Legislature(1993 - 1994)

10/21/1993 04:00 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
           HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES                         
                       STANDING COMMITTEE                                      
                        ANCHORAGE, ALASKA                                      
                        October 21, 1993                                       
                            4:00 p.m.                                          
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Con Bunde, Co-Chair                                           
  Representative Cynthia Toohey, Co-Chair                                      
  Representative Bettye Davis                                                  
  Representative Irene Nicholia, via teleconference                            
  Representative Tom Brice, via teleconference                                 
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Gary Davis, Vice-Chair                                        
  Representative Al Vezey                                                      
  Representative Pete Kott                                                     
  Representative Harley Olberg                                                 
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  How to better serve the needs of university students in                      
  Alaska.  Discussion to include WICHE/WAMI, student loan                      
  problems, and any other topics students wish to discuss.                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  DR. MIKE DIMINO                                                              
  UAA Biomedical Program (WAMI)                                                
  University of Alaska, Anchorage                                              
  3211 Providence Drive                                                        
  Anchorage, Alaska  99508                                                     
  Phone:  786-4789                                                             
                                                                               
  RAMONA GUYOTE, President                                                     
  Kodiak Student Association                                                   
  525 Maple                                                                    
  Kodiak, Alaska  99615                                                        
  Phone:  486-1985                                                             
                                                                               
  STEVEN FLOERCHINGER, M.D.                                                    
  1200 Airport Heights Drive, Suite 220                                        
  Anchorage, Alaska 99508                                                      
  Phone:  277-1040                                                             
                                                                               
  GREG PARRISH                                                                 
  140 North Pine                                                               
  Anchorage, Alaska 99508                                                      
  Phone:  274-3675                                                             
                                                                               
  NELDA KOECHER                                                                
  P.O. Box 1442                                                                
  Nome, Alaska  99762                                                          
  Phone:  443-2898                                                             
                                                                               
  ERIC LEEGARD                                                                 
  P.O. Box 32806                                                               
  Juneau, Alaska  99811                                                        
  Phone:  465-8778                                                             
                                                                               
  RACHAEL BERMUDEZ                                                             
  Prince William Sound Community College                                       
  P.O. Box 3123                                                                
  Valdez, Alaska 99686                                                         
  Phone:  835-4555                                                             
                                                                               
  DELBERT COLLETT                                                              
  Prince William Sound Community College                                       
  P.O. Box 1092                                                                
  Valdez, Alaska 99686                                                         
  Phone:  835-1092                                                             
                                                                               
  BRIAN BRUBAKER                                                               
  University of Alaska, Fairbanks                                              
  P.O. Box 750585                                                              
  Fairbanks, Alaska 99775                                                      
  Phone:  474-7654                                                             
                                                                               
  TERYL ELAM                                                                   
  UAA WAMI Medical Student                                                     
  University of Alaska, Anchorage                                              
  1416 West 23rd Avenue                                                        
  Anchorage, Alaska 99503                                                      
  Phone:  279-3000                                                             
                                                                               
  KARIN PATTERSON, Student                                                     
  5325 Sharon Street, Apt. C                                                   
  Anchorage, Alaska 99508                                                      
                                                                               
  DAVE DAU                                                                     
  3211 Providence Drive                                                        
  Anchorage, Alaska 99508                                                      
  Phone:  562-2660                                                             
                                                                               
  JOSEPH F. CONNORS                                                            
  13120 Saunders Road                                                          
  Anchorage, Alaska 99516                                                      
  Phone:  345-5760                                                             
                                                                               
  RALPH J. McGRATH                                                             
  Alaska Community College Federation of Teachers                              
  2533 Providence Drive                                                        
  Anchorage, Alaska 99504                                                      
  Phone:  562-2660                                                             
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-73, SIDE A                                                           
  Number 001                                                                   
                                                                               
  CO-CHAIRMAN BUNDE stated that, as is known, the state is                     
  facing some financial difficulties and the committee wants                   
  to make sure the money spent is serving the greatest needs                   
  and the legislature is being as efficient as it can be.                      
                                                                               
  CHAIR BUNDE asked each person who wished to testify to sign                  
  in, requesting that when they come up to testify, they                       
  identify themselves and their relationship with the                          
  university.  He noted that this hearing was being recorded                   
  so that a written copy of the minutes can be prepared.  It                   
  was further noted that the following locations were also                     
  on-line if anyone wished to testify or comment:  Bethel,                     
  Fairbanks, Juneau, Kodiak, Kotzebue, Ketchikan, Sitka,                       
  Soldotna, Tok and Valdez.                                                    
                                                                               
  Number 019                                                                   
                                                                               
  CHAIR BUNDE ascertained that the bridge operator was                         
  on-line.  He called the meeting of the House HESS Committee                  
  to order at 4:23 p.m., introducing himself and stating that                  
  Representative Bettye Davis and Co-Chair Representative                      
  Cynthia Toohey were in attendance.                                           
                                                                               
  Number 035                                                                   
                                                                               
  DR. MIKE DIMINO, Director of the Biomedical Program (WAMI),                  
  University of Alaska, Anchorage, was the first person to                     
  testify.  He stated he wanted to explain what WAMI                           
  (Washington, Alaska, Montana & Idaho) is.  He also asked                     
  that the committee consider their relationship with the                      
  University of Washington (UW) as being one associated with a                 
  regional medical school.                                                     
                                                                               
  DR. DIMINO noted that Alaska is one of five states that does                 
  not have a medical or osteopathic school, and sometimes the                  
  question is raised as to why we need a medical school in our                 
  environment. He pointed out that Alaska has the lowest                       
  number of physicians per capita in the nation; one physician                 
  for every 719 people.  It was noted by some people that in                   
  Anchorage this is not true.  Dr. Dimino stated that the                      
  numbers he received from the Alaska State Medical                            
  Association shows that in Anchorage itself the ratio is                      
  still 1:708.  Put into perspective, the next state which has                 
  the poorest ratio of physicians per capita is Mississippi,                   
  with a ratio of 1:676.  He felt these numbers warrant some                   
  attention.                                                                   
                                                                               
  DR. DIMINO added to this the fact that the medical                           
  profession in the state of Alaska is aging.  Again, using                    
  the Alaska State Medical Association as a source, fifty-two                  
  percent of our physicians are over fifty years of age and                    
  forty percent are over fifty-five years of age.  The income                  
  of physicians from the various sources such as PHS and the                   
  military has clearly changed.                                                
                                                                               
  DR. DIMINO acknowledged that in the short term we could                      
  solve a lot of budgetary problems by cutting our medical                     
  program out, but he raised the question as to whether that                   
  was in the best long-term interest of Alaska.  To show that                  
  UW has contributed significantly to the number of physician                  
  positions in our state, he told the committee that of those                  
  Alaskans who went through WAMI, fifty-one percent have                       
  returned to practice in Alaska.  In states that have their                   
  own medical schools, the number of state resident students                   
  practicing in the state in which they are a resident and in                  
  which they were a medical student, the percentage is                         
  approximately thirty-five percent.                                           
                                                                               
  Observing that this is sometimes viewed as an "elitist"                      
  program, DR. DIMINO said that of the 50 students taken into                  
  the program thus far, five of the students have been Native,                 
  thirty percent have been from families where neither parent                  
  has a college degree, and forty-four percent are female.                     
                                                                               
  DR. DIMINO commented that several goals have been set for                    
  WAMI and he felt that all of these goals have been met.                      
                                                                               
  DR. DIMINO suggested there are several resources available                   
  through UW that would not be possible unless we had a                        
  medical school affiliation.  He said he could go through                     
  this list of resources, but suspected he was running out of                  
  his allotted time to testify.                                                
                                                                               
                                                                               
  CHAIR BUNDE asked if there were any questions at this point                  
  from the committee.  There were no questions.                                
                                                                               
  Number 074                                                                   
                                                                               
  DR. DIMINO asked to mention briefly that, obviously, WAMI                    
  educates medical students and he felt they have done an                      
  extraordinary job in that respect, especially here in                        
  Anchorage. He wanted the committee to be aware of the fact                   
  that from the University of Washington School of Medicine                    
  the following things are available, stating:                                 
                                                                               
  "We have the Medcon line which amounts to about 3500 to 4000                 
  calls from Alaskan physicians to physicians at UW.  This is                  
  a referral service that does not cost the State of Alaska                    
  any additional money.                                                        
                                                                               
  "We have a Medex program, which is the PA program, and each                  
  year there are at least five or six Alaskans who are                         
  accepted into the program.  In fact, there is a satellite                    
  program in Sitka now that has twelve Alaskan participants.                   
                                                                               
  "The Pacific Northwest Regional Health Sciences Library is                   
  at UW and we are part of that, which permits opportunities                   
  for our physicians.                                                          
                                                                               
  "Itinerant clinics in genetics and birth defects through UW                  
  come through the state.                                                      
                                                                               
  "Collaborative fertility clinics.                                            
                                                                               
  "CME opportunities for our physicians are available.                         
                                                                               
  "We have several programs which encourage under-represented                  
  minorities to enter the medical field; and in fact, three of                 
  our Native students have gone through that program.                          
                                                                               
  "We have RAHEC which is Rural Alaska Health Education Center                 
  that had its genesis and indeed its funding for the first                    
  seven years through UW.                                                      
                                                                               
  "An underserved rural area opportunities program which                       
  permits our medical students, as well as other students from                 
  UW, to see our state.                                                        
                                                                               
  "We also, through UW, have been part of the Community Health                 
  Services Development Program and one of the first hospitals                  
  in that study was the hospital in Seward.                                    
                                                                               
  "And last, but not least, we are now working very hard in                    
  putting a family medicine residency in the state, realizing                  
  there is only one other state that does not have a residency                 
  program, and that is in Montana.  That is very important in                  
  the long term interest of the state as far as increasing the                 
  number of our physicians."                                                   
                                                                               
  Dr. Dimino left some handouts with staff.                                    
                                                                               
  Number 098                                                                   
                                                                               
  REPRESENTATIVE BRICE, speaking via teleconference from                       
  Fairbanks, stated that Dr. Dimino had made mention that                      
  RAHEC had been funded for the past seven years, one way or                   
  another, through UW programs.  He asked if that funding is                   
  continuing, and if so, what is happening with it.                            
                                                                               
  DR. DIMINO responded that federal legislation has built into                 
  AHEC programs, of which RAHEC is a part, a termination of                    
  seven years. After seven years, it is expected that if the                   
  program continues, the state must pick up that cost.                         
                                                                               
  For the present 1993/1994 year, the state of Alaska, DR.                     
  DIMINO thought, has put in approximately $150,000.  That                     
  then permitted RAHEC to have some not exactly matching                       
  funds, but additional funds made available because there was                 
  a state contribution.  In the future, if RAHEC is to                         
  continue, the state must support it.                                         
                                                                               
  REPRESENTATIVE BRICE acknowledged that was on the capital                    
  side of things that were put in through what he believed was                 
  discretionary money.  On the viability of the program, he                    
  asked Dr. Dimino how he felt the program worked.                             
                                                                               
