Legislature(2007 - 2008)SENATE FINANCE 532

02/14/2007 09:00 AM Senate FINANCE


Download Mp3. <- Right click and save file as

Audio Topic
09:03:20 AM Start
09:03:56 AM Alaska Mental Health Trust Authority
09:53:11 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation by Alaska Mental Health TELECONFERENCED
Trust Authority, Jeff Jessee, CEO
-- Testimony <Invitation Only> --
                            MINUTES                                                                                           
                    SENATE FINANCE COMMITTEE                                                                                  
                       February 14, 2007                                                                                      
                           9:03 a.m.                                                                                          
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair  Lyman Hoffman  convened  the  meeting at  approximately                                                               
9:03:20 AM.                                                                                                                   
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice Chair                                                                                             
Senator Kim Elton                                                                                                               
Senator Fred Dyson                                                                                                              
Senator Joe Thomas                                                                                                              
Senator Donny Olson                                                                                                             
                                                                                                                                
Also Attending:  REPRESENTATIVE ANDREA DOLL; LARAINE  DERR, Vice-                                                             
chair, Alaska  Mental Health Trust Authority;  JEFF JESSEE, Chief                                                               
Executive Officer, Alaska Mental Health Trust Authority.                                                                        
                                                                                                                                
Attending  via  Teleconference:   There  were  no  teleconference                                                             
participants.                                                                                                                   
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
^Alaska Mental Health Trust Authority                                                                                           
Presentation by Jeff Jessee.                                                                                                    
                                                                                                                                
9:03:56 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  identified  two  documents  to  accompany  the                                                               
presentation, one  titled "Legislative Fiscal  Analyst's Overview                                                               
of the  Governor's FY08 Request"  [copy on file] prepared  by the                                                               
Division  of Legislative  Finance, and  the related  legislation,                                                               
Senate Bill 51.                                                                                                                 
                                                                                                                                
9:05:02 AM                                                                                                                    
                                                                                                                                
LARAINE DERR,  Vice-chair, Alaska Mental Health  Trust Authority,                                                               
introduced herself  as the  Vice-chair of  the Authority  and the                                                               
Chair of Finance for the Authority.                                                                                             
                                                                                                                                
9:05:48 AM                                                                                                                    
                                                                                                                                
JEFF JESSEE, Chief Executive Officer,  Alaska Mental Health Trust                                                               
Authority,  directed members  to the  handout titled  "The Trust;                                                               
History of  the Alaska  Mental Health  Trust Authority"  [copy on                                                               
file].                                                                                                                          
                                                                                                                                
9:06:36 AM                                                                                                                    
                                                                                                                                
     Page 1                                                                                                                     
                                                                                                                                
     Territorial Days                                                                                                           
                                                                                                                                
        ™All mental disabilities lumped together.                                                                              
       ™"Insane Person At Large" - A territorial crime.                                                                        
        ™Federal marshals transport to Morningside in Oregon.                                                                  
                                                                                                                                
Mr. Jessee reviewed the information  on the page, adding that the                                                               
crime of  being an "insane  person at  large" required no  act of                                                               
wrongdoing.  The  mere  existence  of  a  mental  disability  was                                                               
sufficient  to  commit  a  person for  life  to  the  Morningside                                                               
hospital.                                                                                                                       
                                                                                                                                
9:08:04 AM                                                                                                                    
                                                                                                                                
     Page 3                                                                                                                     
                                                                                                                                
     Barriers to Statehood                                                                                                      
                                                                                                                                
        ™No way to continue payment for Morningside.                                                                           
        ™Territorial mental health "program" unacceptable to                                                                   
          Alaskans.                                                                                                             
        ™Washington Post exposes "Siberia USA."                                                                                
                                                                                                                                
Mr.  Jessee summarized  the page,  stressing that  the Washington                                                               
Post headline implied that the  creation of a State mental health                                                               
program in Alaska  would result in a "gulag"  to which dissidents                                                               
would be sent.                                                                                                                  
                                                                                                                                
9:08:52 AM                                                                                                                    
                                                                                                                                
     Page 4                                                                                                                     
                                                                                                                                
     Alaska Mental Health Enabling Act of 1956                                                                                  
                                                                                                                                
        ™Cash payment for construction of API and purchase of                                                                  
          Harborview.                                                                                                           
        ™Phased out operational support to wean Alaska off                                                                     
          federal dole.                                                                                                         
        ™1,000,000 acres of land in trust to generate money to                                                                 
          pay for ongoing expenses.                                                                                             
        ™State legislature appointed trustee.                                                                                  
                                                                                                                                
Mr.  Jessee  pointed  to  a  three-pronged  approach  to  address                                                               
Alaska's mental health  needs. The first was  the construction of                                                               
the Alaska Psychiatric  Institute (API) and the  purchase of what                                                               
would become the Harborview Developmental  Center. He asided that                                                               
the Harborview Motel in Valdez  was purchased by Governor Egan to                                                               
generate employment and  revenue for his hometown, as  well as to                                                               
provide  for  mental  health  needs of  the  State.  The  federal                                                               
Enabling  Act secondly  provided  funding for  these projects  to                                                               
diminish over a period of  eight years, and, thirdly, established                                                               
the Mental Health Land Trust.                                                                                                   
                                                                                                                                
