Legislature(2023 - 2024)SENATE FINANCE 532

04/21/2023 01:00 PM Senate FINANCE

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Audio Topic
01:06:30 PM Start
01:08:14 PM HB39 || HB41 || SB41
01:11:14 PM Public Testimony: Anchorage, Matanuska Susitna Valley, and Kenai Peninsula
02:54:56 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
For Anchorage, Mat-Su Valley, Kenai
Peninsula Please sign up by 2:45 pm
+= HB 39 APPROP: OPERATING BUDGET/LOANS/FUND; SUPP TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+= HB 41 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+= SB 41 APPROP: CAPITAL/SUPPLEMENTAL TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 21, 2023                                                                                            
                         1:06 p.m.                                                                                              
                                                                                                                                
1:06:30 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 1:06 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator David Wilson                                                                                                            
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Alissa  Nadine   Rogers,  Director  of   Natural  Resources,                                                                    
Orutsararmiut  Native Council,  Palmer; Chris  Rainwater, AK                                                                    
Association   of  Conservation   Districts,  Homer;   Doreen                                                                    
Schenkenberger,  Chief   Executive  Officer,   Partners  for                                                                    
Progress, Anchorage; Patrick  Reinhart, Director, Governor's                                                                    
Council  on Disability  and  Special  Education, Homer;  Bob                                                                    
Scanlon,  Blood  Bank  of Alaska,  Anchorage;  Chris  Mello,                                                                    
Blood Bank  of Alaska,  Anchorage; Kelly  Lessons, Anchorage                                                                    
School Board,  Anchorage; Tom Crafton, Key  Coalition, Eagle                                                                    
River; Steve  Rollins, Self, Anchorage; Dirk  Shumaker, Kids                                                                    
Core Head  Start, Anchorage; Laura Bonner,  Self, Anchorage;                                                                    
George Hays,  Deputy Manager, Matsu Borough,  Palmer; Alicia                                                                    
Amberg, Associated  General Contractors,  Anchorage; Colleen                                                                    
Dushkin,   Association   of  Alaska   Housing   Authorities,                                                                    
Anchorage; Chris Kolerok,  Cook Inlet Housing Authorization,                                                                    
Anchorage;  Scott  Vierra,  Self,  Anchorage;  Judy  Jessen,                                                                    
Political   and   Advocacy  Organizer,   Service   Employees                                                                    
International Union  775, Anchorage; Matt Carle,  Blood Bank                                                                    
of  Alaska, Anchorage;  Beth  Nordlund, Executive  Director,                                                                    
Anchorage Park Foundation,  Anchorage; Andres Widemer, Self,                                                                    
Anchorage;  Ginger McKee,  Self, Two  Rivers; Nicky  Szarzi,                                                                    
Self, Fritz  Creek; Kimberly  Sasser, Self,  Anchorage; Bert                                                                    
Houghtaling,  Self,  Big  Lake;  Marge  Stoneking,  Advocacy                                                                    
Director,  AARP Alaska,  Anchorage; George  Thompson, Public                                                                    
Works  Director, City  of  Houston,  Houston; Carly  Dennis,                                                                    
Self,  Anchorage;  Leslie   Davis,  Self,  Wasilla;  Beverly                                                                    
Luedke-Chan,  Self,  Anchorage  Ski  Club,  Anchorage;  Gabe                                                                    
Kitter,  Self, Wasilla;  Trevor Storrs,  President and  CEO,                                                                    
Alaska  Children's  Trust,  Anchorage;  Katherine  Cronlund,                                                                    
Self, Anchorage;  Ron Meehan,  Policy and  Advocacy Manager,                                                                    
Food  Bank  of  Alaska,  Anchorage;  Winter  Marshall-Allen,                                                                    
Self, Homer;  Mark Lackey, CCS Early  Learning, Wasilla; Wes                                                                    
Hoskins,  MatSu  Trails  and Parks  Foundation,  Palmer;  M.                                                                    
Elise  Huggins,   President,  Alaska  Chapter   of  American                                                                    
Society  of Landscape  Architects,  Anchorage; Paul  Seaton,                                                                    
Self,  Kachemak;  Lisa  Paesani,  Self,  Anchorage;  Richard                                                                    
Gustafson,  Self, Homer;  Sue Mauger,  Self, Homer;  Tiffany                                                                    
Hall, Recover Alaska,  Anchorage; Michele Girault, Executive                                                                    
Director,  Hope   Community  Resources,   Anchorage;  George                                                                    
Pierce, Self,  Kasilof; Suzi Pearson, Abused  Women's Aid In                                                                    
Crisis, Anchorage.                                                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 41     APPROP: CAPITAL/SUPPLEMENTAL                                                                                          
                                                                                                                                
          SB 41 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
CSHB 39(FIN) am(brf sup maj fld)(efd fld)                                                                                       
         APPROP: OPERATING BUDGET/LOANS/FUND; SUPP                                                                              
                                                                                                                                
          CSHB 39(FIN) was HEARD and HELD in committee for                                                                      
          further consideration.                                                                                                
                                                                                                                                
CSHB 41(FIN) am                                                                                                                 
          APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          CSHB 41(FIN) was HEARD and HELD in committee for                                                                      
          further consideration.                                                                                                
                                                                                                                                
PUBLIC TESTIMONY:  ANCHORAGE, MATANUSKA SUSITNA  VALLEY, and                                                                    
KENAI PENINSULA                                                                                                                 
                                                                                                                                
CS FOR HOUSE BILL NO. 39(FIN) am(brf sup maj fld)(efd fld)                                                                    
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;   capitalizing   funds;   repealing                                                                    
     appropriations;    amending   appropriations;    making                                                                    
     reappropriations;      and     making      supplemental                                                                    
     appropriations."                                                                                                           
                                                                                                                                
