Legislature(2003 - 2004)

03/04/2004 06:01 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                       March 04, 2004                                                                                           
                          6:01 PM                                                                                               
                                                                                                                                
TAPE HFC 04 - 45, Side A                                                                                                        
TAPE HFC 04 - 45, Side B                                                                                                        
TAPE HFC 04 - 46, Side A                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Harris called  the House Finance Committee meeting                                                                     
to order at 6:01 PM.                                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Harris, Co-Chair                                                                                            
Representative Bill Williams, Co-Chair                                                                                          
Representative Kevin Meyer, Vice-Chair                                                                                          
Representative Mike Chenault                                                                                                    
Representative Eric Croft                                                                                                       
Representative Hugh Fate                                                                                                        
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Carl Moses                                                                                                       
Representative Bill Stoltze                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative David Guttenberg.                                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Carter   Crawford,  Arctic   Alliance,  Fairbanks;   Cameron                                                                    
Leonard, Alaska Legal Services, Fairbanks; Brenda  Stenfill,                                                                    
Interior Alaska  Center for  Non-violent Living,  Fairbanks;                                                                    
Antonia Graffia,  Fairbanks; Jeanette Grasto, Alaska  Mental                                                                    
Health  Board/  National  Alliance  for  the  Mentally Ill,                                                                     
Fairbanks; Joy  Price, National  Alliance for  the  Mentally                                                                    
Ill, Fairbanks; Greg  Petrowich, KUAC, University of Alaska                                                                     
Fairbanks;  Diane  Darnall,   Fair  Air,  Fairbanks;  Marta                                                                     
Mueller, Fairbanks; H.B. Telling, Fairbanks; Jackie  Bisbee,                                                                    
North  Pole;   Becky  Snow,   Fairbanks;  Else   Guttenberg,                                                                    
Fairbanks  Native  Association,  Fairbanks;  Luck   Hopkins,                                                                    
Fairbanks;   Gordon   DePue,   Fairbanks;   Taber   Rehbaum,                                                                    
Fairbanks; Ian Michael Herbert, Fairbanks; Elizabeth  Olson,                                                                    
Fairbanks;   v  Karen   Parr,  Fairbanks;   Ruthamae  Karr,                                                                     
Fairbanks; Mary  Calmes, Fairbanks; Tim Quintal,  Fairbanks;                                                                    
Art  Hansen, Fairbanks;  Gerald Brown,  Fairbanks;  Jennifer                                                                    
House,  Finance   Director,  Fairbanks  Memorial   Hospital,                                                                    
 Fairbanks; Julie Maier, Fairbanks;  Nancy Baker, Fairbanks;                                                                    
 Thomas Walker, Fairbanks; Marilyn Russell, Fairbanks; Philip                                                                   
 Martin, Fairbanks; Sandra  Trumboer, MADD;  Lizanne Hanson,                                                                    
 Fairbanks; Mike  Prax,  North Pole;  Carrie  Dershin; Scott                                                                    
 Palder, Fairbanks.                                                                                                             
 hb375                                                                                                                          
 GENERAL SUBJECT(S):                                                                                                          
                                                                                                                                
         HB 375-APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                          
          HB 377-APPROP:MENTAL HEALTH BUDGET                                                                                  
                                                                                                                                
                Public Testimony - Fairbanks                                                                                  
                                                                                                                                
The following overview was taken in log note format.  Tapes                                                                     
and handouts will be on file with the House Finance                                                                             
Committee through the 23rd Legislative Session, contact 465-                                                                    
2156. After the 23rd Legislative Session they will be                                                                           
available through the Legislative Library at 465-3808.                                                                          
                                                                                                                                
