing homes in Anchorage
as opposed to assisted living and services provided in
rural communities. He said that $900,000 for an assisted
living project in Dillingham could be recouped in four
years via increase in Medicaid costs to the State.
Co-chair Pearce announced that there would be time for
Juneau residents to testify at the evening meeting
beginning at 6:00 p.m.
KAY BRANCH testified via teleconference from DILLINGHAM.
She said she also supported the Dillingham Senior Housing
Project. She said the project was a local initiative to
undertake operating the facility with coordination of the
hospital, the native association, the tribal council and
the senior center. She further noted that other funding
was also being sought, including payment by Medicaid choice
waivers. Elders in Anchorage facilities have stated to her
that they wished to be at home near the river where they
were born.
PETE ANDREW testified via teleconference from DILLINGHAM.
He urged the committee to support the Dillingham Senior
Housing Project. He explained for the committee that
elders being transferred away from rural communities into
an Anchorage facility had a life expectancy of only two
months, as was the case with his father. He equated this
with a death sentence.
Co-chair Pearce indicated that all written testimony
received would be made part of the permanent record.
Senator Parnell noted many letters and press coverage
regarding general medical relief. However, there had not
been much notice about what the committee had done for
disabilities. He pointed out for those who sent in cards
from the Key Campaign that the committee was funding an
additional $1.3 million for those on the wait list. This
was far beyond the request of the Governor and would assist
more people with developmental disabilities.
Senator Phillips said he appreciated that Senator Parnell
had made this issue a priority.
Senator Parnell further felt that this appropriated budget
went a long way in assisting the significant list of
children awaiting help who have developmental disabilities.
Senator Adams said the minority also appreciated the
funding. However, general medical relief funding should
also be included in the particular package.
Senator Sharp noted that everyone realized there were some
benefits that had been extended in the general relief
medical program. However, he was concerned that the
department was not running the program according to
mandates and State statutes. Further, they gave no
assurances they would consider priorities set up by statute
to govern the funds. He said situations were being funded
that were not on the priority listing and this was the
biggest problem with this program. He would rather the
money go to a program with measured results so one could
see what was happening. Presently, the program is in
complete chaos with no control whatsoever.
BOB JUETTNER testified via teleconference from ANCHORAGE.
He supported the King Cove Harbor project, which was in
conjunction with the Corps of Engineer matching grant
program. He explained the project would consist of
building a new breakwater, dredging a base and providing
moorage for fifty vessels, eighty feet in length and longer
in King Cove. They have asked for a $900,000 partial
matching grant. He noted they may have to come back to the
Legislature at a later time for more funding, depending on
how bids come out and how the cost sharing with the Corps
of Engineer's will be affected. He explained that when the
project was completed it would be locally owned and
operated. At that time they do not expect to come back to
the Legislature for additional funds. They estimate that
the project will generate $1.35 million of increased
revenues.
Co-chair Pearce introduced the children from parents
employed by the Department of Natural Resources and the
Department of Military & Veterans' Affairs present in the
committee room. The children were participating in the
"take your children to work" day.
LAURIE HUGINEN, Director, Alaska Network on Domestic
Violence and Sexual Assault was invited to join the
committee. She expressed the Network's appreciation to the
Department of Public Safety subcommittee for maintaining
funding and providing an increase for federal funding which
would allow for a Victims' Service Coordinator through the
Department of Corrections. She also noted additional money
for grants for Victims' Services and an increase to the
Violent Crimes Compensation Board. Ms. Huginen further
commented that she hoped the committee would restore some
of the funding to the general relief medical program. She
felt it was important that Alaska, as a community, do what
could be done to provide at least basics and medical for
those who could not.
Co-chair Pearce reminded the committee of the evening
schedule set to begin at 6:00 p.m. She said the committee
would set aside fifteen minutes for Juneau folks to testify
and then go directly to teleconference.
ADJOURNMENT
Co-chair Pearce recessed the committee at approximately
9:40 a.m. The committee will meet again at 6:00 p.m.
SFC-98 -8- 4/23/98
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