Legislature(2005 - 2006)SENATE FINANCE 532
04/13/2005 05:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB67 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 66 | TELECONFERENCED | |
| += | HB 67 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 66(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."
CS FOR HOUSE BILL NO. 67(FIN)(brf sup maj fld)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; and providing for an effective date."
This was the fifth hearing for these bills in the Senate Finance
Committee.
The Committee scheduled testimony from off-net sites and Juneau.
RON SUMERVILLE, Member, Board of Game, testified in Juneau and
shared that the Board had formed a subcommittee to review and make
recommendations regarding the Board's financial difficulties;
particularly as it affects the Wildlife Conservation Division and
"the Board process itself". While the Board has the authority and
legal tools to make decisions regarding State game policies,
insufficient financial support curbs the Board's ability to fulfill
its duties. A March 23, 2005 letter to Senator Ralph Seekins from
the Board [copy on file] further outlines these concerns. In
addition, two maps [copies on file] of active and proposed predator
control areas in the State were provided. It was noted that the
aerial wolf control program has provided positive relief to the
moose population in those selected areas.
Mr. Sumerville expressed that, due to financial constraints, the
Board is unable to adequately respond to advisory boards and others
requests for assistance in such things as predator control and game
population decrease/increase studies. In many cases, data was
unavailable from which "to make a rational judgment". In some
cases, data was outdated. This is the result of "the budget
crunch".
Mr. Somerville noted that, by Statute, the Board must address
Subsistence Management. Implementation of the plan has resulted in
"major conflicts" with residents of the State and the Courts. While
the Board has endeavored to improve the implementation of the State
Subsistence Law, minimal funds are available for any new
initiatives. A supplemental request for $50,000 was submitted to
fund a new initiative to address moose and caribou subsistence
problems in Nelchina Basin. "There is not enough money to do the
job".
5:09:14 PM
Mr. Sumerville, while acknowledging that numerous boards and
Departments are experiencing budget reductions, explained that at a
recent four-day Board meeting, Board deliberations on regulations
was limited to two days as two days were devoted to public
testimony. Two days are "totally inadequate" for conducting
regulation deliberations. Many items were delayed until the next
Board meeting. This situation further inhibits action. The
aforementioned letter requests that a licensing fee increase be
implemented in order to support Board programs. In addition, the
Board is requesting that the Legislature fund a two-year CIP
project for operational monies. He asked that consideration be
given to including this money in the operating budget.
5:10:40 PM
Senator Bunde understood there to be support for enabling the Board
to adequately conduct meetings. The proposed licensing fee increase
legislation might be in "limbo due to no fault" of the Board. He
thanked Mr. Sumerville for the information and his continuing
service.
5:11:36 PM
WILBUR NAPAYONAK, Mayor, City of Koyuk, testified via
teleconference from offnet site and requested that financial
assistance be provided "to small villages that are struggling".
Koyuk has attempted to control expenses by downsizing police, fire,
and city administration. In addition, the community is struggling
with fuel and utility expenses and has an outstanding $39,000 fuel
bill. In order to get a spring fuel shipment, money must be
available. None is. The community currently has enough fuel to last
until September. The low revenues generated by the local tax are
insufficient to meet needs, and, while the community is considering
increasing utility rates, this also would not provide the necessary
funds. The community has exerted a lot of effort to stay viable and
not become a statistic. He encouraged the State to provide some
form of financial assistance to small communities.
Senator Bunde thanked the Mayor for his comments and stated that
the Legislature is "struggling to find new sources of revenue to
deal with demands for State spending".
5:15:14 PM
ROSLYN GOODMAN testified via teleconference from an offnet site in
Petrol Bay and asked the Committee to support the House of
Representatives recommendation to include $375,000 in the operating
budget for the Division of Libraries, Museums, and Archives. "The
State Library provides benefits to everyone in the State regardless
of age, ethnicity, and economic status particularly in smaller
communities". Adequate funding allows for affordable fees, Internet
access, and enables small community libraries to expand their
selections through a grant program.
5:17:18 PM
JANE KAVA, Mayor, Savoonga, testified via teleconference from an
offnet site to seek financial assistance for small Rural
communities' operating costs. Savoonga has had to curtail its
public safety program and is having difficulty paying for fuel and
utility expenses.