  DR. DIMINO responded that he was very aware of RAHEC and, he                 
  thought, especially in the last three to four years, not                     
  only has focused upon a particular mission in the state that                 
  he found was very successful, but he also believed it was                    
  part of our overall health needs in the state.  Dr. Domino                   
  stated he would like to see RAHEC continue to be funded, and                 
  he clarified that he speaks not for the university, but for                  
  his very own personal view on that.                                          
                                                                               
  REPRESENTATIVE BRICE said he would appreciate any type of                    
  support that Dr. Domino might be able to pass on to both                     
  this committee and the subcommittee on the budget for the                    
  Department of Health and Social Services (DHSS) so that the                  
  legislators can look at this issue next session.                             
                                                                               
  DR. DOMINO confirmed they are working with RAHEC on that,                    
  and the committee will hear more from their joint ventures.                  
                                                                               
  Number 126                                                                   
                                                                               
  REPRESENTATIVE TOOHEY, regarding the 1:708 ratio of                          
  physicians per capita, asked if this ratio includes the                      
  Indian Health Service.                                                       
                                                                               
  DR. DIMINO responded that this ratio does include all the                    
  physicians in the area, stating that they asked the Alaska                   
  State Medical Association specifically to include the                        
  physicians at Alaska Native Medical Center (ANMC).  He                       
  assumed these numbers were accurate.                                         
                                                                               
  Number 130                                                                   
                                                                               
  REPRESENTATIVE B. DAVIS asked if the ratio figures also                      
  included military doctors.                                                   
                                                                               
  DR. DIMINO responded that he did not think the military                      
  physicians were included due to the obvious transience of                    
  moving back and forth to different duty stations.                            
                                                                               
  REPRESENTATIVE TOOHEY asked what the ratio is in the United                  
  States.                                                                      
                                                                               
  DR. DIMINO responded that it is approximately one physician                  
  per 560 people (1:560).                                                      
                                                                               
  REPRESENTATIVE TOOHEY commented that we are not really out                   
  of line.                                                                     
                                                                               
  CHAIR BUNDE mentioned a concern that he had was that the                     
  program is very expensive, approximately $800,000 per year                   
  for the ten students at the University of Alaska (UAA).                      
                                                                               
  DR. DIMINO said he brought a copy of the budget, thinking                    
  the committee might ask that question, and he believes the                   
  budget to be roughly $750,000.  However, he pointed out                      
  approximately $65,000 of that comes from the tuition the                     
  students are charged - their students pay a higher tuition.                  
                                                                               
  CHAIR BUNDE calculated this would then make the cost per                     
  student about $70,000 per year.                                              
                                                                               
  DR. DIMINO said he felt it was inappropriate to take the                     
  budget number and divide it by students.  He asked the                       
  committee to broaden the concept of what WAMI is.  It is not                 
  just educating ten students.                                                 
                                                                               
  Number 156                                                                   
                                                                               
  CHAIR BUNDE asked for clarification of whether fifty percent                 
  of the students in the program come back to Alaska or fifty                  
  percent of Alaskan students were in the program.                             
                                                                               
  DR. DIMINO said he could give the committee the names of all                 
  the physicians who were in the program and of those who had                  
  finished and where they are located.  He does have numbers                   
  in his statistics which substantiate that fifty-one percent                  
  of the Alaskans in the program either have practiced in the                  
  state or are still practicing here.  He went on to say there                 
  is another group of physicians who did undergraduate medical                 
  education at UW and are now in the state practicing and                      
  another group of physicians who did residency programs in                    
  association with UW who are now practicing in the state.                     
  These physicians comprise what he calls an equivalent return                 
  rate.  He said he tries not to use this equivalent return                    
  rate number because it causes confusion, but the fifty-one                   
  percent he is proud of and can document.                                     
                                                                               
  Number 166                                                                   
                                                                               
  CHAIR BUNDE asked that with the state investing                              
  approximately $160,000 in the education of each of these                     
  doctors, would not one hundred percent return to Alaska be a                 
  more defensible number.                                                      
                                                                               
  DR. DIMINO agreed that it would be the ideal and the same                    
  argument could also be used any time we educate someone in                   
  business or engineering, although the amount is not as high.                 
  Maybe we should expect them to come back to the state, he                    
  suggested.                                                                   
                                                                               
  Number 170                                                                   
                                                                               
  CHAIR BUNDE stated he is not opposed to medicine as a field                  
  of study, he just recognizes this as a very expensive                        
  program and asked how many business degrees could we produce                 
  per doctor educated.  He stated the average degree here                      
  costs about $40,000 and would therefore produce four degrees                 
  per the cost of educating one doctor.                                        
                                                                               
  DR. DIMINO observed that if you get ill he doesn't think you                 
  would want a business major taking care of you, which is one                 
  of the things to be considered down the line.                                
                                                                               
  Number 176                                                                   
                                                                               
  CHAIR BUNDE inquired as to how many of the physicians who                    
  are training through WAMI are training to be primary care                    
  physicians.                                                                  
                                                                               
  Number 179                                                                   
                                                                               
  DR. DIMINO said he could not give an exact percentage of the                 
  number of those who have finished which are now in primary                   
  care. He did say, however, that the emphasis at UW has                       
  changed dramatically in probably the last five years, such                   
  that the graduating class, (which, by the way, would have                    
  been the first group of Anchorage WAMI students to go                        
  through) had fifty-five percent who entered primary care.                    
  Dr. Dimino indicated that at fifty-five percent, UW was well                 
  ahead of the national trend or national average, which he                    
  thought was around twenty-five to thirty percent.                            
                                                                               
  Number 188                                                                   
                                                                               
  CHAIR BUNDE stated that in order to keep this very expensive                 
  program here, there has been some discussion in the                          
  legislature concerning the fact that Alaska needs doctors                    
  and because Alaska is investing a great deal of money in the                 
  education of these doctors, perhaps there ought to be a                      
  requirement that they do come back and work in Alaska for a                  
  period of time.  He noted that, of course, we do not need                    
  more plastic surgeons, we need primary care physicians.  If                  
  these students were required to return to Alaska and if they                 
  were required to specialize in primary care, or not                          
  specialize, he inquired as to how that might affect the                      
  student population of the program.                                           
                                                                               
  Number 198                                                                   
                                                                               
  DR. DIMINO responded that his personal feeling, and he was                   
  not representing UW in this situation, is that it would not                  
  adversely affect the applicant pool.  What he did suggest is                 
  that no restrictions be put on the return of the students                    
  outside of the fact that he or she return to Alaska.  If                     
  there is an opening for a cardiovascular surgeon, a plastic                  
  surgeon, a pediatrician, or a family doctor, then we need to                 
  fill that position.  If we just say primary care, that is                    
  only taking care of one aspect.  It is true we have                          
  specialists in the state but, he stated; for example, the                    
  cardiologists in this city alone are overworked.  Outside of                 
  the city, he was not aware of a board certified cardiologist                 
  in the rest of the state.  There are cardiologists, but not                  
  board certified.  He thought if the committee were to say                    
  that primary care physicians are the only ones that will be                  
  given a loan forgiveness or pay back, or whatever phrase is                  
  used, this might not be an enlightened view.  He had no                      
  difficulty with saying there should be some pay back to the                  
  state.  Personally, in the academic world, he felt you do                    
  not like to see these kinds of obligations.  If he had his                   
  way, he would rather say that someone could cross the state                  
  borders and go to medical school in California, in Nevada,                   
  in New York, if they choose, and forget about borders.  He                   
  acknowledged that the reality is that someone is paying for                  
  it and there are some requirements.                                          
                                                                               
  CHAIR BUNDE pointed out that the first year here at UAA is a                 
  $700,000 impact to the budget.  He asked why that first year                 
  is done here and questioned if it could be done more cheaply                 
  if they went from day one to the University of Washington.                   
                                                                               
  DR. DIMINO responded that if this were done, several aspects                 
  of the program would be lost.  One of the key factors why                    
  this program has been so successful in returning students,                   
  in his estimation (when it was in Fairbanks and they like to                 
  think in Anchorage as well) is that the program has the                      
  Alaskan here.  The Alaskan is being trained to be a                          
  physician in Alaska.  He stressed that, indeed, if one looks                 
  at the course content, especially in clinical medicine, a                    
  tremendous amount of time is spent telling these students                    
  what it is like to practice medicine in Alaska.  The program                 
  even sent them out for one week into the bush, so that they                  
  would have that experience and see what it is like.  Dr.                     
  Dimino explained that they keep contact with their students                  
  all the time so that as one issue of recruitment, that is                    
  something he would not want the program to lose.  In                         
  addition, he felt the program has had an impact on the                       
  sciences.  The sciences are an expensive proposition at any                  
  university.  This is one of the few opportunities where the                  
  program had a chance to help our science community and, he                   
  believes, the program has done that.                                         
                                                                               
  DR. DIMINO further stressed that there is certainly a                        
  research emphasis now that has been on the campus in this                    
  program, and most of their faculty have extra mural funding,                 
  which he can document if the committee chooses to see the                    
  documentation.  He felt this was a big step forward.  This                   
  then means, in his view, that our undergraduate students not                 
  only can have some advanced courses at the 300 and 400                       
  level, which frees the faculty to teach 100 and 200 level                    
  courses, but also means that students now have a research                    
  exposure which Dr. Dimino thinks is valuable.  He thought                    
  also that if we are simply buying positions at another                       
  medical school, the committee can do that, there are                         
  programs like that in the country, but the difficulty with                   
  that is there is no way of hooking that student and                          
  attracting that student back to the state.                                   
                                                                               
  DR. DIMINO advised that the committee keep in mind that in                   
  addition to the way this is set up, there are some                           
  clerkships and some clinical experiences that the students                   
  can have in Alaska.                                                          
                                                                               
  Number 244                                                                   
                                                                               
  CHAIR BUNDE commented that the hook would be, "Come back to                  
  Alaska or don't get $160,000 in state money."                                
                                                                               
  Number 246                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked if there are any requirements                    
  that state a student must do his residency in Alaska if                      
  trained through the WAMI program.                                            
                                                                               
  DR. DIMINO responded that there are no residency programs in                 
  the state of Alaska at the present time.                                     
                                                                               
  REPRESENTATIVE TOOHEY asked if interns are sent back to                      
  Alaska to the Native villages, to Ketchikan, once they                       
  graduate from medical school.                                                
                                                                               
  Number 254                                                                   
                                                                               
  DR. DIMINO said there is no requirement, at this time, for                   
  anyone in WAMI to return to the state of Alaska.                             
                                                                               
  REPRESENTATIVE TOOHEY stated she felt that is certainly                      
  something we need, especially in light of the new push for                   
  health care, and this is something we ought to start looking                 
  into.  She further stressed she felt it is an absolute must                  
  that we (1) educate primary care physicians because that is                  
  what we are lacking; and, (2) that they come back to the                     
  state for at least five years, then maybe we could forgive                   
  their loan.  She suggested this is something which requires                  
  working together to resolve these issues.                                    
                                                                               