CS FOR HOUSE BILL NO. 41(FIN) am                                                                                              
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
SENATE BILL NO. 41                                                                                                            
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations   and   other   appropriations;   making                                                                    
     supplemental  appropriations; making  appropriations to                                                                    
     capitalize  funds;  and   providing  for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
Co-Chair Stedman  discussed the agenda. He  relayed that the                                                                    
committee  would  hear  public testimony  on  the  operating                                                                    
budget,  the mental  health budget,  and the  capital budget                                                                    
for FY 24. He discussed the public testimony process.                                                                           
                                                                                                                                
Co-Chair Stedman handed the gavel to Senator Bishop.                                                                            
                                                                                                                                
1:08:14 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:10:10 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^PUBLIC TESTIMONY: ANCHORAGE,  MATANUSKA SUSITNA VALLEY, and                                                                  
KENAI PENINSULA                                                                                                               
                                                                                                                                
1:11:14 PM                                                                                                                    
                                                                                                                                
ALISSA  NADINE   ROGERS,  DIRECTOR  OF   NATURAL  RESOURCES,                                                                    
ORUTSARARMIUT NATIVE  COUNCIL, PALMER  (via teleconference),                                                                    
supported pay and benefits for  teachers. She cited that the                                                                    
Western region of the state  was constantly being threatened                                                                    
with   development.   She   supported   infrastructure   for                                                                    
businesses and  fisheries. She  mentioned the  Department of                                                                    
Environmental  Conservation (DEC)  scaling back  permitting.                                                                    
She mentioned the decline of salmon fisheries.                                                                                  
                                                                                                                                
1:13:43 PM                                                                                                                    
                                                                                                                                
CHRIS RAINWATER,  AK ASSOCIATION OF  CONSERVATION DISTRICTS,                                                                    
HOMER (via teleconference), testified  in support of funding                                                                    
in the  capital budget  for a  line item  of $250,000  to be                                                                    
spread amongst the 10  conservation districts. He referenced                                                                    
capital  project  request  TPS   68001.  He  described  that                                                                    
conservation districts  came out  of the  dustbowl era  as a                                                                    
solution   to   renewable   resource  problems   that   were                                                                    
overwhelming   the   nation.   He   discussed   conversation                                                                    
districts and  partnering with the United  States Department                                                                    
of  Agriculture (USDA).  The conservation  districts matched                                                                    
$10 million for  programs and had about 75  staff people. He                                                                    
mentioned the Statehood Act.                                                                                                    
                                                                                                                                
1:17:13 PM                                                                                                                    
                                                                                                                                
DOREEN  SCHENKENBERGER,  CHIEF EXECUTIVE  OFFICER,  PARTNERS                                                                    
FOR PROGRESS,  ANCHORAGE (via teleconference),  testified in                                                                    
support  of  $2  million  for  the  Alaska  Housing  Finance                                                                    
Corporation (AHFC) Homeless  Assistance Program. She relayed                                                                    
that   Partners   for    Progress   provided   services   to                                                                    
incarcerated    and    previously   incarcerated    homeless                                                                    
individuals  supporting  Alaskas    therapeutic  courts  and                                                                    
walk-in  center  in  Anchorage.  She  emphasized  that  safe                                                                    
housing   was  essential   for   recidivism  reduction   and                                                                    
recovery. She  discussed supportive services.  She supported                                                                    
adding  $750,000 for  the Special  Needs  Housing Grant  for                                                                    
AHFC.  She noted  that many  individuals served  by Partners                                                                    
for  Progress suffered  from  mental  illness. She  asserted                                                                    
that  adding  funding to  the  budget  would help  keep  the                                                                    
population from  homelessness and recidivism and  would save                                                                    
the state money.                                                                                                                
                                                                                                                                
1:19:47 PM                                                                                                                    
                                                                                                                                
PATRICK   REINHART,   DIRECTOR,    GOVERNOR'S   COUNCIL   ON                                                                    
DISABILITY    AND    SPECIAL     EDUCATION,    HOMER    (via                                                                    
teleconference),  testified  in  support  of  infrastructure                                                                    
funds for eradication of  the Intellectual and Developmental                                                                    
Disabilities (IDD)  waitlist waiver for care  of individuals                                                                    
with  disabilities.  He noted  that  there  was a  need  for                                                                    
funding the  system itself to  support providers  across the                                                                    
state. He mentioned $100,000 in  funding for the Centralized                                                                    
Accommodation   Fund   for   employing  more   people   with                                                                    
disabilities in  state government.  He supported  Senior and                                                                    
Disability  Services grants  and  the  Aging and  Disability                                                                    
Resource Center.                                                                                                                
                                                                                                                                
1:21:43 PM                                                                                                                    
                                                                                                                                
BOB   SCANLON,  BLOOD   BANK  OF   ALASKA,  ANCHORAGE   (via                                                                    
teleconference), spoke in support  for the remaining funding                                                                    
in the  capital budget  to complete the  project of  a donor                                                                    
testing lab.  The funding  would be  leveraged by  the Blood                                                                    
Bank of Alaska  to end a vulnerability of  the states  blood                                                                    
supply with  a donor  testing laboratory. He  explained that                                                                    
donor  testing  currently was  done  out  of state  and  was                                                                    
experiencing  a  serious  bottleneck. He  mentioned  airport                                                                    
closures  and   aircraft  issues   that  caused   delays  of                                                                    
lifesaving blood  in hospitals.  He emphasized the  need for                                                                    
the blood bank to be self-sufficient.                                                                                           
                                                                                                                                
