Legislature(2019 - 2020)ADAMS ROOM 519
03/26/2019 05:30 PM House FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB39 || HB40 | |
| Public Testimony: Homer, Delta Junction, Glennallen, Tok, Valdez, Whittier, Healy, and off Net | |
| Public Testimony: Fairbanks, Anchorage, Ketchikan, Sitka and off Net | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 39 | TELECONFERENCED | |
| += | HB 40 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 39
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making 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. 40
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program, including
supplemental appropriations; and providing for an
effective date."
5:35:07 PM
Co-Chair Foster provided detail about the public testimony
process.
^PUBLIC TESTIMONY: HOMER, DELTA JUNCTION, GLENNALLEN, TOK,
VALDEZ, WHITTIER, HEALY, and OFF NET
5:37:00 PM
GEORGE MATZ, KBCC COMMUNITY COUNCIL, HOMER (via
teleconference), spoke in support funding for the of the
University. He referenced the governor's proposed 41
percent cut and stressed it would be devastating to the
University. He referenced the multiplier effect of money
received by the University. He asked for $60,000 to $70,000
for the Kachemak Bay Research Reserve, which would be used
as a matching grant for NOAA funds. The money would bring
in a $703,800 grant, which was a 10 to 1 return for the
state. The money was spent on ground water studies,
fisheries research, and other.
5:39:43 PM
MEG MITCHELL, SELF, HOMER (via teleconference), shared that
she had worked as a case manager for people with
disabilities for 28 years. She stressed opposition to cuts
to Medicaid, especially adult preventative dental care
services. She believed the governor's budget would cut all
healthcare Medicaid services for adults including senior
and disabilities Medicaid, behavioral health Medicaid, and
more. She underscored the cuts were the wrong thing to do
for Alaska. She was strongly opposed to cuts to the senior
benefits program. She did not support cutting Medicaid for
the state's most vulnerable Alaskans. She questioned the
governor's actions. She supported working together and
taxing the oil companies.
5:42:27 PM
SUSAN AMUNDSON, SELF, HOMER (via teleconference), thanked
the Department of Education and Early Development (DEED)
subcommittee for restoring funding for early education
programs including Head Start, Best Beginnings, and Parents
As Teachers. She discussed that the budget made substantial
cuts but did not look at revenues. She believed in a lean
system, but not a gutted system. She characterized basic
expenses for education and Medicare as civil rights. She
stressed it was the moral responsibility to take care of
the state's vulnerable populations. She discussed the
importance of considering revenues. She stated that the PFD
was an entitlement, not a right. She thought oil tax
credits needed to be lessened. She supported considering a
personal income tax. She thanked the committee for the
opportunity to testify.
5:44:58 PM
JILLIAN LUSH, SELF, HOMER (via teleconference), thanked the
DEED subcommittee for restoring funds for early childhood
education including Head Start, Best Beginnings, Parents As
Teachers, and more. She asked the committee to consider
economic research showing the high return on investment for
prenatal and early childhood services. She stressed the
state could not afford to cut the services. She opposed the
governor's proposed cuts to Medicaid. She detailed that
Medicaid helped Alaskan seniors, children, people with
disabilities, and families. She believed it was a moral and
economic issue. She shared that Medicaid for women and
children had dramatically reduced child mortality rates.
She asked the committee to consider what kind of state
residents wanted to raise their children in.
5:46:53 PM
JANIS JOHNSON, SELF, VALDEZ (via teleconference), addressed
support for the University - she believed the state would
be shooting itself in the foot without a strong University.
She opposed cuts to Medicaid, behavioral health, and senior
and disability services. She was against cuts to education
and the Alaska Marine Highway System (AMHS). She urged
looking at other revenue sources including taxing oil
companies and an income tax. She believed the PFD should be
cut and was an entitlement, which she disagreed with. She
thought only cutting would devastate the economy. She
considered that selling ferries and terminals indicated no
intention of ever bringing the services back. She
emphasized it would be devastating to rural Alaska.
5:49:49 PM
PATRICIA RELAY, SELF/PARENT, VALDEZ (via teleconference),
testified in opposition to the governor's proposed drastic
cuts to the University. She stressed the importance of
fighting for quality education during tight fiscal times.
She emphasized that an educated community was a united
community. She spoke to the University's role in educating
a skilled workforce and participating in world class
research. The University had a long-term impact on the
state's economy. Cumulative reductions to the University's
budget in the past few years had exceeded over $195 million
and had resulted in cuts to academic programs and jobs. The
proposed tuition hike unfairly placed the financial burden
on the backs of students. She thought cutting the
University's budget by 40 percent was reckless. She
stressed that education was of the utmost importance.
5:52:10 PM
MAUREEN RADOTICH, SELF/PARENT, VALDEZ (via teleconference),
spoke in support of K-12 and University education. She
shared information about her personal life and family. She
stressed the importance of a strong education system for
the state. She shared that the University had made the most
economic sense for her family when compared to out-of-state
schools. She underscored the quality education provided by
the University. She wanted to keep youths in-state for
education, which would keep them in Alaska for the long-
run.
5:54:00 PM
RAYCE WITTNER, MIDDLE SCHOOL STUDENT, WASILLA (via
teleconference), shared information about serious problems
facing youths in Alaska. She shared that she had friends
who had been sexually abused by family members and others
who had been physically abused or were uncared for by
family. She shared personal details about her experience
with sexual assault at a young age. She detailed that by
the time young people reached middle school they learned to
keep abuse a secret. She asked members whether they had to
take time off work when impacted by crime. She elucidated
that youths were expected to go to school and perform well;
when that did not happen, teachers were blamed. She
emphasized that it was impossible to learn with such
distractions. She pointed out school was more than just
budgets and test scores. She stressed that school was a
place some youths received a warm meal and to learn social
behavior when facing violence and substance abuse at home.