                                                                                                                                
 LOG SPEAKER                DISCUSSION                                                                                      
                                                                                                                              
      TAPE HFC 04 - 45                                                                                                        
      SIDE A                                                                                                                  
 000 Co-Chair Harris        Convened the House Finance Committee                                                                
                            meeting to take statewide testimony on                                                              
                            the operating budget from Fairbanks.                                                              
 129 CARTER CRAWFORD,       Testified in support of funding for the                                                             
      ARCTIC ALLIANCE,      community-matching block grants program.                                                            
      FAIRBANKS                                                                                                               
 508 Representative         Observed that community grants were                                                                 
      Hawker                zeroed in the Governor's FY04 budget and                                                            
                            restored by the House to $1 million. The                                                            
                            grants remain at $1 million in the FY05                                                             
                            budget.                                                                                           
 650 CAMERON LEONARD,       Expressed concern with reductions to                                                                
      ALASKA LEGAL          Alaska Legal Services, which was zeroed                                                             
      SERVICES, FAIRBANKS out in the current budget. This is the                                                                
                            only legal service for low-income                                                                   
                            families.                                                                                         
 856 BRENDA STENFILL,       Testified in support of funding for the                                                             
      INTERIOR ALASKA       domestic violence and sexual assault                                                                
      CENTER FOR NON-shelters.                                                                                                  
      VIOLENT LIVING,                                                                                                         
      FAIRBANKS                                                                                                                 
 1037 ANTONIA GRAFFIA,      Testified in support of funding for the                                                             
      FAIRBANKS             domestic violence and sexual assault                                                                
                            shelters.                                                                                         
 1312 JEANETTE GRASTO,      Testified in support of funding for                                                                 
      ALASKA MENTAL HEALTH community mental health programs. Voiced                                                             
      BOARD/ NATIONAL       opposition to further cuts to the mental                                                            
      ALLIANCE FOR THE      health budget. Voiced opposition to the                                                             
      MENTALLY ILL,         cuts in Medicaid Services.                                                                        
      FAIRBANKS                                                                                                                 
                                                                                                                                
                                                                                                                              
1557 JOY PRICE, NATIONAL Testified in support of funding for                                                                    
      ALLIANCE FOR THE     community mental health programs.                                                                    
     MENTALLY ILL,        Expressed concern with reductions to                                                                  
      FAIRBANKS            Alaska Legal Services, which was zeroed                                                              
                           out in the current budget.                                                                         
1809 GREG PETROWICH,       Voiced support for continuation of                                                                   
      KUAC, UNIVERSITY OF funding for the public broadcasting                                                                   
      ALASKA FAIRBANKS     satellite infrastructure.                                                                          
2011 Representative Fate  Would loss of the transponder affects                                                                 
                           medical services and village health aids.                                                          
2126 Mr. Petrowich         Could not respond, but observed that                                                                 
                           there are community health programs                                                                  
                           offered by the service.                                                                            
2153 Representative        Questioned why the University did not pay                                                            
      Hawker               for the service.                                                                                   
2313 Mr. Petrowich         Pays a portion of the cost, and brings in                                                            
                           money through course work, but there are                                                             
                           multiple use of four channels. He                                                                    
                           estimated that the users would not have                                                              
                           sufficient funds to pay for the service.                                                           
2414 Mr. Petrowich         In response to a question by                                                                         
                           Representative Hawker, observed that the                                                             
                           state leases space from a private                                                                    
                           provider. Public broadcasting provides                                                               
                           services for free, not everyone in the                                                               
                           state can afford the cost of cable.                                                                
2507 Representative Fate  Clarified that federal funds are used for                                                             
                           the tele-medical services.                                                                         
2615 DIANN DARNALL, FAIR Voiced support for funding for tobacco                                                                 
      AIR, FAIRBANKS       prevention and cessation programs.                                                                 
2759 Representative        Questioned if the tax on tobacco should                                                              
      Hawker               be increased.                                                                                      
2822 Ms. Darnall           Stressed that the prevention of youth                                                                
                           smoking would be enhanced by a tax                                                                   
                           increase.                                                                                          
2914 Representative        Observed that the $1 million                                                                         
      Hawker               appropriation in the FY05 budget is at                                                               
                           the full 20 percent funding level.                                                                 
3023 MARTA MUELLER,        Voiced support for the University of                                                                 
     FAIRBANKS            Alaska. Noted support for additional                                                                  
                           revenue measures.                                                                                  
3210 Vice-Chair Meyer      Questioned if she supports the Percent of                                                            
                           Market Value.                                                                                      
3321 Ms. Mueller           Expressed support for the POMV plan.                                                               
3401 H.B. TELLING,         Spoke in support of additional funding                                                               
      FAIRBANKS            for education.                                                                                     
3446 JACKIE BISBEE, NORTH Testified in support of funding for                                                                   
      POLE                 Department of Labor and Workforce                                                                    
                           Development, vocational rehabilitation                                                             
                            programs.                                                                                         
 3603 BECKY SNOW,           Voiced opposition to the cuts in Medicaid                                                           
      FAIRBANKS             Services. Spoke in support of additional                                                            
                            funding for education. Noted support for                                                            
                            additional revenue measures. Expressed                                                              
                            support for the POMV plan. Expressed                                                                
                            support for implementation of a statewide                                                           
                            income tax. Testified in support of full                                                            
                            funding for public broadcasting.                                                                  
 3902 ELSE GUTTENBERG,      Testified in support of the Alcohol                                                                 
      FAIRBANKS NATIVE      Safety Action Program, Department of                                                                
     ASSOCIATION,          Health and Social Services (ASAP).                                                                 
      FAIRBANKS                                                                                                                 
 4230 Representative        Noted that the Department of Health and                                                             
      Hawker                Social Services has proposed a cut off of                                                           
                            the program for the youth ASAP program.                                                             
                            He observed that the Subcommittee has                                                               
                            restored a full six-month funding for the                                                           
                            adult ASAP program.                                                                               
 4518 LUCK HOPKINS,         Spoke in support of the Governor's                                                                  
      FAIRBANKS             increments for the University.                                                                    
                                                                                                                                