  Number 260                                                                   
                                                                               
  DR. DIMINO indicated he would be glad to work with the                       
  committee on this because he does not think this is                          
  inappropriate.  Again, however, he suggested it be shaped so                 
  that it is done in the best interest of the state in the                     
  long run.  He acknowledged that primary care is certainly                    
  important to us, but specialists should not be excluded from                 
  coming back.  He said we do need specialists to fill the                     
  loss of specialists that we are going to see in five to ten                  
  years.  He went on to say it is fine to specify we will send                 
  someone out into a rural community, but his argument is                      
  still that if there is an opening for a physician in                         
  Anchorage, and he or she can find a position in Anchorage,                   
  obviously we have a need for that person here.  He went on                   
  to indicate he would like to see incentives that would                       
  encourage people to go out into the rural areas and he has                   
  no problem with this.                                                        
                                                                               
  Number 272                                                                   
                                                                               
  CHAIR BUNDE asked, because this is such an expensive                         
  program, what Dr. Dimino's reactions would be to making part                 
  of the tuition alone, which costs $120,000 more than it does                 
  for a business degree, a loan.  He questioned how Dr. Dimino                 
  felt about the medical students having a loan, an obligation                 
  of $100,000 when they graduate.                                              
                                                                               
  Number 278                                                                   
                                                                               
  DR. DIMINO acknowledged this is the issue the committee has                  
  been discussing.  He said he would be willing to work with                   
  the committee in shaping something that he thinks is not                     
  only in the best interest of the state, but, of course, in                   
  the best interest of the students.  He said he thinks it                     
  could be done if phrased and put together in a package that                  
  is useful.  He would ask, and he felt the committee would                    
  agree, that the rules not be changed for the students who                    
  are already in the program, feeling this would be                            
  inappropriate.  He indicated that for future students the                    
  committee might want to shape it somewhat differently.                       
                                                                               
  CHAIR BUNDE agreed that the committee would not do anything                  
  retroactive and recognized that this was all in the                          
  preliminary discussion stage.                                                
                                                                               
  Number 288                                                                   
                                                                               
  CHAIR BUNDE asked how many of the students are indeed                        
  students who would be financially unable to attend medical                   
  school if they were not in this program.  Specifically, do                   
  they come from a background of means?  He also stated he                     
  would be very interested in knowing, in the recruitment of                   
  these students, if new requirements are coming down the                      
  pike, what the reactions are of the students.                                
                                                                               
  Number 300                                                                   
                                                                               
  DR. DIMINO responded that the cost of the education is                       
  certainly on the minds of anyone interested in going to                      
  medical school. There are tremendous debts generated at most                 
  medical schools.  He noted that UW students usually have a                   
  debt of somewhere around $50,000 - $60,000 and it is                         
  climbing because the tuition was increased again.  Dr.                       
  Dimino stated that one medical school where he worked prior                  
  to coming to UW had students who had debts in excess of                      
  $100,000 - $120,000 and yet they still were coming.  Dr.                     
  Dimino said that these students scared the faculty because                   
  the faculty did not know what the students were going to do                  
  to pay off their debts.  He indicated, as the committee                      
  might guess, that the students that had those kinds of debts                 
  were students from disadvantaged backgrounds, and that is                    
  certainly not the way he wants to see it go.  He suggested                   
  that if the committee is going to come up with a mechanism                   
  of increasing the tuition or some kind of pay back, the                      
  committee try to be realistic and try to do something on a                   
  need basis.  He did not want to see those students who come                  
  from backgrounds of need frightened off.                                     
                                                                               
  Number 300                                                                   
                                                                               
  CHAIR BUNDE stated that this was the thrust of his question;                 
  if you are the son or daughter of a doctor, do you need the                  
  same tuition help as if you are the son or daughter of a                     
  single parent who is making minimum wage?  He pointed out                    
  that when we have equal tuition for everyone, actually it is                 
  a great subsidy for the wealthy and it is not much of a                      
  subsidy for the people who are not very wealthy.                             
                                                                               
  Number 314                                                                   
                                                                               
  CHAIR BUNDE thanked Dr. Dimino for his time and testimony,                   
  and asked Representative Brice if he had any further                         
  comment.                                                                     
                                                                               
  REPRESENTATIVE BRICE said he had no further comment, but                     
  also thanked Dr. Dimino for his time and testimony.                          
                                                                               
  Number 323                                                                   
                                                                               
  CHAIR BUNDE recognized that there was someone in Kodiak who                  
  would like to testify, RAMONA GUYOTE, acting president of                    
  the Kodiak College Student Association.  She said she was                    
  basically just there to listen to the testimony and to                       
  express their concerns about the cost of education and the                   
  interest rate the students are being charged.                                
                                                                               
  Number 337                                                                   
                                                                               
  CHAIR BUNDE said he understands their concerns.  He                          
  explained that he is also a member of the Post-Secondary                     
  Education Committee and that they had received a                             
  communication from fourteen different campuses stating the                   
  students (1) would like a lower rate of interest on their                    
  student loan, and (2) would like a higher limit on the loan.                 
  He made the observation that the loan amount has not                         
  increased and the cost of living has gone up.  He noted that                 
  this is a double-edged sword for those in the legislature                    
  because one of the great concerns is that students are now                   
  being graduated with $30,000 and $40,000 of debt.  That, he                  
  stated, frankly scares the legislature, who acknowledge this                 
  is an awful burden for someone fresh out of college.  He                     
  further noted that the student has the choice whether or not                 
  to take that burden on, but sometimes when the choice of                     
  going to school is take a loan or do not go to school, he                    
  wonders how much choice the student has.                                     
                                                                               
  Number 337                                                                   
                                                                               
  CHAIR BUNDE said the interest rate is now fixed at eight                     
  percent.  However, if the true interest rate was actually                    
  calculated, taking into account no interest is paid while in                 
  school and the year of grace after graduation, the actual                    
  rate is somewhere around five percent.  If the legislature                   
  truly floated interest rates and made it reflect financial                   
  reality, the students would probably be paying closer to                     
  eleven or twelve percent interest.  The student loan fund at                 
  this point is not self-supporting, Chair Bunde said, and if                  
  the legislature does not do something to make it                             
  self-supporting by the year 2000 there probably will be no                   
  student loan fund.                                                           
                                                                               
  Number 362                                                                   
                                                                               
  MS. GUYOTE thanked the Representative from Kodiak for his                    
  comments and said there also has to be consideration for                     
  educating welfare recipients to get them off the programs.                   
  This is a big concern -- when a single parent is trying to                   
  get off the system, education needs to be kept as an                         
  obtainable goal.                                                             
                                                                               
  Number 370                                                                   
                                                                               
  CHAIR BUNDE agreed and reflected her concerns.  He                           
  recognized that the choice between assuming a $20,000,                       
  $30,000, or $40,000 debt or not going to school is often not                 
  a viable choice for many students.  He stated the                            
  legislature is very aware of this.                                           
                                                                               
  Number 375                                                                   
                                                                               
  REPRESENTATIVE TOOHEY said she would like to see people                      
  realize that this is a problem and to remember it when there                 
  is a choice between staying in school or not staying in high                 
  school, so that they can continue their education.  It is a                  
  lot easier to train a high school graduate right out of                      
  school than it is somebody who is thirty or thirty-five                      
  years of age and has been out in the market place.                           
  Representative Toohey stated she knows this from experience                  
  because she was a high school drop-out.                                      
                                                                               
  Number 384                                                                   
                                                                               
  CHAIR BUNDE asked if there was anyone in Fairbanks who                       
  wished to testify.                                                           
                                                                               
  REPRESENTATIVE BRICE responded that they are just there to                   
  observe and there was no one waiting to testify.                             
                                                                               
  Number 390                                                                   
                                                                               
  DR. STEVEN FLOERCHINGER was called as the next person to                     
  testify. He identified himself, saying he practices medicine                 
  in Anchorage and is a specialist in the areas of general and                 
  thoracic surgery. He stated he was before the committee                      
  today to discuss the importance of the WAMI program to the                   
  state of Alaska.  Of primary importance with this program is                 
  the fact that WAMI gives the opportunities for medical                       
  education to the people of Alaska. He said he is an Alaskan.                 
  He grew up in Anchorage and is a graduate of Dimond High                     
  School.  His family all remains in the state.  He is not the                 
  child of a two physician family; in fact, he is the only                     
  physician in his family for many generations.  He                            
  acknowledged that the committee has mentioned medical                        
  education is very expensive and he confirmed for the                         
  committee that, indeed, it is very expensive, probably the                   
  most expensive area of education that one could pursue.  The                 
  WAMI program, he said, does provide the opportunity for                      
  people to get such an education when otherwise they may not                  
  have been able to.  He stated he would have been one of                      
  those individuals because the only opportunity he had to                     
  obtain an education in medicine was through the WAMI                         
  program.                                                                     
                                                                               
  DR. FLOERCHINGER pointed out that there is a program known                   
  as WICHE, of which he felt the committee was well aware, and                 
  it was his experience at the time of his application to                      
  medical school that most of the states participating in the                  
  WICHE program for medicine actually provide more lip service                 
  than actual participation.  There were several states that                   
  he applied to, none of which were interested in taking WICHE                 
  students the year that he applied.                                           
                                                                               
  At the request of Representative Toohey, DR. FLOERCHINGER                    
  clarified that WICHE stands for Western Interstate                           
  Commission on Higher Education.                                              
                                                                               
  DR. FLOERCHINGER commented there are several other things                    
  that have already been mentioned that he would like to                       
  address. Addressing the subject of the need for primary                      
  care, from the perspective of a specialist he stated it has                  
  been tossed around a lot lately, in this age of health care                  
  reform, that we have a great need for primary physicians and                 
  this is true in Alaska as much as anywhere else.  However,                   
  he cautioned anyone from believing that there is not a need                  
  for specialists.  He offered a few numbers for Anchorage --                  
  there are ten people in Anchorage practicing general surgery                 
  in the private world, covering a population of approximately                 
  230,000 in the city alone.  However, services are provided                   
  for many people coming in from the outside world.  The                       
  American College of Surgeons gives a quote of approximately                  
  10,000 people to support the practice of one general                         
  surgeon.  If you take the ten people practicing private                      
  general surgery in our community, that means that we have                    
  one surgeon for every 23,000 people and, in reality, it is                   
  much higher than that.  Of those ten surgeons, two are                       
  preparing to retire within the next two to three years.                      
                                                                               
  DR. FLOERCHINGER, recognizing that Chair Bunde had given an                  
  example of a plastic surgeon, stated that indeed this an                     
  example of an area as highly specialized as one can get.  He                 
  explained there are three board-certified plastic surgeons                   
  in Anchorage, one of whom is due to retire within the next                   
  two years.  With these people participating in the care of                   
  burn patients and other thermal injuries, he has found that                  
  it takes three to four months to get one of his patients in                  
  to see these physicians for any form of elective procedure.                  
                                                                               
  DR. FLOERCHINGER, commenting on Chair Bunde's mentioning of                  
  business degrees taking four years and costing substantially                 
  less than a medical degree, stated he has approximately                      
  fifteen years of education invested in getting to the point                  
  where he can practice the art he does in this community.  He                 
  acknowledged that he practices in a much more highly                         
  specialized area.  It is very expensive to obtain an                         
  education in this area; however, there is no way that one                    
  can practice medicine of any type with less than                             
  approximately twelve years of formal education.                              
                                                                               