9:10:27 AM                                                                                                                    
                                                                                                                                
     Page 5                                                                                                                     
                                                                                                                                
     Early Land Trust Management                                                                                                
                                                                                                                                
        ™Desirable Trust lands selected first.                                                                                 
        ™Legislature designates some trust land as state parks,                                                                
          forests, and wildlife preserves (over 350,000 acres).                                                                 
        ™Legislature releases 50,000 acres to 5,000 individuals                                                                
          through homesteading, lotteries, and sales.                                                                           
        ™Legislature allows local governments to select over                                                                   
          40,000 acres.                                                                                                         
                                                                                                                                
Mr.  Jessee remarked  that the  State "did  an excellent  job" of                                                               
selecting the Trust  lands, which included the  Homer Spit, Kenai                                                               
River  frontage, portions  of the  Chugach  State Forest,  Beluga                                                               
Coal Fields,  and much of  the areas surrounding  the communities                                                               
of Southeastern  Alaska. When  the State  of Alaska  received 100                                                               
million  acres of  land via  the Statehood  Act, the  one million                                                               
acres  of Trust  lands  were "rolled  into"  the other  federally                                                               
granted  lands. For  several years  the State  treated the  Trust                                                               
lands the same  as other State lands, and during  that time, half                                                               
of  the one  million acres  was taken  out of  trust through  the                                                               
establishment  of  wildlife  preserves, sales,  and  homesteading                                                               
allowances.                                                                                                                     
                                                                                                                                
9:12:41 AM                                                                                                                    
                                                                                                                                
     Page 6                                                                                                                     
                                                                                                                                
     A Change in the Climate                                                                                                    
                                                                                                                                
        ™Internal DNR memos raise concern over trust land                                                                      
          management.                                                                                                           
        ™"Moms and pops" have problems with financing due to                                                                   
          title issues.                                                                                                         
        ™Local governments are on notice that the state has                                                                    
          breached trust and they do not have clear title.                                                                      
        ™Legislature realizes that land removed from trust has                                                                 
          clouded title.                                                                                                        
                                                                                                                                
Mr.  Jessee  noted that  the  mismanagement  of the  Trust  lands                                                               
became apparent in the 1970s  when local governments were allowed                                                               
to  select land  from the  State for  their own  use. When  local                                                               
organizations selected lands  and went to record  their title, it                                                               
was  revealed that  nearly 25  percent of  the lands  chosen were                                                               
Mental Health Trust  lands. While the Trust  lands comprised only                                                               
one  percent of  the  total  State lands,  the  Trust lands  were                                                               
highly desirable and  thus accounted for 25 percent  of the lands                                                               
selected by local entities.                                                                                                     
                                                                                                                                
9:13:10 AM                                                                                                                    
                                                                                                                                
     Page 7                                                                                                                     
                                                                                                                                
     Damage Control                                                                                                             
                                                                                                                                
        ™1978 Legislature redesignates trust land as general                                                                   
          state land.                                                                                                           
        ™Mental health income account created to compensate                                                                    
          trust for lost revenue.                                                                                               
        ™Legislature never makes any deposits.                                                                                 
                                                                                                                                
Mr. Jessee  reviewed the  information on  the slide,  adding that                                                               
within  three years  of the  establishment of  the mental  health                                                               
trust income  account, officials  realized that no  deposits were                                                               
being made.                                                                                                                     
                                                                                                                                
9:14:06 AM                                                                                                                    
                                                                                                                                
     Page 8                                                                                                                     
                                                                                                                                
     Litigation                                                                                                                 
                                                                                                                                
        ™Weiss v. State filed as a class action in 1982                                                                        
          alleging breach of trust. Class broadly defined.                                                                      
        ™Alaska Supreme Court rules in 1985 that trust must be                                                                 
          reconstituted buy only 35% of original land remains.                                                                  
        ™Court injunction freezes all activity on all trust                                                                    
          land.                                                                                                                 
                                                                                                                                
Mr.  Jessee  relayed that  the  Alaska  Supreme Court  relied  on                                                               
"private  trust principles"  in  determining that  the State  had                                                               
breached  its  trust  responsibility. The  Court  identified  the                                                               
remedy as  the return of  the lands to  the Trust, which  was not                                                               
"feasible". Since  the original lands  could not be  returned due                                                               
to various forms of development, the  result was over a decade of                                                               
negotiations, during which time much of the land was "frozen".                                                                  
                                                                                                                                