She had faith the legislature would do what was right for
Alaskans, including the youngest residents.
5:56:37 PM
JAMES SQUYERS, SELF, DELTANA (via teleconference),
supported the governor's budget. He did not support a
reduced PFD. He thought it was necessary to structurally
down build society. He believed maintaining the current
level of spending was unsustainable. He supported a smaller
government that allowed the state to live within its means.
5:58:44 PM
KIM PHILLIPS, SELF, HAINES (via teleconference), spoke in
support of early childhood development. She thanked the
DEED subcommittee for reinstating funds to early childhood
programs including Best Beginnings, Parents As Teachers,
and Head Start. She referenced a program by Best Beginnings
to help literacy in young babies. She addressed benefits of
the programs. She spoke to the programs that build adult
trust with children. She recalled meeting a young couple
with a six-week-old daughter who wanted to learn about the
program. She had explained the importance of reading to
babies. She recalled working with families and children
fondly.
6:03:52 PM
WILLIAM LAMBERT, SELF, NORTH POLE (via teleconference),
supported the governor's proposed budget. He believed all
Alaskans should receive a full PFD. He suggested looking
long-term and stated it fell on the individuals managing
the departments. He stated that a 33 percent graduation
rate at the University was a disgrace. He believed those
running the University system had failed. He supported past
efforts by Co-Chair Wilson to cut the budget. He fully
supported the proposed cuts by the governor.
Co-Chair Wilson thanked Mr. Lambert.
6:07:42 PM
HEIDI OSTBY, PEDIATRIC DENTIST, ANCHORAGE (via
teleconference), testified in support of funding for
Medicaid. She discussed the high rate of cavities in
children. She provided statistics about Alaska Native
children and all kindergartners. She provided information
about the work she performed annually. Approximately 83
percent of the cases she saw were on Medicaid. She stressed
that if reimbursement rates were cut it would be
financially impossible to treat the same number of
children. She stated that limiting the number of patients
would be devastating for children who were already
experiencing difficult life circumstances. The proposed
cuts would offer short-term savings, but long-term damage.
She stressed that Alaska was dealing with epidemic levels
of dental needs in youth. The reimbursement rates were
still not high enough to keep the hospitals open. She noted
that surgery cases were already booked two to three months
out. She believed more cuts would result in getting kicked
out of surgery centers and children would have nowhere to
go.
6:12:10 PM
NICKI SHELTON, SELF, HOONAH (via teleconference), spoke in
support of funding for early learning programs including
Parents As Teachers. She was grateful to the DEED
subcommittee for restoring early learning education funds.
She shared that she had taught in Hoonah for 20 years. She
discussed that children's success with reading was clearly
correlated with their experiences with books in early life.
She shared that the Imagination Library and loans from the
early learning programs were the only resources for books
in young children's homes. She stressed that decreases in
early learning programs would have devastating impacts on
young children. She reasoned the cost necessary for
remedial reading programs would be much higher than
providing early learning support. She pointed out that
early learning programs regularly screened for
developmental delays. Early intervention services allowed
issues to be addressed early. She underscored that children
received one shot at early years. She supported an income
tax to increase the revenue side of the budget.
6:14:42 PM
ERIC MUENCH, SELF, KETCHIKAN (via teleconference),
discussed that the state budget had been cut for the past
several years. He did not support the governor's proposed
cuts, which he believed would cause a major recession in
parts of Alaska. He supported limiting the PFD to a modest
amount. He pointed to low oil revenues as the source of the
state's budget problems. He stated that the Alaska problem
was no broad-based revenue source. He pointed out that only
eight other states had no income tax and only four other
states had no statewide sales tax. He expounded that all of
those states had either an income or state sales tax. He
supported a modest income tax.
Vice-Chair Ortiz thanked Mr. Muench for calling in.
6:17:05 PM
JENNIFER EUDNK, SELF, KODIAK (via teleconference), shared
that she was from Sand Point, Alaska and had been teaching
for over 20 years. She was very disappointed in the idea
that cutting everything was the solution. She supported
either a state income or sales tax. She opposed the entire
proposed budget, especially cuts to public radio, AMHS, and
education. She detailed it was hard enough finding teachers
to come to Alaska without more cuts to the system. She
stressed it was impossible to get qualified teachers. She
thought the idea that a competent education system would be
maintained if cuts were made was outlandish. She believed
the PFD could be smaller. She supported a strong
University. She supported full funded education.
6:20:51 PM
LEE HART, SELF, ANCHORAGE (via teleconference), spoke
against the deletion of snow mobile and trails grant
program. She supported HB 23 that would increase [snow
mobile registration fees]. [Note: testifier call was
dropped; her testimony resumed at 6:31 p.m.]
Co-Chair Foster noted they would return to Ms. Hart.
6:22:03 PM
KEVIN WALKER, SELF, HOMER (via teleconference), supported a
reduction in oil tax credits to enable full funding of the
operating budget. He was in favor of a progressive income
tax that could tap into the pay of out-of-state workers who
were currently not taxed by Alaska. He supported a cut to
the PFD. He reasoned it was possible to work with a 1
percent reduction per year to almost anything, including
the governor's budget. He supported AMHS, education,
recreational trails, and grants for snow machines and other
recreational vehicles.