  DR. FLOERCHINGER also acknowledged that Chair Bunde had made                 
  mention about the possibility of having interns come back to                 
  the state for a portion of their training.  He offered                       
  wholehearted support for this as something that could be                     
  done.  It has been his experience that the education he                      
  received in the state of Alaska was outstanding And was one                  
  of the primary reasons he was motivated to come back here                    
  and practice. Unfortunately, he observed, the decision as to                 
  where one will land for their post-graduate training, which                  
  is required to get licensed and specialized, is not made                     
  entirely by the individual. This decision is made by the                     
  American Council on Graduate Medical Education.  They have a                 
  program that assigns people to specific residencies where                    
  they will rank the ones they want, but the individuals will                  
  not necessarily go where they have a wish to go. Individual                  
  programs are responsible for where people go to receive                      
  their training.  Dr. Floerchinger agreed that it would be                    
  nice if every Alaskan trained through WAMI could come back                   
  to do some of their post-graduate training here, but he does                 
  not see how this can be done unless we have some form of                     
  residency training in our state.  He hopes that one day this                 
  will happen and he understands that this is under                            
  consideration.                                                               
                                                                               
  Number 493                                                                   
                                                                               
  CHAIR BUNDE acknowledged that Dr. Floerchinger had mentioned                 
  the older doctors retiring and stated he admires the doctors                 
  greatly as practitioners of the healing art and also stated                  
  they are good businessmen -- they have to be or they don't                   
  stay in business.  He felt certain that when an opening                      
  becomes available in a lucrative practice there are doctors                  
  who are smart enough in other parts of the country to see                    
  and fill these openings, even if they are not Alaskan                        
  students.  To say that the people retiring will leave a hole                 
  that will not be filled, he felt, was not entirely accurate.                 
                                                                               
  Number 504                                                                   
                                                                               
  DR. FLOERCHINGER clarified that what he meant by bringing up                 
  the numbers he did was to point out that he doesn't want                     
  people to believe that there is only a need for primary care                 
  specialists in our community.  He felt we could use many                     
  people in the specialties in Anchorage.  He pointed out                      
  there is a shortage of physicians in our state that is                       
  across the board, not limited to any one specialty or one                    
  type of practice.  He agreed that there are people who will                  
  come in to fill the vacated spots; it is not easy to get                     
  people to fill those spots.  He emphasized there are a                       
  number of physicians who are actively seeking folks to come                  
  in and join the group that is practicing surgery in this                     
  community, but pointed out there are only so many physicians                 
  doing surgery. He said it is not easy to get people to come                  
  to Alaska.                                                                   
                                                                               
  Responding to Chair Bunde, DR. FLOERCHINGER clarified he is                  
  a graduate of the WAMI program, having begun the program in                  
  1983 when it was in Fairbanks.  Chair Bunde observed that                    
  some of the qualifications the committee is looking at                       
  obviously would not have prevented Dr. Floerchinger from                     
  returning to Alaska, because he has.                                         
                                                                               
  CHAIR BUNDE asked, if part of the program was a loan, and                    
  Dr. Floerchinger faced a substantial debt, as many graduates                 
  from medical school do, would that have kept him from the                    
  program?                                                                     
                                                                               
  Number 532                                                                   
                                                                               
  DR. FLOERCHINGER responded that this would not have kept him                 
  from the program.  As a matter of fact, he does have                         
  substantial debt; his debt at the time he graduated was                      
  approximately $63,000.  If that loan were to have come from                  
  the state of Alaska, with whatever requirements attached                     
  (and in fact part of his loan did come from Alaska) if part                  
  of this program were a loan then, no, he would not have a                    
  problem with that.  It would have been impossible, he                        
  stated, for him to attain this education without this                        
  program (1) because it was the only opportunity offered to                   
  him and (2) if he had had to pay for or obtain funding to                    
  attend a private program or a private school in the states.                  
  It is not likely he would have been able to do that without                  
  the state of Alaska's help.  He explained he came from a                     
  very simple, middle-class family.                                            
                                                                               
  Number 551                                                                   
                                                                               
  CHAIR BUNDE reflected that it costs $70,000 per year for                     
  those students, just for the educational portion, and he                     
  knows there are other aspects.  For the 40 students total,                   
  it is $1.6 million per year.  Chair Bunde suggested these                    
  students could be sent Outside and set up in housekeeping                    
  perhaps cheaper than we could have the program here.                         
                                                                               
  Number 561                                                                   
                                                                               
  DR. FLOERCHINGER emphasized that one of the most important                   
  factors involved in encouraging people to come back is their                 
  interaction with the medical community here.  He felt the                    
  interaction he had with the medical community in Fairbanks                   
  promoted his coming back here.  He had two opportunities to                  
  return to the state, one in Fairbanks and one in Anchorage,                  
  and he chose Anchorage; but if he had not the exposure to                    
  Alaska, he would not have known what was available.                          
                                                                               
  Number 563                                                                   
                                                                               
  CHAIR BUNDE said it may be a moot point, because he suspects                 
  there will be a requirement for students to return.  He                      
  stressed he is not anti-education, having spent his whole                    
  adult life in education, but he is trying to balance many                    
  hats.  Roads are not being paved and there are people who                    
  would much rather have that road paved than see a student                    
  have a great subsidy to go to medical school. He said all                    
  voices have equal weight as the legislature tries to sort                    
  out the budget.  The income is diminishing.  At this point                   
  right now the state is about $100 million out of whack as                    
  far as balancing the budget and there is no way to know                      
  where that money is coming from.  Chair Bunde emphasized                     
  that this is not a personal attack; the committee is just                    
  asking for information.                                                      
                                                                               
  Number 585                                                                   
                                                                               
  DR. FLOERCHINGER said he simply wished to give the committee                 
  the perspective of someone who is practicing medicine here.                  
  As one who is up against the problems faced by those who do                  
  practice medicine in the state, he wanted to stress how                      
  important this program is to those physicians who are here                   
  and how important this program will continue to be to the                    
  state of Alaska in the future.                                               
                                                                               
  CHAIR BUNDE said he appreciated Dr. Floerchinger's                           
  perspective and felt it was valuable to have his testimony.                  
  He thanked Dr. Floerchinger for taking the time to appear                    
  before the committee.                                                        
                                                                               
  Number 594                                                                   
                                                                               
  REPRESENTATIVE TOOHEY stated that if funds are tight and the                 
  only way the legislature can continue funding is to make                     
  sure that students come back and "serve time" in the state,                  
  then that is something that will have to be done.                            
                                                                               
  DR. FLOERCHINGER responded that he suspects there would not                  
  be a lot of opposition to that from the students who are                     
  participating.  He acknowledged that he obviously could not                  
  speak for all of them, but his personal opinion was that it                  
  would not have bothered him.                                                 
                                                                               
  Number 617                                                                   
                                                                               
  CHAIR BUNDE clarified that GREG PARRISH would be testifying                  
  next, here in Anchorage.  He said when Mr. Parrish finishes                  
  his testimony, the committee would go to Nome, Tok,                          
  Anchorage, then Juneau for testimony.                                        
                                                                               
  Number 620                                                                   
                                                                               
  MR. GREG PARRISH stated his name and the fact that he is a                   
  member of the Physics Department at UAA.  He said he was                     
  upset about the tendency of the university to parade in                      
  public and justify a need for more funding based upon                        
  teaching, primarily in the lower division, and then once the                 
  funding comes through, to switch it over into more or less                   
  research type faculty.  There was a specific instance he was                 
  referring to in the physics department. He stated he is the                  
  only full-time teaching member of the physics department, in                 
  fact the only member since, of the other two people, one is                  
  physics astronomy and one is physics chemistry.  He                          
  explained that they are part of a joint physics/chemistry                    
  department.  His understanding is that for years it has been                 
  agreed that the next priority for a physics hire would be a                  
  person to teach physics labs, essentially a lab manager who                  
  would hire adjuncts who would teach the labs themselves.  It                 
  is a very specialized teaching position, probably a staff                    
  position rather than a faculty position.  He found that                      
  without his knowledge, and as far as he knows, without the                   
  knowledge of the other physics person, last year the                         
  department chair, as part of the submission package, had                     
  switched this over to a faculty position, and in fact a                      
  3:1:1 position, which is one which has a research portion in                 
  the contract.  The chair had used the justifications for the                 
  lab position, but attached a research qualification to it.                   
  This completely turned the whole position over.  Once that                   
  happens, as a practical matter, research becomes dominant.                   
  Once you have a traditional department, the researchers                      
  always will run things if they can.  He suggested that                       
  research be funded as an end in itself, rather than funding                  
  for faculty and then turning the funds to research.                          
                                                                               
  TAPE 93-73, SIDE B                                                           
  Number 651                                                                   
                                                                               
  MR. PARRISH continued by stating one faculty member was on                   
  sabbatical and the other member of the physics department                    
  left for the Bush.  The positions came through and he                        
  attempted to get something done about this with the new                      
  chair then, and ultimately the new chair was told by the                     
  dean that things had been set in concrete and that this was                  
  now, what he calls, a research position, one that had a                      
  research portion.  He felt that as a practical matter the                    
  research faculty works very hard (he was not arguing that)                   
  and they have to concentrate so much on research, there is                   
  no way it is practical to expect them to do much lower                       
  division teaching, particularly the basic grunt work, the                    
  lab work and so on.  He testified that when the hiring                       
  committee was formed, he was a member.  In fact, the                         
  situation became worse because the research people in                        
  physics, and with some backing from the chemistry people,                    
  wanted then to basically make this a research dominant                       
  position; that is, only make the application open to certain                 
  types of researchers whose specialty would more or less mesh                 
  with the researchers we have right now.                                      
                                                                               
  MR. PARRISH went on to say they started out with something                   
  justified on a purely teaching basis, with the only research                 
  mentioned at all was the fact that it was a 3:1:1 position                   
  buried in the fine print.  Then an attempt was made so that                  
  only people within certain areas of physics could even apply                 
  for the job, based upon the research areas, not teaching,                    
  because that had nothing to do with it; lower division                       
  teaching is essentially the same for everyone.  There was a                  
  desire to specify certain researchers only, to even be                       
  possible candidates.  He felt he managed to block that                       
  temporarily, but in actual fact, he said, every time he                      
  thinks he has the block in place, the position comes up                      
  again.  He was assured by the committee chair just before                    
  coming to this meeting that the issue is dead, but he said                   
  he is aware that there is movement in the background, and                    
  has been for the last several days, to try to bring this                     
  back up.  He felt the only way he has been able to limit                     
  this much, and it has caused a great deal of hard feelings,                  
  is that one 3:1:1 member of the committee agreed that                        
  basically, although he personally thought research was the                   
  way to go, research should be justified if you want research                 
  positions and justify teaching positions if you want                         
  teaching positions and not use one for the other.                            
                                                                               