9:16:30 AM                                                                                                                    
                                                                                                                                
     Page 9                                                                                                                     
                                                                                                                                
     Beneficiaries Defined                                                                                                      
                                                                                                                                
        ™mentally ill,                                                                                                         
        ™chronically alcoholic                                                                                                 
        ™Developmentally disabled                                                                                              
       ™Suffering from Alzheimer's and related dementias                                                                       
                                                                                                                                
Mr. Jessee read  the page, adding that  the Trust's beneficiaries                                                               
were defined in the course of the litigation.                                                                                   
                                                                                                                                
9:16:58 AM                                                                                                                    
                                                                                                                                
     Page 10                                                                                                                    
                                                                                                                                
     Settlement Attempts                                                                                                        
                                                                                                                                
        ™Specially appointed commission values trust land at                                                                   
          $2.2 billion.                                                                                                         
        ™1987, 1990, 1991 - major failed settlement attempts                                                                   
          based on percentage of general fund revenues or land                                                                  
          swaps.                                                                                                                
        ™After the 1991 settlement attempt is rejected by Judge                                                                
          Green, "unholy alliance" of stakeholders gathers to                                                                   
          craft final settlement package.                                                                                       
                                                                                                                                
Mr. Jessee overviewed the information.                                                                                          
                                                                                                                                
9:17:14 AM                                                                                                                    
                                                                                                                                
     Page 11                                                                                                                    
                                                                                                                                
     1994 - Settlement at Last!                                                                                                 
                                                                                                                                
        ™Designation of 995,502 acres to be managed by a                                                                       
          special unit within DNR                                                                                               
          341,421 - subsurface estate                                                                                           
          104,286 - hydrocarbon interest                                                                                        
          549,795 - fee simple                                                                                                  
        ™Appropriation of $200 million to a trust fund to be                                                                   
          managed by the Alaska Permanent Fund Corporation.                                                                     
                                                                                                                                
Mr.  Jessee identified  the Trust's  goal  of reestablishing  the                                                               
million acre land trust as  initially provided for by Congress. A                                                               
diverse  group  of  stakeholders   was  assembled  to  develop  a                                                               
replacement  list of  one half  million acres  to make  the Trust                                                               
whole.  These lands  would be  managed by  the Trust  Land Office                                                               
within  the Department  of Natural  Resources, and  would operate                                                               
under trust principles rather than  general State land management                                                               
principles.                                                                                                                     
                                                                                                                                
Mr.  Jessee  informed that  the  replacement  lands were  not  as                                                               
valuable as  the originally  selected properties.  The difference                                                               
in  value  was  agreed  to   be  $200  million  which  the  State                                                               
appropriated, and is managed by the Permanent Fund Corporation.                                                                 
                                                                                                                                
9:19:37 AM                                                                                                                    
                                                                                                                                
     Page 12                                                                                                                    
                                                                                                                                
     1994 - Settlement at Last!                                                                                                 
                                                                                                                                
        ™Creation of the Alaska Mental Health Trust Authority                                                                  
          to  act as  trustee. Separate  appropriations bill  for                                                               
          mental health program.                                                                                                
        ™Comprehensive Integrated Mental Health Program Plan                                                                   
          required.                                                                                                             
        ™Four advisory boards make budget recommendations to                                                                   
          Trust trustees.                                                                                                       
        ™Commissioners (DNR, DOR, DHSS) designated as advisors                                                                 
          to The Trust.                                                                                                         
                                                                                                                                
Mr.  Jessee   indicated  the  "most  important"   aspect  of  the                                                               
settlement was the creation of  the Mental Health Trust Authority                                                               
Board  of Trustees,  which  acts as  a trustee  of  the Trust  to                                                               
improve mental health services throughout the State.                                                                            
                                                                                                                                
Mr.  Jessee  noted  the settlement  also  created  an  integrated                                                               
mental health program  by regrouping all of  the services offered                                                               
by the  State into  one budget  appropriation that  included both                                                               
capital  and operating  costs.  Additionally,  the Department  of                                                               
Health and  Social Services  (DHSS) was  charged with  creating a                                                               
"comprehensive  integrated mental  health  plan". Benchmarks  and                                                               
performance measures are  reflected in the plan,  as the trustees                                                               
have  placed  great  value  on  accountability  and  a  focus  on                                                               
results. Results  are monitored  both in terms  of the  number of                                                               
people assisted by a program, and  the number of those people who                                                               
remain "better" after a period  of time. He encouraged Members to                                                               
examine the  DHSS Bring  the Kids  Home program  in terms  of the                                                               
benchmarks and program results.                                                                                                 
                                                                                                                                
9:24:09 AM                                                                                                                    
                                                                                                                                
     Page 13                                                                                                                    
                                                                                                                                
     Trust Mission Statement                                                                                                    
                                                                                                                                
        ™The Alaska Mental Health Trust Authority administers                                                                  
          the Mental  Health Trust established in  perpetuity. It                                                               
          has a fiduciary responsibility  to its beneficiaries to                                                               
          enhance   and  protect   The  Trust   and  to   provide                                                               
          leadership  in  advocacy,  planning,  implementing  and                                                               
          funding  of a  comprehensive  integrated mental  health                                                               
          program to  improve the lives and  circumstances of its                                                               
          beneficiaries.                                                                                                        
                                                                                                                                