6:23:36 PM
SARA CALDWELL, SELF, JUNEAU (via teleconference), testified
in support of the University. She had worked for UAS for 16
years. She shared information about programs. She had
difficulty with the governor's proposed budget. She was
against proposed cuts to AMHS and the University. She
stressed that the proposal would require closing some
University campuses. She supported a revenue source such as
an income and/or sales tax. She hoped to have new revenue
funding in place soon.
6:26:33 PM
GEORGE PAUL, SELF, WASILLA (via teleconference), testified
in support of the governor. He was in favor of full PFDs.
He discussed that when former Governor Jay Hammond had come
up with the PFD plan to invest in the people of Alaska. He
underscored that the PFD was not merely a gift to
residents. He recalled a teacher stating that government
was the art of compromise. He suggested adding the
departments to the Pick.Click.Give program for residents to
choose to donate their PFD to what they wanted. He
suggested not filing for a dividend if people wanted it to
remain in the state's Permanent Fund. He had disagreed when
former Governor Bill Walker and the legislature had used
funds from the Permanent Fund. He suggested getting rid of
the legislature's private chef and making other reductions.
6:31:19 PM
Ms. Lee Hart continued her earlier testimony. She was part
of a coalition of nonprofits and state businesses in the
outdoor recreation industry. She spoke in support of the
reinstatement of funds for the snowmobile trails grant
program. She explained the grant had been cut for unknown
reasons - the program was self-sufficient and provided a
cost savings to the government. The program enabled snow
machines to respond to emergencies in the wilderness. She
was in favor of HB 23, which would increase the snow
machine license fee. She noted she had also submitted
written testimony.
6:33:53 PM
VIKKY JO KENNEDY, SELF, KODIAK (via teleconference),
suggested using funds from the Alaska Aerospace
Corporation. She thought the legislature could put the
funds where they were needed for things like education. She
supported the governor.
Co-Chair Wilson remarked that she did not have the DMVA
budget and relayed that the Alaska Aerospace Corporation no
longer received any state funds.
6:38:44 PM
SAMANTHA KIRSTEIN, FAIRBANKS COMMUNITY FOOD BANK, FAIRBANKS
(via teleconference), thanked the DHSS subcommittee for
restoring funds for the human services community matching
grant funds. She reported that in recent years the total
state funds allotted for the grant in the Fairbanks
Northstar Borough had been approximately $271,000. The
funds had been locally matched by $118,000 to meet basic
human needs. She stated that the most any of the agencies
could receive was $20,000 from the state and $10,000 from
the borough. The current year funds provided over 325,000
meals to citizens in the Tanana Valley. She spoke about
donations of food that would otherwise go to waste. She
spoke about the savings provided.
Representative LeBon thanked Ms. Kirstein for her
testimony.
6:41:36 PM
CHARLES MCKEE, SELF, ANCHORAGE (via teleconference),
discussed an individual who had quit her job because she
had been offered a job with an insurance company to decline
worker's compensation coverage. He provided background. He
noted there was employee dishonesty. He stated that judges
were all employees. He discussed the state as a sovereign.
He referenced operating off of bonds.
6:48:11 PM
KATHRYN CARSSOW, SELF, HOMER (via teleconference), was
opposed to the governor's budget. She shared personal
information about her history and family. She shared that
she had been outside a governor's meeting in Kenai the
night before and could not get in. She thought it was a
mistake that the past income tax ended and supported a new
income tax. She supported a reduction to the PFD. She was
upset that the Senate did not act on the four pillar plan
passed by the House the previous year. She supported a
broad-based tax. She supported taxing oil companies
appropriately. She was worried about the state and a
continuing recession.
6:52:19 PM
CAROL SORD, SELF, HOMER (via teleconference), spoke in
opposition to education cuts. She stressed that the wound
would not heal in those children's lives who did not
receive an education. She spoke to the importance of caring
for the state's environment and natural beauty. She
implored the committee to look at what the state needed and
to keep the state strong. She believed most individuals
would be willing to pay a small income tax in order to pay
for services.
6:54:51 PM
EMILY MESCH, SELF, JUNEAU (via teleconference), spoke in
strong opposition to cuts to AMHS; she had only been able
to relocate to Juneau because of the ferry system. She was
new to Alaska and wanted to remain in the state. She could
not imagine the damage that would be done to the state as a
whole if the ferry system was eliminated. She needed to
rely on the state's infrastructure and thought it was
irresponsible to dismantle the state's ferry system,
university system, and education system. She characterized
the proposed cuts as arcane and did not believe it was
necessary to get rid of things that worked.
Co-Chair Foster provided the public testimony email
address.
6:56:59 PM
ALBERT NINGEULOOK, SELF, SHISHMAREF (via teleconference),
thanked the committee for its work. He wished the governor
would take time to visit the state's villages on his
current "roadshow" on the budget. His primary concern was
related to education; he was opposed to major cuts to the
education system. He testified in support of the Village
Public Safety Officer (VPSO) program and senior benefits.
6:58:10 PM
LIBBY DALTON, SELF, FAIRBANKS (via teleconference), shared
that she had lived in Alaska during a time of dirt roads.
She supported fully funding the University, but not at the
current level. She remarked that the permanent fund
dividend (PFD) belonged to all Alaskans. She felt that the
University budget was already "bloated." She remarked that
downtown Fairbanks was full of vacant buildings, because of
the recession. She shared that Dr. William Wood was the
president of the University of Alaska from 1960 to 1973.
During his tenure, the campus grew significantly. The
enrollment grew from fewer than 1000 students, to more than
10,000 statewide. She remarked that Dr. Wood did not have
any oil money, but he was a visionary. She stated that Dr.