Senator Bunde responded that the Legislature "is attempting to
prioritize the budget and stretch it as far" as possible.
5:18:16 PM
ELAINE PRICE, Project Manager, City of Coffman Cove, testified via
teleconference from an offnet site and requested financial aid for
small communities. This aid would be welcome in any form, including
revenue sharing or municipal assistance. The elimination of aid to
small communities by the Governor Frank Murkowski Administration
left small communities "in a lurch". Even short-term assistance
would be welcome, as it would provide time for restructuring.
Coffman Cove has no means of self-support as it does not have the
authority to implement taxation, and regardless, it is too small to
generate much revenue to support local government expenses. Coffman
Cove residents work part-time, have no benefits; there is no Public
Employees Retirement System (PERS) and Teacher's Retirement System
(TRS) benefits. The community needs help. The State once encouraged
small communities. In addition, she voiced support for the
inclusion of the Division of Libraries $375,000 funding in the
budget. Coffman Cove's library is an integral part of the community
and the Library grant allows the community to "keep the lights on
and the computers going".
Senator Bunde reiterated that the Legislature is "struggling to
find additional funds for State services and to prioritize those
services". He likened the current situation to "robbing Peter to
pay Paul".
Senator Stedman inquired as to how long the Coffman Cove request
for a new school has been on the list. In addition, he asked the
community's position on the proposed State land transfer to the
University of Alaska.
Ms. Price voiced that while the community is a supporter of the
University, it is not in favor of how the Department of Natural
Resources land selection was conducted. There should have been
public input. The Coffman Cove request for a new school has been on
the list since 1987. General Obligation bonds provided money to the
community for design and engineering, but no money for
construction. The school has been housed in portable buildings for
30 years.
Senator Bunde asked whether Coffman Cove is included in the
Southeast Islands School District.
Ms. Price affirmed.
5:22:31 PM
LYNNE JENSEN, Gustavus resident, testified via teleconference from
an offnet site and voiced support for the House recommendation for
the Division of Libraries, Archives & Museums, which provides
support to small Rural community libraries. Overall State reduction
in communities' financial support has required communities to rely
on the Division even more.
AT EASE: 5:23:59 PM / 5:25:00 PM
5:25:03 PM
DARRELL TSEU, Juneau Community Charter School, testified in Juneau
and requested increased funding for small charter schools of 150
students or less. Under current school funding laws, small charter
schools are funded at approximately 84-percent of the base student
allocation. He asked that the amount proposed in the House of
Representatives budget be considered in the Senate.
AT EASE 5:26:20 PM / 5:26:38 PM
CATHERINE REARDON, Juneau Community Charter School, testified in
Juneau and asked that the Senate adopt the House of Representatives
funding recommendation for small charter schools. Currently small
charter schools receive less money per child than the amount
allotted to other schools. "This makes charter schools unrealistic
for small communities", even communities the size of Juneau. As a
parent, the charter school is an important option and provides
parents a choice in their child's education. Grant money, as
similarly provided in last year's operating budget, allowed the per
student funding percentage to increase. However, that percentage
would continue to be less than student funding percentages for
standard elementary schools, as depicted on the handout titled Sec.
14.17.450. School size factor" [copy on file]. Were the funding
increased, charter schools, while still operating with 20-percent
less funding than other elementary schools, would be able "to
survive".
Senator Dyson voiced disappointment that charter schools continue
to struggle with funding issues. He urged the testifier to look at
the Mat-Su School District operations "as they find more funding
for their charter schools than the Anchorage School District does".
Ms. Reardon stressed there being no desire that other schools
funding decreases as a result of charter schools "existence". Under
the current student foundation funding formula, school "districts
are actually punished financially for authorizing small charter
schools" for were the charter schools students enrolled in standard
schools, "the State would be sending more money" to the district.
Senator Bunde stated that this information would be added to the
Legislature's "on-going task of prioritizing and seeking new
funding sources".
EMILY NEEDEN, Alaska Government Relations Director, American Cancer
Society, testified in Juneau and asked the Committee to restore
funding for the breast and cervical cancer early detection program
to the Governor's proposed budget level of $1.8 million. This would
fund screening for low income, un-insured, and underinsured women.