1:24:36 PM                                                                                                                    
                                                                                                                                
CHRIS   MELLO,  BLOOD   BANK  OF   ALASKA,  ANCHORAGE   (via                                                                    
teleconference),  testified in  support of  funding for  the                                                                    
donor testing lab.  He relayed that the blood  bank had been                                                                    
in operation  for 60  years in the  state, and  relayed that                                                                    
the  bank   had  an  all-Alaskan,  all-volunteer   board  of                                                                    
directors. He mentioned problems  because of weather delays.                                                                    
He  cited  that  there  were only  about  six  testing  labs                                                                    
throughout the  nation. He furthered that  the labs operated                                                                    
at  100 percent  capacity. He  discussed the  time-sensitive                                                                    
nature of  blood and blood testing,  which jeopardized blood                                                                    
supply if one testing lab went offline.                                                                                         
                                                                                                                                
1:26:07 PM                                                                                                                    
                                                                                                                                
KELLY  LESSONS,  ANCHORAGE   SCHOOL  BOARD,  ANCHORAGE  (via                                                                    
teleconference),  spoke in  support  of increased  education                                                                    
funding  with at  least $257  million of  additional funding                                                                    
for  FY 24.  She noted  that although  the Anchorage  School                                                                    
District   (ASD)   had   closed  schools   and   implemented                                                                    
efficiencies,  it could  not  balance FY  21  through FY  24                                                                    
budgets without  the assistance of  $100 million  from three                                                                    
rounds of federal  relief funds. She cited that  the last of                                                                    
the  relief funds  would  be used  to  retain teachers,  and                                                                    
without action ASDs  budget deficit  was projected to be $85                                                                    
million for FY  25. She asserted that  past legislatures had                                                                    
backfilled budgets with federal  relief funds. She mentioned                                                                    
school  closures, cuts  to teaching  positions, and  cutting                                                                    
administration. She  mentioned an increase  in pupil-teacher                                                                    
ratio. She  stressed that  all of  ASD's Covid-19  funds had                                                                    
been  expended. She  noted that  the Anchorage  School Board                                                                    
engaged in a transparent process.                                                                                               
                                                                                                                                
1:29:31 PM                                                                                                                    
                                                                                                                                
TOM    CRAFTON,   KEY    COALITION,    EAGLE   RIVER    (via                                                                    
teleconference),  supported  funding  to eradicate  the  IDD                                                                    
waitlist. He  supported $15 million  in funding  for service                                                                    
providers. He  discussed his background  and his  family. He                                                                    
mentioned that  his daughter was  a disability  advocate and                                                                    
being recognized for her work.                                                                                                  
                                                                                                                                
Senator Bishop handed the gavel to Senator Merrick.                                                                             
                                                                                                                                
1:31:51 PM                                                                                                                    
                                                                                                                                
STEVE ROLLINS,  SELF, ANCHORAGE (via  teleconference), spoke                                                                    
in support  of education  funding. He thought  education was                                                                    
important for  an expanding economy.  He shared that  he was                                                                    
the  head   of  the  University  of   Alaska/Alaska  Pacific                                                                    
University  Consortium Library.  He advocated  for increased                                                                    
Base Student Allocation (BSA) funding  as close to the $1000                                                                    
level  as  possible.  He  supported  funding  for  Statewide                                                                    
Library  Electronic Doorway  (SLED) and  the Alaska  Library                                                                    
Catalog (ALC). He supported the  addition of $635,000 to the                                                                    
operating  budget.  He  cited  that the  ALC  had  grown  to                                                                    
include  more than  90 libraries  covering  rural and  urban                                                                    
titles. He described the size  and use of SLED. He mentioned                                                                    
cuts to libraries.                                                                                                              
                                                                                                                                
1:34:13 PM                                                                                                                    
                                                                                                                                
DIRK  SHUMAKER,   KIDS  CORE  HEAD  START,   ANCHORAGE  (via                                                                    
teleconference),  testified  in  support  Head  Start  grant                                                                    
funding. He  described that  Head Starts   services included                                                                    
preschool and early  learning, developmental screenings, and                                                                    
support  for families.  He discussed  the accountability  of                                                                    
the  Head   Start  program.  He  supported   $5  million  of                                                                    
increased funding  for Head Start.  He noted that  wages and                                                                    
benefits  were  far  below K-12  education.  He  cited  that                                                                    
programs   were   understaffed   and  struggling   to   keep                                                                    
classrooms open. He discussed rent and utilities costs.                                                                         
                                                                                                                                
1:36:07 PM                                                                                                                    
                                                                                                                                
LAURA  BONNER, SELF,  ANCHORAGE (via  teleconference), spoke                                                                    
in support  of increased  funding for education.  She listed                                                                    
her  funding priorities:  increased BSA,  the University  of                                                                    
Alaska,  domestic violence  programs, reduction  of the  IDD                                                                    
waitlist,  a  reasonable   Permanent  Fund  Dividend  (PFD),                                                                    
federal matching programs,  workforce development, broadband                                                                    
access,   marine   highways,   ports,  and   UAs    deferred                                                                    
maintenance.                                                                                                                    
                                                                                                                                
1:38:21 PM                                                                                                                    
                                                                                                                                
GEORGE  HAYS, DEPUTY  MANAGER,  MATSU  BOROUGH, PALMER  (via                                                                    
teleconference), testified  in support  of full  funding for                                                                    
school  bond debt  reimbursement, community  assistance, and                                                                    
harbor  debt reimbursement.  He  cited  that the  Matanuska-                                                                    
Susitna  (Mat-Su)  Borough  continued   to  be  the  fastest                                                                    
growing borough in  the state. He expressed  support for the                                                                    
2024 Arctic Winter Games with  a $2 million appropriation to                                                                    
host  the games.  He  supported funding  to  start a  Mat-Su                                                                    
metropolitan  planning  organization,  which  would  support                                                                    
transportation planning.  He discussed capital  funding, and                                                                    
supported  transportation funding.  He  considered the  need                                                                    
for upgrades to roads in his area, which was growing.                                                                           
                                                                                                                                