Wood became the mayor of Fairbanks and helped create
Fairbanks Memorial Hospital. She felt that the University
was currently too heavy with administration.
Representative Josephson wondered whether Ms. Dalton wanted
to fully fund the University.
Ms. Dalton replied in the negative. She felt that the
University needed to make some cost reductions.
7:04:21 PM
STEPHANIE CRONIN, SELF, SEWARD (via teleconference), spoke
against the budget. She felt that education money should
not be competing against the PFD. She understood that
people wanted "free money," but not at the expense of the
future of the kids and the state.
7:04:55 PM
CHRISTINE HUTCHISON, SELF, KENAI (via teleconference),
spoke in support of cutting the budget. She remarked that
there was a framework to work within. She felt that the
salaries for the university chancellors were too high. She
urged the committee to focus on high school graduation. She
felt that the PFD was the private property owners of
Alaska. She felt that the PFD should be fully restored,
because it was a violation to decrease the PFD.
Representative Carpenter thanked Ms. Hutchinson for her
testimony.
7:08:50 PM
ERIC LEUSCH, SELF, STEBBINS (via teleconference), spoke in
support of fully funding the PFD. He remarked that Stebbins
was a poor community, and many people relied on the PFD for
fuel and hunting supplies. He felt that the state should
return the mineral rights to the people, if the state
continues to use PFD money.
^PUBLIC TESTIMONY: FAIRBANKS, ANCHORAGE, KETCHIKAN, SITKA
and OFF NET
7:10:39 PM
DONALD WESTLUND, SELF, KETCHIKAN (via teleconference),
spoke in support of funding the AMHS He felt that all of
Alaska benefitted from a robust marine highway system. He
spoke in support of the Tustumena replacement project. He
noted that the money was transferred to the Interior. He
spoke in support of former Governor Bill Walker's budget.
He stressed that the state government required funding from
the people.
7:13:50 PM
KIRA RAFUSE, SELF, ANCHORAGE (via teleconference),
testified against the proposed cuts to public education.
She felt that the reductions would decimate the classrooms
and felt that the increase in class sizes was unacceptable.
She remarked that it was possible to have a reasonable PFD
and an adequate education system. She felt there should be
provisions for those who live in Alaska.
7:16:07 PM
MARGARET MACKIE, SELF, ANCHORAGE (via teleconference),
spoke in support of funding education. She did not want to
be a teacher in a class for more than 40 children. She
remarked that children were the future. She understood that
cuts need to occur but remarked that there needed to be an
opportunity to be a good teacher.
7:17:14 PM
GENE THERRIAULT, FAIRBANKS COMMUNITY FOOD BANK, FAIRBANKS
(via teleconference), testified in support of the
Department of Health and Social Services (DHSS) House
Finance Subcommittee recommendations to continue funding
for the community matching grants. The statutory authority
for the matching grant was enacted by the Alaska
Legislature in 1992. The program funds were now available
to entities in Anchorage, Mat-Su, and Fairbanks. The
available funds were allocated through a population-based
mechanism. The funds must be increased at the local level
by a required 30 percent match. The local governments must
also commit to spending more than 5 percent of the funds to
further disperse the funds through a competitive
application process to nonprofits that provide a documented
essential service as defined by Alaska law. He remarked
that, during his tenure in the legislature, his colleagues
and he struggled with the volatile oil market. He remarked
that efforts were made to preserve the human services grant
funds as a means of providing essential services through a
community-based entity.
7:19:55 PM
WILLIAM HARRINGTON, SELF, ANCHORAGE (via teleconference),
stated that he was on a pension and Social Security, so he
would pay more tax out of pocket. He felt that the rich
would get richer, and the poor would get poorer. He felt
that those who not file Schedule A taxes at the federal
should be exempt from the possible state tax.
7:21:57 PM
STEPHEN GOUGH, SELF, FAIRBANKS (via teleconference), felt
that the PFD was the best way to distribute the wealth to
everyone equally. He agreed with the previous testifiers,
who needed the PFD to support their lives. He did not think
that the state should spend money from the PFD to bail it
out of its own spending. He supported the governor's cuts
and did not believe an income tax would fix the budget
deficit.
7:23:56 PM
DAVID HURN, SELF, PRUDHOE BAY (via teleconference), spoke
in support of the PFD, and urged the committee to take an
economics class to balance the budget. He felt that the
government was running into the ground. He stressed that
the government works for the people. He remarked that
education was worse than it was previously.
7:25:40 PM
LIBBY STORTZ, SELF, SITKA (via teleconference), spoke in
support of taxes, and remarked that oil was not the future.
She felt that the fiscal problems could be addressed by
repealing the oil tax credit and reinstating a progressing
income and education tax. She felt that the taxes must
include nonresidents. She felt that Alaska needed to pay
taxes like the rest of the country. She remarked that there
needed to be development and promotion of a non-resource
based economy that supported healthy oceans, climate, soil,
and the connection to the land. She remarked that many did
not need the PFD. She felt that the PFD was created as a
"rainy day" fund, and not an entitlement. She recognized
that some people relied on the PFD, so there should be
sufficient aid to those people to thrive. She stressed that
all the communities relied on solid social and economic
stability to keep and bring people to Alaska. She felt that
there should be fully funded schools, good health care,
museums, community service, public safety, healthy fish
runs regulated with subsistence in mind, and a clean
environment. She stressed that the Southeast communities
required ferry services, like the road system required
roads. She felt that the native and rural communities
deserved protection. She remarked that the wilderness,
including nonhuman inhabitants and the Alaska National
Wildlife Refuge (ANWR) needed management and protections.