  Number 675                                                                   
                                                                               
  MR. PARRISH testified that they also put the only black                      
  woman in the department on their selection committee,                        
  frankly, for racial and sexual balance on the committee.  He                 
  said she is a member who voted with him.  Had it not been                    
  for these circumstances, he stated, this would have been by                  
  now a totally research-dominated position.  What will happen                 
  in the meeting tomorrow, he said, he simply does not know.                   
  He has been assured before that, at least, they will be                      
  advertising on a teaching level, but he felt that in any                     
  case they will end up with someone whose job will involve a                  
  significant portion of research.  He not only felt the                       
  person selected will be under tremendous pressure to produce                 
  research, and this is not a good place for physics research,                 
  but will have very little time in reality to do basically                    
  the grunt work that has been done with the labs and so on.                   
  He said that this past summer he did this basically for                      
  free, setting it up, organizing, and doing the hiring.  He                   
  explained that in the past Don Martens did this when he was                  
  department chair, because, again, he was getting some chair                  
  relief.  The current chair is a chemist. Chemistry has                       
  someone to do this; they have a technician/lab teacher;                      
  physics does not.                                                            
                                                                               
  MR. PARRISH felt this should have been a first priority, but                 
  the fact is that it has been turned completely over, against                 
  everything that was agreed to; it had been done without his                  
  knowledge, and he was extremely upset about it, seeing it as                 
  simply part and parcel of the overall problem.  It was his                   
  understanding through the grapevine, although he admitted he                 
  had no proof, that other positions that went up the line as                  
  4:1 are now trying to be converted into 3:1:1's with the                     
  university.                                                                  
                                                                               
  At this point, MR. PARRISH said, he was getting extremely                    
  upset about this.  This has been a real battle, putting                      
  tremendous pressure on the one 3:1:1 member of the committee                 
  who did agree with him that this was basically not an honest                 
  thing to do.  He also said pressure has been applied to him,                 
  although in a lesser degree, because he was so solid and it                  
  was known that he was not going to give.  He felt something                  
  needed to be done about this.  If the legislature is going                   
  to be prepared to fund research, he said he would have no                    
  objection.  He said there are great reasons to fund research                 
  as an end in itself.  If the legislature was to have the                     
  university say they do not really care about teaching for                    
  this position, it is purely for research, not primarily to                   
  promote lower division teaching, teaching of labs and so on,                 
  then if it is funded, he would feel fine about it.  If the                   
  legislators feel they can go to their constituents and                       
  explain these funded positions are for research, he felt                     
  again this would be acceptable to him.  However, he did not                  
  feel it was fine when something which was originally set up                  
  for essentially a teaching position, and a very specialized                  
  teaching position, much more specialized than his own 4:1                    
  position, gets converted over and starts becoming research                   
  oriented.  As a practical matter, as long as there is any                    
  flexibility whatsoever, the 3:1:1 are the most dominate of                   
  the faculty in academics -- they are research faculty                        
  dominated.  Their mind-set is such that research will always                 
  be the dominant feature.  If someone comes in to visit from                  
  another campus, the first question is, "What is your                         
  research area?"  Mr. Parrish said they are usually                           
  flabbergasted to find that he does not have one, that he is                  
  a pure teacher, and this is the sort of thing he has to deal                 
  with over and over.  The standard theme seems to be, if we                   
  are a university, we must do it this way.  He said his own                   
  attitude is that UAA is not that kind of university.                         
  Ultimately UAA is a university because the state calls them                  
  one, but this is primarily a teaching area, he thinks.                       
  Number 707                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked Mr. Parrish if he was at all                     
  nervous about the possibility his job may be terminated                      
  because of his testimony.                                                    
                                                                               
  MR. PARRISH responded that he was not, and as a practical                    
  matter, he was tenured.                                                      
                                                                               
  REPRESENTATIVE TOOHEY inquired as to when a person is hired                  
  for a physics, or chemistry, or nursing teaching job,                        
  whether or not there are specifics in that job description                   
  that say the person will spend so many hours researching.                    
                                                                               
  MR. PARRISH responded that there are no such specifics in a                  
  job description for a teaching job.                                          
                                                                               
  REPRESENTATIVE TOOHEY said, then there should be no problem.                 
  If a person was hired for a teaching job, then they should                   
  teach.                                                                       
                                                                               
  MR. PARRISH clarified that the whole point is the job is                     
  specified for teaching, but once you go 3:1:1, then research                 
  is built in.                                                                 
                                                                               
  REPRESENTATIVE TOOHEY asked for further clarification on                     
  what 3:1:1 means.                                                            
                                                                               
  Number 717                                                                   
                                                                               
  MR. PARRISH explained 3:1:1.  He said normally the                           
  university divides the teachers work into five parts.  In a                  
  3:1:1 faculty, three parts would be teaching, one part would                 
  be research, and one part would be service.  A 4:1 faculty,                  
  like he is, has four parts teaching and one part service.                    
  So, the subject job is going out as 3:1:1, which means that                  
  there definitely will be a research requirement built in;                    
  the person absolutely must produce publishable research or                   
  will not get tenured.  It is a life or death issue for them;                 
  a person like that really cannot afford to concentrate too                   
  much on lower division teaching and, in fact, if they are                    
  really successful in research, what they try for is research                 
  grants; then they buy themselves out of the classroom,                       
  certainly out of the lower division teaching, and then they                  
  try to teach specialty courses in upper division.  He stated                 
  that UAA has no physics degree.  There is, therefore, no                     
  reason to have upper division teaching, but, in fact, he is                  
  already finding some of the other members of the department                  
  are trying to start putting in upper division courses for                    
  next fall, in part, he thinks, on the strength of this new                   
  position.  So, he sees the whole thing as a new loss, if                     
  anything.                                                                    
                                                                               
  Number 727                                                                   
                                                                               
  CHAIR BUNDE told Representative Brice that he would see that                 
  he gets a copy of the written material referred to, as well                  
  as materials from the committee meeting yesterday.                           
                                                                               
  CHAIR BUNDE commented that Professor Parrish had addressed a                 
  problem that the legislature was very aware of and concerned                 
  about, and that is, with the decreasing revenue stream, how                  
  does the legislature maximize the impact of the dollars                      
  spent on education to be of benefit to the greatest number                   
  of people.  The catch words used to be that the state and                    
  the university were going to have to learn how to do more                    
  with less because there is less money available.  Chair                      
  Bunde said he frankly thought we are to the point where we                   
  have to do less with less and have to decide what our                        
  priorities are.  He felt there was a considerable sentiment                  
  in the legislature to see the greatest number of students                    
  served per dollar, which creates a need for efficiency and                   
  effectiveness.                                                               
                                                                               
  Number 750                                                                   
                                                                               
  MR. PARRISH wanted to make it very clear that the people he                  
  was talking about are not devils incarnate; many of them are                 
  personal friends.  Research dominant positions are basically                 
  a mind-set, that universities do it this way, that we are a                  
  university, that, therefore, we must do it this way.  He                     
  emphasized that the committee should not get the idea that                   
  these people are in any way doing anything that they                         
  themselves would consider wrong.  It was just that they see                  
  themselves belonging to a great world of scholarship.  He                    
  said he sees himself and the others as working essentially                   
  for the state of Alaska and he thinks this is a real                         
  distinct difference.                                                         
                                                                               
  Number 755                                                                   
                                                                               
  CHAIR BUNDE replied that he thought it has been said on this                 
  campus many times before, "Reasonable people can disagree                    
  and some reasonable people can be very disagreeable."                        
                                                                               
  Number 767                                                                   
                                                                               
  MS. NELDA KOECHER, testifying from Nome, introduced herself                  
  as a student at Northwest Community College.  Responding to                  
  the committee having asked how to better serve the needs of                  
  students, she felt the needs of the rural areas could better                 
  be served by having more variety in degree programs.  She is                 
  a single mother, working full-time for the criminal justice                  
  bills, and by default she has ended up in the social work                    
  program, because that is all that is offered in Nome other                   
  than education and business.  She felt the course offerings                  
  were inadequate.  Also, Fairbanks does not take or give out                  
  "Perkin's loans," which would be very beneficial to the                      
  criminal justice field because they do have a program where                  
  those loans can be used and be forgiven through the federal                  
  government for correctional officers or those who work in                    
  the correctional field.  She also emphasized that the                        
  student loan forgiveness clause being reinstated would be                    
  very helpful to rural students, even if it was only                          
  partially forgiven.                                                          
                                                                               
  MS. KOECHER felt another thing that would be great in Nome                   
  would be the offering of more vocational programs.  She                      
  stated there are a lot of people in Nome who do not work                     
  because of the fact that there are no vocational programs.                   
                                                                               
  Number 790                                                                   
                                                                               
  CHAIR BUNDE, commenting on the forgiveness portion of the                    
  loan program, said that when this was originally in                          
  existence, frankly, the state of Alaska was in the business                  
  of giving away money.  The interest rate was nominal, there                  
  was a big forgiveness chunk, and when you defaulted on your                  
  loan, they did not make any real effort to track you down                    
  and make you pay.  As he mentioned to a person testifying                    
  earlier, the student loan program is not financially sound;                  
  it is costing more money to run the program than the program                 
  produces; and if the forgiveness program is reinstituted,                    
  the student loan program would run out of money rather soon.                 
  While he understood this would be an asset to many students,                 
  he felt this would not be an option available to the                         
  legislature.  Chair Bunde thanked Nelda Koecher for her                      
  testimony.                                                                   
                                                                               
  Number 806                                                                   
                                                                               
  CHAIR BUNDE asked for testimony from Tok and was told that                   
  the participant who wished to testify had to leave, but                      
  would send in written testimony.  The bridge operator                        
  reported that Juneau had someone ready to testify.                           
                                                                               
  Number 811                                                                   
                                                                               
  MR. ERIC LEEGARD, from Juneau, introduced himself, saying he                 
  is a former community college teacher and now teaches at the                 
  university full-time.  He teaches boat building, drafting,                   
  wood working, and what the university calls "Hard                            
  Vocational," this year called "Smokestack Industries."  He                   
  brought up what he felt was a lack of forethought and                        
  on-going vocational programs in Southeast.  He said                          
  vacancies are not filled when someone terminates their                       
  employment, and the program dies due to a lack of                            
  instructors.  When they moved into their new marine                          
  technology facilities, they had nine instructors.  They now                  
  have five positions.  When they started in September, they                   
  had only three instructors to fill those positions.  They                    
  have been able to pick up one other instructor and this was                  
  the first time they have hired a new full-time instructor                    
  since they started losing instructors.  He said Ketchikan                    
  had two full-time vocational instructors last year.  There                   
  are none this year.  He understands they do not intend to                    
  refill those positions.  Sitka had one and one-half                          
  full-time vocational instructors and, again, they now also                   
  have none.                                                                   
                                                                               
  MR. LEEGARD stated that basically vocational education in                    
  Southeast is in a descending spiral and has been for a                       
  number of years; funds have been cut; there is a lack of                     
  administration.  At the UAS, there has not been a full-time                  
  vocational administrator for about nine years.  There is a                   
  new one who has just been hired and he will be starting on                   
  November 15.  With the lack of funds and administration, the                 
  instructors and students get discouraged and classes are                     
  canceled.  This has been going on for a number of years.                     
                                                                               
  Number 853                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked what the teacher/student ratio                   
  is in the vocational classes.                                                
                                                                               