                            TAPE HFC 04 - 45, Side B                                                                        
 4544 GORDON DEPUE,         Noted support for an examination of PERS,                                                           
      FAIRBANKS             which he feels is an unfunded liability.                                                            
                            The average contribution is 16.5 percent,                                                           
                            which is higher than the 11 percent                                                                 
                            average for the private sector.                                                                   
 3932 TABER REHBAUM,        Testified in support of funding for the                                                             
      FAIRBANKS             community-matching block grants program.                                                            
                            Expressed concern with reductions to                                                                
                            Alaska Legal Services.                                                                            
 3640 IAN MICHAEL HERBERT, Spoke in support of additional funding                                                               
      FAIRBANKS             for education and the University.                                                                   
                            Expressed support for implementation of a                                                           
                            statewide income tax and encouraged a tax                                                           
                            to the oil companies.                                                                             
 3124 ELIZABETH OLSON,      Spoke in support of additional funding                                                              
      FAIRBANKS             for education.  Expressed support for                                                               
                            implementation of a statewide income tax.                                                         
 3018 Representative        Asked what cuts were made to education.                                                           
      Chenault                                                                                                                  
 2940 Vice-Chair Meyer      Increased K-12 by $8 million dollars.                                                               
                            The Governor's budget funded the formula                                                            
                            at full cost but enrollment is down so                                                              
                            that amount has been cut.  He guaranteed                                                            
                            that the House Finance Committee would                                                              
                            continue to look at greater funding for                                                             
                            education.                                                                                        
 2834 KAREN PARR,           Spoke in support of additional funding                                                              
      FAIRBANKS             for education.  She pointed out that if                                                             
                            there continues to be teacher reduction,                                                            
                            there will be a dismantling of important                                                          
                           programs.  Teachers will be leaving the                                                              
                           State.  It would take years to rebuild                                                               
                           programs.                                                                                          
2438 Representative        Asked about the shortage of teachers in                                                              
      Chenault             the Fairbanks area.  He asked if                                                                     
                           Fairbanks funds to the cap.  Ms. Parr                                                                
                           thought it was funded close to the cap.                                                              
                           Inflation has eaten up the buying power.                                                             
                           Representative Chenault agreed that the                                                              
                           State has not kept pace with the                                                                     
                           education needs.                                                                                   
2047 RUTHAMAE KARR,        Voiced support for funding for tobacco                                                               
      FAIRBANKS            prevention and cessation programs.                                                                   
                           Expressed support for implementation of a                                                            
                           statewide income tax.                                                                              
1615 MARY CALMES,          Commented on ways to raise money to fund                                                             
      FAIRBANKS            programs.  Expressed support for                                                                     
                           implementation of a statewide income tax.                                                          
1454 TIM QUINTAL,          Expressed support for implementation of a                                                            
      FAIRBANKS            statewide income tax and noted support                                                               
                           for additional revenue measures so that                                                              
                           support services and education can be                                                                
                           fully funded.  He added concerns with the                                                            
                           PERS and TRS drain on the system.                                                                  
1257 Representative        Asked if there should be a moratorium on                                                             
      Stoltze              retirement incentive programs.                                                                     
1229 Representative Fate  Asked about consideration given to income                                                             
                           tax.                                                                                               
1158 Mr. Quintal           A graduated tax would be painless.                                                                 
1140 ART HANSEN,           Testified in support of funding for                                                                  
      FAIRBANKS            community mental health programs.  He                                                                
                           added that there needs to be alternatives                                                            
                           to the court system option.  Keep the                                                                
                           patients out of jail.  Spoke in support                                                              
                           of additional funding for education.                                                               
942 Representative Fate  Commented on jail & substance abuse                                                                    
                           concerns currently existing in the State                                                             
                           prisons.  He asked about the difference                                                              
                           between alcohol and drug abuse.                                                                    
843 Mr. Hansen             Did not know, however, other works in the                                                            
                           Mental Health field testify that alcohol                                                             
                           and abuse go together.  Domestic abuse &                                                             
                           child abuse go together.                                                                           
754 Representative Fate  Voiced appreciation for all those coming                                                               
                           out to testify for education from                                                                    
                           Fairbanks.                                                                                         
715 GERALD BROWN,          Commented on the role of government to                                                               
      FAIRBANKS            the people in the State.  Spoke in                                                                   
                           support of additional funding for                                                                    
                           education. Testified in support of                                                                   
                           funding for community mental health                                                                  
                           programs.  Mr. Brown commented on how to                                                           
                            fund these projects should come from                                                                
                            income and expressed support for                                                                    
                            implementation of a statewide income tax                                                            
                            and a statewide income tax.  Permanent                                                              
                            Fund should be used as a revolving loan                                                             
                            fund.  An endowment fund. Expressed                                                                 
                            support for the community matching grant                                                            
                            program in the Department of Health and                                                             
                            Social Services.                                                                                  
                                                                                                                                