7:28:11 PM
SUSAN LITMAN, SELF, SITKA (via teleconference), spoke
against the governor's budget. She felt that the budget
would cripple the communities and set the state on a
downward spiral. She stated that the proposed budget would
cause a swift economic meltdown. She felt that, even if a
new governor would reverse the actions of the current
governor, it would take years to recover. She remarked that
implementing the governor's budget was certain to cause a
mass exodus from the state. She shared that in Sitka, 25
teachers and their families would be lost. She remarked
that families were already prepared to move to states that
valued educations. She stated that local businesses would
lose money, because of the smaller populations. She felt
that the PFD would not begin to make up for the loss of
business in the rest of the year.
7:30:00 PM
MONICA EASTHAM, SELF, SITKA (via teleconference), spoke in
support of a state income tax. She testified against the
retro payment of the PFD. She spoke in support of repealing
the oil company tax credits. She testified against the
proposed reductions to the Pioneer Home. She supported a
modest PFD, if the state was able to support it. She spoke
in support of funding the AMHS.
7:31:59 PM
SARA BEABER FUJIOKA, SELF, SITKA (via teleconference),
supported an income tax, reducing oil tax credits, and a
moderate PFD. She stated that the Permanent Fund had been
implemented to provide funds for state government when oil
revenue decreased. She suggested it was the time to use the
earnings in a sustainable way. She opposed the cuts to Head
Start, K-12 education, the University, Medicaid, the
Pioneer Homes, and the AMHS. She stressed the need for
strong public schools and University to educate the state's
next generation of professionals. She underscored the
importance of maintaining funding for Medicaid, the Pioneer
Homes, and the AMHS. She pointed to Article 7 of the Alaska
Constitution specifying that Alaska shall maintain a system
of public schools open to all children, provide for the
promotion and protection of public health, and provide for
the public welfare.
7:33:58 PM
GARY DAMRON, SELF, FAIRBANKS (via teleconference), spoke
against private prisons. He shared information about
working for the Department of Corrections and Alaska State
Troopers. He was not supportive of changes that past crime
legislation (SB 91) had made to the criminal justice
system. He spoke about high recidivism rates. He detailed
information about injuries he had sustained on the job. He
did not support putting a large number of prisoners in
halfway houses and community residential centers. He urged
the committee to oppose the privatization of prisons. He
found it morally reprehensible for a corporation to profit
off another citizen's misfortune. He discussed that more
offenders would be released into neighborhoods without
adequate supervision. He spoke to the long-term costs of
sending prisoners out of state, which would drain local
economies and result in more dangerous citizens returning
to Alaska.
7:37:30 PM
CHRIS VILLANO, SELF, FAIRBANKS (via teleconference),
testified against the proposed reductions to education. She
felt that the cuts would result in suffering. She believed
education, health, and welfare should be the main priority
of the legislature. She shared that she had been a teacher,
and the large class sizes were chaotic. She remarked that
quality teachers were more difficult to obtain and attract.
She felt that Alaska was not a currently welcoming place to
live. She stressed that teaching was an extremely
difficult. She shared a personal anecdote about her
experience with a student with adverse childhood trauma,
who did not receive the attention that was required to give
him a proper education and guidance. She highlighted that
support for education resulted in students thriving in many
ways other than standardized testing.
Representative LeBon thanked Ms. Villano for taking the
time to share her thoughts with the committee.
7:42:00 PM
MELANIE ENGRAM, SELF, FAIRBANKS (via teleconference),
stated she had seen more state money wasted scrambling to
reorganize when oil prices fell. She believed it was time
for the state to get off the "oil price roller coaster."
She reasoned it was foolish to run a state government on
the price of one commodity. She supported the
implementation of a state income tax. She noted that the
state never saw any money from seasonal workers coming from
out-of-state. She asked the state to implement a small
income tax and give a larger PFD. She stressed the
importance of the PFD. She urged the committee to consider
alternative revenue. She supported increased taxes on the
oil companies. She did not support the governor's proposed
budget.
Co-Chair Foster acknowledged Representative Grier Hopkins
in the audience.
7:44:13 PM
EDWARD ALEXANDER, TANANA CHIEFS CONFERENCE, FAIRBANKS (via
teleconference), spoke in opposition to the governor's
proposed budget. He addressed how cuts would impact rural
schools. He detailed that the costs in most rural schools
could not be altered, meaning the proposed cuts would hit
teachers directly. Some districts were looking at
reductions of 50 percent or more in their number of
faculty, considering waivers to shorten their school
calendar, and more. He discussed other proposals that would
hurt rural Alaska such as jeopardizing federal matching
dollars for e-rates, cutting Head Start funding, shifting
bonding and debt responsibilities back to boroughs, and the
termination of the Power Cost Equalization (PCE). He
referenced a Tanana Chiefs Conference whitepaper titled
"Alaska's Educational Crisis," which he would provide to
the committee. He spoke in support of full funding for the
University. He highlighted that it was imperative to have
training available to have qualified healthcare personnel
in rural Alaska.
7:47:23 PM
KATHERINE PRUSSIAN, SELF, SITKA (via teleconference), spoke
against the cuts to the AMHS, education, social services,
and natural resource management. She did not support a
supplemental PFD. She appreciated her PFD but did not
depend on it or feel she deserved it. She relied on the
AMHS and had recently used the ferry to visit Juneau to
expose her kids to state government. She also used the
ferry to shop in Juneau for items she could not purchase in
Sitka. She supported a state income tax to maintain healthy
and safe communities, to educate children in public
schools, to feed the poor, to manage the state's natural
resources, and to maintain the highways.