  Number 855                                                                   
                                                                               
  MR. LEEGARD responded that the classes basically run with                    
  about twelve students, ten to twelve, with maximums of                       
  sixteen.  Theoretically the instructors teach four classes.                  
  Without an administrator, the instructors have ended up                      
  doing more administrative work and less teaching.                            
                                                                               
  Number 863                                                                   
                                                                               
  MR. LEEGARD said, regarding hiring temporary visiting                        
  instructors, that many do not seem to be converted over to                   
  permanent positions, which again leads to disgruntled                        
  employees. He felt that an inordinate amount of time has to                  
  be spent on things other than teaching.  Committee                           
  assignments take a lot of time, but are felt by the                          
  individuals to be necessary to protect their own positions.                  
  Also, in order to get any pay raises, they have to go                        
  through promotion and tenure sequences.  Many hours are                      
  required for the instructors to prepare their file for                       
  evaluation (two of his three instructors have between 40 and                 
  100 hours in preparation so far), and nobody cares whether                   
  they have a rank of assistant, associate or professor, they                  
  just want a pay raise.                                                       
                                                                               
  MR. LEEGARD said they would all prefer to see a pay raise                    
  after a certain amount of time.  As it is now, there is only                 
  a 30 percent potential earnings increase when a person is                    
  hired.  Each person who has been hired has been paid                         
  progressively less than the one before them.  When you can                   
  only look forward to a 30 percent pay raise in your entire                   
  teaching career, it does not look too promising.                             
                                                                               
  Number 897                                                                   
                                                                               
  CHAIR BUNDE said he recalled many years ago when rank was                    
  taken away from the community college teachers and they were                 
  then going to be demoted and called instructor or teacher.                   
  This did not seem like much of a demotion to him.                            
                                                                               
  Number 906                                                                   
                                                                               
  CHAIR BUNDE called for a five minute break at 5:35 p.m.                      
  The meeting reconvened at 5:40 p.m.                                          
                                                                               
  Number 911                                                                   
                                                                               
  MS. RACHAEL BERMUDEZ, the representative from Prince William                 
  Sound Community College, testified she moved to Alaska last                  
  December.  She was not involved in student government until                  
  she started listening to people complain about student loans                 
  not being on time and voicing their concerns about the                       
  interest rate.  The students were looking for alternative                    
  methods for financing their education and seemed to feel if                  
  these alternative methods could not be found they would be                   
  unable to go to school.  She got involved in student                         
  government.  Their student government joined the thirteen-                   
  campus coalition of student governments.  The subject of                     
  student loans came up in the networking of this coalition.                   
  The same problems seemed to universally surface -- interest                  
  rates, timeliness, maximum loan amounts, and forgiveness.                    
  The students felt that perhaps they could obtain a loan with                 
  a lower interest rate through a bank.  She said she                          
  personally just encountered a man who did not get his                        
  student loan check on time and got kicked out of his dorm                    
  room, has no place to go, and has dropped out of school.                     
  She wondered, if tuition were to be raised, what would                       
  students do who were already locked into maximum loan                        
  amounts based upon a lower tuition rate being in effect when                 
  their loan was approved.  She said she is not knowledgeable                  
  about the ramifications of forgiveness of loans.  Overall,                   
  she was aware of these concerns and would prefer to see some                 
  resolution, short of a student rebellion.                                    
                                                                               
  Number 971                                                                   
                                                                               
  CHAIR BUNDE commented that he would not want to see the                      
  students rebel either; however, he felt the students of                      
  today are extremely busy trying to work, raise families and                  
  go to school, with enough priorities to keep them from                       
  thinking about rebellion.  He told Ms. Bermudez that the                     
  issues she addressed are concerns of the legislature;                        
  further, he has been assured by the staff of the                             
  Post-Secondary Education Commission (of which he is a                        
  member) they are now able to turn loans around in a more                     
  timely fashion.  As a blanket statement to all students, he                  
  said that if calls are not answered in a timely manner by                    
  this commission, he would like the students to call him.                     
                                                                               
  MS. BERMUDEZ said she has encountered students this year who                 
  have been having problems with not getting their checks on                   
  time.                                                                        
                                                                               
  CHAIR BUNDE stressed there is a student responsibility to                    
  apply for loans in a timely manner.  He recalled that he                     
  taught here in 1969, and without a student loan program,                     
  there were students lined up trying to get in the door.  He                  
  said a loan program is not necessary for students to go to                   
  school.  It is nice, and it is great if it can be done, and                  
  he wants to continue the program as long as possible, but he                 
  felt the program must be self- sustaining.  The state, right                 
  now he felt, cannot put general funds money into that                        
  student loan program.  He also strongly encouraged students                  
  to go where they can get lower interest money.  There are                    
  federal loans that are at a lower interest and students                      
  ought to take advantage of those loans first and then the                    
  state loans as a last resort.  He reiterated that if the                     
  loan interest rate actually reflected the cost to the state,                 
  the students would have to paying about twelve percent.  In                  
  addition, there is a terrible default rate, resulting in the                 
  recent hiring of another "skip tracer" to track people                       
  nationwide who are not paying back their student loans.                      
  Chair Bunde encouraged students not to take out loans,                       
  making the observation that it would be wonderful if they                    
  could graduate and not be in debt.  Perhaps students will                    
  have to do it the old fashioned way, "work a year and then                   
  go to school for a year."  Many people have done that, he                    
  said.                                                                        
                                                                               
  CHAIR BUNDE commented there is no question that the state is                 
  facing decreased revenues.  He said that as much as his                      
  heart wants to support education, and while subscribing to                   
  the notion that if education is expensive, ignorance is far                  
  more expensive, he recognized there are many people out                      
  there whose needs are not being met as well and to them the                  
  university is just another small special interest group.                     
                                                                               
  Number 036                                                                   
                                                                               
  MS. BERMUDEZ asked how much money is given annually for                      
  student loans.                                                               
                                                                               
  CHAIR BUNDE responded there was just a bond sale for this                    
  year in the amount, he thought, of approximately $60                         
  million; he was not sure of the amount.                                      
                                                                               
  Number 040                                                                   
                                                                               
  MS. BERMUDEZ asked how many student loan applications come                   
  in and how many are denied.                                                  
                                                                               
  Number 041                                                                   
                                                                               
  CHAIR BUNDE answered that, as far as he knows, virtually                     
  none are denied as long as they meet the requirements that                   
  they are a state resident.  He also observed that one of the                 
  reasons the loan costs so much is that there is no credit                    
  check.                                                                       
                                                                               
  Number 075                                                                   
                                                                               
  REPRESENTATIVE BRICE stated that another practical reason                    
  why there is probably not that much dedication to credit                     
  checking is due to the fact that, although the average of                    
  many students is generally high, there is a very substantial                 
  population of students who are entering out of high school                   
  (18, 20, 22 years old) who have very little to no credit                     
  established.  Regarding the bonding, he stated this was a                    
  decision made by the legislature a couple of years ago, to                   
  drop the forgiveness and establish the revenue bond                          
  situation whereby the legislature would sell bonds at five                   
  to six percent to pay for the student loan program.  Over                    
  the next ten years the state will require a certain level of                 
  capitalization of that program, but the responsibility of                    
  the state would continue to gradually decrease, until                        
  finally it is a self-sustaining program, fully paid for                      
  through bonding, with a certain level of revenue coming in                   
  above and beyond what was going to the retirement of the                     
  bonds issued.  The discussion at that point in time was that                 
  revenue might be used for scholarships, expanding the                        
  program, a partial forgiveness, or whatever -- but that was                  
  going to be a little bit down the road.  He said the last he                 
  heard, they were not refusing to sell these bonds, so the                    
  state's obligation to that has been dropping.                                
                                                                               
  Number 118                                                                   
                                                                               
  CHAIR BUNDE acknowledged there is little or no general fund                  
  money put into the student loan program, the idea being that                 
  it would become revolving "you pay your loan and the next                    
  person gets their loan."  But at this point, he said, it                     
  isn't there yet.  We are borrowing money and paying six                      
  percent and we are getting back from the students really                     
  about five percent.  There was the mention by Chair Bunde of                 
  a possible lawsuit coming up that could cost the student                     
  loan program $8 million.                                                     
                                                                               
  CHAIR BUNDE told Rachael Bermudez that he understands the                    
  student problems, that she has stated them well, and asked                   
  that when she goes back to Valdez she tell them it is not                    
  that the legislature is ignoring the students, but that                      
  there are financial realities.  Students are doing the right                 
  thing to get the scholarships, the federal loans, the bank                   
  loans at a lower interest rate, whatever they can get, and                   
  take the state student loan as a last resort.  Then, once a                  
  state loan is taken, pay it back, or you contribute to its                   
  demise.                                                                      
                                                                               
  Number 147                                                                   
                                                                               
  MR. DELBERT COLLETT, president of the Prince William Sound                   
  Student Community Association, said he'd like to talk about                  
  distance education.  The state of Alaska, through its                        
  constitution, provided for the University of Alaska system.                  
  He said that somewhere along the line the focus of this                      
  system has been lost.  At the time of statehood, the federal                 
  government instructed the state to form a state educational                  
  system.  At this time, however, unless a person lived in a                   
  metropolitan area, they are denied an education.  He said                    
  rural people do not have a wide variety of resources and                     
  some of these people live entirely by subsistence.  Their                    
  lifestyle should not preclude their education.  Mr. Collett                  
  said the state has a responsibility to educate all people in                 
  the state, not just the ones who have the resources to seek                  
  out education.                                                               
                                                                               
  MR. COLLETT felt that right now the university government                    
  was in a state of transition.  The Board of Regents has                      
  called for a system of government to be formed that would                    
  combine the resources of faculty, students and staff into a                  
  single government system whereby recommendations can be made                 
  to the Board of Regents, the president, and the legislature                  
  as to the function of the university as a whole.  The rural                  
  students have special needs that are in contradiction of the                 
  metropolitan students.  He said they have problems in                        
  science, location, structure, and student lifestyle.  In                     
  outlying areas, there are mostly part-time students;                         
  students who take as little as one credit to better their                    
  jobs or their lives.  They take what they can, when they                     
  can, and that puts a burden on these people, he said.                        
                                                                               
  MR. COLLETT said he felt there are problems with the student                 
  loans right now.  In his personal experience, he applied for                 
  a student loan in March.  He had a disbursement date of                      
  September 30, 1993, but didn't get the check until October                   
  20.  The check was dated August 28 and held in Anchorage.                    
  He pointed out that this shows there is a problem somewhere.                 
  Many people struggle to go to school and without that check                  
  the struggle is worse.  Mr. Collett knew of cases where                      
  people had no money to feed their children when the check                    
  was late.  He felt there has to be a better system of                        
  distribution.                                                                
                                                                               
  MR. COLLETT pointed out that the RATE (Rural Alaska                          
  Teacher's Education) program was created by the legislature                  
  specifically for the Prince William Sound Area, but it is                    
  run through the university system.  Mr. Collett said the                     
  state can teach rural teachers to be rural teachers so that                  
  they can go out and guide their own curriculum in their own                  
  Alaska.  He said there were 39 people that had to be dropped                 
  from this system in Valdez -- 39 people who wanted to be                     
  teachers in Alaska that had to be dropped from the program                   
  because all of a sudden the courses were unavailable.  Mr.                   
  Collett said they were the only community college in the                     
  state.  They receive other funding other than the state, but                 
  keep running into brick walls.                                               
                                                                               