These people otherwise would be required to either forego the
screening or make serious choices. The program "has been highly
successful" and early detection is crucial.
Ms. Needen informed that the American Cancer Society is
contributing to this program in that it partners with the State to
pay for mammograms for qualifying women between the ages of 40 and
50. The State program only pays for screening for women over the
age of 50.
Senator Bunde commented that in the process of establishing
priorities, a focus is placed on those programs where people are
willing "to provide some match or share". It is appreciated.
AT EASE: 5:33:23 PM / 5:34:03 PM
5:36:00 PM
[NOTE: Due to audio difficulties, the following two testifiers',
STANLEY TOCKTOO and FRED GOODHOPE, JR., remarks were indiscernible.
Their testimony was immediately faxed to the Committee as follows.]
STANLEY TOCKTOO, Mayor, Community of Shishmaref testified via
teleconference from an offnet site and asked that funding for an x-
ray machine be included in HB 66. "Most of our young natives are
caught too late for cancer. It would be nice to have an x-ray
machine at NSRH (Nome) to catch cancer or other diseases sooner
before any medical treatment cannot help them".
FRED GOODHOPE, JR. Vice-Mayor, Community of Shishmaref, testified
via teleconference from an offnet site and requested that a loan of
some sort be provided in order for the community to avoid filing
for bankruptcy. "Shishmaref is a small, second-class community that
is struggling to stay afloat in a sea of bills and trying to catch
up with IRS payments".
AT EASE: 5:38:45 PM / 5:39:23 PM
KATHY WASSERMAN, Alaska Municipal League (AML) testified in Juneau
and requested that the Committee include money for municipalities
operating expenses in the budget. The State system's encouragement
of communities to apply for capital budget requests to build
things, in effect, serves to increase the costs of operating
communities. While many communities "have been diligent" in
building their infrastructure and enhancing the living standards of
their residents, they now "find themselves in a position" of being
required to pay for more things. It would be very difficult to
operate independent of State government assistance at this point.
This is similar to the difficulty the State would face were it to
attempt to operate without federal government assistance. She
reminded that in 1998, State revenue sharing to communities
amounted to $27 million. AML would be available to work with the
Legislature to determine an amount that would be acceptable to both
the Legislature and communities.
Senator Bunde conveyed the message of Congressional Senator Lisa
Murkowski that we should be "starting to prepare to have this State
run without so much federal money". He asked that AML assist in
identifying new revenue sources for, in order to honor their
request, funds would be removed from another component.
Ms. Wasserman acknowledged.
Senator Bunde asked that AML "be part of the solution" by providing
a list of reductions they would support in order to receive the
requested funding "or what revenue source they would support".
Ms. Wasserman acknowledged
Senator Stedman communicated that it is "a struggle" to determine
how to assist small communities. He noted that legislation is being
advanced to assist communities with such things as the PERS/TRS
premium increases. In addition, AML is requesting municipal
assistance. Therefore, he asked whether AML is more interested in
municipal assistance, the PERS/TRS issue, or whether it should be
considered as "one pot".
5:44:06 PM
Ms. Wasserman asked that consideration be giving "to a breakdown of
the combination of those things as one single solution might not be
appropriate for all communities. Providing PERS/TRS relief would
help many communities but not all; providing tax exemptions to
senior citizens and veterans would help others. She suggested that
a list be developed and commonalities identified.
AT EASE 5:46:20 PM / 6:14:42 PM
Co-Chair Wilken assumed chair of the meeting.
Co-Chair Wilken acknowledged the receipt of the faxed testimony
from Stanley Tocktoo and Fred Goodhope from Shishmaref.
[Name Indiscernible], Shishmaref Council Member, testified via
teleconference from an offnet site and informed the Committee that
the community of Shishmaref must be relocated. To that point, he
asked whether funds could be included in the operating budget to
assist with that endeavor when it occurs.
Co-Chair Wilken understood that moving the community would be a
"major expense" of approximately $100,000,000. While there is no
provision for the relocation in the FY 06 State operating budget,
efforts are being furthered to acquire federal money. Money was
previously provided to begin the process.
AT EASE: 6:17:09 PM / 6:29:39 PM
There being no further testifiers, Co-Chair Wilken announced that
this concludes public testimony on the operating budget.
6:29:57 PM
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