Mr. Jessee identified the Trust mission statement.                                                                              
                                                                                                                                
9:24:19 AM                                                                                                                    
                                                                                                                                
     Page 14                                                                                                                    
                                                                                                                                
     The Trust Authority Roles                                                                                                  
                                                                                                                                
        ™Oversee management of Trust assets.                                                                                   
        ™Maintain Trust management framework.                                                                                  
        ™Safeguard Annual payout from principal (currently                                                                     
          4.00%).                                                                                                               
        ™Maintain Budget reserve account.                                                                                      
        ™Inflation proof principal to preserve Trust for future                                                                
          generations.                                                                                                          
        ™Spend trust income.                                                                                                   
        ™Separate Mental Health budget bill - recommend to                                                                     
          Governor and Legislature how the State of Alaska                                                                      
          should spend general fund resources.                                                                                  
                                                                                                                                
Mr. Jessee informed that the  trustees expend a percentage of the                                                               
endowment each  year. As  a perpetual  trust, the  trustees could                                                               
not  pay  out  any  of  the principal  trust  dollars,  and  have                                                               
therefore allocated  a portion  of the funds  to a  reserve fund.                                                               
The Trust  hired Callan  & Associates,  a consulting  firm, which                                                               
advised that an  amount equal to four times the  annual payout be                                                               
placed in an  income reserve account to be used  in times of poor                                                               
market returns.  This ensures a  consistent level of  funding and                                                               
allows for long-term projects.                                                                                                  
                                                                                                                                
Mr. Jessee  told that at one  point, the reserve balance  fell to                                                               
158  percent from  a  target  of 400  percent.  When the  reserve                                                               
reached the targeted 400 percent,  the payout would be increased,                                                               
and  the amount  paid  into the  reserve  account would  increase                                                               
correspondingly. The  current payout is  four percent,  and would                                                               
likely not increase over 4.75 percent.                                                                                          
                                                                                                                                
9:27:43 AM                                                                                                                    
                                                                                                                                
Senator  Huggins referred  to the  last  bullet on  Page 14,  and                                                               
asked   whether   the   Trust  had   already   communicated   its                                                               
recommendations to the Governor and Legislature for FY08.                                                                       
                                                                                                                                
Mr. Jessee affirmed.                                                                                                            
                                                                                                                                
Senator   Huggins    asked   the   time   schedule    for   those                                                               
recommendations.                                                                                                                
                                                                                                                                
Mr.  Jessee replied  that the  Trust  is required  by statute  to                                                               
provide  that  information by  September  15.  He continued  that                                                               
after  the Trustees  forward recommendations  to the  legislature                                                               
and  governor,   and,  if  either   body  does  not   follow  the                                                               
recommendations  of   the  Board,  it  must   provide  a  written                                                               
explanation to the  Trustees of why the  recommendations were not                                                               
adhered to.  This provides an  opportunity for  "policy dialogue"                                                               
between the two bodies and the Board.                                                                                           
                                                                                                                                
9:29:54 AM                                                                                                                    
                                                                                                                                
     Page 18                                                                                                                    
                                                                                                                                
     Beneficiaries by the Numbers:                                                                                              
                                                                                                                                
        ™8.5% of Alaskans age 18 and over have a Serious Mental                                                                
          Illness.                                                                                                              
        ™An estimated one in 10 Alaskans over age 65, and                                                                      
          nearly half of those 85 or older have Alzheimer's                                                                     
          disease.                                                                                                              
        ™Approximately 11,500 Alaskans have developmental                                                                      
          disabilities.                                                                                                         
        ™15% of all Alaskans aged 18 to 25 are "heavy                                                                          
          drinkers."                                                                                                            
                                                                                                                                
Mr. Jessee  reviewed the slide,  and commented that  the Pioneers                                                               
Homes  are transitioning  to  serve the  needs  of an  increasing                                                               
number of Alaskans with Alzheimer's disease or other dementia.                                                                  
                                                                                                                                
9:31:11 AM                                                                                                                    
                                                                                                                                
     Page 19                                                                                                                    
                                                                                                                                
     Focus Area: Justice for Persons With Disabilities                                                                          
                                                                                                                                
        ™Up to 37% of persons in custody or under supervision                                                                  
          of the Department of Corrections suffers from a mental                                                                
          illness, and 12% have major psychiatric disorders.                                                                    
        ™This special program is funded in large part by the                                                                   
          AMHTA, and is aimed specifically at getting mentally                                                                  
          ill people out of the pattern of repeated petty                                                                       
          crimes.                                                                                                               
                                                                                                                                