Senator Olson thanked Ms. Prussian for her testimony.
7:48:42 PM
JACQUELINE FOSS, SELF, SITKA (via teleconference), shared
that she was a fisherman and a parent of two kids. She paid
raw fish tax that came back to the community, which she
supported. She did not support the use of the raw fish tax
for activities outside of her community. She did not
support the proposed cuts to education funding. She would
support using the raw fish tax to fully fund DFG for the
purpose of sound management. She supported adequate funding
of the state's schools and not the governor's proposed
budget. She supported a modest, graduated income tax and a
modest PFD.
7:50:50 PM
AMY SWEENEY, SELF, SITKA (via teleconference), opposed the
extreme cuts in the governor's budget. She spoke in support
of an income tax. She did not support the back pay of PFDs.
She believed the governor's budget cut too much into
essential services such as K-12 education, the University,
Medicare, and AMHS. She believed Alaska should take steps
to fund state government like other states with a graduated
state income tax. She also supported the payment of a
modest PFD. She felt that the cuts were draconian and would
force people to leave the state. She stressed that voters
did not know what having full PFDs and back pay PFDs would
mean in terms of cuts and other changes such as the fish
tax and school bond debt reimbursements. She was willing to
pay an income tax and forego her entire PFD in order to pay
for essential services.
7:53:01 PM
RENEE TRAFTON, SELF, SITKA (via teleconference), spoke
against the proposed reductions to education. She was a
small business owner in Sitka. She stressed the governor's
proposed cuts were catastrophic. She noted there had
already been cuts over the past several years and her
daughter's middle school had eliminated its librarian
position. She relayed her children attending the University
were concerned about its potential loss in funding. She
underscored that the proposed cuts would permanently damage
the education system and would cripple opportunity for the
next generation of Alaskans.
7:54:17 PM
ZOE TRAFTON, MIDDLE SCHOOL STUDENT, SITKA (via
teleconference), testified against the proposed budget
cuts. She expressed concern for her teachers, especially
elective teachers. She highlighted the importance of band
class and noted the teacher was not tenured. She
underscored that schools needed five-day school weeks and
classrooms of 20 students, not four-day weeks with 40
students per class. She wanted to study engineering at UAF
but noted the program may go away if the governor's cuts
were passed. She detailed that she may have to attend
college out-of-state if that happened.
7:55:08 PM
AMELIA BUDD, SELF, SITKA (via teleconference), spoke
against the governor's proposed budget. She thanked
committee members for their service to Alaska. She shared
that she had grown up in Southeast Alaska and had worked in
social services and education most of her career. She
shared that she had attended Mount Edgecumbe High School
and had a graduate degree from the University of Alaska.
She shared that she had a daughter who was about to enter
the school system and a parent in the local Pioneer Home.
She urged the committee to support funding for pre-K, K-12,
the University, the Commission on Postsecondary Education,
65 by '25 workforce development goals, AMHS, the Pioneer
Homes, public broadcasting, and other needed services. She
felt that the governor's budget was like a "slap in the
face." The budget would devastate Alaska's economy, and its
quality of life. She shared that the administration was
giving residents a false premise that there were two
choices - a full PFD or funding for services. She believed
both were possible. She suggested that nonresident workers
who accounted for over 20 percent of the state's workforce
should be paying taxes on their often profitable seasonal
jobs. She spoke in support of a broad-based income tax, a
reduced PFD, and a reduction in oil tax credits.
7:57:15 PM
PATRICIA DICK, SELF, SITKA (via teleconference), testified
against the governor's proposed budget. She shared that all
of her children and grandchildren worked hard and lived in
Sitka. She reported that the governor had not been able to
provide specifics about the impacts of the proposed budget.
She believed the governor was grasping at straws for
solutions. She remarked that Alaskans had worked hard to
achieve their goals. She felt that the governor did not
understand the challenges of educators in the state. She
referenced the governor's recent remarks about his ability
to line item veto parts of the budget. She reminded the
governor that he had taken an oath to uphold the Alaska
Constitution, which guarantees state-supported education.
She urged the legislature to support education.
7:59:12 PM
MATH TRAFTON, SELF, SITKA (via teleconference), spoke
against the governor's budget. He had heard a Talk of
Alaska report earlier in the day where the governor had
dismissed all of the actions communities had taken in
reaction to his proposed budget cuts. He found the
governor's claim that those opposed to his cuts were
special interest groups very insulting. He stressed that
everyone would be impacted by the cuts to the budget. He
pointed to the proposed drastic reductions to public
schools, health services, universities, local governments,
transportation, public broadcasting, and more. He stressed
his opposition to the proposed budget, which he believed
was amoral. He stated the governor seemingly wanted to
withdraw support for those who need it most. He remarked
that he was an average Alaskan, and he understood the need
to balance the budget. He stated that there were many other
options to balance the budget. He spoke in support of
repealing the oil tax credits, a progressive state income
tax, funding for alternative energy sources, and a more
modest PFD.
8:01:25 PM
ARIEL STARBUCK, SELF, SITKA (via teleconference), testified
against the budget. She detailed that the budget would
deeply impact her friends, neighbors, family, and residents
statewide. She felt that the budget would result in a mass
exodus from the state. She supported a progressive state
income tax; however, she had received a letter from Senator
Natasha von Imhof stating she did not support an income tax
while the state was handing out a four digit PFD. She
supported a modest PFD. She wanted to keep the community
healthy with a vibrant economy, a strong educational
system, and care for its elders. She hoped the legislature
would listen to its constituents and do what was right.