1:40:24 PM                                                                                                                    
                                                                                                                                
ALICIA  AMBERG,  ASSOCIATED GENERAL  CONTRACTORS,  ANCHORAGE                                                                    
(via teleconference),  spoke in  support of funding  for DEC                                                                    
to assume primacy  over Section 404 of the  Clean Water Act.                                                                    
She relayed  that Associated  General Contractors  (AGC) was                                                                    
the  industrys   largest   professional  trade  association,                                                                    
representing over  600 contractors and  suppliers statewide.                                                                    
She asserted  that the economy  would benefit  from Alaskans                                                                    
permitting  projects  in  the state.  She  thought  in-state                                                                    
permitting  and  regulation  would  take  into  account  the                                                                    
unique  aspects   of  construction  in  the   state  without                                                                    
compromising  environmental   standards.  She   thought  DEC                                                                    
taking  primacy   for  the  program  would   strengthen  the                                                                    
permitting  process.   She  believed  a   state-run  primacy                                                                    
program would  improve access and thereby  communication and                                                                    
accountability. She considered that  the funds coming to the                                                                    
state  through the  Infrastructure Investment  and Jobs  Act                                                                    
(IIJA)  would bring  opportunities  to the  state but  would                                                                    
result in a significant backlog  in permits. She thought the                                                                    
state run program  would provide a high  level of regulatory                                                                    
certainty with reasonable timelines.                                                                                            
                                                                                                                                
1:43:07 PM                                                                                                                    
                                                                                                                                
COLLEEN DUSHKIN, ASSOCIATION  OF ALASKA HOUSING AUTHORITIES,                                                                    
ANCHORAGE  (via  teleconference),  testified in  support  of                                                                    
funding  for  AHFC  programs including  housing  development                                                                    
grants   for  the   supplemental  program,   senior  housing                                                                    
program,  and professional  housing  program. She  explained                                                                    
that  the Association  of Alaska  Housing Authorities  was a                                                                    
membership organization  of 14 regional  housing authorities                                                                    
that  provided  affordable  housing  and  services  for  196                                                                    
tribes across the  state. She discussed how  the grants were                                                                    
used  for infrastructure  development. She  mentioned growth                                                                    
in  the senior  population. She  discussed the  challenge of                                                                    
recruitment and  retaining of workforce, and  the barrier of                                                                    
availability of housing.                                                                                                        
                                                                                                                                
1:45:31 PM                                                                                                                    
                                                                                                                                
CHRIS KOLEROK,  COOK INLET HOUSING  AUTHORIZATION, ANCHORAGE                                                                    
(via    teleconference),   supported    affordable   housing                                                                    
development funding appropriated  through AHFC. He mentioned                                                                    
supplemental  grant  program  funding that  leveraged  other                                                                    
funds.   He  discussed   senior  and   professional  housing                                                                    
programs.  He  used  the example  of  how  the  supplemental                                                                    
housing  grant was  used  to leverage  other  funding for  a                                                                    
development  in Anchorage.  He discussed  the importance  of                                                                    
housing in the state.                                                                                                           
                                                                                                                                
1:48:16 PM                                                                                                                    
                                                                                                                                
SCOTT   VIERRA,   SELF,  ANCHORAGE   (via   teleconference),                                                                    
testified  in support  of DEC  assuming primacy  for Section                                                                    
404 of the Clean Water Act.  He was with North Star Terminal                                                                    
and Stevedore  Company, and  North Star  Equipment Services,                                                                    
which had  worked with the  petroleum industry.  He asserted                                                                    
that  if  404  primacy  was  implemented,  DEC  would  apply                                                                    
rigorous  standards and  would  do better  than the  federal                                                                    
government. He  referenced project delays. He  discussed the                                                                    
states   unique   landscape  and  construction   season.  He                                                                    
thought  the   state  had  an  excellent   track  record  of                                                                    
responsible resource development.                                                                                               
                                                                                                                                
1:50:52 PM                                                                                                                    
                                                                                                                                
JUDY  JESSEN,  POLITICAL  AND  ADVOCACY  ORGANIZER,  SERVICE                                                                    
EMPLOYEES   INTERNATIONAL   UNION    775,   ANCHORAGE   (via                                                                    
teleconference),  testified for  additional funding  for the                                                                    
Division  of  Senior  and  Disability  Services  to  support                                                                    
participant-directed   care  for   seniors.  She   discussed                                                                    
workforce challenges. She emphasized  the importance of home                                                                    
and community-based  services. She discussed the  expense of                                                                    
institutional  placement  versus  home  and  community-based                                                                    
services.                                                                                                                       
                                                                                                                                
1:54:01 PM                                                                                                                    
                                                                                                                                
MATT   CARLE,  BLOOD   BANK   OF   ALASKA,  ANCHORAGE   (via                                                                    
teleconference),  spoke   in  support  of  the   $2  million                                                                    
appropriation  for a  blood  donor testing  lab.  He was  an                                                                    
enrolled member of  the Tlingit and Haida  Tribes of Alaska.                                                                    
He  discussed the  need  for  self-sufficiency for  Alaskas                                                                     
blood  and blood  products. He  discussed rural  communities                                                                    
and access to blook supply under emergency conditions.                                                                          
                                                                                                                                