Mr. Jessee  revealed that initially  the Trustees sought  to make                                                               
major  far-reaching changes  to  the mental  health system.  When                                                               
that  approach  proved less  effective  than  desired, the  Board                                                               
amended  their method  to  focus on  five  specific areas.  These                                                               
areas are issues  that the Trustees identify  as significant, and                                                               
they commit to attend to for an  average of four to six years, or                                                               
until marked progress is made.                                                                                                  
                                                                                                                                
Mr. Jessee told that one focus  area was justice for persons with                                                               
disabilities. He noted that the  Department of Corrections is the                                                               
single largest mental health provider  in the State. The Trustees                                                               
seek to  affect this group  of persons  in need of  mental health                                                               
services on  three levels: therapeutic and  mental health courts;                                                               
opportunities to  assist those  in custody;  and methods  to help                                                               
offenders  upon release  so they  do not  return to  custody. Mr.                                                               
Jessee mentioned  that incarcerated persons are  now prequalified                                                               
to  receive  Social  Security   assistance  before  release  from                                                               
prison.                                                                                                                         
                                                                                                                                
9:34:24 AM                                                                                                                    
                                                                                                                                
     Page 24                                                                                                                    
                                                                                                                                
     Focus Area: Bring the Kids Home                                                                                            
                                                                                                                                
        ™Today nearly 700 Alaskan youth receive care at a                                                                      
          Residential Psychiatric Treatment Center outside the                                                                  
          State of Alaska.                                                                                                      
        ™This initiative has been designed to reverse the trend                                                                
          of exporting young Alaskans with serious emotional                                                                    
          disturbances.                                                                                                         
                                                                                                                                
Mr.  Jessee noted  that the  Board  had collaborated  extensively                                                               
with  the  Department of  Health  and  Social Services,  and  had                                                               
"turned  the curve"  in  returning Alaskan  youth  to the  state.                                                               
Alaska Natives constitute  40 percent of the  youths in treatment                                                               
outside  of the  state,  therefore the  Trustees  have worked  in                                                               
partnership with  tribal providers  to serve people  within their                                                               
system.                                                                                                                         
                                                                                                                                
9:35:13 AM                                                                                                                    
                                                                                                                                
     Page 27                                                                                                                    
                                                                                                                                
     Focus Area: Beneficiary Project Initiatives                                                                                
                                                                                                                                
        ™The Trust combines financial support with technical                                                                   
          assistance options. Beneficial results include:                                                                       
             o The   creation    of   sustainable   organizations                                                               
               controlled by the beneficiaries.                                                                                 
             o The creation of innovative programs to better                                                                    
               serve the beneficiaries.                                                                                         
                                                                                                                                
Mr. Jessee summarized this focus area by stating: "It is not                                                                    
necessary for people to totally be dependant on government-                                                                     
funded treatment programs. People can and do recover, and are                                                                   
able to support each other in that recovery."                                                                                   
                                                                                                                                
9:35:43 AM                                                                                                                    
                                                                                                                                
     Page 29                                                                                                                    
                                                                                                                                
     Workforce Development                                                                                                      
                                                                                                                                
        ™A trained workforce is critical to all Trust                                                                          
          beneficiary   services.  The   Trust   is  working   in                                                               
          partnership  with the  University of  Alaska, State  of                                                               
          Alaska,  service providers,  professional organizations                                                               
          and  the Alaska  Native  Tribal  Consortium to  develop                                                               
          strategies to prepare new workforce  and to recruit and                                                               
          retain people in the workforce.                                                                                       
                                                                                                                                
Mr. Jessee informed that workforce  development is applied to all                                                               
of  the  Authority's focus  groups.  A  shortage of  health  care                                                               
providers exists in  the state to offer assistance  to those with                                                               
mental health needs.                                                                                                            
                                                                                                                                
9:36:50 AM                                                                                                                    
                                                                                                                                
Mr. Jessee played a video for the Committee. The following is a                                                                 
transcript of the presentation.                                                                                                 
                                                                                                                                
     Narrator:                                                                                                                  
                                                                                                                                
          Many people think that the  homeless population is made                                                               
          up mostly of  alcoholic single men who  just don't want                                                               
          to  work.  But  the  reality  is  quite  different.  In                                                               
          Alaska, the  average age of  a homeless person  is nine                                                               
          years old.                                                                                                            
                                                                                                                                
          Alaska is one  of the wealthiest states  in the nation.                                                               
          Yet on any given  night approximately 3500 Alaskans are                                                               
          homeless. People are at risk  of homelessness when they                                                               
          have to  choose between food, shelter,  and other basic                                                               
          needs. All  it takes is  an unexpected medical  bill to                                                               
          put someone on the street.                                                                                            
                                                                                                                                
          Alaskans  want to  help. In  a recent  statewide public                                                               
          opinion  survey,  90  percent  agreed that  we  have  a                                                               
          responsibility  to  help people  who  need  a place  to                                                               
          live.                                                                                                                 
                                                                                                                                
          In  Alaska  there  is a  gap  between  what  low-income                                                               
          people  can   afford  for  housing  and   what  housing                                                               
          actually costs.                                                                                                       
                                                                                                                                