8:03:02 PM
BETH SHORT-RHOADS, SELF, SITKA (via teleconference),
opposed the governor's budget. She believed the budget
presented by the governor was a problem deliberately
created by the governor in partnership with multinational
corporations to benefit outside interests. She referenced a
statement earlier in the month by Senator von Imhof that
the state did not have a fiscal crisis, but a priority
crisis. She believed part of the priority crisis was the
governor's proposal of $2.3 billion for supplemental PFDs.
She supported modest PFDs. She opposed supplemental PFDs,
smaller PFDs, a graduated income tax, and a repeal of oil
tax credits.
8:05:23 PM
MARSHALL SEVERSON, SELF, ANCHORAGE (via teleconference),
spoke against the governor's budget. He provided
information about his education and career in Alaska. He
felt the proposed budget only invited and resulted in
chaos. He spoke to the inducement of fear related to
elders, children, and disabled. He observed insufficient
homework had been done on whether many of the budgetary
cuts could legally be implemented. He stressed support for
education to reduce the need to import highly trained
workers. He did not believe the solution was making PFDs
whole. He added support for highways, AMHS, and small
airports.
Representative Josephson thanked Mr. Severson for his
testimony and service.
8:08:52 PM
KAREN CAMERON, SELF, ANCHORAGE (via teleconference), spoke
against the privatization of the Alaska Psychiatric
Institute (API). She remarked that API had been in a state
of emergency for six to eight years and had been
chronically underfunded. She highlighted the
administration's decision to offer an $84 million contract
to the Tennessee company Wellpath. She noted that the
company had ties to the governor's Office of Management and
Budget director. She cited the company's poor reputation.
She pointed out that the company's primary experience was
in health services to prisons. She remarked that other
companies had not been allowed to bid on the contract. She
detailed that Alaska Natives and African Americans were
disproportionately represented at API. She recommended the
deletion of the contract and prioritizing mental health.
Representative Josephson wondered whether there was
litigation taken up in court involving the API matter.
[Note: Ms. Cameron was no longer online.]
8:12:03 PM
DIANNE MACRAE, SELF, KENAI (via teleconference), testified
in support of the governor's budget. She shared that she
had experience significantly cutting her personal budget.
She acknowledged that it was challenging, but she did it.
She stated that eight years later life was much better. She
believed the ferry system had been a temporary solution and
she thought the ports should be run by private enterprise.
She shared additional personal details. She supported an
austerity budget as proposed by the governor. She believed
giving people a PFD allowed them to use the money where
they saw fit. She discussed problems with the education
system. She supported cuts to the budget and a full PFD.
8:15:25 PM
Co-Chair Foster noted that Ms. Cameron was back online.
Representative Josephson asked if Ms. Cameron had attended
a recent hearing on API.
Ms. Cameron affirmed. She detailed it was lawsuit brought
by the Disability Law Center. She reported that Wellpath
had been interviewed in a hearing earlier in the day. She
detailed the hearing had considered violations of the Human
Rights Act and the Rehabilitation Act. She shared that the
judge had been interested in the documentation Wellpath may
or may not provide. She provided further detail on the
hearing.
8:18:04 PM
STEPHANIE BERGLUND, THREAD, ANCHORAGE (via teleconference),
testified in support of early childhood education. She
cited statistics that the state was ranked 47th for child
wellbeing. She believed investing in early childhood
education would help change the statistics. She spoke in
support of the Imagination Library, Best Beginnings,
Parents As Teachers, and Head Start. She stated that
investment in early education would result in result in
reduced spending on special education services and higher
graduation rates. She asked the committee to restore early
education funding in the FY 20 budget.
8:19:29 PM
DIRK SHUMAKER, EXECUTIVE DIRECTOR, KID'S CORPS, ANCHORAGE
(via teleconference), spoke in support of Head Start,
Parents as Teachers, Best Beginnings, and early childhood
education. He thanked the DEED subcommittee for recognizing
the importance of Alaska's investments in early learning.
He discussed the benefits of early learning and the support
it provided to parents. Early learning resulted in
healthier and more resilient students.
8:21:06 PM
GHERT ABBOTT, SELF, KETCHIKAN (via teleconference),
testified against the budget. He stated the governor's
austerity budget would essentially destroy his home. He
hoped the legislature would reject the proposed budget. He
recognized that permanently resolving the state's fiscal
crisis with a "horrifically" regressive PFD tax would
ultimately have the same destructive impact. He elaborated
that under a permanent PFD tax, Ketchikan's cost of living
would significantly increase, which would undermine the
community's long-term liability. He supported a restoration
of the full progressive income tax Alaska had in place
prior to the oil boom. He believed a tax would equitably
distribute the cost of supporting essential public services
across Alaska. He elaborated that a tax would help sustain
public services and the PFD.
8:22:55 PM
ED ZASTROW, SELF, KETCHIKAN (via teleconference), shared
that he had lived in both the territory and the state. He
spoke in support of the senior programs. He felt that any
reductions would be disastrous for seniors, especially to
those with lower incomes. He supported Meals on Wheels,
transportation, housing, and Pioneer Homes. He urged the
committee to give a closer look at the senior programs. He
testified in support of a state income tax. He asked for
common sense to prevail.