  MR. COLLETT said they have a broadcast communications school                 
  in Valdez that is capable and willing to set up a distance                   
  education program.  He pointed out that there are many forms                 
  this could take:  telecourses, correspondence courses,                       
  interactive services. Mr. Collett explained that a student                   
  can be 400 miles away and still have direct access to a                      
  teacher through their computer.  He said the possibilities                   
  for this type of distance education are endless.  He noted                   
  he has a copy of a presidential task force report made in                    
  Juneau in June 1993 that has relevant facts in it that need                  
  to be pursued.  Mr. Collett said there are people out there                  
  that want an education but can't get it and there is                         
  obviously no way they can.  He said the state must be able                   
  to provide that opportunity in a timely and cost effective                   
  manner.                                                                      
                                                                               
  MR. COLLETT said he sees a need to have an official                          
  organization to set goals and planning.  He said they have a                 
  system of student government called the United Association                   
  of Rural Alaskan Students.  This breaks the rural students                   
  away from the associations in Anchorage and Juneau.  The                     
  rural students need a voice, he said, because they have                      
  special problems and need representation.  Mr. Collett is                    
  from Los Angeles and came here eight years ago.  He, at                      
  first, thought Anchorage was a small town and, now that he                   
  is in Valdez, he said he had a special understanding of the                  
  type of access that should be in place and the special needs                 
  of those in rural areas who don't have that access to higher                 
  education.  He said the legislature and university need to                   
  focus on distance education and student needs.                               
                                                                               
  TAPE 93-74, SIDE A                                                           
  Number 000                                                                   
                                                                               
  MR. COLLETT concluded that Alaska does not have a system in                  
  place to provide an education to rural students.                             
                                                                               
  CHAIR BUNDE thanked Mr. Collett for coming all the way from                  
  Valdez to testify and said he shared his frustration in                      
  trying to make the legislature more accessible to students.                  
  He said legislators frequently hear from administrators and                  
  boards, but not from students.                                               
                                                                               
  Number 015                                                                   
                                                                               
  REPRESENTATIVE DAVIS asked what the RATE program was and why                 
  had 39 people been dropped.                                                  
                                                                               
  CHAIR BUNDE said the courses were no longer available.                       
                                                                               
  REPRESENTATIVE DAVIS asked if this was a statewide program.                  
                                                                               
  CHAIR BUNDE responded that he wasn't sure, but he did know                   
  that there was once a program in Northwest Alaska in which                   
  $1 million was invested and not one student ever graduated                   
  and became a teacher because there was no interest in the                    
  program and no people with the right abilities.                              
                                                                               
  Number 027                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked Mr. Collett if he was talking                    
  about undergraduate students, not high school students.                      
                                                                               
  MR. COLLETT replied yes.                                                     
                                                                               
  CHAIR BUNDE said he understood there was a distance                          
  education program for high school already in place.                          
                                                                               
  Number 031                                                                   
                                                                               
  CHAIR BUNDE noted that Mr. Collett was from California and                   
  that their liberal system of education went broke.  He said                  
  he hoped Mr. Collett was not suggesting Alaska imitate that                  
  system.  Students in Alaska have many different needs that                   
  have to be balanced, he pointed out.  A college student in                   
  Chukchi costs the state $30,000 a year for them to go there.                 
  Chair Bunde said he felt that wherever a person lives they                   
  have choices to make.  People who live in Anchorage get to                   
  have K-Mart, but they also have to have K-Mart; they get to                  
  have UAA, but they also have to have UAA.  He said if                        
  someone chooses to live in a village, the state can't afford                 
  to provide them with a private education.  Alaska has 21                     
  public schools that have a student population of 12 or fewer                 
  students, and it costs in excess of $100,000 per school and                  
  the state cannot afford it.  The legislature's job is to put                 
  the money where it will serve the greatest need.  People in                  
  rural areas can make the choice to go to where a higher                      
  education is offered.                                                        
                                                                               
  MR. COLLETT said there are three national organizations that                 
  provide funding to states that provide distance education.                   
  He felt that one location that provides long distance                        
  education through modern technology will cost considerably                   
  less than many campuses with as few as 12 students each.                     
                                                                               
  CHAIR BUNDE agreed, but said it was even less if you only                    
  have one campus.  He said Alaska needs $20 per barrel of oil                 
  to balance the budget now, and it barely has $16.  The money                 
  is not there.                                                                
                                                                               
  Number 067                                                                   
                                                                               
  MR. BRIAN BRUBAKER from the Association of Students at the                   
  University of Alaska, Fairbanks (UAF) said he was there to                   
  talk about student loans.  He said he represented a new                      
  group that has been formed and they were trying to solve                     
  some of the problems with the loan and hoped to build a                      
  stronger loan program.  He wanted the students,                              
  administration, and legislators to work together and each                    
  unique viewpoint should be heard.  His group believes there                  
  are improvements that can be made in all stages of the                       
  programs, including the timeliness of applying for a loan                    
  and the need for loan information to be communicated to                      
  students.                                                                    
                                                                               
  MR. BRUBAKER said there is a 30% rate of rejection for first                 
  time loan applicants because information is not clear and                    
  concise.  He said students are often misled into believing                   
  they have their loan because of unclear information in the                   
  packet sent out by the commission.  He felt there was a need                 
  to make it easier for the institutions to administer loans,                  
  to have a better system for determining eligibility, and a                   
  better system for appeals. Mr. Brubaker suggested                            
  institutions could make eligibility and appeals decisions                    
  themselves.                                                                  
                                                                               
  Number 113                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked if this new group would be able                  
  to go to the problem areas and help work through the                         
  problems.                                                                    
                                                                               
  MR. BRUBAKER responded that his group thought they could                     
  work in cooperation with the student leaders, the                            
  institution officials, and the commission.                                   
                                                                               
  Number 117                                                                   
                                                                               
  CHAIR BUNDE said a new executive director had just been                      
  hired and he agreed that the paper chase can be reduced                      
  through electronics, Visa cards, and other means.  He said                   
  he would like to see no more paper searches.  He said the                    
  legislature is trying to get the commission to work harder                   
  and smarter.  The commission has a bad public relations                      
  problem.  Chair Bunde asked Mr. Brubaker and other students                  
  to give DHSS and the commission time.  He said they are                      
  improving the application process and the way information is                 
  communicated with the students.  The commission just                         
  completed an MTV video that explains the process through a                   
  rap song that speaks the student's language.                                 
                                                                               
  Number 136                                                                   
                                                                               
  MR. BRUBAKER said there is a lot of information that the                     
  group, as students, does not have and it is their fault for                  
  not researching further.  He felt the bad reputation of the                  
  commission is a small problem, but small problems build up                   
  and cause the breakdown of the system.                                       
                                                                               
  Number 156                                                                   
                                                                               
  CHAIR BUNDE replied that in talking with constituents, many                  
  felt that the commission and DHSS were not addressing                        
  problems with student loans and he felt this was not true.                   
  A large part of the work done by DHSS concerns student                       
  loans.  For example, Chair Bunde said he does not feel there                 
  should be a separate set of paperwork for loans.  If a                       
  student qualifies for resident tuition, they should                          
  automatically qualify for a loan -- that would be more                       
  efficient.  He said the commission was moving forward and                    
  the loan program was under a lot a pressure to remain                        
  viable.                                                                      
                                                                               
  Number 163                                                                   
                                                                               
  REPRESENTATIVE TOOHEY suggested the group get some publicity                 
  to the students explaining why it is so important to repay                   
  their loans -- if they do not, there will be no money for                    
  the students that follow.                                                    
                                                                               
  Number 165                                                                   
                                                                               
  MR. BRUBAKER said the interest rate and the maximum loan                     
  amount were two other areas of concern to his group.  He                     
  said they also felt the students should have gotten together                 
  and addressed the problems with loans before things got so                   
  out of hand.                                                                 
                                                                               
  Number 178                                                                   
                                                                               
  CHAIR BUNDE instructed Mr. Brubaker to please ask the                        
  students to look carefully at the interest rate, which is                    
  actually only 5%.  A floating rate could go to 20% in a                      
  year.  He thanked Mr. Brubaker for his testimony and                         
  recognized TERYL ELAM as the next speaker.                                   
                                                                               
  Number 188                                                                   
                                                                               
  MS. TERYL ELAM, a first-year student in the UAA WAMI                         
  program, came to talk about that program.  There are ten                     
  students each year who do their first year there and then go                 
  the University of Washington to finish.  She said the                        
  program has two purposes:  (1) to provide doctors for Alaska                 
  to service the population and (2) to provide Alaskans with                   
  an education.  Ms. Elam pointed out that there are very few                  
  states that do not have a medical school and Alaska is one                   
  of those.  Because of that, she said, it is hard for                         
  Alaskans to get into a medical school.  She explained that                   
  each state has its own system that gives preference to                       
  students likely to remain in that state.  The only option                    
  for Alaskans, Ms. Elam said, is to apply to private schools,                 
  which are extremely expensive.  She felt this was a barrier                  
  to those who would like to go into general practice and work                 
  in an underserved area because they would have to pay back                   
  the $130,000 cost of going to a private school.  Ms. Elam                    
  said that most of the students who go into the program here                  
  want to come back to Alaska and serve their community.  If                   
  there isn't a WAMI program, they can't afford to do that.                    
                                                                               
  Number 225                                                                   
                                                                               
  MS. ELAM said she had the choice of going to several private                 
  schools and a couple of state schools, but she was told by                   
  several of these schools that she could not be in the WICHE                  
  program because they were no longer accepting Alaskans into                  
  WICHE.  She felt the public schools give lip service to                      
  WICHE and rarely accept nonresidents.  She said WAMI is well                 
  respected, a premier research center, and it emphasizes                      
  primary care.  By being in Anchorage, Ms. Elam said,                         
  students learn about the culture of Alaska and the health                    
  care needs of Alaskans.  She said students get to work with                  
  local health care providers and that encourages them to want                 
  to come back and practice.  She explained that in a                          
  student's third and fourth years they can rotate and come                    
  back to Alaska and see how medicine is practiced in rural                    
  Alaska.  Ms. Elam concluded by saying she supported                          
  continuation of funding for the program.                                     
                                                                               
  Number 271                                                                   
                                                                               
  CHAIR BUNDE asked if it is common for the first year of                      
  medical school to be the most expensive.  He said it costs                   
  $70,000 a year for students to attend this program in                        
  Anchorage, yet when they get to Washington the cost lowers                   
  to about $30,000 a year.                                                     
                                                                               
  Number 280                                                                   
                                                                               
  MS. ELAM responded that she wasn't aware of exact figures,                   
  but she had heard it costs between $50,000 and $100,000 a                    
  year to educate medical students because of all the special                  
  facilities and research.                                                     
                                                                               
  Number 290                                                                   
                                                                               
  CHAIR BUNDE said that still didn't explain why the first                     
  year here was so expensive, and that with only a 50% return                  
  of students to practice in Alaska, it was not a very good                    
  state investment.  He said he was surprised to hear we are                   
  paying $75,000 a year to belong to WICHE and yet they are                    
  not accepting our students.                                                  
                                                                               