9:38:04 AM                                                                                                                    
                                                                                                                                
     Dan Fauske, CEO/Executive Director, Alaska Housing Finance                                                                 
     Corporation, Department of Revenue:                                                                                        
                                                                                                                                
          Average cost of a new  home in Anchorage, for instance,                                                               
          is around  $329,000. That takes some  income to support                                                               
          that kind of debt.                                                                                                    
                                                                                                                                
          Even in the  rental market, if you're  on disability or                                                               
          unable to  work, for whatever reason,  you're not going                                                               
          to be able to even afford rent.                                                                                       
                                                                                                                                
     Narrator:                                                                                                                  
                                                                                                                                
          Who is homeless in Alaska?                                                                                            
                                                                                                                                
9:38:56 AM                                                                                                                    
                                                                                                                                
     Jeff Jessee:                                                                                                               
                                                                                                                                
          They're barely making it on  the salary that they have,                                                               
          and it doesn't take much.  A car repair, and emergency,                                                               
          a  medical  emergency,  they often  don't  have  health                                                               
          insurance either.  Any sort  of additional  expense and                                                               
          they are pushed over the edge.                                                                                        
                                                                                                                                
     Narrator:                                                                                                                  
                                                                                                                                
          The fact is  about 45 percent of  Alaska's homeless are                                                               
          families with children.                                                                                               
                                                                                                                                
9:39:15 AM                                                                                                                    
                                                                                                                                
     Tawnya:                                                                                                                    
                                                                                                                                
          I lost  my job. My mom  passed away. I missed  a lot of                                                               
          work. And it made it difficult.  And so we ended up not                                                               
          being able to  pay our bills. And so we  ended up being                                                               
          homeless.                                                                                                             
                                                                                                                                
     Kuya:                                                                                                                      
                                                                                                                                
          I  was  employed, working.  I'm  a  single parent  with                                                               
          three kids.  How everything came crashing  down is when                                                               
          I got  sick at work, and  I didn't have any  leave, and                                                               
          there was  nobody there  to help. It  went from  bad to                                                               
          worse.  I  lost   my  car.  So  then   we  didn't  have                                                               
          transportation. I  had no idea  how I was going  to get                                                               
          my children to school.                                                                                                
                                                                                                                                
     Narrator:                                                                                                                  
                                                                                                                                
          More  than 3,000  school children  who are  homeless or                                                               
          inadequately housed  at some time during  the 2005-2006                                                               
          school year.                                                                                                          
                                                                                                                                
9:39:55 AM                                                                                                                    
                                                                                                                                
     Barb   Dexter,   Child   in   Transition/Homeless   program,                                                               
     Anchorage School District:                                                                                                 
                                                                                                                                
          The  average age  of a  homeless person  is nine  years                                                               
          old.  And  we  anticipate  that  even  getting  younger                                                               
          because  the largest  growing  population are  families                                                               
          with young children.                                                                                                  
                                                                                                                                
    Carol Comeau, Superintendent, Anchorage School District:                                                                    
                                                                                                                                
          Homeless  kids,  if they're  moving  around  a lot  and                                                               
          they're not able  to go back to the  same school during                                                               
          the  year, they  don't do  as  well. Most  of them  are                                                               
          embarrassed about their situation.  A lot of them don't                                                               
          like  to  talk about  it,  so  they  put some  kind  of                                                               
          protections around themselves.                                                                                        
                                                                                                                                
9:40:27 AM                                                                                                                    
                                                                                                                                
     Tawnya:                                                                                                                    
                                                                                                                                
          Us  being   in  the  shelter,  actually,   my  youngest                                                               
          daughter has  gotten -- we  got her first  report card;                                                               
          she got all  F's. It was very stressful for  her. A lot                                                               
          of  sleepless nights.  Didn't know  what to  do. Didn't                                                               
          want to do her homework. She regressed really bad.                                                                    
                                                                                                                                
     Barb Dexter:                                                                                                               
                                                                                                                                
          One of  the things  that you look  at is  that children                                                               
          who experience  homelessness are  four times  as likely                                                               
          to  have  learning  disabilities, to  have  significant                                                               
          cognitive delays.                                                                                                     
                                                                                                                                
     Narrator:                                                                                                                  
                                                                                                                                
          Homeless   children  experience   more  mental   health                                                               
          problems such  as anxiety, depression,  and withdrawal.                                                               
          Children without a home are  also more likely to suffer                                                               
          from  asthma,  ear infections,  stomach  complications,                                                               
          and speech problems.                                                                                                  
                                                                                                                                
          About  14 percent  of  Alaska's  homeless are  severely                                                               
          mentally ill.                                                                                                         
                                                                                                                                
9:41:02 AM                                                                                                                    
                                                                                                                                
     Narrator:                                                                                                                  
                                                                                                                                
          Nena was homeless and slept  on couches at her friends'                                                               
          house and sometimes on the street.                                                                                    
                                                                                                                                