                            TAPE HFC 04 - 46, Side A                                                                        
 013 JENNIFER HOUSE,        Voiced opposition to the cuts in Medicaid                                                           
      FINANCE DIRECTOR,     Services.                                                                                         
      FAIRBANKS MEMORIAL                                                                                                        
      HOSPITAL, FAIRBANKS                                                                                                       
 344 JULIE MAIER,           Spoke in support of additional funding                                                              
      FAIRBANKS             for education. Expressed support for                                                                
                            implementation of a statewide income tax.                                                         
 704 NANCY BAKER,           Expressed support for implementation of a                                                           
     FAIRBANKS             statewide income tax. Tax is not a                                                                   
                            penalty, but a privilege. Expressed                                                                 
                            support for the POMV plan if there is                                                               
                            also an income tax.                                                                               
 1208 Representative Fate  Questioned if Ms. Baker supports a                                                                   
                            spending limit.                                                                                   
 1234 Ms. Baker             Did not have an opinion on a spending                                                               
                            limit. She observed that the lowest                                                                 
                            income individuals are suffering the                                                                
                            worst effects of the reductions.                                                                  
 1342 Vice-Chair Meyer      Observed that an income tax would cost $8                                                           
                            million a year to implement. The Percent                                                            
                            of Market Value would not have a cost to                                                            
                            implement.                                                                                        
 1451 Ms. Baker             Spoke against implementation of a income                                                            
                            tax.                                                                                              
 1552 THOMAS WALKER,        Spoke in support of the Governor's                                                                  
      FAIRBANKS             increments for the University.                                                                    
 1726 MARILYN RUSSELL,      Spoke in support of additional funding                                                              
      FAIRBANKS             for education. Expressed support for                                                                
                            implementation of a statewide income tax                                                            
                            and increased taxes on the oil industry.                                                          
 2410 PHILIP MARTIN,        Spoke in support of additional funding                                                              
      FAIRBANKS             for education. Noted support for                                                                    
                            additional revenue measures.                                                                      
 2654 LIZANNE HANSON,       Spoke in support of additional funding                                                              
      FAIRBANKS             for education.                                                                                    
 3011 MIKE PRAX, NORTH      Spoke in support of reductions to the                                                               
      POLE                  budget. He emphasized the people need to                                                            
                            take responsibility for themselves.                                                               
 3338 SANDRA TRUMBOER,      Support of funding for women's shelters                                                             
      MADD                  and alcohol and action programs.                                                                  
 3549 CARRIE DERSHIN        Support for the community matching block                                                            
                            grants.                                                                                           
3942 Representative        Recognized the wiliness of testifiers to                                                             
      Foster               pay for services. He observed the                                                                    
                           reduction of revenue to the state. The                                                               
                           state's income has been reduced by                                                                   
                           approximately half of its funding since                                                              
                           the 1980's. He observed the need for                                                                 
                           multiple revenue measures.                                                                         
4139 SCOTT PALDER,         Testified in support of a citizen review                                                             
      FAIRBANKS            of cases of children taken from their                                                                
                           homes by Division of Family and Youth                                                                
                           Services.                                                                                          
      ADJOURNMENT          The meeting was adjourned at 8:25 PM                                                               

Document Name Date/Time Subjects