1:55:34 PM                                                                                                                    
                                                                                                                                
BETH   NORDLUND,   EXECUTIVE    DIRECTOR,   ANCHORAGE   PARK                                                                    
FOUNDATION,  ANCHORAGE  (via teleconference),  testified  in                                                                    
favor of funding  in the capital budget. She  noted that the                                                                    
Anchorage  Park Foundation  was  focused  on finding  local,                                                                    
private,  and state  funding to  match federal  funding. She                                                                    
listed foundation  projects including the Alaska  Long Trail                                                                    
Project,  the   Spenard  Railroad  Multi-use   Pathway,  the                                                                    
University and  medical district  trail system,  the Chester                                                                    
Creek  Greenbelt Park  and trail  enhancements, the  Russian                                                                    
Jack   Springs  Park   safety  improvements,   East  Chester                                                                    
Woodside  Park inclusive  playground,  and the  Takotna-Cook                                                                    
Inlet national heritage area.                                                                                                   
                                                                                                                                
1:56:44 PM                                                                                                                    
                                                                                                                                
ANDRES  WIDEMER,   SELF,  ANCHORAGE   (via  teleconference),                                                                    
testified  in support  of funding  for  eliminating the  IDD                                                                    
waitlist [via a communication support individual].                                                                              
                                                                                                                                
1:58:32 PM                                                                                                                    
                                                                                                                                
GINGER MCKEE,  SELF, TWO RIVERS (via  teleconference), spoke                                                                    
against  the $2.8  million  grant for  the  Two Rivers  Fire                                                                    
Department.  She  explained  that  Two  Rivers  was  a  fire                                                                    
service  area with  seated commissioners.  The commissioners                                                                    
had brought  forth a  budget that  was awaiting  approval by                                                                    
the  borough  assembly.  She recounted  that  the  Fairbanks                                                                    
North Star Borough Mayor had applied  for a grant for a fire                                                                    
station building,  water truck, and well  and water storage.                                                                    
The grant  would include a  level of service  for prevention                                                                    
and education.  She emphasized that  that Two Rivers  had no                                                                    
need  for the  services nor  the $2.8  million in  requested                                                                    
funding.   She   discussed    disagreement   between   local                                                                    
commissioners and the borough.                                                                                                  
                                                                                                                                
2:01:18 PM                                                                                                                    
                                                                                                                                
NICKY SZARZI, SELF, FRITZ  CREEK (via teleconference), spoke                                                                    
in  favor of  funding  for projects  in  Kachemak Bay  State                                                                    
Park. She  shared that she  was a volunteer with  Friends of                                                                    
Kachemak Bay State Park. She  noted that the park, which had                                                                    
71  miles of  trail had  only one  paid staff  in charge  of                                                                    
trails   and  no   paid  crew   for  trails   or  facilities                                                                    
maintenance staff. She explained  that two rangers and trail                                                                    
specialists  must  depend on  volunteers  for  a variety  of                                                                    
maintenance  tasks.   She  discussed   a  lack   of  project                                                                    
completion and  trail maintenance.  She asserted  that state                                                                    
parks  in Homer  received a  lot  of use  and provided  many                                                                    
jobs. She  discussed $50,000  to $100,000  in funding  for a                                                                    
seasonal  crew of  4 to  5 people.  She noted  that a  trail                                                                    
specialist could  apply for grants  if funded for  12 months                                                                    
instead of only 8.                                                                                                              
                                                                                                                                
2:04:08 PM                                                                                                                    
                                                                                                                                
KIMBERLY  SASSER,  SELF,   ANCHORAGE  (via  teleconference),                                                                    
spoke  in  support of  funding  to  raise rates  for  direct                                                                    
service providers. She supported  $15 million in funding for                                                                    
IDD.  She  cited  that she  had  intellectual  developmental                                                                    
disabilities  and  lived  in a  group  home.  She  discussed                                                                    
workforce challenges.                                                                                                           
                                                                                                                                
2:06:31 PM                                                                                                                    
                                                                                                                                
BERT  HOUGHTALING,  SELF,  BIG  LAKE  (via  teleconference),                                                                    
testified  in support  of  a budget  cap.  He was  concerned                                                                    
about the savings in the  Statutory Budget Reserve (SBR) and                                                                    
the Constitutional  Budget Reserve (CBR) being  expended. He                                                                    
supported defunding programs and  then rebuilding by funding                                                                    
only   essential  services.   He   wanted   to  follow   the                                                                    
constitution in explicitly  maximizing the states  resources                                                                    
for the benefit  of all citizens. He did not  want to follow                                                                    
federal policies  that came with  the use of  federal funds.                                                                    
He  supported  restructuring   Alaska  school  districts  to                                                                    
reduce  administrative overhead.  He supported  a return  of                                                                    
parental rights.                                                                                                                
                                                                                                                                
Senator Merrick  wondered whether Mr.  Houghtaling supported                                                                    
raising taxes in order to pay a larger PFD.                                                                                     
                                                                                                                                
Mr.  Houghtaling  replied  that he  supported  reducing  the                                                                    
budget and seeing accountability before supporting a tax.                                                                       
                                                                                                                                
2:08:55 PM                                                                                                                    
                                                                                                                                
MARGE STONEKING,  ADVOCACY DIRECTOR, AARP  ALASKA, ANCHORAGE                                                                    
(via teleconference),  testified in  support of  $647,800 in                                                                    
funding for  Senior and Disability Services.  She cited that                                                                    
nursing home  institutional care  for one Alaskan  at nearly                                                                    
$160,000 per  year cost  the state  and Medicaid  four times                                                                    
more than  a home  and community-based services  waiver. She                                                                    
thought the  waiver system was  at risk and  identified that                                                                    
the  state   was  experiencing   a  direct   care  workforce                                                                    
shortage.  The  shortage  was jeopardizing  the  ability  of                                                                    
people with disabilities and the  elderly to receive in-home                                                                    
care and avoid institutionalization.  She discussed aging in                                                                    
place and  participant-directed care. She mentioned  the IDD                                                                    
waitlist elimination.  She supported budget  intent language                                                                    
that the  funds were directed  to the directed  care service                                                                    
delivery  model. She  supported  $15 million  for grants  to                                                                    
senior centers and independent living centers.                                                                                  
                                                                                                                                