     Nena:                                                                                                                      
                                                                                                                                
          My mother  died and I  went through a  mental breakdown                                                               
          and I got  sick and lost everything. Had  to forfeit my                                                               
          condo and  my car. I functioned  normally. I functioned                                                               
         normally. I just had auditory hallucinations.                                                                          
                                                                                                                                
     Jeff Jessee:                                                                                                               
                                                                                                                                
          We have  so many people  that have a mental  illness or                                                               
          chronic substance  abuse problem and they  cycle in and                                                               
          out of  the psychiatric  hospital, in  and out  of jail                                                               
          for petty  misdemeanors. If they  are able  to actually                                                               
          find a secure  home and have the  support services that                                                               
          they  need,  and  realize that  over  time  they  could                                                               
          actually remain stable in the  community, then that's a                                                               
          life-changing experience for them.                                                                                    
                                                                                                                                
     Narrator:                                                                                                                  
                                                                                                                                
          Homelessness costs Alaska.                                                                                            
                                                                                                                                
          Hospitalization,   incarceration,   and   mental-health                                                               
          treatment are just  some of the costs  a community must                                                               
          bear.                                                                                                                 
                                                                                                                                
          The  Federal Government  provides the  lion's share  of                                                               
          housing assistance,  but it  does not  adequately focus                                                               
          on the problems faced by those  who are on the brink of                                                               
          homelessness,  or those  who have  already been  forced                                                               
          out of their homes.                                                                                                   
                                                                                                                                
9:42:42 AM                                                                                                                    
                                                                                                                                
     Narrator:                                                                                                                  
                                                                                                                                
          How can we help?                                                                                                      
                                                                                                                                
          A major step is the Alaska Housing Trust.                                                                             
                                                                                                                                
     Jeff Jessee:                                                                                                               
                                                                                                                                
          Well, the Housing Trust is  a strategy that many states                                                               
          and other  jurisdictions are using  now to try  to take                                                               
          our  existing housing  programs  and  target them  more                                                               
          directly  to people  that are  homeless or  at risk  of                                                               
          becoming homeless.                                                                                                    
                                                                                                                                
     Narrator:                                                                                                                  
                                                                                                                                
          In  2004, the  Governor created  the Alaska  Council on                                                               
          Homelessness to address the  issue of homeless Alaskans                                                               
          and those struggling to stay in their homes.                                                                          
                                                                                                                                
          The  Council  was  composed  of  representatives  of  a                                                               
          number of state and federal agencies.                                                                                 
                                                                                                                                
9:43:33 AM                                                                                                                    
                                                                                                                                
     Dan Fauske:                                                                                                                
                                                                                                                                
          Within that  group were  eight Commissioners,  the head                                                               
          of the  Alaska Mental Health Trust  Authority, HUD, and                                                               
          the Lieutenant Governor.                                                                                              
                                                                                                                                
          We  met  numerous  times  and  gathered  testimony  and                                                               
          information from  a variety of participants  to gain as                                                               
          much knowledge  about the  subject of  the homelessness                                                               
          throughout the state as we  could. What we have arrived                                                               
          at  was  creating  a  housing  trust  to  help  support                                                               
          homeless issues and financing for homelessness.                                                                       
                                                                                                                                
9:44:43 AM                                                                                                                    
                                                                                                                                
     Narrator:                                                                                                                  
                                                                                                                                
          More  than 30  states  across the  nation have  created                                                               
          successful  housing  trust  funds. Housing  trust  fund                                                               
          activities that reduce homelessness.                                                                                  
                                                                                                                                
          Some of  those activities  include the  construction of                                                               
          new  housing; the  rehabilitation of  existing housing;                                                               
          the purchase of land;  the establishment of a community                                                               
          land trust; and the modification  of housing to make it                                                               
          accessible.                                                                                                           
                                                                                                                                
          Housing  trusts  can  also  provide  down  payment  and                                                               
          deposit    assistance;   rental    assistance;   tenant                                                               
          education;  case management  and counseling;  financial                                                               
         counseling; and crisis intervention services.                                                                          
                                                                                                                                
          The Housing  Trust will use proven  strategies like the                                                               
          program  started in  Seattle  by the  Bill and  Melinda                                                               
          Gates that provided $40 million  to build 1500 units of                                                               
          service-enriched housing.                                                                                             
                                                                                                                                
          Strategies  implemented through  housing trusts  in the                                                               
          lower 48  have successfully addressed the  issues faced                                                               
          by  the  homeless. They've  also  served  the needs  of                                                               
          those who work but are still at risk of homelessness.                                                                 
                                                                                                                                
          It's time to make it work in Alaska.                                                                                  
                                                                                                                                
          By using  innovation derived from the  successful pilot                                                               
          projects around  the state and  the nation,  the Alaska                                                               
          Housing  Trust seeks  to  create long-term,  affordable                                                               
          housing  to  reduce  homelessness  and  to  help  those                                                               
          struggling to stay in their homes.                                                                                    
                                                                                                                                
