Legislature(2013 - 2014)SENATE FINANCE 532

03/20/2014 09:00 AM Senate FINANCE


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

Document Name Date/Time Subjects
HB266 work draft version G.pdf SFIN 3/20/2014 9:00:00 AM
HB 266
HB267 work draft version Y.pdf SFIN 3/20/2014 9:00:00 AM
HB 267
HB266 Substance Abuse Treatment - Eisenberg.msg SFIN 3/20/2014 9:00:00 AM
HB 266
HB266 Support for the Chlamydia Campaign - Planned Parenthood Northwest.msg SFIN 3/20/2014 9:00:00 AM
HB 266
HB266 AMSEA Funding Support - Knight.msg SFIN 3/20/2014 9:00:00 AM
HB 266
HB266 AMSEA Testimony - Nichols.msg SFIN 3/20/2014 9:00:00 AM
HB 266
HB266 Best Beginnings Testimony - Martin.pdf SFIN 3/20/2014 9:00:00 AM
HB 266
HB266 Imagination Library - Sandgren.msg SFIN 3/20/2014 9:00:00 AM
HB 266
HB266 O.W.L. Program and Live Homework Help -Dunbar.msg SFIN 3/20/2014 9:00:00 AM
HB 266
HB266 Testimony - Martin.msg SFIN 3/20/2014 9:00:00 AM
HB 266
HB266 Testimony - Romberg.msg SFIN 3/20/2014 9:00:00 AM
HB 266
HB266 Substance Abuse Treatment -Majoros.msg SFIN 3/20/2014 9:00:00 AM
HB 266