2:11:31 PM                                                                                                                    
                                                                                                                                
GEORGE  THOMPSON, PUBLIC  WORKS DIRECTOR,  CITY OF  HOUSTON,                                                                    
HOUSTON (via  teleconference), spoke  in support  of funding                                                                    
for a  natural gas  expansion project.  He mentioned  the 20                                                                    
percent poverty rate  in Houston and offsets to  the cost of                                                                    
heating. He supported $3 million  for a new fire station and                                                                    
public works facility. He thought  the gas expansion project                                                                    
would  lower the  cost of  heating  by 70  percent for  some                                                                    
people.                                                                                                                         
                                                                                                                                
2:13:10 PM                                                                                                                    
                                                                                                                                
CARLY  DENNIS, SELF,  ANCHORAGE (via  teleconference), spoke                                                                    
against DEC  assuming primacy  of Section  404 of  the Clean                                                                    
Water Act. She  asserted that assuming the  program would be                                                                    
very  costly  for  the  state.  She  referenced  DECs   2022                                                                    
funding  request  of 28  staff  and  cited an  estimated  $5                                                                    
million for  the program. She  noted that the Army  Corps of                                                                    
Engineers currently  ran the program  with 49 staff  with an                                                                    
annual  budget of  almost  $8 million.  She  thought only  3                                                                    
other  states had  assumed  the permitting  responsibilities                                                                    
due to the high cost, and  two of the states had experienced                                                                    
severe problems  with the programs.  She referenced  cuts to                                                                    
DEC programs such  as oil spill response  and Ocean Rangers.                                                                    
She thought  any future funding  cuts would result  in lower                                                                    
issuance of permits.                                                                                                            
                                                                                                                                
2:15:45 PM                                                                                                                    
                                                                                                                                
LESLIE DAVIS,  SELF, WASILLA (via teleconference),  spoke in                                                                    
support   of  increasing   funding   for  individuals   with                                                                    
developmental disabilities.  Her son experienced  Autism and                                                                    
other  conditions and  received  services  under a  Medicaid                                                                    
waiver for  a group home  and other mental  health services.                                                                    
She shared  a personal story. She  emphasized the importance                                                                    
of systems that provide services to vulnerable people.                                                                          
                                                                                                                                
2:18:17 PM                                                                                                                    
                                                                                                                                
BEVERLY  LUEDKE-CHAN, SELF,  ANCHORAGE  SKI CLUB,  ANCHORAGE                                                                    
(via teleconference),  testified in support of  six projects                                                                    
within Chugiak State  Park that were included  in the Alaska                                                                    
Long  Trail Project  in the  capital  budget. She  discussed                                                                    
needed  upgrades   to  the  Arctic  Valley   Trailhead.  She                                                                    
mentioned  other projects  in  the park,  which had  limited                                                                    
funds.  All of  the projects  addressed issues  in the  park                                                                    
including erosion and multi-use access.                                                                                         
                                                                                                                                
2:20:22 PM                                                                                                                    
                                                                                                                                
GABE KITTER,  SELF, WASILLA (via  teleconference), testified                                                                    
in opposition  to DEC assuming  primacy over Section  404 of                                                                    
the Clean  Water Act. He  thought the state should  focus on                                                                    
savings  and  spend  money  in   ways  that  benefitted  all                                                                    
Alaskans or offered a financial  return. He pointed out that                                                                    
the program  was currently run at  no cost to the  state. He                                                                    
thought the matter  should be addressed at a  later time. He                                                                    
did not think the proposed  $5 million was sufficient to run                                                                    
the program.                                                                                                                    
                                                                                                                                
2:22:24 PM                                                                                                                    
                                                                                                                                
TREVOR STORRS,  PRESIDENT AND CEO, ALASKA  CHILDREN'S TRUST,                                                                    
ANCHORAGE (via teleconference), spoke  in support of funding                                                                    
for the  childcare sector and  funding for programs  such as                                                                    
$5  million  for  Head  Start.  He  noted  that  Alaska  had                                                                    
struggled with one of the  highest per-capita rates of child                                                                    
maltreatment in  the nation. He  cited that  evidence showed                                                                    
that when  there were resources  and education  available it                                                                    
was possible  to reduce the  problem. He  thought prevention                                                                    
should be  a priority  and spoke of  the costs  of childhood                                                                    
trauma.  He   discussed  the  importance  of   a  functional                                                                    
childcare sector.  He supported a one-time  investment of at                                                                    
least $15 million for the childcare sector.                                                                                     
                                                                                                                                
2:24:34 PM                                                                                                                    
                                                                                                                                
KATHERINE  CRONLUND, SELF,  ANCHORAGE (via  teleconference),                                                                    
spoke in  support of funding for  individualized support for                                                                    
providers of services for people  with disabilities. She was                                                                    
the  parent and  caregiver for  two special  needs children.                                                                    
She discussed  the challenges  with finding  care providers.                                                                    
She  spoke of  the  advantages of  home and  community-based                                                                    
waivers, and of allowing family members to be care-givers.                                                                      
                                                                                                                                