  MS. ELAM said this was because Alaskans have access to WAMI                  
  -- another means of funding their education.  She suggested                  
  that Alaska choose one method of funding and to back that                    
  strongly.  She said medical students are not getting a free                  
  ride.  She has $40,000 in undergraduate loans and medical                    
  school requires loans of $17,000 per year.                                   
                                                                               
  Number 331                                                                   
                                                                               
  CHAIR BUNDE said by the time Ms. Elam finishes medical                       
  school, the state will have invested $160,000 in her                         
  education. How much of that would she be willing to pay?                     
                                                                               
  Number 338                                                                   
                                                                               
  MS. ELAM replied it is important to keep people concerned                    
  about going into primary care.  Her loans come from a                        
  variety of sources with interest rates up to 12%, so her                     
  actual repayment of loans will total about $140,000 instead                  
  of $75,000.                                                                  
                                                                               
  Number 359                                                                   
                                                                               
  MS. KARIN PATTERSON, a student in Anchorage, said she also                   
  wanted to talk about WAMI.  She said she was born in Alaska                  
  and has lived here all her life except for the five years                    
  she spent at college in California, where she graduated with                 
  honors.  During her college years, Ms. Patterson said she                    
  worked, got a scholarship and a grant and is still $29,000                   
  in debt to the state of Alaska and pays $329 a month on her                  
  student loan.  She is currently taking science courses to                    
  qualify to go to medical school and repayment of her current                 
  loan at this time is very difficult.                                         
                                                                               
  MS. PATTERSON pointed out that interest accrues on loans                     
  during the grace period while a student attends school and                   
  when students graduate all their money goes toward interest.                 
  She said WAMI would allow her to get a quality education and                 
  return here to practice.  As a student, Ms. Patterson is                     
  concerned about support of WAMI, especially in a state where                 
  students cannot get a medical education.  She has been                       
  advised that if she applied for a WICHE program, she would                   
  not get accepted.  State schools give preference to their                    
  residents.                                                                   
                                                                               
  MS. PATTERSON stated that the only options open to her are                   
  WAMI, the military, or even larger debts.  Without WAMI, she                 
  said she could borrow and incur large debts.  She felt that                  
  students in this position might as well go to John Hopkins                   
  and have no incentive to return here.  The purpose of the                    
  program is to produce a highly qualified graduate and                        
  attract that graduate to come back to the state.  She                        
  believes WAMI does that and she would support the                            
  requirement of mandatory return to Alaska.  The federal                      
  government has a similar requirement of graduates working in                 
  underserved areas.                                                           
                                                                               
  Number 446                                                                   
                                                                               
  REPRESENTATIVE TOOHEY said she had information on other                      
  programs if Ms. Patterson would like a copy.                                 
                                                                               
  MS. PATTERSON responded that she would.                                      
                                                                               
  Number 452                                                                   
                                                                               
  CHAIR BUNDE said there was a recent "60 Minutes" program                     
  about people with six-digit salaries who renege on their                     
  student loans.                                                               
                                                                               
  MS. PATTERSON replied she shared his concern.                                
                                                                               
  CHAIR BUNDE said he didn't think Alaska could afford to                      
  incur this kind of debt and loss with so little return.                      
                                                                               
  CHAIR BUNDE called for JACK DALTON and was told he had left.                 
  He asked the bridge operator if there was anyone waiting to                  
  testify and was told no; only Kodiak was listening to                        
  testimony.  He then called DAVE DAU.                                         
                                                                               
  Number 510                                                                   
                                                                               
  MR. DAVE DAU said he is a professor in the psychology                        
  department at UAA and was there to talk about problems in                    
  the university system. He said Alaska is one of only six                     
  states that does not provide a medical education and it is                   
  one of only two states that does not have a functioning                      
  community college.  One of the most common complaints he                     
  hears from students is that they cannot get the courses they                 
  want and cannot obtain a degree in four years.  In response,                 
  the university comes up with elaborate systems, such as the                  
  priority registration system.  This system effectively                       
  allows people in degree programs to register before people                   
  who are not.  Mr. Dau said there is debate now within the                    
  university to make that system even more restrictive by                      
  allowing seniors to register before anyone else.  Another                    
  elaborate solution, he said, is increasing class sizes.  In                  
  his department, they offer Introduction to Psychology to a                   
  class with 200 students.                                                     
                                                                               
  MR. DAU said the university in Anchorage has an unacceptable                 
  ratio of part-time to full-time faculty members.  He added                   
  that UAA has an unacceptable level of "visiting" faculty who                 
  visit year after year.  He explained that this means the                     
  university does not have much obligation to these people and                 
  they respond in kind.  The solution, Mr. Dau stated, is to                   
  put teachers in the classroom.                                               
                                                                               
  MR. DAU said teachers need to do less research and                           
  administration so they can offer more courses to students.                   
  He encouraged the legislature to scrutinize requests for                     
  funds for more instructors.  The university is currently                     
  advertising for two additional positions for his department                  
  and each of those positions are expected to spend 25% of                     
  their time doing research.  He thought that was                              
  unacceptable.                                                                
                                                                               
  Number 610                                                                   
                                                                               
  REPRESENTATIVE TOOHEY said she would like to see some                        
  cooperation with the Science and Technology Foundation,                      
  where they grant the funds for research and all funds that                   
  come through the legislature for the university are spent on                 
  teaching.  She said she was part of the community college in                 
  Anchorage and was sorry to see its demise.  She said Alaska                  
  is not an academic state. Alaskans are not catching and                      
  teaching the people of this state.                                           
                                                                               
  Number 637                                                                   
                                                                               
  CHAIR BUNDE said this issue has been discussed in the                        
  legislature and if research is so important to the private                   
  sector, they should pay for it.                                              
                                                                               
  TAPE 94-74, SIDE B                                                           
  Number 637                                                                   
                                                                               
  CHAIR BUNDE said very little research is geographically                      
  specific.  The legislature can no longer give intent.  The                   
  legislators' hands are tied and they can only cut the                        
  budget.                                                                      
                                                                               
  CHAIR BUNDE thanked the speaker and called for the next                      
  testimony.                                                                   
                                                                               
  Number 671                                                                   
                                                                               
  MR. JOE CONNORS, a faculty member at UAA, said he wants to                   
  use existing funds wisely.  He said this is currently not                    
  the case.  Mr. Connors felt that existing faculty have major                 
  disparities in their workloads.  Some faculty teach 140                      
  students per semester, others as few as 40.  In addition to                  
  the teaching disparity, Mr. Connors said there is the                        
  problem of research.  He said he felt the university has not                 
  scrutinized the type of research going on.  He asked,  Who                   
  benefits from a particular research project? Students,                       
  state, UA?  What is the value of the research?  Does it have                 
  state value?  Does it have national value?  Mr. Connors said                 
  he thought that faculty was being taken out of teaching for                  
  administration and special projects and not being replaced.                  
  He commended the legislature for approving funding for 26                    
  new commissions within the year.  However, he said they are                  
  being filled as research and specialty positions, even                       
  though the student body says they need more lower division                   
  teachers.  This costs Alaska more because a doctorate degree                 
  is not needed to teach basic classes.                                        
                                                                               
  Number 735                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked who was accountable for this.                    
                                                                               
  MR. CONNORS replied that the president of the university was                 
  responsible now, and really each of the universities should                  
  be held accountable.                                                         
                                                                               
  Number 748                                                                   
                                                                               
  CHAIR BUNDE said it was his understanding that                               
  three-quarters of the new hires are bipartite or tripartite                  
  and Mr. Dau might want to check his research on this.                        
                                                                               
  MR. CONNORS responded that it was obvious that for every                     
  four 3:1:1's hired, the university could hire another                        
  teacher and serve another 1020 students per semester.                        
                                                                               
  CHAIR BUNDE said he has taught six or seven classes per                      
  semester and would not like to see that type of system made                  
  mandatory by the legislature.                                                
                                                                               
  Number 761                                                                   
                                                                               
  MR. CONNORS agreed.  However, too many people are no longer                  
  doing their jobs, he said.                                                   
                                                                               
  Number 765                                                                   
                                                                               
  REPRESENTATIVE TOOHEY said if this is the case, it is not                    
  the person's fault, it is the system's fault.                                
                                                                               
  Number 768                                                                   
                                                                               
  MR. CONNORS said that insisting on bringing in doctorates to                 
  teach basic classes was harmful.  That person will soon want                 
  to join his or her colleagues teaching higher classes and                    
  doing research.  In essence, he said, Alaskans pay more and                  
  get less.                                                                    
                                                                               
  Number 776                                                                   
                                                                               
  REPRESENTATIVE DAVIS said he would like more information on                  
  new hires and jobs open.                                                     
                                                                               
  Number 793                                                                   
                                                                               
  MR. RALPH McGRATH, president of the Alaska Community College                 
  Federation of Teachers (ACCFT), said they have the                           
  bargaining status as the bartering agent for the full-time                   
  cooperative of the 160 who teach vocational and                              
  undergraduate 100 and 200 courses and they also represent                    
  faculty that teach at the extension sites of all three                       
  universities.  Mr. McGrath said ACCFT has a broad                            
  responsibility of representation, but the one thing that                     
  holds this group together as a faculty is a priority on                      
  teaching and a priority on community college.                                
                                                                               
  MR. McGRATH felt that the university was at a defining point                 
  in its history.  Seven years ago the community college                       
  merged with the university.  Mr. McGrath felt that seven                     
  years was long enough to test whether or not that merger has                 
  worked.  It was his assessment that it has not.  He said the                 
  legislature established the community college act and ACCFT                  
  has turned to the legislature and DHSS for the past 25 years                 
  for guidance, direction, and support.  He said his group was                 
  looking for support for community colleges and would be                      
  seeking that support in the up-coming legislative session.                   
  Mr. McGrath thought the university was currently out of                      
  control.  Departments are making decisions as to what is                     
  important.  Mr. McGrath asked, Where's the leadership?                       
  He felt that leadership has abandoned collegial                              
  administration and there is a question as to why teachers                    
  are here.  As a teacher, Mr. McGrath asks himself, Am I a                    
  university professor or a community college instructor?  The                 
  two, in his opinion, do not mix.  Mr. McGrath said this                      
  leaves teachers in the position of spending a hundred hours                  
  applying for promotion.  That time replaces the time they                    
  used to spend doing something for the community.  He said                    
  the current system has become the equivalent of the movie                    
  "The Paper Chase."  Mr. McGrath stated that the result is an                 
  internalized shifting of what the community college is all                   
  about.                                                                       
                                                                               
  Number 844                                                                   
                                                                               
  CHAIR BUNDE thanked Mr. McGrath for his testimony.  He said,                 
  as representatives of the people of Alaska, we cannot make                   
  decisions in a vacuum.  He asked that any written testimony                  
  be left with the secretary.  He said legislators will be                     
  back in November looking at the university and hearing                       
  testimony.                                                                   
                                                                               
  Seeing no further business before the committee, CHAIR BUNDE                 
  adjourned the meeting at 7:10 p.m.                                           

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