8:24:33 PM
NILE HAMAKER, SELF, ANCHORAGE (via teleconference), stated
that the governor had done very little analysis on how his
proposed budget would impact the state. He felt that the
legislature must craft a fair, balanced, and sustainable
budget. He discussed that cuts in recent years made it
challenging to find places to cut significantly. He noted
that state savings were almost gone, and he believed using
the PFD was the most regressive income tax on all Alaskans.
He stated it would take money out of the private sector. He
was in support of progressive income tax. He thought the
state should receive more for its oil resources. He wanted
the elimination of SB 21. He thanked the committee and
other testifiers.
8:27:37 PM
KATIE BOTZ, SELF, JUNEAU (via teleconference), spoke
against a supplemental PFD and the governor's proposed
budget. She believed it was the duty of the Alaskan
government to provide safety and funding to operate the
state properly. She understood that the state was in a
financial crisis. She stressed that the citizens should not
be punished through the budget cuts. She underscored that
children should have the opportunity to learn and senior
citizens deserved to live without the anxiety of not being
able to pay for a place to live. She was terrified about
what the proposed budget could do to the state. She thought
the PFD was nothing more than an entitlement. She felt that
people should be given additional anxiety by the budget
cuts. She spoke in support of a state income tax.
8:30:41 PM
PAULA MARTIN, SELF, HOMER (via teleconference), supported
full funding of education to fund the future of the state.
She stressed that education provided a well-trained
workforce that built the state's economy. She felt that the
governor's proposed budget cuts were draconian and would
devastate the economy. She spoke against the cuts to
elders, AMHS, rural airports, public radio, public safety,
and natural resource protectors. She supported a revenue
approach including a reduction to the Permanent Fund
Dividend, a reduction in oil tax credits for companies,
and/or the creation of a progressive income tax. She
supported a income tax that would factor in out-of-state
workers earning income in Alaska.
8:32:58 PM
KAREN PERRY, SELF, CHUGIAK (via teleconference), supported
the governor's fiscal plan for a smaller state government
that distributed the state's wealth to all Alaskans. She
stated that Alaskans expected to receive a full PFD based
on statute. She shared a story of wasteful government
spending. She thought schools had sufficient funding. She
believed many legislators were guilty of reckless spending.
8:36:55 PM
JAYLENE PETERSON-NYREN, SOUTH CENTRAL FOUNDATION, ANCHORAGE
(via teleconference), spoke in support of behavioral health
funding. She shared information about the organization. She
suggested maximizing tribal claims through care
coordination agreements with tribal health organizations.
She detailed that in FY 17 the state saved $35 million in
Medicaid GF state match through these types of agreements,
which could be expanded to pharmacies, long-term care, and
optical services. The organization requested support for
adequate Medicaid funding and continued funding for adult
preventative dental services. She asked the committee to
maintain support for behavioral health funding providing
support for Alaskans with mental illness, substance use
disorders, and intellectual, developmental, and cognitive
impairment.
8:39:08 PM
MATTHEW HELLER, SELF, FAIRBANKS (via teleconference), spoke
in support of the governor's budget. He felt that the
economy could be rebuilt in the private sector with the
proposed cuts. He did not believe government spending was
the answer. He believed the AMHS would still operate under
the governor's proposal, but it would eliminate the
operation of empty ferries in the winter months. He
highlighted the number of University superintendents in the
state and thought the cuts needed to be made at the top. He
thanked the committee for its time.
8:40:56 PM
SHOSHANA KUN, SELF, FAIRBANKS (via teleconference),
expressed concern about the budget as a whole. She
appreciated the legislature developing alternative budget
solutions. She stressed that there was an extreme rate of
mental health and addiction in Alaska. The potential cuts
to services was alarming. She was concerned about
correlation between the governor's Office of Management and
budget director and GEO Group, the company taking over the
Alaska Psychiatric Institute. She highlighted her goal of
helping individuals who had fallen through the cracks. She
detailed that services created a healthier functioning
community and a greater sense of public safety. She
questioned the decision to give oil and gas tax credits to
industry. She spoke in support of a graduated income tax
that would bring in money from out-of-state individuals
working in Alaska. She asked the legislature to devise a
compromise that was reasonable for the state and its
residents.
Co-Chair Foster CLOSED public testimony. He stated that
individuals could submit written testimony to
housefinance@akleg.gov, through Thursday, March 28. He
noted that the following day's 9:00 a.m. meeting would be
canceled.
HB 39 was HEARD and HELD in committee for further
consideration.
HB 40 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| MatSu CommMtg 3.23.19 Public Testimony HB39.pdf |
HFIN 3/26/2019 5:30:00 PM |
HB 39 |
| Ketchikan CommMtg 3.23.19 Public Testimony HB39.pdf |
HFIN 3/26/2019 5:30:00 PM |
HB 39 |
| Sitka CommMtg 3.23.19 Public Testimony HB39.pdf |
HFIN 3/26/2019 5:30:00 PM |
HB 39 |
| Fairbanks CommMtg 3.24.19 Public Testimony HB39.pdf |
HFIN 3/26/2019 5:30:00 PM |
HB 39 |
| Anch CommMtg 3.24.19 Public Testimony HB39.pdf |
HFIN 3/26/2019 5:30:00 PM |
HB 39 |
| Packet 2 Public Testimony HF39 OP Budget March 25 Emails.pdf |
HFIN 3/26/2019 5:30:00 PM |
HB 39 |
| HB 39 Public Testimony 3.27.19-1.pdf |
HFIN 3/26/2019 5:30:00 PM |
HB 39 |
| HB 39 Public Testimony 3.27.19-2.pdf |
HFIN 3/26/2019 5:30:00 PM |
HB 39 |