2:26:35 PM                                                                                                                    
                                                                                                                                
RON  MEEHAN,  POLICY  AND ADVOCACY  MANAGER,  FOOD  BANK  OF                                                                    
ALASKA,   ANCHORAGE  (via   teleconference),  testified   in                                                                    
support  of  the   governors   amended  supplemental  budget                                                                    
proposals for  technology and  database upgrades,  and staff                                                                    
and  IT  workers  at  the Department  of  Health  (DOH).  He                                                                    
asserted  that  the  funding  would  help  get  through  the                                                                    
current  Supplemental  Nutrition Assistance  Program  (SNAP)                                                                    
backlog  and   would  help   prevent  future   backlogs.  He                                                                    
emphasized that  the SNAP backlog had  devastating to people                                                                    
across the  state. He cited  an outdated computer  system as                                                                    
one  of the  reasons  for  the backlog.  He  cited that  the                                                                    
Division   of  Public   Assistance   was  understaffed   and                                                                    
overworked,  and  hiring more  workers  and  IT staff  would                                                                    
reduce strain  and allow for faster  application processing.                                                                    
He  supported additional  improvements  to SNAP  eligibility                                                                    
processing. He discussed food distribution.                                                                                     
                                                                                                                                
2:29:11 PM                                                                                                                    
                                                                                                                                
WINTER  MARSHALL-ALLEN,  SELF, HOMER  (via  teleconference),                                                                    
spoke  in  support  of  a  one-time  increase  in  education                                                                    
funding and  funding for  IDD waivers.  She shared  that she                                                                    
was a  special education teacher  at Homer High  School. She                                                                    
mentioned  an  additional  $175   million  in  funding.  She                                                                    
expressed support  for discussions on the  education funding                                                                    
formula.  She   expressed  concern  about  a   reduction  in                                                                    
staffing. She supported diversification of state revenues.                                                                      
                                                                                                                                
Senator  Merrick noted  that the  proposed  funding of  $175                                                                    
million  outside  the BSA  had  not  received the  necessary                                                                    
three-quarters  vote, and  there  was  currently no  funding                                                                    
outside the BSA.                                                                                                                
                                                                                                                                
2:31:32 PM                                                                                                                    
                                                                                                                                
MARK    LACKEY,   CCS    EARLY   LEARNING,    WASILLA   (via                                                                    
teleconference),  spoke   in  support  of   early  education                                                                    
funding. He  relayed this his  program delivered  Head Start                                                                    
and early  Head Start  services. He  noted that  his program                                                                    
was never  able to fill the  needs of all eligible  kids. He                                                                    
discussed staffing  issues since  the Covid-19  pandemic. He                                                                    
referenced a message from the  federal funding partners that                                                                    
required serving  more children. He mentioned  $5 million in                                                                    
the House budget, which would be  a 20 percent match for the                                                                    
federal funds  coming to the  state. He urged  the committee                                                                    
to include the $5 million.                                                                                                      
                                                                                                                                
2:34:14 PM                                                                                                                    
                                                                                                                                
WES HOSKINS, MATSU TRAILS AND  PARKS FOUNDATION, PALMER (via                                                                    
teleconference), spoke  in support of the  Alaska Long Trail                                                                    
projects.  He explained  that his  foundation  was a  public                                                                    
foundation that  funded trails and  parks. He  discussed the                                                                    
growth of the  Mat-Su area. He mentioned 14  projects in the                                                                    
capital budget including  TPS number 67978 for  a study, and                                                                    
TPS  66755   for  trail  connections.  He   noted  that  the                                                                    
foundation  was  ready to  provide  matching  funds for  the                                                                    
projects.                                                                                                                       
                                                                                                                                
2:36:50 PM                                                                                                                    
                                                                                                                                
M.  ELISE HUGGINS,  PRESIDENT,  ALASKA  CHAPTER OF  AMERICAN                                                                    
SOCIETY    OF   LANDSCAPE    ARCHITECTS,   ANCHORAGE    (via                                                                    
teleconference), spoke  in support  of funding for  the Long                                                                    
Trail  project. She  noted that  landscape architects  did a                                                                    
lot of trail design  and recreation planning. She considered                                                                    
that the  project would help diversify  the states  economy.                                                                    
She used herself  as an example of funds  flowing into local                                                                    
economies through  trail use. She emphasized  the importance                                                                    
of  the projects.  She used  the example  of trail  users in                                                                    
Washington,  which supported  81,000  jobs  and resulted  in                                                                    
$8.2  billion contributed  by trail  users. She  thought the                                                                    
trail could be designed for all kinds of users year-round.                                                                      
                                                                                                                                
2:39:58 PM                                                                                                                    
                                                                                                                                
PAUL SEATON, SELF,  KACHEMAK (via teleconference), supported                                                                    
reduction of  the deficit  by adopting  the oil  tax reforms                                                                    
proposed  in  SB  114.  He  thought  the  revenue  would  be                                                                    
generated  by  treating  all  major  oil  producers  equally                                                                    
regardless of companies structure,  and would also lower the                                                                    
maximum  per-barrel tax  credit  from $8/bbl  to $5/bbl.  He                                                                    
spoke in opposition to DEC  assuming primacy for Section 404                                                                    
of the Clean  Water Act, and proposed moving  the $5 million                                                                    
to the Renewable  Energy Fund. He thought  assumption of the                                                                    
program  would result  in a  hit to  all future  budgets. He                                                                    
shared  concern  that the  404  process,  under the  states                                                                     
control,  would have  a lot  of leverage  to not  follow the                                                                    
standards.                                                                                                                      
                                                                                                                                
2:41:36 PM                                                                                                                    
                                                                                                                                
LISA   PAESANI,   SELF,  ANCHORAGE   (via   teleconference),                                                                    
requested $5 million  for Head Start. She spoke  of the need                                                                    
for employee  retention. She  advocated for  early childhood                                                                    
education. She noted that she  was on the board of directors                                                                    
for  Head Start.  She also  spoke in  opposition to  the 404                                                                    
Primacy permitting state takeover.                                                                                              
                                                                                                                                