          The  Alaska Housing  Trust: Opportunity  begins with  a                                                               
          home.                                                                                                                 
                                                                                                                                
9:45:38 AM                                                                                                                    
                                                                                                                                
Mr.  Jessee  shared  that  the  majority  of  housing  assistance                                                               
funding  is allocated  to people  with  an income  70 percent  or                                                               
above the  area median income.  This is  due to two  factors. The                                                               
first is that  projects "pencil out better" if  the tenants could                                                               
contribute  more  money to  the  program  in  the form  of  rent.                                                               
Secondly,  homeless people  are typically  homeless because  they                                                               
suffer  from other  problems, including  alcoholism or  substance                                                               
abuse, domestic violence, or health issues.                                                                                     
                                                                                                                                
Mr.  Jessee explained  that  a housing  trust  differed from  the                                                               
conventional  approach  in that  a  housing  trust links  support                                                               
services directly  to the housing  developments. He  exampled the                                                               
success  of   the  Gates  Foundation,   which  had   reduced  the                                                               
percentage  of  school-aged  kids  who  attended  more  than  two                                                               
schools in a  year from 25 percent to five  percent. He suggested                                                               
that revenue generated by the  Alaska Housing Finance Corporation                                                               
could be  used to fund  a housing  trust to address  the homeless                                                               
issue.                                                                                                                          
                                                                                                                                
9:48:25 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman asked  if SB  51,  appropriating Mental  Health                                                               
Trust Authority funds for FY08, is supported by the Trust.                                                                      
                                                                                                                                
Mr.  Jessee reported  that the  Authority generally  supports the                                                               
bill, but noted  that a number of recommendations  from the Board                                                               
were not  included in  the current  legislation. The  Trust would                                                               
continue to  work with the  Administration and  the subcommittees                                                               
to address concerns.                                                                                                            
                                                                                                                                
Co-Chair Hoffman  asked if Mr.  Jessee anticipated  amendments to                                                               
the bill.                                                                                                                       
                                                                                                                                
Mr.  Jessee affirmed,  indicating his  expectation that  Governor                                                               
Sarah Palin's  budget amendments would contain  amendments to the                                                               
mental health bill.                                                                                                             
                                                                                                                                
9:49:17 AM                                                                                                                    
                                                                                                                                
Senator  Dyson mentioned  Alaska's  problem  with "fetal  alcohol                                                               
spectrum  disorder,"  and  asked   if  diagnostic  services  were                                                               
available to the Authority's clients.                                                                                           
                                                                                                                                
Mr. Jessee  responded that  the Trust had  made progress  and was                                                               
concluding  a five  year  federal grant  program  to address  the                                                               
issue. The federal grant had  assisted in evaluation services and                                                               
the  establishment of  prevention programs.  However the  funding                                                               
would  not  continue  and unless  replacement  funding  could  be                                                               
identified, those programs would cease.                                                                                         
                                                                                                                                
Senator Dyson asked the amount of the federal grant.                                                                            
                                                                                                                                
Mr.  Jessee  understood  the  necessary   level  of  funding  was                                                               
approximately $500,000.                                                                                                         
                                                                                                                                
9:50:27 AM                                                                                                                    
                                                                                                                                
Senator Huggins asked the percent of homeless who were veterans.                                                                
                                                                                                                                
Mr. Jessee was  not sure of the percentage, but  agreed that many                                                               
veterans  were  homeless.  He  stressed  that  a  key  factor  in                                                               
maintaining housing for previously  homeless veterans was support                                                               
services, as many of them had issues beyond homelessness.                                                                       
                                                                                                                                
Senator Huggins  asked Mr. Jessee's  opinion of the  success rate                                                               
of   a  Veteran's   dormitory  administered   by  the   Veteran's                                                               
Administration.                                                                                                                 
                                                                                                                                
Mr. Jessee characterized the program  as "very successful" in the                                                               
areas where it provides services,  but commented that it does not                                                               
address long term needs of the people being served.                                                                             
                                                                                                                                
Senator Huggins recalled that the program includes treatment,                                                                   
placement in employment, and temporary subsidized housing.                                                                      
                                                                                                                                
9:52:24 AM                                                                                                                    
                                                                                                                                
Mr. Jessee concurred, adding that the continuation of services                                                                  
was where our system was "particularly weak".                                                                                   
                                                                                                                                
9:52:35 AM                                                                                                                    
                                                                                                                                
Senator Thomas inquired the cost of providing out-of-state                                                                      
treatment for the 700 youths currently receiving those services.                                                                
                                                                                                                                
Mr. Jessee estimated that cost at $35 to $40 million each year.                                                                 
                                                                                                                                
9:52:58 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman informed that Mr. Jessee would likely be back                                                                  
before the Committee during the amendment process.                                                                              
                                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Lyman Hoffman adjourned the meeting at 9:53:11 AM                                                                    

Document Name Date/Time Subjects