2:43:28 PM                                                                                                                    
                                                                                                                                
RICHARD   GUSTAFSON,  SELF,   HOMER  (via   teleconference),                                                                    
testified  in  opposition  to  the  state  taking  over  the                                                                    
primacy of Section 404 permitting.  He also spoke in support                                                                    
of SB 114.  He discussed state funding  needs and emphasized                                                                    
that everyone pay their fair share.                                                                                             
                                                                                                                                
2:44:44 PM                                                                                                                    
                                                                                                                                
SUE  MAUGER,  SELF,  HOMER (via  teleconference),  spoke  in                                                                    
opposition to $5 million in  funding for the state to assume                                                                    
primacy  of 404  permitting. She  relayed that  she was  the                                                                    
science  and executive  director of  Cook Inlet  Keeper. She                                                                    
referenced  earlier testimony.  She  pointed  out that  only                                                                    
three  states  had  assumed   wetland  permitting  from  the                                                                    
federal  government, because  it  was currently  done at  no                                                                    
cost. She thought it was  unnecessary to bring a contentious                                                                    
process  into  the state  when  the  state was  experiencing                                                                    
difficulties  with the  retention  of  state employees.  She                                                                    
suggested  providing funding  to  incorporate public  notice                                                                    
and public comment on existing fish habitat permitting.                                                                         
                                                                                                                                
2:46:43 PM                                                                                                                    
                                                                                                                                
TIFFANY    HALL,    RECOVER     ALASKA,    ANCHORAGE    (via                                                                    
teleconference), spoke in support  of maintained funding for                                                                    
prevention,   treatment,   and    recovery   services.   She                                                                    
specifically supported  behavioral health and  public health                                                                    
Crisis  Now  continuum  of   care  grants,  maintaining  the                                                                    
behavioral  health   treatment  and  recovery   grants,  and                                                                    
supporting peer support certification funding.                                                                                  
                                                                                                                                
2:47:44 PM                                                                                                                    
                                                                                                                                
MICHELE   GIRAULT,   EXECUTIVE  DIRECTOR,   HOPE   COMMUNITY                                                                    
RESOURCES, ANCHORAGE (via  teleconference), spoke in support                                                                    
of  funding  for   developmental  disability  services.  She                                                                    
served  as the  board  president for  the  Key Coalition  of                                                                    
Alaska.  She  was  also  the  guardian  for  a  friend  that                                                                    
received  home   and  community  based   disability  support                                                                    
services.  She acknowledged  the  competing  demands of  the                                                                    
budget.  She mentioned  the Senior  and Disability  Services                                                                    
plan  to eradicate  the waitlist  for services  for Alaskans                                                                    
with disabilities, who waited an  average of five years. She                                                                    
supported  funds allocated  to further  support step  one of                                                                    
the  plan  to  eradicate  the  waitlist.  She  supported  an                                                                    
additional $15  million increment  to create a  bridge while                                                                    
DOH  worked towards  a better  rate restructuring  plan. She                                                                    
supported a smaller  PFD so the critical needs  of the state                                                                    
could be met.                                                                                                                   
                                                                                                                                
2:49:29 PM                                                                                                                    
                                                                                                                                
GEORGE  PIERCE, SELF,  KASILOF  (via teleconference),  spoke                                                                    
against  spending. He  contended that  the state  had relied                                                                    
heavily  on  revenue  from  oil  production  to  fund  state                                                                    
government, while also spending  from the Permanent Fund. He                                                                    
thought  there  were  loopholes  that  had  cost  the  state                                                                    
millions  of dollars.  He thought  there had  been excessive                                                                    
growth  of  government. He  was  concerned  about growth  in                                                                    
spending.  He  referenced a  spending  cap.  He thought  the                                                                    
budget  needed  a  balanced   approach  and  referenced  the                                                                    
volatility of oil  and gas revenue. He  thought the industry                                                                    
should be  taxed. He did  not think funding should  be given                                                                    
to non-profits and special interest groups.                                                                                     
                                                                                                                                
2:52:12 PM                                                                                                                    
                                                                                                                                
SUZI PEARSON,  ABUSED WOMEN'S AID IN  CRISIS, ANCHORAGE (via                                                                    
teleconference),  spoke  in  support  of funding  for  a  $3                                                                    
million one-time increment of General  Funds (GF) and a $3.5                                                                    
million  federal appropriation.  She noted  that the  Abused                                                                    
Womens   Aid  In  Crisis  (AWAIC)  was  the  only  emergency                                                                    
domestic  violence   shelter  in  Anchorage   that  included                                                                    
multiple  services. She  noted that  the largest  funder for                                                                    
AWAIC  was  the  Council  on Domestic  Violence  and  Sexual                                                                    
Assault  (CDVSA).  She   discussed  supports  through  AWAIC                                                                    
including  a 24-hour  crisis  support  line, and  referenced                                                                    
increasing demand.  She referenced  5 vacant  positions. She                                                                    
noted  that without  the proposed  increments, services  for                                                                    
victims  would be  $6.5 million  short from  previous years                                                                     
funding. She  requested that the  one-time GF be put  in the                                                                    
base  for  CDVSA,  and  additional  funds  to  address  flat                                                                    
funding.                                                                                                                        
                                                                                                                                
2:54:06 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:54:14 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator Merrick CLOSED public testimony.                                                                                        
                                                                                                                                
SB  41  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CSHB 39(FIN)  was HEARD  and HELD  in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CSHB 41(FIN)  was HEARD  and HELD  in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
2:54:56 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:54 p.m.                                                                                          

Document Name Date/Time Subjects